¹ The term «watch» means the following:

a.

time-measuring devices intended to be worn on the wrist;

b.

devices whose main function is to measure time and whose movement:

1.

does not exceed 60 mm in width, length or diameter, or

2.

does not exceed 14 mm in thickness measured with the plate and bridges.

² When determining the width, length, diameter and thickness, only the technically necessary dimensions are taken into consideration.

³ The component that enables the watch to be worn is not included in the definition of the term «watch» specified in paragraph 1.

A watch is considered to be a Swiss watch if:

a.

at least the following elements of its technical development are carried out in Switzerland:

1. for exclusively mechanical watches: the mechanical construction and prototyping of the watch as a whole,

2. for watches that are not exclusively mechanical: the mechanical construction and prototyping of the watch as a whole, as well as the design of the printed circuits, the display and the software;

a^bis.

its movement is Swiss;

b.

its movement is cased up in Switzerland;

c.

the final inspection of the watch is conducted by the manufacturer in Switzerland; and

d.

at least 60 per cent of the manufacturing costs are incurred in Switzerland.

¹ A movement is considered to be a Swiss movement if:²

a.³

at least the following elements of its technical development are carried out in Switzerland:

1.

for exclusively mechanical watch movements: the mechanical construction and prototyping of the watch movement as a whole,

2.

for watch movements that are not exclusively mechanical: the mechanical construction and prototyping of the watch as a whole, as well as the design of the printed circuits, the display and the software;

a^bis.⁴

it is assembled in Switzerland;

b.

it is inspected by the manufacturer in Switzerland;

b^bis.⁵

at least 60 per cent of the manufacturing costs are incurred in Switzerland; and

c.⁶

the constituent parts made in Switzerland, excluding the cost of assembling them, represent at least 50 per cent of the value of all of the constituent parts.⁷

² To calculate the value of the constituent parts made in Switzerland in accordance with paragraph 1 letter c, the following rules apply:

a.⁸

a^bis.⁹

the cost of the dial is included if the dial:

1.

performs an electronic function for the watch, and

2.

is used to equip the watch with an electro-optical display or a solar module;

b.

assembly costs may be taken into consideration if a certification procedure provided for in an international treaty ensures that, as a result of close industrial cooperation, foreign and Swiss constituent parts are equivalent in quality;

c.¹⁰

the assembly costs taken into consideration may not exceed the value of the foreign constituent parts recognised as being equivalent that are incorporated into the Swiss movement concerned.

³ The provisions of the Additional Agreement of 20 July 1972¹¹ to the Agreement concerning products of the clock and watch industry between the European Economic Community and its Member States and the Swiss Confederation applies.¹²

Constituent parts are considered to be Swiss if:

a.

they are inspected by the manufacturer in Switzerland; and

b.

at least 60 per cent of their manufacturing costs are incurred in Switzerland.

A watch movement is considered to have been assembled in Switzerland within the meaning of Article 2 paragraph 1 letter a^bis if all of the constituent parts are assembled in Switzerland. Only the subassembly of the following constituent parts may be carried out abroad:

a.

for exclusively mechanical watch movements: the gear trains;

b.

for watch movements that are not exclusively mechanical:

1.

the electronic modules,

2.

the electro-optical display modules,

3.

the energy collecting module,

4.

the regulating organ,

5.

the gear trains,

6.

the motor or motors, including the rotors and coils they are made of.

Excluded from the calculation of the manufacturing costs are:

a.

costs for natural products which, due to natural conditions, cannot be produced in Switzerland;

b.

costs for materials which, for objective reasons, are not available in Switzerland in sufficient quantities, up to their unavailability rate;

c.

packaging costs;

d.

transport costs;

e.

costs for the commercialisation of the goods, as well as costs for marketing and customer service;

f.

the cost of the battery.

If the watchmaking industry publishes information in accordance with Article 52k of the Trade Mark Protection Ordinance of 23 December 1992² about materials that are not available in sufficient quantities in Switzerland, it shall ensure that such information is objectively justified. In the event of disagreement within the industry, it will consult with independent third parties.

¹ The following may be used exclusively for Swiss watches and Swiss watch movements:

a.

the designation «Switzerland»;

b.

designations such as «Swiss», «Swiss product», «Made in Switzerland», «Swiss quality» and other designations containing «Switzerland» or «Swiss» or designations that could be confused with them;

c.

the Swiss cross and other signs that could be confused with it.³

^1bis Swiss indications of source for specific activities in accordance with Article 47 paragraph 3^ter TmPA⁴ are only permitted if the indication is not understood by the relevant public as an indication of source for the product as a whole.⁵

² If the watch is not Swiss, the designations specified in paragraph 1 may still be placed on Swiss movements, provided that they are not visible to the buyer.

³ The indication «Swiss movement» may be placed on watches that contain a Swiss movement. The word «movement» must be written in full and must be of the same typeface, size and colour as the designation «Swiss».

⁴ Paragraphs 1 and 3 also apply when these designations are used either in translation or with the indication of the actual origin of the watch, or with the addition of words such as «kind», «type», «style» or other combinations of words.

⁵ In addition to the placing of these designations on the watch or its packaging, the following constitute use:

a.

the sale, the offering for sale or the placing on the market of watches bearing such a designation;

b.

the placing of these designations on shop signs, advertisements, prospectuses, invoices, business letters or business papers.

¹ A watch case is considered to be Swiss if:

a.

at least one essential manufacturing process is carried out in Switzerland (i.e. stamping, machining or polishing);

b.

it is assembled in Switzerland;

c.

it is inspected in Switzerland by the manufacturer; and

d.

at least 60 per cent of the manufacturing costs are incurred in Switzerland.²

² The designations specified in Article 3 paragraphs 1 and 4 may only be placed on watch cases intended for watches within the meaning of Article 1a.³

³ The indication «Swiss case» or a translation thereof may be placed on Swiss cases intended to be fitted to watches that are not Swiss watches within the meaning of Article 1a. Where such indications are placed on the exterior of the case, the origin of the watch or the watch movement must be visibly indicated on the watch.⁴

^4–5 …5

¹ The designations specified in Article 3 paragraphs 1 and 4 may only be placed on dials intended for watches within the meaning of Article 1a. ²

² The indication «Swiss dial» or a translation thereof may be placed on the back of Swiss dials intended for watches that are not Swiss within the meaning of Article 1a.

¹ The designations specified in Article 3 paragraphs 1 and 4 may only be placed on constituent parts intended for watches within the meaning of Article 1a.

² Swiss movement-blanks that are exported and watch movements manufactured using such blanks may bear the indication «Swiss parts».

Notwithstanding Article 3 paragraph 2 and Articles 4 to 6, watch cases, dials, watch movements and other constituent parts may bear Swiss designations of origin if they are:²

a.

exported individually as samples or collections of samples;

b.

manufactured in Switzerland and

c.

not intended for sale.

Any breach of this Ordinance is subject to the criminal provisions of the TmPA.

This Ordinance comes into force on 1 January 1972.