Latest delivery of watch parts in Geneva yesterday.
Let's look at the articles:
Definition of the Swiss watch
A watch is regarded as Swiss:
a. where the movement is Swiss;
b. where the movement is encased in Switzerland and
c. where the final adjustment by the manufacturer takes place in Switzerland.
So far so good you'd think? But wait what's a Swiss movement? Well let's look at article 2.
Definition of a Swiss movement
1 A Swiss movement is a movement which:
a. was assembled in Switzerland;
b. was adjusted by the manufacturer in Switzerland and
c. is of Swiss manufacture for at least 50 percent of the value of all the constituent parts, excluding the cost of assembly.
Hmmmm, so it could contain 349 Chinese parts and 1 part made in Switzerland depending on the 'cost'. So how do you define the cost. Let's look further:
2 For the calculation of the value of the constituent parts of Swiss manufacture according to the subparagraph 1 (c) above, the following rules apply:
a. The cost of the dial and the hands are taken into account only when they are set in Switzerland;
b. The cost of assembly can be taken into account where a procedure of certification provided for in an international treaty guarantees that, by virtue of a close industrial cooperation, there is equivalent quality between the foreign constituent parts and Swiss constituent parts.
Got it? Now, the present definition was written in 1972 and the world has moved on. But wait, the question is, does Switzerland actually want to do anything about this, or is it actually a profit opportunity?