Swiss Made rules for watches, explained

A legal designation, not a marketing claim

Swiss Made is protected by Swiss law. For watches, the rules are set out in the Ordinance on the Use of «Switzerland» or «Swiss» for Watches (SR 232.119), which was substantially strengthened by the revision that took effect in 2017. The Federation of the Swiss Watch Industry FH publishes a guide to its interpretation and actively pursues misuse of the label.

The rules apply to the product, not to the brand. A brand based outside Switzerland can sell Swiss Made watches if the watches meet the requirements, and a Swiss brand cannot use the label on watches that do not.

The five conditions for a Swiss watch

Under Article 1a of the ordinance, a watch is considered Swiss only if all of the following conditions are met:

1. Its technical development is carried out in Switzerland. For exclusively mechanical watches, this covers at least the mechanical construction and prototyping of the watch as a whole. For other watches, such as quartz or connected watches, it also covers the design of printed circuits, the display and the software.
2. Its movement is Swiss, according to the separate definition of a Swiss movement (see below).
3. Its movement is cased up in Switzerland.
4. The manufacturer carries out the final inspection in Switzerland.
5. At least 60% of its manufacturing costs are incurred in Switzerland.

The conditions are cumulative. A watch that is assembled and inspected in Switzerland but uses a non-Swiss movement, or that falls below the 60% threshold, cannot be marked Swiss Made.

What makes a movement Swiss

The movement is defined separately, in Article 2 of the ordinance. A movement is Swiss if:

• its technical development is carried out in Switzerland;
• it is assembled in Switzerland;
• it is inspected by the manufacturer in Switzerland;
• at least 60% of its manufacturing costs are incurred in Switzerland; and
• Swiss constituent parts, excluding assembly costs, account for at least 50% of the value of all its constituent parts.

Assembly in Switzerland is defined strictly: all the constituent parts of the movement must be assembled in Switzerland, with only a few subassemblies allowed abroad. For mechanical movements, the gear trains are the exception. A constituent part is itself considered Swiss if it is inspected by its manufacturer in Switzerland and at least 60% of its manufacturing costs are incurred there.

In practice, this is why the choice of movement comes first in a Swiss Made project. Browse the movement suppliers listed in our index.

What counts in the 60% rule

The 60% threshold is calculated on the manufacturing costs of the watch. According to the FH, the revised rules also take into account costs such as research and development and certification.

Article 2c of the ordinance excludes several items from the calculation:

• natural products that cannot be produced in Switzerland because of natural conditions;
• materials that are not available in sufficient quantities in Switzerland, up to their rate of unavailability;
• packaging;
• transport;
• commercialisation, marketing and customer service;
• the battery.

The list of materials not available in sufficient quantities is published by the watch industry, which must justify it. Check the FH guide for the current interpretation before you finalise your cost calculation.

Keep the documentation behind your calculation: invoices, the country where each component is made and inspected, and the costs incurred in Switzerland. If your Swiss Made claim is ever questioned, this is what you will need.

Swiss Made, Swiss movement and Swiss case

The ordinance distinguishes several designations. Using the wrong one, or the right one in the wrong way, is a common mistake.

• Swiss Made, Swiss, Switzerland and the Swiss cross may only be used for watches and movements that meet the definitions above.
• Swiss movement may be used on a watch that contains a Swiss movement but does not qualify as a Swiss watch. The word movement must be written in full, in the same typeface, size and colour as the word Swiss.
• Swiss case applies to the case alone. A case is Swiss if at least one essential manufacturing process (stamping, machining or polishing) is carried out in Switzerland, it is assembled and inspected there, and at least 60% of its manufacturing costs are incurred there. If Swiss case appears on the outside of a watch that is not Swiss, the origin of the watch or movement must also be visibly indicated.

If you want your case made in Switzerland, see the Swiss case manufacturers in our index.

Common misconceptions

• Swiss Made means 100% Swiss. It does not. The law sets minimum thresholds, and up to 40% of the manufacturing costs can be incurred elsewhere, as long as all the other conditions are met.
• A Swiss movement makes a Swiss Made watch. It does not. The movement is only one of five conditions; casing, final inspection, technical development and the 60% threshold for the whole watch also apply.
• Final assembly in Switzerland is enough. It is not. Casing and final inspection in Switzerland are required, but they do not replace the other conditions.
• The rules only matter for large brands. They apply to every watch marked Swiss Made, whatever the size of the brand or the production run.

What this means for your brand

1. Decide early whether you aim for Swiss Made, Swiss movement or neither: it shapes your choice of movement, suppliers and budget.
2. Ask each supplier which steps they perform in Switzerland, and which they subcontract abroad.
3. Make sure the technical development of your watch takes place in Switzerland, for example with a Swiss design office or private label manufacturer.
4. Build and keep a cost calculation that shows how you reach the 60% threshold.
5. Read the FH guide, and get professional advice if your case is not clear-cut.

For the full production process, from brief to delivery, read How to start a Swiss Made watch brand.