What's the impact of the new "Made in Switzerland" standard on the watch industry?

Made in Switzerland

According to a policy introduced by the Swiss Federal Council, from January 2017, products using the Swiss Made label will have to meet more stringent standards. The aim is to better protect the Swiss brand.

Newly implemented regulations show that, in the future, Swiss products, if they wish to continue using the famous Swiss cross logo, must meet two criteria:

1. It should be made in Switzerland;

2. 80% of the ingredients or raw materials must be produced in Switzerland.

Many Swiss manufacturers are still working hard to meet new demands, and each industry is looking for its own strategy. Take the cracker manufacturer HUG as an example, they switched from using imported sugar to using domestic sugar. The company has spent two years experimenting with various varieties of sugar to get the best taste.

Gerber's instant cheese fondue continues to use the Swiss label, even if it does not meet the 80% requirement. It contains white wine imports, and Gerber claims that the 35 million liters of the right quality wine they need is beyond Switzerland's comfort. The authorities accepted their reasons for breaking the example of the company. At present, 58 raw materials are included in a temporary list of exceptions either because they are not self-sufficient in Switzerland or not suitable for industrial standards.

Plant produce

So famous Swiss chocolate at home and abroad how to do? Switzerland can not grow cacao beans. Under such circumstances, the new law permits an exception to be made in Switzerland. After all, no one wants to take away its Swiss label for products that generate as much as 2 billion Swiss francs a year.

The famous Swiss watch industry has also been given special attention. In the past it was only required that the movement be made in Switzerland, and now 60% of the production process must be done in Switzerland. The technical development of the watch must also be done in Switzerland.

Water is a thorny issue because the government realizes that it is easy for manufacturers to meet the "Made in Switzerland" label as long as the product is produced locally against Swiss water in the product. But if you do not water, how to produce a beer come? Therefore, if the final policy requires that Swiss-made products be labeled "Swiss Made," water must be the main feature of the product, not just for dilution purposes.

Agricultural products (including milk and dairy products) from plants and animals must be 100% native to the Swiss region before they can be labeled with the Swiss label. For food, 80% of the raw materials must come from Switzerland. Commodities produced in the border areas, such as the Pays de Gex and Haute Savoie border areas (within France) are treated as exceptions. Other border areas may also include exceptions if they are farms run by Swiss farmers since January 2014.

For the industrial materials industry, "Made in Switzerland" labels are granted for applications where more than 60% of the cost of production is placed in Switzerland. At the same time, the new policy will also register the origin of nonagricultural products. For example, "Geneva" labels can be used for watches and "Valais" labels for mineral water.

Swiss companies do not have a legal obligation to label their products "Made in Switzerland". However, if used, the conditions in the new policy must be met.

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