Annual Report 2013 - Federation of the Swiss watch industry FH

Annual Report
2013
The word of
1
the President
It gives me great pleasure
to introduce our «new-look»
Annual Report. After the
Revue FH in the spring of
2013, it’s now the turn of
this annual publication to
receive a facelift designed
to enhance our readers’
satisfaction. I hope you
enjoy the new format and
the information it contains.
In 2013, the Swiss watch
industry made steady progress in terms of export
growth, achieving record total export sales of 21.8 billion francs,
an increase of 1.9% compared to 2012. While this upturn is
below that of previous years, we are witnessing a return to
more normal rates of growth and any increase is good news
compared to existing levels, which are already very high. In volume terms however, at 28.1 million units, the trend is negative,
representing a decline of 3.6%, and this prompts us to remain
cautious and attentive. While Asia, albeit in decline, constitutes
the leading market for our branch, last year’s positive result is
attributable mainly to Europe, thanks in particular to Germany,
Italy and the United Kingdom.
The Swiss made project reached a decisive milestone with
the adoption by Parliament of the Swissness bill. In formal
terms, this entails a revision of the law on trademarks, which
provides in substance that the origin of an industrial product must correspond to the place where at least 60% of its
cost price is generated. The indication of origin must also
correspond to the place where the activity which gives the
product its essential characteristics was carried out. It is
now a question of applying these principles to watchmaking
products by revising the Swiss made ordinance.
China continued to occupy the centre stage with the signing
of a «Switzerland-China» free trade agreement in July. The
latter strengthens bilateral trade relations and provides a more
precise legal framework. We expect from this a reduction in
customs duties, effective rules of origin, and stronger protection of intellectual property. The FH remains committed to the
cause of free trade, particularly in the context of negotiations
with India and Russia.
On the international stage, the FH successfully fulfilled its
presidency and secretariat of the ISO/TC 114 Conference,
which was held in Tokyo in May 2013. This institution is
tasked with adopting or revising watchmaking standards in
order to harmonise technical processes and regulations internationally, thereby helping to reduce technical impediments
to the trade.
In March 2013, the FH also organised the Swiss Anti-Counterfeiting Day, under the aegis of Stop Piracy. Extensive media
coverage helped once again to raise awareness among all
concerned of the serious difficulties posed by fake goods.
By way of conclusion, I offer my warm thanks to our members and partners for the trust they place in our association,
as well as to our employees for their efforts and the quality
of their work.
Jean-Daniel Pasche
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Annual Report
2013
ISSN 1421-7384
The annual report is also available in French and German, upon request.
© Fédération de l’industrie horlogère suisse FH, 2014
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Table of contents
The word of the President
1
Highlights of 2013
4
Swissness - Swiss made: Strengthening and decisive step in 20136
Free trade agreements: China, India and Russia8
ISO/TC 114 - Horology: International Meeting in Tokyo
11
Swiss Anti-Counterferiting Day: Poster and film competition in support
13
Panorama of the 2013 activities
16
Improvement of framework conditions
18
Information and public relations 22
The fight against counterfeiting
25
Standardisation30
Legal, economic and commercial services
31
Relations with the authorities and economic circles
32
FH Centres abroad
33
The Swiss watch industry in 2013 34
Watchmaking Statistics
36
Structure of the FH in 2013 40
Summary of 2013
42
The General Meeting
43
The Board
44
The Bureau and Commissions
45
Divisions and Departments
46
The network of partners
48
Highlights
5
of 2013
Among the year’s highlights for the FH in 2013, one in particular deserves special mention: adoption of the Swissness
bill at a rate of 60%. After a six-year struggle, the FH is proud
of this result, the more so since it was virtually a lone voice
in the industrial world calling for this percentage. The FH is
also proud of the new free trade agreements signed in 2013,
particularly with China, where measures to free up access
to the market have taken great strides. Another highlight of
2013 was the 21st ISO/TC 114 - Horology Conference, which
brought together six participating countries in Tokyo and
allowed progress to be made on many draft standards. In
the fight against counterfeiting, the FH also organised the
Swiss Anti-Counterfeiting Day 2013 in collaboration with
the Fondation de la Haute Horlogerie (FHH), this year with
creativity as its theme. With the help of various schools of
watchmaking, films and posters resulting from the initiative
helped raise awareness among the public.
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Swissness - Swiss made
Strengthening and decisive step in 2013
By passing the Swissness bill on 21 June 2013, Switzerland’s
Parliament brought to an end a procedure lasting six years and
requiring a total of eleven votes, including those of committees.
Discussions have focused above all on the required minimum
rate of Swiss value, set at 60% in the Federal Council bill as
opposed to a rate of 50% advocated by opponents. It will be
remembered that the National Council adopted the Swissness
project in the Federal Council version in March 2012, whereas
the Council of States preferred the 50% version in December
2012. A new round of deliberations thus became necessary.
for the third time on the subject, also confirmed its previous
vote and approved the Federal Council bill by 11 votes to 1.
Thereafter, the full assembly of the Council of States had the
final say. Under pressure from all sides, the latter changed
its position of December 2012 by siding with the National
Council and approving the 60% version by 22 votes to 21, on
6 June 2013. At the same time, both Chambers ratified the
Swissness project in its entirety with a comfortable majority:
137 votes to 47 and 10 abstentions in the National Council,
and 26 votes to 13 with 6 abstentions in the Council of States.
This was set in motion once again by the Legal Committee of
the National Council (CAJ-CN). The latter, at its meeting of 10
January 2013, confirmed its previous year’s vote by adopting
the 60% version and rejecting the 50% variant by 12 votes to
11. The full assembly of the National Council did likewise on 11
March 2013, by 127 votes to 67. The decision then rested with
the Council of States. Its Legal Committee (CAJ-CE), ruling
In all modesty, we cannot emphasise enough what a success
this represents for the FH and its members who backed the
initiative, since our Federation was virtually a lone voice in
the industry calling for the 60% rate, in opposition to other
umbrella and sector-based associations. The issue also created a conflict with economiesuisse which was subsequently
resolved.
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For the FH, the adoption of Swissness was crucial since it was
a decisive step on the long road to strengthening the Swiss
made label which, as we have consistently pointed out, is in
the interest of our branch. We all know that this label exerts a
powerful attraction on consumers and is a forceful sales argument. Serious studies have demonstrated that consumers are
prepared to pay more for a Swiss made watch than for an identical product which is not Swiss made. The same studies confirm
that our customers expect a Swiss watch to incorporate a clear
preponderance of Swiss value; otherwise, they feel let down.
The FH receives complaints from such customers, who have
realised that their Swiss made timepiece was manufactured
for the most part abroad. This type of reaction will weaken the
label, if not discredit it entirely. A response was needed, and
hence our determination to succeed.
The Swissness project encompasses revisions of the law on
trademarks and the law on public coats of arms. The latter
regulates the use of national and cantonal coats of arms, and
in particular use of the Swiss flag and the Swiss cross. This
revision is not widely debated, since it is not contested. In
fact, it expressly authorises use of the national flag on Swiss
products. Hitherto such use was in principal prohibited, with
only a few exceptions. In future, Swiss products displaying the
Swiss cross will no longer be subject to controversy and that
is as it should be.
For its part, revision of the law on trademarks supplements
existing provisions governing indications of origin, particularly
by the addition of an article 48c for industrial products which
stipulates that the origin of industrial products must correspond
to the place where at least 60% of their cost price is generated.
Included in this calculation are manufacturing and assembly
costs, research and development costs, and costs relating to
quality control and certification, as prescribed by law or regulated uniformly at sector level.
Not included are the costs of natural products which cannot be
cultivated in Switzerland due to natural conditions, the costs of
raw materials which for objective reasons are not available in
sufficient quantity in Switzerland, packaging costs, transport
costs and marketing costs, for example promotional expenses
and after-sales service costs. The indication of origin must in
addition correspond to the place where the activity conferring
the product’s essential characteristics was carried out.
These rules apply to all industrial products, including those in
the field of horology (finished watches, movements, components, etc). Consequently, it is necessary to adapt the Fed-
eral Council ordinance regulating use of the name «Swiss» for
watches, the «famous» Swiss made ordinance. This is a task
for 2014.
It should also be noted that the Federal Council must revise or
adopt other ordinances, particularly those stipulating the entry
into force of both legislative revisions. The latter, as well as their
implementing ordinances, are expected to enter into force at
the end of 2015. Transition periods giving firms time to adapt
are also likely to be announced. If 2013 marks a decisive stage
in the strengthening of the Swiss made, a number of obstacles
still need to be overcome before key objectives can be attained,
not least revision of the Swiss made ordinance.
8
Free trade agreements
China, India and Russia
The conclusion of free trade agreements with Switzerland’s main
economic partners is a decisive step in helping to establish
favourable framework conditions for the export industry, and
therefore watchmaking.
In 2013, EFTA signed agreements with Bosnia-Herzegovina,
Panama and Costa Rica, whilst at the same time continuing
negotiations with Algeria, Guatemala, Honduras, the RussiaBelarus-Kazakhstan customs union, Thailand, India, Indonesia,
Malaysia and Vietnam.
Bilateral agreement with China
The year was marked firstly by the signing of the bilateral agreement with the People’s Republic of China.
Following the example of other export industries, the FH stayed
close to the heart of negotiations in order to assert the interests
of the branch, essentially in three strategic areas.
Firstly, the easing of restrictions on access to the market. By
value, finished watches account for 98% of Swiss watch industry exports to China. Under the terms of the agreement, such
exports will benefit either from complete abolition of customs
duties within a five to six year timescale depending on the
type of product, or from a staggered 60% reduction in duties
over ten years, with an initial 18% reduction applicable from
the entry into force of the agreement. More precisely, three
types of watches (automatic watches of precious metals and
common metals, and quartz watches with analogue displays),
which alone account for 90% of exports in value terms, will
benefit from this reduction. In concrete terms, customs duties
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on these products will fall from current rates of between 11%
and 12.5% to rates of between 4.4% and 5% by the end of the
adjustment period. Other abolition or reduction measures will
be applied to different clock and watchmaking products such
as alarm clocks, movements, exterior components, supplies,
etc. Only the bracelets of precious metal watches exported
separately will see their rates of customs duty maintained when
imported into China, however such products represent only a
tiny fraction of Swiss exports.
Secondly, the definition of rules of origin. These preferential
rules of origin determine, amongst other things, the criteria
that confer origin on a product in the eyes of customs (tariff
scale, sufficient operations, value). In the case in question,
and following the example of other existing agreements, the
FH argued for a minimum rate of originating value of 60% for
watch industry products, which rate was able to be incorporated in the agreement with China.
Thirdly, the protection of intellectual property rights. Even
though this will not resolve overnight all the problems arising
from counterfeiting, the agreement nonetheless provides an
important additional institutional framework whilst ensuring
improved legal safeguards. For the Swiss watch industry, this
means above all better conditions for the protection of trademarks and indications of origin (Swiss made).
Johann N. Schneider-Ammann and Gao Hucheng
The Swiss watch industry’s third largest customer, China thus
becomes the fifth Asian country to have signed such an agreement with Switzerland or EFTA, after Singapore, South Korea,
Japan and Hong Kong. Subject to ratification, this agreement
should enter into force in the middle of 2014.
Johann N. Schneider-Ammann
Formed as an adjunct to this agreement, the Sino-Swiss working group on horology for its part held its first meeting in Bern
in August, chaired jointly by Mr Gao and Mr Zhang on the Chinese side (Ministry of Industry and Information Technology and
China Horology Association) and Mr Billeter and Mr Pasche
for the Swiss (State Secretariat for Economic Affairs and FH).
There are many topics on the working group’s agenda and
this first meeting was devoted essentially to an examination
of respective legislations concerning the protection of intellectual property rights and geographical indications (Swiss
made, Made in China). Proposals were made by both sides to
strengthen the protection for rights holders (registered trademarks or models) and consumers.
10
India : the negotiations are speeding up, but…
At the end of 2013, negotiations aiming at a free trade agreement between EFTA and India gathered pace, offering the
hope of a possible conclusion in the early months of 2014.
However some important differences remain, particularly as
regards the application by India of the WTO agreement on
TRIPS (Trade-Related Aspects of Intellectual Property Rights)
notably in relation to patents, which nonetheless and to varying extents concern all exporting sectors.
From the start of negotiations in 2008, the FH has pressed for
important abolitions and reductions of import duties in India,
as well as customs rules of origin identical to those prevailing
in existing agreements (minimum 60% originating value), and
minimum compliance with TRIPS regulations. For the FH, this
last point is an unwavering principle, given its mission and its
determination to enhance the value and protection of intellectual
property rights (trademarks, models, indications of origin, patents). Similarly, the FH naturally expects a substantial easing of
restrictions on the Indian market where, as is widely known, a
whole series of domestic taxes is added to import duties.
Russia : bilateral agreement on the recognition of hallmarks enters into force
Signed in 2011, this agreement between Switzerland and
Russia entered into force on 2 August 2013. It stipulates that
articles of precious metals in the watch industry, officially
inspected and hallmarked in the producing country and meeting the legal prescriptions of the country of destination, are no
longer subject to inspection and hallmarking by the importing
country. In addition, it is no longer necessary to register the
maker’s mark in the country to which the goods are exported.
The agreement applies to wristwatches, pocket watches and
other portable timepieces, including chronometers with cases
of precious-metals (gold, silver, platinum, palladium) and their
alloys. This definition includes, firstly, watches fitted with bracelets manufactured entirely or partly from precious metals and
their alloys, and secondly, watches without bracelets. It does
not apply to other articles of precious metals (jewellery, writing
instruments) or to multi-metallic articles.
It should be noted that the signing of this agreement was a prior
condition stipulated by Switzerland to Russia’s membership of
the WTO, effective since August 2012. It therefore constituted
a long-term objective for the FH, in parallel with the granting
of tariff concessions by Russia and the simplification of procedures in the repair trade.
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ISO/TC 114 - Horology
International Meeting in Tokyo
The 21st ISO/TC 114 - Horology Meeting, held from 13 to 17 May
2013 in Tokyo, allowed experts from six delegations (Japan,
China, France, Hong Kong, United Kingdom and Switzerland)
to debate and move forward various projects in a convivial,
collaborative and consensual atmosphere.
Revision of the standard ISO 1413 - Horology - Shock-resistant
wrist watches was the main subject of work carried out during
the week. Among the envisaged modifications, a third shock
on the watch head is planned, more precisely on the crown,
together with additional so-called «free fall» shocks for the complete timepiece including the bracelet. It is worth noting also
that studies carried out on the sabot (the element that impacts
the watch during tests) have allowed the development of a new
composition of materials, thereby ensuring an excellent level of
repeatability of shock intensity and duration.
On the subject of hard materials, a draft Technical Specification,
produced by a working group composed of Swiss experts, was
submitted to the delegations present. This draft gave rise to
discussions which led to the finalisation of requirements, thanks
in particular to comments received from Chinese experts. Work
is therefore continuing at an international level and will be pub-
lished in the form of a Technical Specification, the interim stage
prior to preparation of a standard devoted to the exteriors of
watches manufactured from hard materials.
Batteries and cells, including those incorporated in watches,
are the responsibility of a different technical committee (IEC/
TC 35). A delegate expert was appointed, whose mission is to
pass on watchmakers’ specific requirements concerning batteries intended for timepieces, for example when a standard
is revised.
China, responsible for the technical subcommittee dealing with
table clocks an wall clocks, presented a new draft standard
concerning the accuracy of the latter. Accordingly, a working
group was formed to pursue this matter.
A number of laboratories were pleased to learn that standard ISO 3160-2:2003 Watch-cases and accessories - Gold
alloy coverings - Part 2: Determination of fineness, thickness,
corrosion resistance and adhesion, will be revised to include
the SEM/EDS analysis method as an alternative to cupellation.
This method has the advantage of bypassing the tedious task
of dissolving the substrate.
Experts from the Swiss delegation in session: Patrick Lederrey, Stephan Pfrommer, Pierre-Alain Vuille (Chief of the Swiss
delegation), François Aubert, Pascal Cartier and Denis Vincent
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Deviating from the strict framework of ISO/TC 114, the problem
of the application of standard EN 1811 concerning the nickel
release was discussed at a meeting tabled at the request of
Japanese experts.
By the end of this Meeting around twelve resolutions were
adopted, marking the progress of work carried out. It will be
noted in addition that all decisions were taken unanimously,
thereby avoiding the need for any subsequent discussions or
negotiations.
It was therefore on this positive note that the delegations took
leave of one another after agreeing to meet up again in the
spring of 2015 for the next ISO/TC114 - Horology international
meeting, which will take place in Switzerland.
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Swiss Anti-Counterfeiting Day
Poster and film competition in support
Each year, partners and members of the STOP PIRACY association, the Swiss body opposing counterfeiting and piracy, take
turns in organising a national event to raise awareness of the
damaging consequences of counterfeiting for the Swiss economy and consumers.
In 2013, responsibility for organising the event fell to the FH and
its watch industry partner the Fondation de la Haute Horlogerie
(FHH). Both wished to stage an action which was original and
spectacular. To emphasise the importance of cooperation in the
fight against counterfeiting, they played the card of collaboration
from the outset by associating other partners in the venture, in
this instance the pharmaceutical industry and the audiovisual
sector, represented by Interpharma, Swissmedic and the Swiss
Anti-Piracy Federation (SAFE). To give this initiative an international dimension the FH also invited foreign organisations to take
part, namely the Union des Fabricants, a French association with
an exemplary record in the fight against counterfeiting, and the
French National Institute of Intellectual Property (INPI).
The 2013 edition of Swiss Anti-Counterfeiting Day had creativity as its theme. The FH invited prestigious Swiss schools
of art and design and the general public to take part in three
competitions on the subject of counterfeiting. Students from
Geneva University of Art and Design (HEAD) and Geneva Film
School produced short films, while students at the University
of Art and Design Lausanne (ECAL) created posters. A film
competition was also launched on a specially dedicated website to encourage members of the public to join in. Entries were
assessed by a jury of eminent personalities.
Finally, several hundred people and many representatives of the
national and international press were invited to the University
of Art and Design Lausanne on 22 March 2013. On this occasion, the winners of the various competitions were presented
with magnificent Swiss watches. Guests listened to talks by
Jean-Daniel Pasche, president of the FH and chair of the competition jury, Philippe Leuba, Councillor of State for the canton of Vaud, and Anastasia Li, president of the STOP PIRACY
Speech from Jean-Daniel Pasche, President of the FH and chair of the competition jury
14
association. All three personalities underlined the importance of
the fight against an illegal activity which has acquired alarming
proportions, and reminded those present of the important role
of consumers in this struggle. Anastasia Li ended this part of
the talks by thanking «all those who do not wear counterfeit
articles and have no intention of buying any».
The event was widely reported in the press, with the daily «Le
Temps» in particular devoting a double page to the proceedings.
Moreover, thanks to superb collaboration with the audiovisual
sector, the best films of the campaign were able to be shown
in Swiss cinemas and on a number of private TV channels.
The main aim, to raise awareness of the damage caused by
counterfeiting among the Swiss population and young people
in particular, was thus achieved.
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Panorama of the
17
2013 activities
As the umbrella association of Switzerland’s third largest export
industry, the FH pursues multiple objectives: improvement of
framework conditions in Switzerland and the rest of the world,
measures to combat counterfeiting, support to its members
and information on their behalf, as well as to the media and
consumers. The pages that follow present a non-exhaustive
selection of the association’s activities in 2013.
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Improvement of framework
conditions
In 2013, in line with its objectives, the FH remained very active
in defending the interests of the branch in its dealings with
Swiss and foreign authorities. On this point, it paid particular
attention to various ongoing negotiations preparing the ground
for free trade agreements, either bilaterally or under the aegis
of EFTA (see section in Highlights).
In parallel, the FH also played a part in dealings with around
fifteen other countries, mainly - though not solely - on the
occasion of official missions by Federal Councillors and bilateral joint committees, or during visits to Switzerland by foreign
authorities. Conditions governing access to markets, the protection of intellectual property and temporary imports were
among the numerous subjects raised. The paragraphs below
provide a round-up, necessarily non-exhaustive, of activities
carried out to this end throughout the year.
Russia
memorandum that Kazakhstan should adhere to the Madrid
Convention on precious metals or sign a bilateral agreement
with Switzerland.
On the occasion of the eighth Switzerland-Kazakhstan joint committee, the FH applauded the recent signature by Kazakhstan
of the Istanbul Convention on temporary admissions. Subject to
the ratification process, it is hoped that use of the ATA Carnet
will enter into force on Kazakh territory next July. In addition, following the example of the agreement with Russia which entered
into force in 2013, Kazakhstan confirmed that it was ready
and willing to conclude a bilateral agreement with Switzerland
concerning the reciprocal recognition of hallmarks on articles
of precious metals. A priori, both watches and jewellery are
expected to be covered by this agreement. An initial meeting
of experts took place on the eve of the joint committee, which
included in particular a visit to the premises of the central
assay office in Bern.
Myanmar and Thailand
The progress of negotiations between EFTA and the RuBeKa
customs union (Russia, Belarus, Kazakhstan) was of course
examined at the fifteenth meeting of the bilateral joint committee. Specifically from the perspective of watchmaking, discussions focused mainly on a number of decrees outlining
consumer rights and ensuing warranty problems. According
to the Russian legislation in force, watches at present are not
included in the category of so-called «technically complex»
products, which gives consumers extensive, if not disproportionate rights, particularly with respect to refunds. In the light
of international practice in this area, the FH emphasised the
extent to which such provisions go too far and are potentially a
source of major abuse. It therefore reiterated its request to the
Russian delegation to include watches as quickly as possible
in the list of «technically complex» products and allow them
to benefit accordingly from warranty regulations prevailing at
an international level.
From 18 to 23 November, an economic mission led by Secretary of State Marie-Gabrielle Ineichen-Fleisch travelled
to Myanmar and Thailand. The FH was not present on this
occasion but asked for two issues to be raised. Firstly, that
Myanmar should ratify the Istanbul Convention on ATA Carnets. Secondly, as regards Thailand, the FH referred to the
ongoing negotiation of a Memorandum of Understanding on
intellectual property between itself and the Department of
Intellectual Property Thailand, with a view to improving protection for trademarks and their international designs, simplifying the fight against counterfeiting in the watch industry,
and strengthening collaboration with the Thai authorities. The
importance of this agreement for Swiss brands was pointed
out during the economic mission and a request was made for
it to be signed within a reasonable timescale.
Kazakhstan
Serbia
In April, Federal Councillor Johann N.Schneider-Ammann
made a trip to Azerbaijan and Kazakhstan. During his stopover in Astana, he submitted an FH memorandum to the Prime
Minister and to the Secretaries for Industry and the Economy
and Trade, outlining instances in which watches of precious metals or precious stones had been blocked by customs. This
intervention produced a very rapid effect and the goods were
unblocked shortly afterwards. The FH also requested in this
The Switzerland-Serbia joint committee met on 14 May. This
country has now officially submitted its candidacy to the
Vienna Convention on precious metals. Problems linked to
the non-recognition of CITES documents for watch straps
manufactured from crocodile hide were again raised during
this meeting, the Federal Veterinary Office being charged
with resolving any concrete problems with the relevant Serbian authorities.
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Vietnam
During the visit by Federal Councillor Johann N. SchneiderAmmann to Vietnam (24 to 26 October), the FH was consulted
in the context of an economic mission. On this occasion, our
association made clear its interest in the conclusion of a free
trade agreement between EFTA and that country, a step which
could lead to a significant reduction in customs duties for
watch industry products, currently set at between 15 and
20%. The FH also asked for Vietnam to sign the Istanbul
Convention on ATA Carnets.
Indonesia
From 26 to 28 October, the economic mission subsequently
visited Indonesia. Referring to the conclusions of the third
joint committee during which our Indonesian counterparts
declared - further to the FH memorandum of December 2011
- that they were ready to examine the possibility of cutting the
40% luxury tax on precious metal watches, the FH asked
The Brazilian delegation at the Espace horloger, Vallée de Joux
to be kept abreast of developments on this point. It also
reiterated its request to Indonesia concerning ratification of
the Istanbul Convention on ATA Carnets. Lastly, it asked the
country’s authorities to ensure compliance with the law on
geographical indications, which is still infringed by certain
companies, and mentioned the very large number of counterfeit watches circulating in Bali. The FH sought the active
participation of the Indonesian authorities in combating such
sales, not only at the island’s airport but also in the streets
and on beaches.
Brazil
The fifth Switzerland-Brazil joint committee met on 5 December in Bern. The Brazilian delegation was led by ambassador
Paulo Estivallet de Mesquita, head of the economic department of the Foreign Affairs Ministry. As well as difficulties
concerning access to the market, the FH returned to the overly - long timescale put in place for the implementation of
ATA Carnets in that country. In fact, Brazil ratified the relevant
20
Convention as early as May 2011, but has not yet designated
the indispensable national guarantor organisation. This step
is awaited with impatience, if for no other reason than the
approach of the planet-wide spectacle of the Football World
Cup in 2014.
Earlier in the year, the FH had organised a watchmaking day
on behalf of around twenty Brazilian parliamentarians visiting
our country. On this occasion, the Joux Valley was accorded
a place of honour, with tours of the Jaeger-LeCoultre manufacture and Joux Valley Watch Museum.
Mission by the president to Mexico
From 13 to 17 February, the president of the FH took part
in a mission by Federal Councillor Johann N. SchneiderAmmann to Mexico to discuss in particular the problem of
counterfeiting.
Mexico has adopted an open-door policy since the middle of
the 1980s, making it an export-oriented country. Of course,
apart from oil (sixth largest producer in the world), its economy is greatly dependent on the United States, which is the
destination for 80% of its exports and the source of 50% of its
imports. In addition, Mexicans living in the United States each
year send more than 20 billion dollars to their native country.
GDP has increased by nearly 4% in recent years and inflation remains moderate (between 3% and 4%). The Mexican
economy suffers however from a lack of competitiveness,
particularly on account of state monopolies in the fields of
energy (oil industry) and telecommunications. Fiscal reform
would also be a step forward.
EFTA, including Switzerland, and Mexico signed a free trade
agreement in 2000. Since then, trade between our two countries has steadily increased. The Swiss watch industry benefits fully from this agreement: Mexico is the leading Latin
American market for our branch, ahead of Panama and Brazil.
The value of our exports to Mexico, nearly 209 million francs
in 2013, is nearly four times greater than the corresponding
figure for Brazil.
However, not all is rosy in Mexico. Armed robberies targeting
retailers create insecurity on the market and risk impeding its
growth. Some retailers have abandoned plans to expand or
have reduced the degree of exposure of collections in shop
windows. Counterfeiting is rife in big cities and remains a
21
nagging problem. The FH organises training seminars for
customs and seizures, resulting in the destruction of fake
products. However, procedures remain time-consuming and
complex.
These points were raised by the FH at a meeting with the
Trade Committee of the Mexican Senate, chaired by senator
Hector Larios Cordoba, and during meetings with the Secretary for the Economy, Ildefonso Guajardo. Our counterparts
admit these problems. The fight against insecurity is one of
the priorities of the new government, which has made clear
its determination to enforce laws more strictly and coordinate
more effectively operations between federal and local police
in order to protect the population and allow commercial activities to take their natural course.
With respect to the fight against counterfeiting, too, the
determination exists to improve law enforcement. In addition, the «Trans Pacific Partnership» agreement - a kind of
future free trade agreement to be signed by countries on
the North American continent, including the United States
and Mexico - will impose stiffer obligations concerning the
protection of intellectual property. The Mexican authorities
see this as a mark of their efforts to ensure better protection
on the continent.
Mission by Federal Councillor Johann N. SchneiderAmmann to Mexico
During this mission, on behalf of the watch industry, it was
also noted that the ATA Carnet system does not function correctly even though it has been officially adopted by Mexico.
The dysfunction stems from failures on the part of the local
partner who is supposed to guarantee the carnet system in
the country. This point is being taken up with the help of
the Swiss ambassador to Mexico, with a view to remedying
the situation.
22
Information and public relations
Relations with the media
The FH remains a popular port of call for the media, which
seeks out its views on how the branch is performing or subjects
relating to the watch industry. For its part, the FH regularly
issues press releases.
Above and beyond regular contact with the specialist press
and many invitations to speak at watch industry events, particularly the SIHH in January and Baselworld in April, the
president gave interviews to the following media organisations:
ATS, Keystone-AWP, Revue Zurich Deluxe, 24 Heures, Tribune
de Genève, L’Express/L’Impartial, Bieler Tagblatt, Journal du
Jura, Le Temps, l’AGEFI, NZZ, Tages Anzeiger, Handelszeitung, PME Magazine, Canal Alpha (Neuchâtel), Radio Cité
(Geneva), Canal 3 (bilingual Bienne radio), RTS (French, German and Italian-speaking TV and radio), RJB (Berne Jura
radio), Telebielingue (Bienne regional television), Echanges
internationaux (France).
In addition, the president appeared and gave talks at various
forums: AMS Agro-Marketing Suisse, Diplomatic Group for
Economic and Commercial Affairs, OECD Group Switzerland,
Lions Club Geneva, China Forum Basel, Gymnasiens Bienne,
Swiss Chamber of Commerce in Milan, American Watch Association in Washington.
General Meeting
The 2013 General Meeting, held in Biel on 27 June, was attended
by FH delegates and members together with numerous guests.
The latter included Neuchâtel State Councillor Didier Berberat,
leader of the watchmaking parliamentary group, ambassador
Christian Etter, who is the Federal Council delegate for trade
agreements with the State Secretariat for Economic Affairs, and
Patrick Eperon, Secretary of the Employers’ Centre in Paudex,
as guest speaker.
Berner Dictionary
The FH continued the work of updating the Illustrated Professional Dictionary of Horology, better known as the «Berner
Dictionary». The project is led by the FH with the help of a
group of experts whose members are as follows: Estelle Fallet,
head curator of Geneva Museum of Art and History, Bernard
and Marlyse Muller, designers and authors of books on watchmaking, François Klopfenstein (ETA), Marco Richon, former
curator of the Omega Museum, Antoine Simonin, former director of Wostep and publisher of books on watchmaking, and
Jean-Pierre Golay (Franck Muller). The group is chaired by
Jean-Daniel Pasche (FH).
Watch industry statistics
Watch industry statistics were widely distributed and consulted
in 2013. Published every month, they were made available on
a range of media. The Internet and Extranet sites of the FH, as
well as its online statistics server, were the main distribution
channels for FH members, journalists, students and financial analysts in particular. The quarterly magazine Tendances
and half-yearly press releases brought the analysis of sectoral
trends to a wider audience. Watch industry statistics were also
requested from many private sources, illustrating the major
interest they generate.
Revue FH, Annual Report and website
General Meeting 2013 in Biel
2013 was a red letter year for the Revue FH, which received
a comprehensive facelift. Its presentation was entirely redesigned: it is now available in colour, is easier to read, and
presents its subjects in a less cluttered format. Its editorial
content has not changed and it still offers readers a broad
overview of watch industry news both in Switzerland and internationally (watch industry events, launch of new products)
and practical information such as extracts from the Trade
Register. It continues to be published at the rate of twenty
editions annually.
23
New presentation of the Revue FH
Meanwhile 850 copies of the 2012 Annual Report were distributed in a reversible French-German edition. Lastly, the website
www.fhs.ch continued to provide detailed, wide-ranging information not only to Internet users, but also and above all to FH
members through its Extranet.
Swiss Exhibitors’ Committee
As is the case every year, the Swiss Exhibitors’ Committee was
present at Baselworld through its information stand, the Swiss
Press Centre. In 2013, the event took on an entirely new configuration, with the main hall having undergone a complete transformation. Accordingly, the Swiss Press Centre was situated in Hall
5, alongside the Press Centre and information stands manned by
foreign delegations (Germany, France, Japan). In addition to its
usual promotional activities, carried out in collaboration with the
PR agency Darwel, the Committee proposed a range of new public relations tools (application for smartphones, presence on social
media), as well as the «Swiss Survival Kit», an implied reference to
Swiss values, distributed to around 3,600 accredited journalists.
Information stand from the Swiss Exhibitors’ Committee at
Baselworld
24
Think Time Think Swiss Excellence at the School of Watchmaking in Le Locle
Think Time Think Swiss Excellence
The FH travelling exhibition, Think Time Think Swiss Excellence, was made available to Le Locle School of Watchmaking from 21 October to 14 December 2013. During this two
month period, the establishment welcomed young people in
their final year of secondary school facing decisive choices
for their future careers, who were able to visit the school and
meet teaching staff. The presence of the exhibition, designed
precisely to raise public awareness of the Swiss watch industry, was therefore a boon for the institution in terms of getting
its message across. For the FH, it was a way of encouraging
the learning of watchmaking skills and promoting the activities of schools, not only with respect to students but also
among the public generally. At the same time, a new «long
duration» exhibition concept was inaugurated, an idea that
had previously lain dormant.
revised to make it easier to consult. The aim of this database
is to list events dedicated to watchmaking, jewellery and
associated branches around the world.
Show and exhibition database
The show and exhibition database, accessible in full on the
FH Extranet and in part on the website, was expanded and
The show and exhibition database on the FH Extranet
25
The fight against counterfeiting
Scope of activities
Through its Legal and Anti-Counterfeiting departments, as
well as its Internet Unit, the FH is closely involved in the fight
against counterfeiting. Reserved to members of the Anti-Counterfeiting Group (GA) and the Internet Unit, these services
include a number of activities: analysis of fake watches, protection of Swiss geographical indications, investigations on markets, defence of members’ intellectual property rights, awareness raising among authorities and the population, efforts to
prevent the online sale of counterfeit watches.
Since the GA publishes a separate annual report, we shall only
provide an overview of its activities here. However, anyone
interested in receiving more detailed information may request
a copy from the Legal Department.
Geographical indications
Synonyms of quality and corresponding to specific production
criteria, the geographical indications «Swiss» and «Genève» are
famous worldwide, particularly in a watchmaking context. Their
protection therefore accounted for a significant part of the
work and concerns of the FH during the year 2013. Through
its surveillance and its pro-active approach, the FH achieved
several notable successes. One criminal charge, filed against
a company in breach of the Ordinance regulating the use of
the name Swiss for watches, led for example to an agreement being struck, whereby the company in question was
required to modify all nonconforming parts and discontinue
the misleading use of the term «Swiss Parts» on timepieces
in all future production. Applications to register trademarks in
class 14 (watchmaking products) were also closely monitored.
Whenever the risk of misuse of Swiss names was suspected,
the FH was able to make a successful intervention. In more
than 87% of cases, either the registration application was
abandoned, withdrawn or refused, or the applicant signed an
agreement with the FH undertaking to restrict the use of the
trademarks concerned to products of Swiss origin in accordance with applicable Swiss law.
Brazil
In Brazil, various interventions made by postal offices led to
the seizure of more than 10,500 watches and components. To
prevent the release of these items, a complaint was filed on
behalf of around ten member brands of the GA. The FH will be
paying close attention to how this procedure unfolds in 2014.
Dubai
Because of its administrative laxity, Dubai remains one of
the preferred transit destinations for counterfeiters. In 2013,
the FH therefore continued its efforts to combat counterfeiting. Investigations carried out in this city made it possible
to locate clandestine premises used as storage warehouses
and sales offices. A number of raids carried out by the FH
in collaboration with its agent and the local authorities led to
the seizure of more than 90,000 counterfeit watches.
Spain
5’000 false clocks seized in Zürich
The aim of the programme of actions in Spain was to reduce
the visibility of counterfeit articles on tourist markets. In total,
31 notifications were made to the FH, taking to 929 the
number of seized counterfeit watches. While it is true that
in terms of quantity, this number does not reflect the size of
the counterfeiting problem in Spain, the programme’s objec-
26
tive was nevertheless attained. Indeed, with the arrest of 25
people, operations showed counterfeiters that the fight is
continuing and that they run the risk of arrest and sanctions
as a result of their illegal activity.
Bulgaria
The countries of Eastern Europe are also among the most
important targets in the fight against counterfeiting led by the
FH. In 2013, a record seizure took place in Bulgaria. Indeed
the customs authorities in Blagoevgrad took possession of
a truck en route from Greece containing more than 12,700
counterfeit articles intended for the European market. The FH
was responsible for informing brands and for administrative
management of the seizure.
Switzerland
In Switzerland, as part of its request for intervention, the FH
collaborated closely with customs. Between August and September nearly 9,000 counterfeit products, including 5,000
watches, were seized by customs at Zürich airport. Also from
Greece, these products were transiting through Switzerland
on their way to Spain and Portugal.
Hong Kong Watch & Clock Fair
Active for a number of years in a surveillance role at watch
exhibitions, the FH carried out more of this work in 2013.
Any infringement of an intellectual property right, trademark
or design belonging to a GA member was carefully listed at
the Hong Kong Watch & Clock Fair. In the final analysis, of
the 44 infringements identified by FH teams, 34 complaints
were upheld. It should be noted that the work initiated five
years ago is beginning to bear fruit and that, while the number
of imitations is still too high, slavish copies are now almost
non-existent.
Baselworld
At Baselworld, various actions were taken by the FH. Surveillance at Zürich and Basel airports led in particular to the
discovery of a consignment of 700 timepieces addressed
to a Basel hotel. Of this total, more than 320 watches were
seized for unlawfully displaying indications such as «Geneva»
«Swiss EB» and «Swiss made». The surveillance of exhibited
brands also revealed that around fifteen were in breach of
the rules. Thanks to this constant vigilance, the FH was able
to have the litigious pieces withdrawn from display cabinets.
Awareness raising and training of authorities
Finally, the FH worked closely with authorities to raise awareness and train staff. It is a fact that counterfeiting is adapting to
the rapidly changing world in which we live. This reality calls for
knowledge to be constantly updated. Since on-the-job training
is clearly desirable, the FH took part in a training workshop
for Belgian customs and police officers in Brussels, a training
session at Paris-Roissy airport for customs officers working
in the freight area, and a workshop for specialist government
officers in Dubai. These exchanges were very productive and
allowed participants to familiarise themselves in a hands-on
way with the most recent counterfeit watches.
27
Internet Unit
In the fight against counterfeiting on the Internet, the FH
adopts a global approach: it is necessary to attack the evil
by its roots.
Thus in 2013, thanks to a new initiative deployed in the United
States, the number of domain names seized by the Internet
Unit doubled compared to 2012. The operation was followed
by the freezing and confiscation of liquid assets on Paypal
accounts linked to the activities of the sites in question. The
costs of this action were therefore able to be reduced drastically through the award of more than 40,000 dollars. In addition, the Internet Unit now participates in ex officio seizures
of domain names carried out by Europol, in collaboration with
the American authorities.
The surveillance of websites dedicated to the sale of counterfeit products is making steady progress thanks to the WebIntelligence system, which on a weekly basis monitors a growing
number of such sites (approximately 6,000 websites at the
end of December 2013). Over the year as a whole more than
160,000 emails were sent by this system, resulting in the
closure of around one in every two sites, thereby increasing
the ratio while at the same time allowing constant monitoring to be maintained. In addition, analysis of data recovered
during such interventions made it possible to identify the
main hosts relied upon by counterfeiters and, as a result,
to initiate specific actions against the most recalcitrant of
their number.
With time, the systematic surveillance of small ads platforms
is beginning to bear fruit. Improvements have been noted
on some of the more problematic among them, such as the
Chinese site Paipai.com. This sends a clear signal which
encourages us to believe that counterfeiters will eventually
be banished once and for all, as their offers become less and
less visible, limited to fringe platforms on which buyers will
lack the confidence to make a purchase.
Collaboration of the FH with Europol
The Internet Unit also persevered in its fight on social networks,
particularly on the video sharing platform YouTube, insofar as
this is an important promotional tool for websites dedicated
to the sale of counterfeit products. Other media, in particular
Facebook and Pinterest, are used more for direct sales and
do not necessarily promote a particular website. However, in
general, collaboration with the legal departments of social networks is improving and notification procedures are becoming
faster all the time.
The principle issue of 2013 concerned new extensions (new
gTLD) of domain names, wherein the main problem for brands
is to find an optimal protection strategy at a reasonable
cost. The Internet Unit therefore kept its members regularly
informed of how the project was progressing and held several meetings specifically on this subject. The first extensions
were up and running at the end of 2013, with the remainder
scheduled for distribution in 2014 and 2015.
28
Technical analysis
In 2013, watchmakers in the Anti-Counterfeiting Department carried out technical analyses of 635 samples, i.e. 141
fewer timepieces than in 2012 (-18%). The results of these
analyses were recorded in 456 reports of origin, i.e. 77 fewer
than one year previously. The timepieces recorded infringed
the rights of 59 different brands (49 in 2012). The samples
examined in 2013 were seized or acquired in 15 countries
(23 in 2012). Watches and reports were forwarded to rights
holders, as well as to the organisations responsible for their
seizure.
The number of consignments is hard to pin down. Samples
are a direct result of seizures, which yield variable results
from one year to another. It would therefore be erroneous to
conclude, from the cases in question, that counterfeiting is
on the decline. On the contrary, the variation in the number of
brands affected is cause for concern. During the year under
review the increase was 20%, which gives a good idea of how
the work of prevention is broadening its scope.
Example of unlawful indication of origin
Added to copies of brands or models are false technical indications, mainly the label «Chronometer» or the Geneva Hallmark,
as well as false precious metal hallmarks. In recent years the
label «Chronometer», enjoying a renown which is now well established, has become highly coveted. In 2013, the FH recorded
109 cases of misuse, as well as derivatives of the term both
on watches and commercial documents accompanying the
timepiece (138 in 2012).
Misleading technical indication
Samples analysed by the Anti-Counterfeiting Department
As usual, the great majority of samples (83%) constituted
counterfeit versions of brands and/or models. The remainder comprised unlawful indications of origin, i.e. timepieces
displaying a false indication of Swiss origin («Swiss made»,
«Made in Switzerland», or a derivative such as «Geneva»). For
the latter, the Anti-Counterfeiting Department prepared 56
reports in the year under review (63 in 2012), examining 109
samples (91 in 2012).
In addition, as well as reports of origin, the Anti-Counterfeiting
Department issued 12 summary reports (15 in 2012). Based on
a body of at least 15 timepieces, these provide a statistical overview of counterfeiting by brand and by model, thereby providing
more food for thought as to how the prevention strategy pursued
by affected companies can be improved. In parallel, they also
allow risk analysis forms used by Swiss and foreign customs
authorities to be updated, as well as requests for intervention.
These forms illustrate, for each brand, models considered to
be at risk (statistically the most frequently counterfeited) and
their origin, with a view to helping customs put in place better
targeted, and therefore more efficient controls.
29
Technical analyses: monthly distribution in 2013
As well as its «routine» analysis activity, the Anti-Counterfeiting Department continued its «fundamental» research
in collaboration with students at the School of Criminal Justice of the University of Lausanne. In the year under review,
the group focused on the chemical analysis of counterfeit
watches. In other words, is it possible to unearth clues about
the structure of counterfeiting networks by examining the volatile constituents of counterfeit bracelets? With this investigation now over, it appears that the basic hypothesis holds true:
the chemical profile extracted from volatile constituents can
be used to establish links between different watches, thereby
providing additional information about the structure of networks involved in the production of fake watches. This work
opens new avenues of investigation which will be explored
further in 2014.
In terms of logistics, the Anti-Counterfeiting Department took
advantage of the summer period to modernise its workshop,
replace its measuring tools and update its image capturing
software. Operational for the past fifteen years and used
intensively, the existing systems were suffering from natural
wear and tear and as a result losing their accuracy and reliability. Replacement of the old equipment with a latest-generation system was long overdue. In parallel, a new database
was put into service by the IT Department.
Fake watches: country of origin (source: Taxud / FH)
30
Standardisation
The Standardisation Committee (CN), responsible for national
standards (NIHS), met four times in 2013 to monitor and steer
a number of projects. Among the latter, several achieved
notable progress. The standard NIHS 07-02 - Technical drawing was finalised. The draft standard NIHS 61-30 – Sapphire
watch glasses - anti-reflective coatings is in its final phase.
The standard NIHS 96-50 - Process to estimate the resistance
to chemical and climatic agents of an horological external
part was translated into English, thereby allowing it to be
referenced internationally (ISO). Work on the new collection
«Extracts from Standards used by the Swiss Watch Industry»
continued. The principle new feature is to have two separate books, one oriented mainly towards watch construction,
the other more focused on notions of quality and reliability.
Boxes of colour samples of gold were a great success again
this year, with all available stocks exhausted. In addition,
a working group was formed to examine new concepts for
these samples, in parallel with revision of the standard ISO
8654 - Colours of gold alloys - Definition, range of colours
and designation.
In 2013, seventeen standards were examined by different
watch industry experts. Fourteen were confirmed for ten
years. The standard NIHS 91-30 - Definition of linear accelerations encountered by a watch bracelet during sudden
gestures and shocks when being worn will be revised, while
the standards NIHS 04-05 - Determination of tolerances
and NIHS 98-10 - Test and measuring methods intended for
quartz at 32 kHz for wristwatches and normal values were
removed from the NIHS collection.
An initial meeting of the restricted committee, held on 11
November in Winterthur, brought to light various letters
requesting a revision of the aforementioned standard. At
the suggestion of the president, a vote to this end was initiated at the end of November. If approved by the members
of CEN/TC 347, work to revise the standard could begin in
the near future. In anticipation of this decision, a working
group including several Swiss experts was set up to prepare
necessary arguments supporting the interests of the Swiss
watch industry during working sessions.
The NIHS Department is entrusted by SNV with the secretariat of the interdisciplinary committee INB/NK 164, which
is in fact the mirror committee of European or international
committees (CEN and ISO respectively). On that account it
is responsible, in collaboration with the experts concerned,
for coordinating votes initiated by these committees and forwarding to SNV a position which is representative of Swiss
industry as a whole. During the year, more than fifteen votes
were coordinated in this way.
In terms of international standardisation, the year 2013 was
notable mainly for the ISO/TC 114 – Horology conference,
which took place in May in Tokyo (see under Highlights).
On a final note, the ISO/TC 114 family welcomed two new
members, Armenia (participant) and Austria (observer). In
addition, Switzerland was designated as organiser of the of
the next International Meeting which will be held in 2015.
The Standardisation Committee also took note of the resignation of Yves Corthésy, replaced by Luca Verardo, of TAG
Heuer.
2013 provided a new opportunity for the Swiss watch industry
in the realm of European standardisation. Indeed at the start
of the year, the members of CEN/TC 347 - Methods for analysis of allergens learned of the resignation of the president
and secretary. A proposal was quickly made for the work of
this committee to be resumed under Swiss leadership (via
SNV), with the support of the FH. After the FH Board gave its
approval, approaches made resulted in the secretariat being
assigned to SNV, and a few weeks later the election by members of CEN/TC 347 of Patrick Lötscher, head of the NIHS
Department, as president. For information, this committee
is responsible for preparing standards concerning methods
for the analysis of allergens, in particular the standard EN
1811 concerning the nickel release.
New NIHS logo
31
Legal, economic and commercial
services
Legal services
As usual, the year 2013 was very eventful for the FH Legal
Department. Three examples among others bear this out.
On the subject of dangerous substances, the FH strengthened
its surveillance activities under the REACH regulations. The
latter already limit the use of lead and cadmium specifically
for watchmaking products. At present the community legislator
is supplementing this regulation, in particular with regard to
watch bracelets, by introducing an additional restriction concerning eight polyclinic aromatic hydrocarbons (PAH). These
are generated during the incomplete combustion of organic
matter and are found in oil derivatives such as plastics. Since
this regulation impacts on the Swiss watch industry, the FH
intervened within the framework of the consultation procedure. Other planned restrictions and authorisations, particularly regarding the restriction of chromium VI in leather articles
in contact with human skin and hexavalent chromium salts,
are being monitored very closely by the FH and its Legislative
Watch Commission.
In 2013, the problem of how watches worn (but not owned)
by employees is dealt with by customs was also at the heart of
discussions between the FH and the Federal Customs Administration. Such watches are articles made available by a watchmaking company to its employees for purposes of testing or
commercial representation. In Switzerland, they are not considered to be personal effects but are nonetheless subject to
the system of temporary exports and imports. As such, they
must be notified by means of a customs declaration of temporary admission or an ATA carnet. This procedure must be
followed whenever a person passes through customs. Where
applicable, the fine for employees in breach of the regulations
can be as much as five times the VAT amount, combined with
a possible entry on their criminal record. To find a more flexible
system, the FH approached the Federal Customs Administration and an agreement covering the issue was prepared. FH
members can avail themselves of the latter, which now permits
watches worn but not owned by employees to be considered
as personal effects. This eliminates the need for a customs
declaration; the employees concerned can now walk through
the «green channel» at airports.
Finally, the FH also examined the revision of the Swiss law on
cartels. The Council of States took important decisions on this
subject in March 2013. Firstly, it rejected the idea of creating a
Federal Competition Court, and secondly it approved the professionalization of COMCO. It also maintained the principle of
prohibiting certain types of agreement (horizontal agreements
on prices, quantities and geographical distribution, vertical
agreements on prices and territorial divisions) and introduced,
somewhat unexpectedly, a new article 7a intended to combat unlawful obstacles to purchases made abroad. Recently
however, the Economic Commission of the National Council
decided to recommend that no action should be taken regarding the draft revision. The latter, initiated precipitously and
under the effect of pressure induced by the strong Swiss franc
during the economic crisis, is therefore increasingly contested
and highly disputed by different groups.
As part of its activity in 2013, it should also be noted that
the FH Legal Department travelled to Brussels to defend the
interests of the branch among departments of the European
Commission, in the context of the European directive on waste
electrical and electronic equipment and the new directive on
batteries. It also visited Paris in order to discuss with French
customs the hallmarking of precious metal watches, with a
view to helping FH members to export this type of timepiece
to France. In addition to these trips, the Legal Department
took part in numerous national and international consultation
procedures, particularly in the framework of the new Swiss law
on money laundering, the agreement on mutual administrative
assistance between Switzerland and the United States, and a
Switzerland - European Union agreement on REACH.
32
Relations with the authorities
and economic circles
Watchmaking associations
In keeping with a tradition which now dates back fifteen years,
the FH invites watchmaking associations from watch producing countries to a meeting at Baselworld. While this courtesy
gives different associations the chance to meet one another, it
also provides an opportunity for discussions to take place on
economic developments and issues affecting the watch industry worldwide. This year, the meeting brought together delegates from the following countries: Germany, China, France,
Hong Kong, Italy and Japan. Delegations from the United
States and Spain sent their apologies.
As well as developments on the business front, participants
also examined the Swissness project, as well as the revised
standard EN1811 on reference test methods concerning the
release of nickel.
economiesuisse
After resigning from economiesuisse in February due to profound differences concerning the Swissness project, the FH
went back on its decision in November and decided to remain
a member. For the one part, the Swissness bill was passed.
Secondly, the FH Board recognised efforts made by the economy’s umbrella association, which took account of criticisms
levelled against it and corrected mistakes that had been made.
The FH is represented on the following bodies: general
meeting, executive committee, steering committee, council of directors of associations, WTO working group, working
group on customs and origin related issues, expert group on
intellectual property, working group on economic questions,
expert group on relations with the European Union, competition commission.
Standing Committee on European
Watchmaking
Since 1st January 2013, in keeping with the articles of association, the FH has taken over for three years the presidency and
general secretariat of the Standing Committee on European
Watchmaking (CPHE). Chaired by Jean-Daniel Pasche, the
Committee met on two occasions during the year, in Basel at
the time of Baselworld, and in Besançon on the occasion of the
International Chronometry Contest awards ceremony.
The work of the CPHE was of course marked by the adoption in
June of the Swissness bill, the latter being decisive for revision of
the Swiss made ordinance for watches. In concrete terms, the
CPHE discussed in detail the genesis of Swissness, i.e. more
than six years of work all told, to ensure that this bill, for the one
part, and the forthcoming revision of the Swiss made ordinance
for the other part, take into account the interests of European
watchmaking in the context of free trade agreements signed
between Switzerland and the European Union. In Besançon,
the European delegation finally confirmed its readiness not to
oppose revision of the ordinance and in particular the minimum
rate of Swiss value of 60%.
During the year, the CPHE also discussed many European and
Swiss regulatory subjects. The main items included the revision of
the European standard EN1811 concerning the release of nickel,
the revision of the European directive on batteries, the marking
of precious metal watches in France, and the application of the
directive on waste electrical and electronic equipment.
Watchmaking parliamentary group
The watchmaking parliamentary group met twice, on 5 March
in Bern and on 30 April in conjunction with Baselworld. These
meetings allowed representatives of the Swiss watch industry
to take stock of developments in the sector and examine the
problem of strengthening the Swiss made label in the context
of the Swissness project.
Standing Committee on European Watchmaking in Besançon
33
FH Centres abroad
FH Centre in Hong Kong
As usual, the FH Centre in Hong Kong worked extensively on
behalf of the branch and members of the association. It gave
concrete support to more than 50 delegates of FH members
travelling in the region, as well as to their Asian representatives.
This regular assistance covers areas as varied as facilitating
contact between commercial or industrial partners in Hong
Kong, China and elsewhere in the region, the search for qualified personnel, help with establishing companies, and personal
accompaniment during visits to markets in South East Asia.
Around fifteen trips were organised along these lines during the
year under review (China, Vietnam and South Korea amongst
others). Promotional events organised in this part of the world
were also closely monitored.
Ayako Nakano, director of the FH Centre in Tokyo from 2014
In parallel, the FH Centre increased its contacts with the media,
local professional organisations, and diplomatic authorities and
representations in the region as a whole, particularly in Hong
Kong, Beijing, Guangzhou and Bangkok.
Lastly, throughout the region, the Hong Kong Centre followed
up many requests from FH members concerning legal matters and measures to combat counterfeiting. In particular, it
offered its support and expertise to numerous brands applying
for registration with Chinese and Korean customs. Similarly, it
conducted several tens of investigations into local companies
and each month filed one or more objections to trademark
applications in class 14 (watchmaking), both in Hong and elsewhere in the region.
FH Centre in Tokyo
In addition to its usual activities supporting FH members and
maintaining relations with the media, local professional organisations and diplomatic representations, and various requests
from Japanese individuals or firms, the FH Centre in Tokyo
worked very hard in 2013 to raise the profile of the Swiss watch
industry among Japanese consumers. In particular it organised
a seminar on the maintenance of watches which provided practical advice about the daily use of watchmaking products and
the need for them to be serviced regularly. It also supported
and took part in the Watch Festival Tokei Festa, the first edition
of which was held in 2012. This provided an opportunity to
present the activities of the FH and more particularly the Tokyo
Centre, as well as the Swiss watch industry in general. As part
of this festival a number of events were staged for the benefit of
consumers, to which retailers and watch repairers were invited.
The Centre had to deal with an increasing number of problems
relating to repair work, with certain brands no longer assuring
the maintenance of old models. For this reason it continues
to manage the Taga Watch Center after-sales service pool. A
website in Japanese dedicated to after-sales service was also
created.
The Centre began the work of updating the brochure in Japanese presenting the Swiss watch industry, the first version of
which dates from 2005. This is intended for consumers and
sales staff. In addition, it helped to prepare the 2014 Consumer
Survey, the results of which will be published to coincide with
Baselworld.
In view of the commemoration in 2014 of the 150th anniversary
of diplomatic relations between Switzerland and Japan, the
Centre approached the chain of Tobu department stores with
a view to staging the Think Time Think Swiss Excellence exhibition as part of the 2014 World Watch Fair in August.
Following the decision by the director of the FH Centre in Tokyo,
Maki Onjo, to live with her family outside Japan, the FH invited
Ayako Nakano to take over the reins from 1st January 2014. The
FH would like to thank Maki Onjo warmly for her dedication
and commitment on behalf of the Swiss watch industry over
the past five years and wish her the very best for the future.
The Swiss watch
35
industry in 2013
36
Watchmaking Statistics
General situation
Exports of wristwatches
Over the year 2013 as a whole, growth slowed distinctly compared to previous years but did not disappear. On the contrary,
it allowed the branch to consolidate its recent results at a high
level.
Watches accounted for nearly 95% of the total value of exports
in 2013, recording growth of 2.0% to 20,6 billion francs. In
volume terms, Switzerland exported 28,1 million timepieces.
This represents a downturn of just over one million units
(-3.6%) compared to 2012. Despite the second consecutive
annual decline, the level remains well above the average for
the past ten years.
Growth was penalised by only three markets, however the
weight of these was considerable. One such was China, which
recorded not just a decline, but probably a turning point in
its evolution, an observation that required the FH to make an
exceptional adjustment to its forecasting model. The very high
rates of growth of the past decade now seem less achievable. It
should be noted however that this applies only to Switzerland’s
direct exports to China, and that an increasing number of Chinese customers are purchasing their watches abroad. There
can be no doubt therefore that this group of buyers will continue
to be highly placed in the portfolio of the Swiss watch industry.
Swiss watch exports
Growth slowed quickly in the first half-year, which recorded a
variation of +0.7% compared to January-June 2012. Exports
showed an improvement in the second half of the year, with
an upturn of 3.0%. Over twelve months, the value of exports
stood at 21,8 billion francs. This figure exceeds the performance achieved in 2012 by more than 400 million francs and
corresponds to an increase of 1.9%.
Exports of wristwatches (in billion francs)
As in 2012, mechanical watches showed a positive trend, while
quartz products lost ground. The former not only recorded
an increase in value terms (+4.5%), but also by volume, to a
quite marked extent (+8.2%). At the end of 2013, the total
amounted to 560,000 more units than in 2012. Electronic
watches accounted for less than a quarter of export sales, but
nearly three-quarters by volume. Their value fell by 5.8% and
the number of units by 7.3%.
As a consequence of these variations, the average price of
exported watches continued to rise. In 2013, it stood at 733
francs, i.e. an increase of 5.9% compared to 2012. It has
doubled in the space of 12 years.
Exports by materials
Swiss watch exports (in billion francs)
For the year as a whole, steel watches (+4.9%) were the
main source of growth in value terms. Platinum timepieces
(+20.5%) also strongly supported this trend. By contrast, gold
and bimetallic watches (-1.6% and -3.3% respectively) registered downturns. Half of materials registered declines in
volume terms. Among the main underperformers, the category
37
of other metals (-28.0%) weighed heavily in the balance, likewise the category of other materials (-8.4%). The magnitude of
their decline was such that the rise in steel watches (+1.0%)
was unable to play a significant role.
Exports by price segment
Only a few markets recorded negative results in 2013, however
they had a significant effect on the overall result on account
of their size. The leading market for direct exports, Hong
Kong, was one of these. Its level reached a low point in the
summer, eventually recording a decline of 5.6% compared to
2012. Watches costing more than 3,000 francs in particular
had a negative effect on sales.
The year 2013 brought about no great surprises in trends
shown by the main price ranges. The 200 to 500 francs category remained buoyant, with strong increases (+14.2% by
volume and +12.7% by value). Variations, whether positive or
negative, were generally more measured in other segments.
Below 200 francs, volumes were down considerably however
(-8.5%). Above 500 francs there was little change (+0.5%).
Trends by value differed according to price categories. Watches
costing more than 3,000 francs (+2.8%) were responsible for
a large part of the general increase. Below 200 francs and
between 500 and 3,000 francs, value fell by several points,
but with a limited impact on the overall result.
Main export markets in 2013
China, the second-largest Asian market and third largest on
a global scale, recorded one of the steepest declines, with
-12.5%. The 3,000 francs and over segment was particularly
hard hit (-40.4%), albeit representing a smaller share than on
other markets. By contrast, watches costing less than 500
francs registered an increase of around 20%, both in value
and volume terms.
Exports by price segment (variation compared with 2012)
Export markets
In 2013, Europe exerted a positive effect on results with an
upturn of 5.7%. The continent absorbed 31.4% of Swiss watch
exports by value, before seeing a large part of these products
cross its borders in the form of tourist purchases or reexports. Asia accounted for more than half of watch industry sales (52.7%) despite a very slight downturn
(-0.9%).The American continent registered a moderate
and steady slowdown, before stabilising close to its final
result (+2.4%).
The last significant negative influence was that of France,
which occupied sixth place worldwide. Its annual value fell by
9.6%, driven by most price segments. Watches costing less
than 200 francs plummeted in volume terms by 30.6%, which
represents half the global downturn. France has apparently
suffered from a decline in purchases by tourists, particularly
from China.
Among the many positive variations, the United States
(+2.4%) remained close to the world average. After a slowdown during the first half-year, growth remained stable in the
second part of the year, buoyed by watches between 200
and 3,000 francs, with other segments showing little change
compared to 2012.
Except for France, European markets gave a boost to the
Swiss watch industry. Germany recorded an upturn of 9.0%,
Italy 4.6% and the United Kingdom 18.2%, thanks mainly
38
Swiss watch exports by region (in billion francs)
to watches costing more than 3,000 francs. Other, smaller
markets also registered upturns, some of which were quite
considerable.
In Asia, Japan (+5.7%), Singapore (+1.0%) and South Korea
(+11.4%) also surpassed their 2012 levels. The Middle East
followed the same trend, with positive results recorded by the
United Arab Emirates (+9.2%) and Saudi Arabia (+6.6%).
Other exported products
Other clock and watch products exported by Switzerland in
2013 accounted for approximately 5% of the total value, made
up in part by the trade in repairs. For the remainder, exports
of movements lost ground slightly at 6,4 million units (-1.3%),
however in value terms the total of 236,5 million francs represented an increase (+5.9%). Alarm clocks and other clocks
remained stable in volume terms, while registering a steep
51.3% increase by value to 73,7 million francs.
Watch industry imports
Switzerland’s imports of watch industry products followed the
trend of exports. The total value of imports was 3,4 billion francs
in 2013, an increase of 2.1% compared to 2012. This upturn
was due to wristwatches, the value of which rose by 16.9%.
Supplies of foreign components fell for most items: bracelets
(-3.0%), cases (-7.7%) and dials (-9.9%), in particular.
39
Structure of
41
the FH in 2013
An organisation representative of the Swiss watch industry as
a whole, the FH has the following main tasks and objectives:
helping to defend and develop the sector, establishing a permanent link between its members in order to promote their
shared interests, representing the Swiss watch industry in its
dealings with Swiss and international economic authorities and
organisations, asserting the interests of its members during
consultation procedures preparing the ground for national
and foreign legislations, defending its members’ interests in
the legal arena, and fighting actively against infringements
of intellectual property rights and acts of unfair competition.
42
Summary of 2013
On 31st December 2013, the FH included 489 companies,
associations and institutions (approximately 90% of the Swiss
watch industry manufacturers), including 241 firms in the finished products sector.
In terms of products, markets and business size, the Swiss
watch industry is characterised by its very great diversity. The
FH is therefore structured with a view to harmonising the different interests of its members through the balanced composition
of its statutory organs.
General Meeting
60 delegates
Council
20 delegates
Bureau
5 members
Presidency
Commissions
43
The General Meeting
Governing body of the association, the FH General Meeting
comprises a maximum of 60 delegates totalling 60 votes. Lasting three years, terms of office are renewable.
bers to the Board, as well as the president of the association,
and appoints the auditor; it discusses and approves the annual
report and the accounts, as well as the scale of subscriptions.
The General Meeting takes decisions on issues submitted to
it by the Board concerning the interests of the Swiss watch
industry and the association’s general policy; it elects mem-
On 31st December 2013, the FH General Meeting was composed of the following delegates (some with more than one
vote):
Jean-Claude Affolter
Pignons Affolter SA
Jean-Paul Girardin
Breitling Montres SA
Marianne Pandiscia
Multitime Quartz SA
Marco Avenati
Manufacture des Montres Rolex SA
David Guenin
Gimmel Rouages SA
Jean-Christophe Babin
TAG Heuer SA
Jean L. Guillod
Guillod-Gunther SA
Hannes Pantli
IWC Schaffhausen Branch of
Richemont International SA
Olivier Bernheim
Raymond Weil SA
Jean Hirt
Estoppey-Addor SA
Denis Bolzli
Aéro Watch SA
Philippe Hubbard
ArteCad SA
Cédric Bossert
Richemont International SA
Peter Hug
Wenger SA
Pascal Bratschi
Manufacture des Montres Rolex SA
Bienne
Albert Kaufmann
Richemont International SA
Pierre-André Bühler
ETA SA Manufacture horlogère suisse
Marc Küffer
Roventa-Hennex SA
Jean-Daniel Pasche
FH
Flavio Pellegrini
MGI Luxury Group SA
Jean-Claude Probst
Bulgari Horlogerie SA
Hanspeter Rentsch
The Swatch Group SA
Daniel Rochat
Patek Philippe SA
Emile Charrotton
SAH
Alain Marietta
Metalem SA
Philippe Rossier
Simon & Membrez SA, Habillage Horloger Haut-de-Gamme
Pascal Dubois
Dubois Dépraz SA
Jacques Mata
Luxury Timepieces International SA
Manuela Surdez
Goldec SA
Jacques G. Duchêne
Rolex SA
Pierre-André Meylan
Piguet Frères & Cie SA
François Thiébaud
Tissot SA
Jean-Frédéric Dufour
Zenith International SA
Pierre-Jean Meyrat
Rubattel & Weyermann SA
Claude Vuillemez
Richemont International
François Durafourg
Pierhor SA
Jean-Jacques Némitz
Universo SA
Roger Wermeille
Le Castel Pendulerie Neuchâteloise
Christian Feuvrier
Nivarox-FAR SA
Corine Neuenschwander
Neuenschwander SA
Vladimiro Zennaro
Bergeon & Cie SA
44
The Board
Comprising twenty members elected for three years by the
General Meeting, the FH Board, which meets four times a year,
has the following main attributions: it defines the association’s
policy and monitors its application; it rules on the admission of
members; it gives its opinion on issues to be submitted to the
General Meeting and executes the latter’s decisions; it elects the
Bureau and appoints the vice-president(s); it appoints heads
of division and commission members; generally it assures
a permanent link between members of the association, the
authorities and third parties; it approves agreements concluded
between the association and its members or third parties; etc.
Raynald Aeschlimann
Omega SA
Albert Kaufmann
Richemont International SA
Marco Avenati
Manufacture des Montres Rolex SA
Marc Küffer
Roventa-Henex SA
Jean-Christophe Babin
TAG Heuer SA
Alain Marietta
Metalem SA
Denis Bolzli
Aéro Watch SA
Hannes Pantli
IWC Schaffhausen Branch of Richemont International SA
Pierre-André Bühler
ETA SA Manufacture horlogère suisse
Pascal Queloz
Oréade SA Manufacture de boîtes
Jacques G. Duchêne
Rolex SA
Hanspeter Rentsch
The Swatch Group SA
Christian Feuvrier
Nivarox-FAR SA
Daniel Rochat
Patek Philippe SA
Jean-Paul Girardin
Breitling Montres SA
Philippe Rossier
Simon & Membrez SA, Habillage Horloger Haut-de-Gamme
Jean Hirt
Estoppey-Addor SA
Peter Steiger
The Swatch Group SA
Peter Hug
Wenger SA
Claude Vuillemez
Richemont International SA
On 31st December 2013, le Board was composed of the following members:
45
The Bureau and Commissions
Comprising the president, the two vice-presidents and two
members, the Bureau examines issues delegated to it by the
Board and, exceptionally, questions of an urgent nature.
The FH also has six permanent Commissions responsible
for examining issues of general interest dealt with by the
association.
At the end of 2013, its composition was as follows:
At the end of 2013, its composition was as follows:
Jean-Daniel Pasche
FH
Thierry Kenel
Economic Commission
Hanspeter Rentsch
The Swatch Group SA
Pierre Huguenin
Financial Commission
Alain Marietta
Metalem SA
Olivier Blanc
Legislative monitoring Commission
Jacques G. Duchêne
Rolex SA
Jean-Daniel Pasche
Legal Affairs Commission
Jean-Paul Girardin
Breitling Montres SA
Jean-Pierre Curchod
NIHS Committee
The president of the Financial Commission, Pierre Huguenin,
is regularly invited to attend the Bureau’s meetings.
Jean-Daniel Pasche
Anticounterfeiting Group
46
Divisions and Departments
On 31st December 2013, the FH employed 31 people full-time
in Bienne, as in 2012. Its organisation chart is as follows:
Presidency
Jean-Daniel Pasche
Communication
Philippe Pegoraro
Information Department
Janine Vuilleumier
Economic Division
Maurice Altermatt
Legal Division
Yves Bugmann
Adminstrative Division
David Marchand
External Affairs
Department
Maurice Altermatt
Legal Department
Yves Bugmann
Administration
Department
David Marchand
Economic and Statistics
Department
Philippe Pegoraro
Anticounterfeiting
Department
Michel Arnoux
Internal Department
Corinne Palladino
Promotional Affairs
Department
Hélène Fima
NIHS Department
Patrick Lötscher
Information Technology
Department
Sébastien Veillard
FH Hong Kong Centre
Thierry Dubois
Internet Unit
Carole Aubert
FH Japan Centre
Maki Onjo
FH Latin America
Delegate
François Pillonel
47
48
The network of partners
Efficient though its staff may be, the FH would be nothing in
the globalised world in which we live without a solid network
of partners, which can be found both within and outside the
sector on all five continents. Non-exhaustive, the list below
provides a summary of this network.
Federal Administration
◆◆
Bureau fédéral de contrôle des ouvrages en métaux
précieux
Chambers of commerce
◆◆
◆◆
Alliance des chambres de commerce suisses
Chambre arabo-suisse du commerce et de l’industrie
(CASCI)
◆◆
Commission des experts douaniers
◆◆
Direction générale des douanes (DGD)
◆◆
Chambre de commerce international (CCI)
◆◆
Office fédéral de la santé publique (OFSP)
◆◆
Chambre de commerce Suisse-Chine
◆◆
Office vétérinaire fédéral (OVF)
◆◆
Chambre de commerce Suisse-Inde
◆◆
Secrétariat d’Etat à l’économie (seco)
◆◆
Watchmaking Associations
◆◆
All India Federation of Horological Industries
◆◆
American Watch Association
◆◆
Assorologi (Italy)
◆◆
British Horological Federation
◆◆
BV Schmuck + Uhren (Germany)
◆◆
◆◆
Chambre française de l’horlogerie et des
microtechniques (CFHM)
China Horologe Association
◆◆
Joint Chambers of Commerce (Russia, Ukraine,
Kazakhstan, Belarus, Kyrgystan, Moldova)
Swiss Chamber of Commerce in Japan
Customs and police organisations
◆◆
Agenzia delle Dogane, Roma
◆◆
Commandement général de la Guardia Civil (Spain)
◆◆
Commandement général de la Guardia di Finanza
(Italy)
◆◆
Organisation mondiale des douanes
◆◆
Police cantonale de Neuchâtel
◆◆
Police cantonale du Jura
◆◆
Comité permanent de l’horlogerie européenne (CPHE)
◆◆
Fédération française de l’horlogerie (FH)
◆◆
Hong Kong Watch Manufacturers Association
◆◆
Japan Clock and Watch Association
◆◆
BUSINESSEUROPE
◆◆
Japan Watch Importers Association
◆◆
economiesuisse
◆◆
◆◆
◆◆
Joyex - Asociación Espagñola de Fabricantes y/o
Exportadores de Joyería, Platería y Relojería
Korea Watch and Clock Industry Cooperative
The Federation of Hong Kong Watch Trades &
Industries Ltd
Economic organisations
49
Legal organisations
◆◆
Association internationale pour la protection de la
propriété intellectuelle (AIPPI)
Technical organisations
◆◆
Centre technique de l’industrie horlogère française
(CETEHOR)
◆◆
Institut fédéral de la propriété intellectuelle
◆◆
International Electrical Committee (IEC)
◆◆
Association suisse du droit de la concurrence
◆◆
Tokyo Watch Technicum, Japon
◆◆
Association suisse du droit européen
◆◆
Ligue internationale du droit de la concurrence
◆◆
Organisation for an International Geographical
Indications Network (Origin)
Anticounterfeiting organisations
◆◆
◆◆
◆◆
Institut de police scientifique, Lausanne
Anti-Counterfeiting Group (ACG)
Istituto di Centromarca per la lotta alla contraffazione
(Indicam)
◆◆
Union des fabricants
◆◆
Stichting Namaakbestrijding SNB, Amsterdam
Organisations involved in standardisation
◆◆
Association française de normalisation (AFNOR)
◆◆
Association suisse de normalisation (SNV)
◆◆
British Standards Institution (BSI)
◆◆
Bureau of Indian Standards (BIS)
◆◆
Comité européen de normalisation (CEN)
◆◆
International Standardisation Organisation (ISO)
◆◆
Japanese Industrial Standards Committee (JISC)
◆◆
Korean Agency for Technology and Standards (KATS)
◆◆
Standardization Administration of China (SAC)
Others
◆◆
Fédération romande des consommateurs (FRC)
◆◆
Swiss Business Council Dubai
◆◆
Ecole d’ingénieurs ARC
◆◆
Comité des exposants suisses à Baselworld
◆◆
Osec Business Network Switzerland
◆◆
Présence suisse
◆◆
Société suisse de chronométrie (SSC)
Rue d’Argent 6
2502 Biel-Bienne
Switzerland
Tél. +41 (0)32 328 08 28
Fax +41 (0)32 328 08 80
[email protected] / www.fhs.ch