News The Switzerland-EC Joint Clock and Watch Committee held its annual meeting on 9 April in Basel, on the occasion of the Baselworld Watch and Jewellery Show, at which several important topics featured on the agenda.
At this meeting, the Swiss delegation was led by Minister Philippe Guex, deputy head of the Swiss Mission to the European Union, and that of the European Commission by José Costa-Lafarga and Ulrich Trautmann (Directorate-General for External Relations). The FH was represented by Jean-Daniel Pasche, while the delegation of the Standing Committee on European Watchmaking (CPHE) was led by its president, François Habersaat.
Watch trade
To begin with, the delegations assessed the development of the watch trade between Switzerland and the European Union (EU). Here, they noted that the EU remained an important market for Swiss watchmaking, despite difficulties currently experienced in a number of European countries, as well as one of its main suppliers, particularly with regard to watch cases, dials and bracelets. It was also noted that prospects for 2003 were somewhat unclear, though a slowdown in business was foreseeable in the first half-year.
Equivalent calibres
According to the 1972 additional agreement on watchmaking, watchmaking organizations in the European Union or any manufacturer of movement-blanks established in the EU can apply for a new movement to be entered in the register of equivalent calibres.
In practice, the FH conducts a summary examination of the proposed calibre to check the origin of movement-blanks and its technical specifications. It also assesses its equivalence in terms of quality with Swiss movements. Then, once the FH has obtained satisfactory answers, but also with an eye on economy and logic, it proceeds with the registration and requests publication in the Official Swiss Trade Bulletin (FOSC).
During the meeting, the Community delegation asked Switzerland to apply the aforementioned agreement to the letter, namely to register the calibre immediately, then carry out an inspection. If the calibre fails to satisfy the conditions, it can then be struck off. The Commission did allow however that the FH could examine the criteria of identification and origin of movement-blanks prior to registration. Indeed, if the latter are not of Community origin, the FH plays no part in the proceediings. The Swiss delegation acceded to the Community request.
European directives
On 27 January 2003, the European Union adopted a directive on electrical and electronic waste, and a directive on dangerous substances. These directives are expressly applicable to watchmaking products and member states must comply with them before 13 August 2004. This implies that watches must carry an ecology label, to indicate that products may be returned to points of sale after use. However, contrary to other articles, it will not be necessary to appose the label directly on the watch. Due to the nature of the product (size, function), the label may in fact appear on the packaging, on the instruction leaflet or on the warranty certificate.
Regarding the processing of waste, batteries and accumulators must be removed prior to disposal of the product. However, it will not be necessary to remove the printed circuit from watch movements, on account of its small size. One area of uncertainty that remains to be clarified concerns the mercury used in batteries. Indeed, Community legislation on batteries, which accepts the use of mercury within certain limits, is not identical in the two aforementioned directives, which prohibit the use of mercury from 1st July 2006. In the event of conflicting legislation, it will be necessary to determine which directive applies. According to the interpretation of the FH, it is the directive on batteries that should apply with regard to batteries, since this is a special law. This question has yet to be resolved by the European Commission, which promised the Swiss delegation that it would give a detailed answer.
The main innovation for economic players is that consumers will be able to return their used watches to points of sale for disposal in accordance with environmental regulations. Collection systems will therefore have to be put in place in member states of the EU. It is however highly probable that few consumers will return their Swiss-made watches, even after use.
With regard to European directives, the Community delegation confirmed that discussions concerning the draft directive on precious metals remained at a standstill.
Watch counterfeiting
On the subject of counterfeiting, the Swiss delegation noted that the phenomenon was also prevalent in the European Union, particularly in Benelux, Spain and Italy, in which countries thousands of fake watches were seized last year. On this point, the FH has continued to collaborate with national authorities, such as the Guardia Civil in Spain or the Guardia di Finanzia in Italy. It has also organized and attended training seminars for customs and police authorities in Italy and Greece.
The Community delegation reaffirmed the intention of the European Union to combat this scourge more effectively. The EU moreover published a draft regulation to this effect in January 2003. This draft will enlarge the field of application of existing legislation and will facilitate the filing of requests by manufacturers for intervention by customs authorities. However, except in highly specific cases, it still renounces the seizure of copies purchased by tourists for personal use, a point that is regretted in watchmaking circles. Despite everything, this change in the legislation is laudable.
Spare parts
The Commission confirmed that it was conducting investigations into the distribution of spare parts for watches in the EU. The Swiss delegation noted that Swiss legislation resembled Community legislation on this point. Concerning the decision of the company ETA regarding movement-blanks, the Commission noted that proceedings were under way within the Swiss Monopolies Commission (Comco).
At the end of the deliberations, both delegations visited Baselworld, where they were able to immerse themselves concretely in watchmaking products and the manner in which they were presented. On this occasion, they were impressed by the quality of the Show and by the wealth of products.
The next meeting of the Joint Committee is scheduled to take place in 2004, probably in Brussels.
May 01, 2003