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Art. 1a Definition of the Swiss watch
A watch is to be regarded as a Swiss watch if:
a. its technical development has taken place in Switzerland;
1. in the case of exclusively mechanical watches, at least the mechanical
construction and prototyping of the watch as a whole,
2. in the case of watches that are not exclusively mechanical, at least the
mechanical construction and prototyping of the watch as a whole, together
with the conception of the printed circuit or circuits, the display and the
software;
abis its movement is Swiss;
b its movement has been cased up in Switzerland;
c. final inspection by the manufacturer took place in Switzerland and
d. at least 60% of the manufacturing costs is generated in Switzerland
http://www.fhs.swiss/file/8/Guide_V4_-_Guide_EN.pdf