What exactly constitutes a "Swiss Made" watch?

In the world of watches, the word "Swiss" is synonymous with quality. But what does it really mean? 

Swiss law is very specific on what points of origin and assembly are permissible in watches that are labeled "Swiss Made." In specific, the law requires that the assembly work on the movement (the motor of the watch) and on the watch itself (fitting the movement with the dial, hands and the various parts of the case) should be carried out in Switzerland, along with the final testing of the movement. It also requires that at least 50% of the components of the movement should be manufactured in Switzerland.

So it is permissible for the movements in Swiss watches to contain a minority portion of parts made outside Switzerland. But the majority of movement parts must come from Switzerland and the entire movement, and watch must be entirely assembled in Switzerland.

The watch casing and separate or detachable items, such as watch bracelets, do not have to be manufactured in Switzerland. But the "foreign" parts must be delivered to Switzerland unassembled, with actual assembly of them into a watch occurring on Swiss soil.

Other provisions allow for watches where the movement meets the criteria, but the watch is assembled outside of Switzerland to be labeled "Swiss Movement" on the dial. The abbreviation "Swiss Movt" is strictly prohibited, because to someone without superior vision or a magnifier, such a dial label could easily be mistaken for reading "Swiss Made."