Procurement

Procurement sections at ETA are the following:

- Movement components
→ Watch parts, exteriors, electronics etc.

- Investments
→ Automation, machining centers, profile turning and cutting machinery, electroplating, injection molding machinery, measuring machines, microscopes etc.

- Raw material
→ Brass strips, steel, polymer, pigments, MIM powder metal, precious metals, aluminum, fuel, recycling, etc.

- Tools and technical production methods 
→ Electrics, engines, electronics, molded parts, chemistry, external mechanical production, blanking tools, injection tools, abrasives, movement tools, drills, milling cutters, plates etc.

- Auxiliary equipment
→ Personal protective equipment, office supplies, IT hardware, literature, furnishing, cleaning products, software

- Services
→ Training and instruction, consulting, catering etc.

- Real estate
→ Architects, flooring and wall coverings, heating, building technology, energy etc.

- Transport
→ Vehicle repairs, shipping etc.

- Packaging
→ Trays, envelopes, calottes, blister packs etc.

Legislation governing conflict minerals, RoHS, REACH and similar regulations require manufacturers and suppliers to provide information regarding prohibited substances throughout their supply chain.
ETA SA accordingly requires that no product supplied to ETA SA by its suppliers should contain any prohibited substances restricted by this type of regulation. (This list should not be considered exhaustive, and contains only the most important sets of these regulations).

Conflict minerals

All suppliers of movement components using the so-called «conflict minerals»; tantalum, tin, tungsten and gold (and the ores from which they are obtained), are required to clearly report the origins of the material.

Exploitation certain raw materials in the Democratic Republic of the Congo (DRC) and surrounding countries might contribute to major human rights abuses and to the funding of violent conflicts in the region.

It is therefore essential:

• to gather information on the sources of conflict minerals
• to inform its customers of the source of conflict materials used in its products
• and, wherever commercially feasible, end the procurement of products containing conflict minerals

The official questionnaire from the Electronic Industry Citizenship Coalition (EICC) is the most suitable means of determining the origin of various minerals and communicating this information.

We also expect our partners to request this information along their entire supply chain.

RoHS 2 directive

The European Union directive 2011/65/EC (ROHS II), previously 2002/95/EC, limits the use of lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBB) and polybrominated diphenyl ethers (PBDE) in electric and electronic devices brought to the European market from 3rd January 2013 onwards.

ETA SA expects its suppliers to respect this directive.

REACH (Registration, Evaluation, Authorization and restriction of Chemicals) 
This is the new European chemicals’ legislation on the registration, evaluation, authorization and restriction of chemicals, including those contained in consumer articles such as watches and cosmetics. REACH has two implications for your company:

1. A direct impact relating to the obligations which your company’s activities entail.
2. An indirect impact on the obligations of your suppliers, who could affect your activities if they fail to comply with said obligations.

ETA SA expects its suppliers to respect this regulation throughout their supply chain.

ETA SA requires consistently competent, qualified and reliable suppliers from every sector. We want to establish long-term cooperative partnerships with our suppliers. Part of this cooperative partnership is professional assessment of and feedback on our suppliers’ performance.

We assess:

• Quality
• Logistical aspects
• Service
• Economic viability incl. cost performance, transparency and persuasiveness of offer

Quality

The quality of the upstream products and services provided by our suppliers has an immediate impact on the quality of ETA products.

We expect suppliers to provide flawless products complying with relevant specifications. This requires suppliers to continually measure, analyse and improve products, processes and services. ETA SA requires its component suppliers to maintain a quality management system which as a minimum meets the SN EN ISO 9001 standard or equivalent.

Logistics

ETA measures supplier reliability and expects delivery deadlines and quantities to be abided by. Variations are only accepted in very exceptional circumstances.

Service level

ETA views reactivity, flexibility, and the research and development skills to support product development as important parts of the supplier performance assessment.

Competitiveness

In terms of competitiveness, we expect our suppliers to:

• Submit competitive bids
• Competently assess and fulfil requirements within calls for tenders
• Present proposals and innovations
• Support our measures for sustainable development.

Origins

Origin of goods is split into two different categories according to Swiss law. On one hand, there is what is known as preferential origin which comes under trade agreements concluded by Switzerland/EFTA. Preferential origin is defined in terms of corresponding agreements with trade partners and allows preferential access to their respective export markets (for example, the EU and China), usually with or without reduced customs duties on imports. 
On the other hand, what is known as non-preferential origin or independent origin regulates the «country of origin» of a product. The associated legal bases (Ordinance OCG / Ordinance OCG-FDEA) determine if a product may be labelled as having Switzerland as its country of origin (Herkunftsland / pays de provenance / country of origin). A certificate of non-preferential origin confirming/certifying the country of origin is generally required for exports to countries with which there is no trade agreement. Non-preferential origin is valid for all countries whilst preferential origin is only used as part of existing free trade agreements with Switzerland.

To enable the relevant country of origin (for non-preferential origin) or preferential origin to be substantiated and confirmed by the Swiss exporter when exporting end products, ETA SA requires its suppliers to provide corresponding documentation. ETA SA requires this information on preliminary products from its suppliers in order to be able to confirm the origin of its products to its customers.

Preferential origin (as part of free trade agreements):

Suppliers with headquarters in Switzerland confirm preferential origin on the basis of the corresponding free trade agreement provided that the relevant conditions have been met. This confirmation is provided in the form of a supplier declaration on the commercial invoice and should include all free trade partners for which the product has preferential origin. More information is available from the Swiss Customs Administration website (see the supplier’s declaration document, available in French, German and Italian: «Déclaration du fournisseur sur territoire suisse»). Suppliers with headquarters abroad confirm preferential origin for their products in accordance with local regulations via a declaration on the invoice or an EUR.1/EUR.MED/EUR.JP/EUR.CN form.

Non-preferential origin:

Suppliers with headquarters in Switzerland confirm non-preferential origin via a supplier declaration on the relevant invoice or by having the invoice validated by the responsible Chamber of Commerce. Further information is available from the Chamber of Commerce for the canton where the company has its headquarters. Foreign suppliers provide evidence in accordance with local regulations. In all cases and regardless of the form of evidence supplied, the country of origin for the individual products/items must be stated on the invoice and the delivery note.

Swissness

ETA SA Manufacture Horlogère Suisse is building on its high level of expertise to develop new industry technologies and design quartz and mechanical movements with the renowned «Swiss Made» label.

To be eligible for the «Swiss Made» label, 60 % of the value of the watch or its components must be created within Switzerland. This means that more than 60 % of the production costs must come from Swiss production.

We expect all (Swiss) suppliers to be aware of the «Swiss Made» legislation, in particular the modifications entering into force on 01/01/2017 to the Ordinance on the Use of the Swiss Name for Watches (SR 232.119).

To enable us to provide the necessary evidence for the «Swiss Made» label, we ask all our Swiss suppliers to provide confirmation of whether or not the goods supplied meet the «Swiss Made» requirements, together with a list showing goods supplied and indicating which goods have the ‘Swiss Made’ classification and which do not.

As an international company and a Swatch Group subsidiary, ETA SA has a particular social, environmental and ethical responsibility.

ETA SA will only enter into a business relationship with suppliers who share our expectations and commitment to social responsibility within the business. We believe in constructive and loyal cooperation with our suppliers and we reject questionable business practices.

We expect our suppliers to adopt the same social responsibility principles within their own business.

We regard the following 5 sections to be relevant:

• Principle
• Labour and Human Rights
• Environmental Protection
• Responsible Supply Chain
• Ethics

Supplier Code of Conduct

Swatch Group SUSTAINABILITY à Sustainability Report and Social Policy - Swatch Group

Purchase T&Cs

The following general terms and conditions of purchase are set for all ETA SA Manufacture Horlogère Suisse orders. The supplier’s terms and conditions only form part of the contract if expressly agreed in writing by ETA.

Purchase T&Cs

Purchase T&Cs for investments