Business opportunities
Austrade's business development specialists have prepared a select range of market profiles with potential business opportunities and to assist in your exporting investigations. Please see the list of industries at the end of this profile that you may be interested in.
In conjunction with the market profiles, the Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.
Business etiquette
Business hours in Italy:
- The opening hours for banks, shops and services vary from region to region.
- In general, the hours are open between 9.00am–7.30pm, closing for lunch from 1.00pm- 3.30pm, Monday to Saturday.
- Some large supermarkets and shopping centres are open also on Sunday mornings.
- Banks are generally open between 8.30am–1.30pm and from 3.30pm–4.30pm.
- Post offices and public offices are usually open between 8.00am–12.30pm, Monday to Saturday. Some post offices are also open in the afternoon.
Business practices:
- Italians generally dress well at all times, but conservative attire is recommended for business meetings.
- Good food and drink are always appreciated, but Italians generally drink alcohol only at mealtimes.
- Traffic congestion can cause delays especially in larger cities.
- Business visits in July and August are strongly discouraged as this is the Italian summer and most people and companies take their vacations at this time.
- Italy is price-conscious and competitive, so do as much preparation as possible before visiting Italy and send detailed company information in advance.
- Italian importers generally ask for a large amount of point of sale material and samples.
- Quick responses and prompt follow-ups may not be forthcoming from Italian contacts, but are appreciated from Australian contacts.
- Long credit payment terms are common (60 to 90 days, 120 for major department stores, large corporations and public sector organisations).
- Prices should be quoted in Euro, cost, insurance and freight (CIF) Italian port, or alternatively in US dollars.
- When writing figures, Italians invert commas and decimal points, eg. 1,5 per cent and ITL2.300.000.
Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.
Tariffs and regulations
Import restrictions
Import licences are required for a limited list of items and are are issued by the Ministry of Foreign Trade. The validity of licences is variable depending on many different factors. Entry may be possible if adherence to special conditions is observed.
There are a number of Italian regulations and European Union (EU) directives that prohibit certain foodstuffs, food colourings, drugs and narcotics, animal products, plants, seed grains, alcohol, cosmetics, and toiletries. Some items are restricted to government importing bodies. It is therefore recommended Australian exporters contact the Italian importer prior to shipment or use their freight forwarder to make the determination.
Quotas are established on an EU basis for a range of goods, eg. textiles, agri-foods and steel and iron industry products. A particular certificate, Titolo all'Importazione, must be requested from the Italian Ministry of Foreign Trade.
The allocation of foreign exchange is controlled by the Italian Exchange Office and foreign exchange transactions are effected through authorised banks.
Tariff
As a member of the EU, Italy is part of the Harmonised Commodity Description and Coding System. Preference is given to associate members of the Community, developing countries and EFTA members. Most duties are ad valorem, based on the GATT Valuation Code (Incoterms 2000). Common External Tariff (CET) applicable to other countries.
Other tariff information:
- EU rates apply to imports from all third countries.
- Compliance with EU and Italian standards is a key factor when doing business in this market.
- Customs and tariffs for manufactured goods are generally not subject significant barriers.
- Most tariff duties are ad valorem (per cent).
- EU quotas apply to some foodstuffs and agricultural products.
Customs authorities contact details:
Ministry of Finance - Custom Department
Via Carucci 71 00143
Rome
Tel: +0039 06 50241
Fax: +0039 06 5024 3208
Origin division
Dott. Bartolini: (0039) 06 5024 2078
Dott. De Lorenzo: (0039) 06 5024 2166
Minister for Foreign Trade
Viale Boston 2400144 Roma
Tel: +0039 06 59931
For information about Titolo all'Importazione
Dott. Porcelli: +0039 06 5024 2088
Dott. Roberti: +0039 06 5024 6048
Packing, marking and labelling
Basic labelling requirements in Italy:
- name of products (physical condition or specific treatment)
- name/address of manufacturer, packer, seller or importer in Local language
- country of origin
- ingredients in descending order of weight
- metric weight and volume
- additives by category name
- special storage conditions
- minimum shelf life date
See the Legislative Decree No. 109/92 for labelling rules. The decree agrees with European Community (EC) rules:
- There are no special regulations governing the use of hay, straw or second-hand materials used as packing for goods if imported from Australia. However, packing materials likely to carry disease should be avoided.
- Foodstuffs, and articles or substances coming into contact with foodstuffs, are subject to specific packing requirements. For more information about food import rules see the Legislative Decree No. 155/97 or contacted CONFETRA about its publication, Quaderno 107, printed in April 1999.
- Consignments of rags should be hydraulically packed.
- Goods and their containers must be marked with their country of origin. Marks which may be misleading as to the real country of origin are prohibited.
- Cases arriving by sea must be marked clearly and durably with their weights.
- Textiles and apparel must have labels indicating the name or registered mark of the manufacturer, importer or retailer and the fibre content (if more than one fibre is present, the names of the fibres must be listed with their percentages in descending order).
- A number of commodities, including foodstuffs, cosmetics, chemicals, veterinary pharmaceuticals and medicines, rubber and plastic products, scientific and musical instruments, television receivers and goods manufactured in precious metals require special marking and labelling. Importers should be contacted for specifics.
- Preserved foodstuffs are subject to specific and detailed regulations.
- Containers of processed fruit must show clearly and indelibly: the net weight in grams, the nature of the contents, the quantitative composition, the drained weight of fruit in grams, weight of syrup in grams, the name and address of manufacturer and a declaration that contents have been packed in conformity with existing regulations.
- Labelling on containers of corned beef must show, in Italian, the following details: the name of the product, the name of the firm or trade mark, the address of the main office, the address of the canning factory, a list of ingredients, components and additives in decreasing order of either weight or volume, and net weight.
- Fish and fish products must be labelled in Italian.
- Bovine, equine and swine carcasses, farmed and wild animals must be stamped with the official stamp of the Australian Health Authorities indicating the number of the establishment authorised to export to the EC.
CE Mark
As part of the unification program to establish common standards for all member countries, key product areas are being regulated by the EU Mandatory requirements to protect the health and safety of consumers, as well as the environment are constantly being developed and implemented.
To indicate conformance to the mandatory EU requirements, a CE mark must be placed on all regulated products by the manufacturer or a representative before they can be sold on the EU market. The applicable product testing and certification requirements for individual product categories are specified in the various EU directives.
The CE mark relates only to the mandatory health, safety, and environmental requirements established by the EU; it does not indicate conformity to European product standards. Thus, national marks of conformity with product standards remain compatible with the CE mark and both may be applied to the product.
It should be noted, however, that the CE mark does replace all national safety marks for the regulated products.
Weights and measures
Italy uses the metric system of weights and measures, which is called the International System of Units (SI). The European Community has established standardized packaging units for numerous products Labelling must be in metric units for all imported products to be sold in Italy.
The Australian exporter would be well advised to first check with the Italian importer to ensure that the package size and labelling complies with all requirements prior to shipment.
Insurance
Normal commercial practice. Exporters must refer to Incoterms 2000 (the more common are FOB, CIF, DDU, CPT, DDP).
Methods of quoting and payment
Quotes should be in Euro or in US dollars (Incoterms 2000).
Customary terms of sale in Italy are as follows:
- A letter of credit.
- Cash, ie. payment before, on or after delivery. A discount on the amount of the invoice could be allowed on cash sales.
- Net, ie. payment in full at the end of the specified period (one, two, three or four months) from date of invoice. The length of the period depends on the commodity involved and the credit standing of purchaser.
- A period of up to two years is often allowed for payment for capital goods, store equipment, and trucks.
Public health requirements
Almost all products are now regulated by the harmonised agreement for EU member countries. In particular, fish products, shellfish and other molluscs, milk and milk products, casings and other animal products (if used for human consumption).
Other information:
- Animals imported from countries which permit the use of oestrogen must be accompanied by health certificates stating that the livestock has not been treated with either natural or synthetic oestrogen.
- For the temporary admittance of horses coming from Queensland, Australia, a certificate issued by a local veterinary authority is required. This certificate must contain a guarantee that horses have been immunised against Japanese Encephalitis B in the previous 60 days but not less than 30 days before admittance.
- The import of cats coming from Australia is prohibited.
- Flying foxes, Pteroptus, from Malaysia and Australia may be imported only with a certificate from the European Community.
- Animal feed, including canned meat and canned fish, is subject to detailed regulations.
- Most foodstuffs are subject to strict regulations controlling quality, handling, labelling and the use of chemical additives or colouring. Failure to comply with these requirements may cause such consignments to be refused entry.
- Stone fruit, table grapes, pineapples and pome fruit can be imported from Australia throughout the whole year.
- Frozen peeled shellfish can be imported if they come from authorised EC fishery establishments.
- Resins and additives used in the preparation of containers for foodstuffs or substances for personal use are subject to prescribed tolerances.
- Many plants, all animals and plant and animal products require health certification issued by an approved authority in the country of origin (see 'Special certificates').
- Beer and wine imports must be accompanied by a certificate of analysis issued by a recognised government laboratory.
- Pharmaceuticals and a range of medical and surgical appliances require prior registration with the Ministry of Health. Medical, electrical and electronic apparatus must comply with the Italian Electrotechnical Committee standards and must have an EU mark in respect of electrical and electromagnetic safety standards.
- Registration must be obtained through an Italian based representative and the procedure, which is costly, normally involves a minimum of three years.
- Toys and related articles must comply with safety standards published by the European Standards Committee.
Documentation
Commercial invoice
No prescribed form, and a minimum of three copies is required. The invoice must indicate:
- date of emission
- the shipper's name and address
- the consignee's name and address
- the terms of payment
- country of origin
- a precise description of goods
- marks
- quantities
- class and contents of packages
- gross and net weights
- the full value (no deductions of any kind are permitted)
The name of the vessel, the port of loading, the HS classification of goods and manual signature in ink are not compulsory.
Certificate of origin
No special origin certificate is required because there is no bilateral agreement between Australia and the European Community fixing a reduced duty for Australian products entering Italy.
The usual origin certificate required for products entering the EU and issued by the local Chamber of Commerce is sufficient for entry to Italy and to guarantee the goods come from Australia.
Bill of lading
To Order bills are acceptable. The bill of lading must include:
- a brief description of the goods
- the name of the shipper
- the carrying vessel
- the country of origin
- the ports of shipment and discharge
- details of any identifying marks on the goods
- the name of the person to be notified when the goods arrive
Depending on the terms of the export transaction, the importer may require a set of Bills of Lading in order to clear the goods when they reach the discharge (destination) port.
Certificate of insurance
One original and one copy are required.
Packing list
Not obligatory but facilitates clearance when different types of goods are packed within the same container.
Special certificates
All certificates must be in the language of the country of destination. Fax copies of certificates are not acceptable.
Live plants, parts of plants, seed grains and seed potatoes require phytosanitary certificates issued by the approved authority in the country of origin. In Australia this is usually the Australian Quarantine and Inspection Service, the Department of Agriculture, Fisheries and Forestry-Australia or the relevant state department of agriculture.
Pome fruits must be accompanied by an International Model Phytosanitary Certificate.
Live animals, fish, shellfish, fresh or cold storage meat, lard, fresh or pickled or dried hides and skins, wool and hair require health certificates issued by the approved authority in the country of origin.
Bovine animals must be accompanied by a health certificate certifying that the animal is free of diseases (eg. bluetongue (sereotype disease), foot and mouth disease, cattle plague and pleuropneumonia).
Animals imported from countries which permit the use of oestrogens must be accompanied by health certificates stating that the livestock has not been treated with either natural or synthetic oestrogens.
Imports of fish must be accompanied by a certificate specifying the permitted mercury content.
A health certificate of origin in Italian and English is required for imports of beeswax and honey.
Beer and wine imports must be accompanied by a certificate of analysis issued by a recognised government laboratory. All spirits require the completion of Form C&E 94F. Initial shipments must be accompanied by a certificate of analysis.
There are Italian requirements for meat and poultry products. All required forms and supplementary statements must be dated and signed by a veterinarian. Meat products require export certificates and certificates of origin and health and in the case of red meat, including statements that the beef has come from animals raised on farms where there has been no occurrence of the disease, bovine spongiform encephalopath (BSE).
Taxation
Italian citizens and businesses are among Europe’s most highly taxed, which often discourages new business start-ups. A Valued Added Tax (in Italian the abbreviation is ‘IVA’) assessed on the duty-paid value, is levied on most goods, both imported and domestic. The most common rates are 20 per cent and 10 per cent (the latter is most commonly used for services, eg. restaurants, hotels, catering and for some categories of foods and animals) with a lower rate for basic necessities.
A reduced rate of four per cent applies to necessities (such as basic foods, fertilisers, cereals for zootechnical use, orthopaedic devices, newspapers and books). Raw materials, such as cotton and minerals, are exempt.
Italy has a very complex taxation system, with a plethora of direct and indirect taxes including:
- registration tax
- land registration taxes
- stamp tax
- stock transfer tax
- gift tax
- municipal tax on productive activities (ICIAP)
- municipal tax on buildings (ICI)
Frontier surtax, equivalent to the internal manufacturing tax, is levied on a number of products, including alcoholic beverages, tobacco and tobacco products, sugar, some products containing sugar, cocoa beans and their products.
Italy imposes variable levies (on grain products) and quotas (on meat, cheese, bananas) as required by the European Union. In general, if an Australian food product is imported into one EU member state it can be transshipped to Italy, provided it has a label written in Italian, and provided the product does not present a public or animal/plant health risk.
However, if the product is directly imported into Italy it must meet all Italian food safety and quality standards, as well as Italian labelling and packaging regulations. Many of these standards and regulations have been harmonised within the EU. For example, the EU has adopted a number of regulations covering production standards, analytical characteristics, product specifications, allowable additives, and labelling. Specific EU regulations exist for cocoa and chocolate products, sugars, fruit juices, fruit jams and jellies, milk and casein products.
Business travel
All major Italian cities have airports offering frequent connections to Rome, Milan and other European cities. Linate Airport is just 15–20 minutes by car from the centre of Milan while Malpensa Airport is about one hour away. Fiumicino Airport is about one hour by car from the centre of Rome. Make sure taxis have the emblem of the local council on their side door, otherwise they may not be authorised. Tipping is appreciated but not compulsory. Approximate one-way fares are as follows:
- taxi from Milan to Linate – A$25
- taxi from Milan to Malpensa - A$150
- taxi from Rome to Fiumicino – A$60
- bus from Malpensa to Milan Central Station – A$13
- train from Malpensa to Cadorna Northern Railway Station (Malpensa Express) – A$18
- train from Rome to Fiumicino – A$10
Trains are the cheapest way to travel around Italy. There are excellent high-speed connections between the major cities on Eurostar, InterCity and EuroCity, which are generally punctual. Local commuter trains may be less punctual. Before you get on a train you must stamp your ticket on a dedicated yellow machine to validate it. The machines are normally located throughout the railway station and some are also situated along the platforms. If you don’t validate your ticket you will be liable for a small fine.
In most large cities public transport is convenient and rapid. Bus, tram and subway tickets are on sale at newspaper stands or stations. Train tickets are sold at railway stations or travel agencies. For longer north-south distances, there are several excellent domestic airlines offering reasonable fares. Taxis (often white, and bearing the emblem of the local town council on the side) are relatively expensive and charge extra at night and when travelling outside city limits. Car rentals are quite expensive (starting at A$80 per day), and credit cards are required.
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