Business opportunities in Italy Handbook for Thai SME’s Entrepreneurs

Edit by Italian Trade Commission (ICE Bangkok) Curator Edoardo Maggini

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BUSINESS ITALIA More than just art, culture, style, gastronomy, climate and nature: following recent reforms Italy offers new opportunities for business investments, production and profits. Italy is already well known for its important lively economy, ranked seventh in the world according to production value. It is a member state of the European Union and part of the Euro zone. Within this framework, three fundamental components of economic legislation have been revolutionized: the tax system, company law and labor legislation. These changes seek to establish regulations in line with those of other advanced economies, in order to make the Italian System more attractive to economic operators and more competitive internationally.

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INDEX ITALY: OUTLOOK I. II. III. IV. V. VI. VII. VIII.

Country Profile Political system and administrative divisions Legal System Reforms Local Taxation The Regional Council for Local Authorities Participation of local government representatives in parliament Italian Districts

EXPORT AND TRADE I. Trade Regulations and Standards I.I Import Tariffs I.II Imported requirements and documentation I.III Prohibited and restricted imports I.IV Customs regulations and contact information I.V Labeling and marking requirements I.VI Standard Trade agreement II. Business Opportunity in Italy III. Italian Trade Fair

INVEST IN ITALY I. New business environment II. Business Solutions III. Representative Office and Branch III.I Branch Office IV. Types of companies IV.I Joint Stock Options (Societa’ per Azioni –S.p.A.) IV.II Limited Liability Company (Societa’ a Resposnabilita’ Limitata-S.r.l.) IV.III Other types of company V. Groups of Companies VI. Litigation – Corporate proceeding VII. Bankruptcy VIII. Intellectual and Property Right IX. Incentives

LIVING AND WORKING IN ITALY

USEFUL LINK AND CONTACTS 3

ITALY: OUTLOOK I. COUNTRY PROFILE

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Country name: conventional long form: Italian Republic conventional short form: Italy local long form: Repubblica Italiana Government type: republic Capital: name: Rome Administrative divisions: 15 regions (regioni, singular - regione) and 5 autonomous regions* (regioni autonome, singular - regione autonoma); Abruzzo, Basilicata, Calabria, Campania, Emilia-Romagna, Friuli-Venezia Giulia*, Lazio (Latium), Liguria, Lombardia, Marche, Molise, Piemonte (Piedmont), Puglia (Apulia), Sardegna* (Sardinia), Sicilia*, Toscana (Tuscany), Trentino-Alto Adige* (Trentino-South Tyrol), Umbria, Valle d'Aosta* (Aosta Valley), Veneto National holiday: Republic Day, 2 June (1946) Legal system: based on civil law system; appeals treated as new trials; judicial review

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under certain conditions in Constitutional Court; has not accepted compulsory ICJ jurisdiction Executive branch: chief of state: President Giorgio NAPOLITANO (since 15 May 2006) head of government: Prime Minister (referred to in Italy as the president of the Council of Ministers) Silvio Berlusconi. cabinet: Council of Ministers nominated by the prime minister and approved by the president elections: president elected by an electoral college consisting of both houses of parliament and 58 regional representatives for a seven-year term (no term limits); prime minister appointed by the president and confirmed by parliament International organization participation: AfDB, AsDB, Australia Group, BIS, BSEC (observer), CBSS (observer), CDB, CE, CEI, CERN, EAPC, EBRD, EIB, EMU, ESA, EU, FAO, G- 7, G- 8, G-10, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAIA (observer), MIGA, MINURSO, NAM (guest), NATO, NEA, NSG, OAS (observer), OECD, OPCW, OSCE, Paris Club, PCA, SECI (observer), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, Union Latina, UNMOGIP, UNRWA, UNTSO, UNWTO, UPU, WCL, WCO, WEU, WHO, WIPO, WMO, WTO, ZC Economic overview:

Italy has a diversified industrial economy with roughly the same total and per capita output as France and the UK. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. Over the past decade, Italy has pursued a tight fiscal policy in order to meet the requirements of the Economic and Monetary Unions and has benefited from lower interest and inflation rates. The current government has enacted numerous short-term reforms aimed at improving competitiveness and long-term growth. Italy has moved slowly, however, on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's rigid labor market and over-generous pension system, because of the current economic slowdown and opposition from labor unions. But the leadership faces a severe economic constraint: the budget deficit has breached the 3% EU ceiling. The economy experienced low growth in 2006, and unemployment remained at a high level.

GDP (purchasing power parity): $1.782 trillion (2010 est.) GDP (official exchange rate): $2.037 trillion (2010 est.)

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GDP - real 1.1% (2010 est.) growth rate: GDP - per capita (PPP): $30,700 (2010 est.) GDP composition by sector: agriculture: 1.8% industry: 24.9% services: 73.3% (2010 est.) Labor force: 25.05 million (2006 est.) Labor force - by occupation: agriculture: industry: services: (2005) Unemployment rate:

8.4%

4.2% 30.7% 65.1%

(2010)

Population below poverty line: NA% Household income or consumption by percentage lowest 10%: 2.3% share: highest 10%: 26.8% (2000)

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Public debt: 118.1% of GDP (2010 est.) Agriculture products: fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish Industries: tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics Industrial production growth rate: 0.5% (2010 est.) Current account balance: -$61.98 billion (2010 est.) Exports: $458.4 billion f.o.b. (2010 est.) Exports commodities: engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, and nonferrous metals Exports partners: (2010)

Germany 12.6%, France 11.57%, US 5.92%, Spain 5.69%, UK 5.13%

Imports: $445.6 billion f.o.b. (2006 est.) Imports commodities: engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco Imports partners: Germany 16.68%, France 8.82%, China 6.53%, Netherlands 5.63%, Spain 4.3%, Russia 4.2% (2010) Reserves of foreign exchange and $132.8 billion (2009 est.) gold: Debt - external: $2.223 trillion (30 June 2010 est.) Economic aid donor: ODA, $1 billion (2002 est.) Currency (code): euro (EUR) note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

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II. POLITICAL SYSTEM AND ADMINISTRATIVE DIVISIONS Italy is a Parliamentary Republic established by the 1948 Constitution. Sovereignty belongs to the people who exercise it as laid down by the Constitution. The Italian Republic acknowledges and guarantees human rights. All citizens have equal social status without regard to their gender, race, language, religion, political opinions or their personal and social conditions. The Constitution stipulates a democratic state with powers divided between the Executive, the Parliament and the Judiciary. Administrative divisions The Constitution states that the Italian Republic consists of Municipalities, Provinces, Metropolitan Areas and Regions. Italy is divided into twenty Regions, five of which have a special status (Valle d'Aosta, Trentino-Alto Adige, Friuli-Venezia Giulia, Sicilia and Sardegna). The Italian regions are divided into 103 Provinces and 8,101 Municipalities

III. LEGAL SYSTEM In the Italian legal system the jurisdictional functions are divided into: • ordinary, practiced by ordinary magistrates • administrative, practiced by the Regional Administrative Courts (TAR) • accounting, performed by the Court of Auditors in public accounting • tax-related, performed by the Provincial Tax Commission and the Regional Tax Commission on tax matters. The judicial process is one of the three fundamental functions of the democratic state along with the legislative and the executive functions.

IV. REFORMS The Italian Government is committed to promoting reform policies on a national and local level. National reforms The Italian government has carried out several structural reforms to improve long-term growth and competitiveness, such as company law, tax system and labor market reforms. It is also committed to promoting and supporting business internationalization, R&D as well as e-government procedures to simplify red-tape. Federal Reforms Constitutional Law No. 3 of October 18, 2001, has enhanced the regional legislative powers. Regional governments have gained new powers in several important areas such as foreign trade, education and local government. Furthermore, regional governments intervene in the legislative process of the EU when European laws deal with regional matters. Nevertheless, the central government remains responsible for the following issues: Foreign Policy Immigration Religious Affairs Defence National currency Electoral Laws Central Public Administration Public Safety Citizenship Justice

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Minimum levels of Healthcare Services Guidelines on Education PensionsElectoral Laws for Provinces and City Councils Environmental Protection.

V. LOCAL TAXATION Local taxation grants financial autonomy to Regions, Provinces, City Councils and Metropolitan Cities (art. 119 of the Constitution). Thus local governments may establish and levy their own taxes. and pay their due to the central government.

VI. THE REGIONAL COUNCIL FOR LOCAL AUTHORITIES The regional Council for Local Authorities co-ordinates city and provincial councils within the same Region.

VII. PARTECIPATION OF LOCAL GOVERNMENT REPRESENTATIVES IN PARLIAMENT A transitional law gives local government representatives the right to take part in the works of the Parliamentary Commission for Regional Affairs with the aim to support the establishment of a Chamber of Regions.

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VIII. INDUSTRIAL DISTRICTS IN ITALY La mappa dei distretti associati alla Federazione

Source: www.distretti.org

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EXPORT AND TRADE I. TRADE REGULATIONS AND STANDARDS • • • • • •

Import tariffs Import requirements and documentation Labeling and marking requirements Prohibited and restricted imports Customs regulations and Contact Information Standards Trade agreements

I.I. IMPORT TARIFFS Customs duty rates are the same for all EU countries. The value added tax varies from Country to country. In Italy VAT ranges from 4 to 20 percents. I.II IMPORTED REQUIREMENTS AND DOCUMENTATION Practically all goods originating in Thailand can be imported without import licensing or free of quantitative restrictions. Only a group pf agricultural items may be subject to import regulations. There are, however, monitoring measures applied to imports of certain sensitive products. The most important of these measures is the automatic import license of textiles. The import license is the responsibility of the Italian importer. This license is granted to Italian importers when they provide the requisite forms. Various textile, apparel, and controlled products (such as arms and munitions), are the most frequently regulated items. License are not transferable, although they may be used to cover several shipments within the total quantity authorized. In general, the goods involved are indicated on the license by the Harmonized System classification number and the corresponding wording of the tariff position. IMPORT LICENSES The integrated Tariff of the Community, referred to as TARIC (acronym for “Tarif Integre de la Communaute”), is designed to show various rules applying to specific products being imported into customs territory of the EU or, in some cases, when exported from it. To determine if a license is required for a particular product, check the TARIC. The TARIC can be searched by country of origin, Harmonized System (HS) Code, and product description on the interactive website of the Directorate-General for Taxation and the Customs Union. The TARIC is updated annually. It is important to note that the World Customs Organization has released the third update in more than 20 years to the HS code. There are major production classification revisions to chapters 84 and 85. This affects not just the EU, but all 121 contracting parties to the HS starting January 2007. In addition, many EU Members States maintain their own list of good subject to import licensing. For example, Germany’s “Import List” (Einfuhrliste) included goods for which licenses are required, their code numbers, any applicable restrictions, and the agency that will issue the relevant license. The Import List is required under German or EU law. For information relevant to Member State Import licenses, please consultant the relevant Member

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State Country Commercial Guide. Key link: http://ec.europa.eu/taxation_customs/common/databases/taric/index_en.htm

IMPORT DOCUMENTATION Non-agricultural Documentation The official model for written declarations to customs under “Normal Procedure” is the Single Administrative Document (SAD). European Free Trade Association (EFTA) countries including Norway, Iceland, Switzerland and Liechtenstein also use the SAD. However, other forms may be used for this purpose. Information on import/export forms is contained in Title VII, of Council Regulation (EEC) No.2454/93, which lays down provisions for the implementation of Council Regulation (EEC) No.2913/92 establishing the Community Customs Code (Articles 205 through 221). Articles 222 through 224 provide for oral declarations. Additional information on import/export documentation can be found in Title III, of Council Regulation (EEC) No.2913/92 of October 12, 1992, establishing the Community Customs Code (articles 37 through 57). Goods brought into the customs territory of the Community are, from the time of their entry, subject to customs supervision until customs formalities are completed. Goods presented to customs are covered by a summary declaration, which is lodged once the goods have been presented to customs. The customs authorities may, however, allow a period for lodging the declaration, which cannot be extended beyond the first working day following the day on which the goods are presented to customs. The summary declaration can be made on a form corresponding to the model prescribed by the customs authorities. However, the customs autorithies may permit the use, as a summary declaration, of any commercial or official document that contains the particulars necessary for identification of the goods. It is encouraged that the summary declaration de made in computerized form. The summary declaration is to be lodged by: •

The person who brought the goods into the custom territory of the Community or by any person who assumes responsibility for carriage of the goods following such entry;

Or •

The person in whose name the person referred to above acted.

Non-EU goods presented to customs must be assigned a custom-approved treatment or use authorized for such non-Community goods. Where goods are covered by a summary declaration, the formalities for them to be assigned a customs-approved treatment or use must be carried out: • •

45 days from the date on which the summary declaration is lodged in the case of goods carried by sea; 20 days from the date on which the summary declaration is lodged in the case of goods carried other than by sea.

Where circumstances so warrant, the customs authorities may set a shorter period or

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authorize an extension of the period. BATTERIES New EU batteries rules came into force on 26 September 2006 following the publication of the Directive on batteries and accumulators and waste batteries and accumulators (directive 2006/66) in the EU’s Official Journal. This new Directive applies to all batteries and accumulators put on the EU market including automotive, industrial and portable batteries. It aims to protect the environment by restricting the sale of batteries and accumulators that contain mercury or cadmium (with an exemption for emergency and alarm systems, medical equipment and cordless power tools) and by promoting a high level of collection and recycling. It places the responsibility on producers to finance the costs associated with the collection, treatment, and recycling of used batteries and accumulators. The Directive also includes provisions on the labeling of batteries and their removability from equipment. EU Member States must implement the EU Directive into their national law by September 26, 2008. REACH REACH is a major reform of EU chemicals policy, proposed by the European Commission on October 2003 and was adopted at EU level in December 2006, REACH became national law in the 27 EU Member States in spring 2007. REACH stands for the “Registration, Evaluation and Authorization of Chemicals produced and imported into EU in volumes above 1 ton per year to be registered with a central European Chemical Agency, with information on their properties, uses and safe ways of handlings them. Chemicals of very high concern, like carcinogens, will need an authorization for use in the EU. Virtually every industrial sector, from automobiles to textiles, could be affected by the new policy. The Thai exporters to Europe should carefully consider this piece of EU environmental legislation. WEEE & RoHS EU rules on ‘waste electrical and electronic equipment’ (WEEE), while not requiring specific customs or import paperwork, may require Thai exporters to register the products with a national WEEE authority, or arrange for this to be done by a local partner. Similarly, related rules for EEE restricting the use of the hazardous substances (RoHS) lead, cadmium, mercury, hexavalent chromium, PBBs, and PBDEs, do not entail customs or importation paperwork. However. Thai exporters may be asked by a European RoHS enforcement authority or by a customer to provide evidence of due diligence in comp[liance with the substance bans on a case-by-case. AGRICOLTURAL DOCUMENTATION Phytosanitary Certificates: Phytosanitary certificates are required for most the fresh fruits, vegetables, and other plant materials. Sanitary certificates: for commodities composed of animal products or by-products, EU countries require that shipment be accompanied by a certificate issued by the competent authority of the exporting country. This applies regardless of whether the product is for human consumption, for pharmaceutical use, or strictly for non-human use (e.g., veterinary biologicals, animal feeds, fertilizers, research). Many of these certificates are uniform throughout the EU, but the harmonization process has not been finalized yer. During this transition period, certain Member State import requirements continue to apply. Sanitary certificates (fisheries): on November 20, 2006, the commission published an amendment to Regulations 2003/804/EC and 2003/858/EC. Decision 2006/767/EC, in force

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as of November 27, 2006, modifies the conditions of imports of aquaculture live bivalve mollusks as as fishery products for human consumption. A new EU Hygiene law has been in force since January 1, 2006. This new set of Regulations aims to simplifying existing rules and at guaranteeing safer food. To facilitate the implementation of the revised rules, the Commission recently published implementing measures and transitional arrangements that are also effective as of January 1, 2006. These guidelines can be found below: • • •

Commission Regulation 2073/2005 Commission Regulation 2074/2005 Commission Regulation 2076/2005

From May 1, 2007, a second set of new hygiene laws has been placed. For detailed information look this website: TEMPORARY ENTRY Material may temporarily be imported into Italy without payment of duties or tax if the material is to be used in the production or manufacture of a product that is to be exported. The importer gives a security deposit, usually in their form of a guarantee from a bank or insurance company, for the amount of the usual duties and taxes. Upon exportation of the finished product, the guarantee is released or deposit returned. Temporary entry of goods intended to be re-exported in the same condition is permissible free of import duties and taxes upon approval of an application by Italian Customs. Italy participates in the International Convention to Facilitate the Importation of Commercial Samples and Advertising Materials. Sample of negligible value imported to promote sales are accorded duty-free and tax-free treatment. Prior authorization is not required. To determine whether the samples are of negligible value, their value is compared with a commercial shipment of the same product. Granting of duty-free status may require that the samples be rendered useless for future sale by marking, perforating, cutting, or other means. Imported samples of commercial value may be granted a temporary entry with exemption from custom charges. However, a bond or cash deposit may be required as security that the goods will be removed from the country. This security is the duty and tax normally levied plus 10 percent. Samples may remain in the country for up to 1 year. They may not be sold, put to their normal use (except for demonstration purposes), or utilized in any manner for remuneration. Goods imported as samples may be imported only in quantities constituting a sample according to normal commercial usage. Samples of products, without commercial value, are admitted free of duty and taxes. Product literature should be marked “product literature – no commercial value”. Samples with commercial value are also admitted duty and tax free, provided that the following conditions are complied with: a)

The samples are accompanied by a representative of the Thai firm with a statement, notarized by an Italian Consulate, identifying the commercial traveler and attesting to the intention that the sample are being imported into Italy only for show or demonstration, and will be re-exported without sale.

b) A certificate of origin from a recognized chamber of commerce is submitted to identify the source of the goods.

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c)

A deposit or bond, in the amount of the applicable customs duties and taxes, is made at the point of entry. This will refunded when the goods are re-exported.

d) A list (in duplicate) with a full description of each sample, including weight and value, is submitted. It is helpful to have such a list in Italian. In practice, samples valued in excess of 2,582 Euro ($ 3,380) are pratically impossible to clear through Italian customs informally. In such cases, it is advisable to engage the services of a local freight forwarder. GOOD IN TRANSIT Goods may clear customs with an EU transit procedure, issuing a single transit document under which the goods may be easily shipped across frontiers of the EU member states. These transit documents are completed for the importer by freight forwarders in Italy. The EU transit document provides the basis for a single, comprehensive procedure covering the goods within the EU. Since the single transit document is an EU form, the European importer, customs house broker, freight forwarder, or shipper must prepare the document at the point of entry. INWARD AND OUTWARD PROCESSING Inward processing is the temporary importation of raw material or products for additional manufacture or processing. Merchandise imported for additional processing and eventual reexport out of the EU is eligible for custom-free treatment. The re-exported goods may be partly or totally processed. The import duty and taxes are levied only on those goods that are re-exported and are finally sold in EU. To qualify for inward processing, an Italian (or EU) firm must satisfy customs that it is necessary to use imported goods instead of EU goods; state an intention to export products manufactured from the imported goods (or equivalent goods available in the EU); and assure that, upon re-exportation, the conditions set forth in the authorization are satisfied, the exported products are accounted for, and the entered goods are identifiable and relate to specific importations. In outward processing, a firm in Italy may export goods, for further manufacture or processing, from the EU customs area and then re-import the final product. Duties and taxes are levied only on the increased value added by the expatriate manufacturing or processing when the goods are returned to Italy, not on the total value of the product. Only firms located in Italy or other EU countries are eligible to take advantage of this option, by gaining approval of the Customs authorities.

I.III PROHIBITED AND RESTRICTED IMPORTS The Italian importer should determine if the items are subject to Italian and EU regulations. Of special note are certain foodstuffs, food colorings, drug and narcotics, animal products, plants, seed grains, alcohol, cosmetics and toiletries. The TARIC is designed to show various rules applying to specific products being imported into the customs territory of the EU or, in some cases, when exported from it. To determine if a product is prohibited or subject to restriction, check column five of the TARIC for that product for the following codes.

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CITES Convention on International Trade of Endangered Species PROHI Import Suspension RSTR Import Restriction For information on how to access the TARIC, see the Import Requirements and Documentation Section above. Key link: http://ec.europa.eu/taxation_customs/common/databases/taric/index_en.htm I.IV CUSTOMS REGULATIONS AND CONTACT INFORMATION Prior to signing a long-term contract or sending a shipment of considerable value, it may be prudent for Thai exporter to first obtain an official ruling on the customs classification, duty rate and taxes. Such requests should be sent to the Ministry of Finance’s Customs Department, Rome, Italy http://www.agenziadogane.it. The request should describe the product, the material it is made from, and other details required by customs authorities to classify the product correctly. While customs will not provide a binding decision, the advance ruling will usually be accepted as long as the imported goods are found to correspond exactly to the description provided by the exporter. Regulation 648/2005 is the “Security Amendment” to the Customs Code (Regulation 2913/92) and outlines the implementing provisions for Authorized Economic Operators, risk management procedures, pre-departure declarations, and improved export controls. Tariff and Import Taxes: information on customs valuation is contained in Title II, Chapter Three, of Council Regulation (ECC) 2913/92, establishing the Community Customs Code, titled, “Value of Goods for Customs Purposes” (Articles 28 through 36). The primary basis for determining customs value set out in Articles 29 is: “Sthe transaction value, that is, the price actually paid or payable for the goods when sold for export to the customs territory of the CommunityS” Article 29 lists the following conditions, which must be met in determining custom value: • There are no restrictions as to the disposal or use of the goods by the buyer, other than restrictions which are imposed or required by a law or by the public authorities in the community, limit the geographical area in which goods may be resold, or do not substantially affect the value of the goods; • The sale or price is not subject to some conditional consideration for which a value cannot be determined with respect to the goods being valued; • No part of the proceeds of any subsequent resale disposal or use the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made in accordance with article 32; and • The buyer and seller are not related, or, where the buyer and seller are related, that the transaction value is acceptable for customs purposes. The “price actually paid or payable” in Article 29 refers to the price for the imported goods. Thus the flow of dividends or other payments from the buyer to the seller that do not relate to the imported goods are not part of the custom value. Article 32 and 33 provide for adjustments to the value for customs purpose. Article 32 lists changes that are added to the customs value, such as, commissions and brokerage, cost of containers, packing, royalties and license fees, and value of goods and services supplied directly or indirectly by the buyer in connection with the production and sale for export of the imported goods. Article 33 lists charges that are not included in the custom value, such as,

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charges for transport, charges incurred after importation, charges for interest under a financing arrangement for the purchase of the goods, charges for the right to reproduce imported goods in the Community, and buying commissions. Effective July 1, 1995, the Commission amended Article 147(1) of Regulation 2454/93 of the Customs Code which affects valuation on the case of successive sales. This amendment “defaults” valuation to the last sale, but allows the value of an earlier sale if it can be demonstrated that such a sale took place for export to the EU. The evidentiary requirements to support the bona fides of any earlier sales will be based upon commercial documents such as purchase orders, sales contracts, commercial invoices, and shipping documents. Key link: http://ec.europa.eu/taxation_customs/customs/index_en.htm For contact information at national customs authorities, please visit: http://ec.europa.eu/taxation_customs/common/links/customs/index_en.htm STANDARDS Products tested and certified in the Thai standards are likely to have be retested and recertified to EU requirements as a result of the EU’s different approach to the protection of the health and safety of the consumer and the environment. Where products are not regulated by specific EU technical legislation, they are always subject the EU’s General Product Safety Directive as well as to possible additional national requirements. European Union standards created under the New Approach are harmonized across the 25 EU Member States and European Economic Area countries to allow for the free flow of foods. A feature of the New Approach is CE marking. While harmonized of EU legislation can facilitate access to the EU Single Market, manufactures should be aware that Regulations and technical standards might also function as barriers to trade if Thai standards are different from those of the European Union. The European Union is currently undertaking a major revision of the New Approach, which will enhance some aspects, especially in the areas of market surveillance. To follow the revision, please visit: http://ec.europa.eu/enterprise/newapproach/review_en.htm Agricultural Standards The establishment of harmonized EU rules and standards in the food sector has been ongoing for several decades, but it took until January 2002 for he publication of a general food law establishing the general principles of EU food law. This Regulation introduced mandatory traceability throughout the feed and food chain as of January 1, 2005. STANDARDS ORGANIZATIONS Thai firms exporting to Italy must conform to EU standards and/or national Italian standards. Italy and other EU Member States are required to transpose EU Directives into national law. The Directives define a schedule for adoption, publication and implementation of national provisions. Directives also recognize a transitional period during which exiting national provisions and new legislation will coexist. In such cases, the manufactures has a choice of following either of these provisions. Similarly, purely national standards must be replaced when agreement has been reached a harmonized European standard. In Italy, the national standards bodies are:

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UNI-Ente Nazionale Italiano di Unificazione (The Italian National Bureau of Standards), Via Battistotti Sassi 11b, 20133 Milan, +39 02 70024.1 http://www.uni.com/.it/ CEI-Comitato Elettrotecnico Italiano (Electtrical standards and certification) Via Saccardo 9 20134 Milan, +39 02 21006.1 http://www.ceiweb.it/ EU standards settings a process based on consensus initiated by industry or mandated by the European Commission and carried out by independent standard bodies, acting at the national, European or international level. There is strong encouragement for nongovernmental organizations, such as environmental and consumer groups, to actively participate in European standardization. Manu standard in the EU are adopted from international standards bodies such as the International Standard Organization (ISO). The drafting of specific EU standards organizations: • • •

CENELEC, European Committee for Electrotechnical Standardization (http://www.cenelec.org/cenelec/homepage.htm) ETSI, European Telecommunications Standards Institute (http://www.etsi.org/) CEN, European Committee for Standardization, handling all other standards (http://www.cen.eu/cenorm/index.htm)

Standards are created or modified by experts in Technical Committees or Working Groups. The members of CEN and CENELEC are the national standards bodies of the member states, which have ‘mirror committees” that monitor and participate in ongoing European standardization. CEN and CENELEC standards are sold by the individual Member States standard bodies. ETSI is different in that it allows direct participation on its technical committees from non-EU companies that have interests in Europe and gives away its individual standards at no charge on its website. In addition to the three standards developing organizations, the European Commission plays an important role in standardization through its funding of the participation in the standardization process of small and medium sized companies and no-governmental organizations, such as environmental and consumer groups. The Commission also provides money to the standard bodies when it mandates standards development to the European Standards Organization for harmonized standards that will be linked to EU technical Regulations. In the last year, the Commission began listing their mandates on line and they can be seen at http://ec.europa.eu/enterprise/standards_policy/mandates/. All the EU harmonized standards, which provide the basis for CE marking, can be found on http://www.newapproach.org/ Due to the EU’s vigorous promotion of its regulatory and standards system as well as its generous funding for its business development, the EU’s standards regime is wide and deep – extending well beyond the EU’s political borders to include affiliate members (countries which are hopeful of becoming full members in the future) such as Albania, Bulgaria, Croatia, FYR of Macedonia and Turkey. Another category, called “partner standardization bodies” includes the standards organizations of Bosnia and Herzegovina, Egypt, Serbia and Montenegro, Russia, Tunisia, the Ukraine and Australia, ahich are not likely to join the EU or CEN any time soon, but have an interest in participating in specific CEN technical committees. They agree to pay a fee for full participation in certain technical committees and agree to implement the committee’s adopted standards as national standards. Many other countries are targets of the EU’s extensive technical assistance program, which is aimed at exporting EU standards and technical Regulations to developing countries, especially in the Mediterranean and Balkan countries, Africa, as well as smaller programs for China and Latin America. To know what CEN and CENELEC have in the pipeline for future standardization, it is best to

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visit their websites. CEN’s “business domain” page provides an overview by sector and/or technical committee whereas CENELEC offers the possibility to search its database. ETSI’s portal (http://portal.etsi.org/Portal_Common//home.asp) leads to ongoing activities. With the need to adapt more quickly to market needs, European standards organizations have been looking for “new deliverables” which are standard-like products delivered in a shorter timeframe. While few of these “new deliverables” have been linked to EU Regulations, expectations are that they will eventually serve as the basis for EU-wide standards. Key link: http://www.cenorm.be/cenorm/workarea/sectorfora/index.asp CONFORMITY ASSESSMENT Conformity Assessment is a mandatory step for the manufacturer in the process of complying with specific EU legislation. The purpose of conformity assessment is to ensure consistency of compliance during all stages of the production process to facilitate acceptance of the final product. EU product legislation gives manufactures some choice with regard to conformity assessment, depending on the level of risk involved in the use of their product. These range from self-certification, type examination and production quality control system, to full quality assurance system. You can find conformity assessment bodies in individual Member State country in this list by the European Commission. Key link: http://ec.europa.eu/enterprise/newapproach/nando/ To promote market acceptance of the final product, there are a number of voluntary conformity assessment programs. CEN’s certification systems are the Keymark, the CENCER mark, and the European Standard Agreement Group. CENELEC has its own initiative. ETSI does not offer conformity assessment services. PRODUCT CERTIFICATION To sell products on the EU market of 25 Member States as well as Norway, Liechtenstein and Iceland, Thai exporters are required to apply CE marking whenever their product is covered by specific product legislation. CE marking product legislation offers manufacturers a number of choices and requires decisions to determine which safety/health concerns needs to be addressed, which conformity assessment module is best suited to the manufacturing process, and whether or not to use EU-wide harmonized standards. There is no easy way for Thai exporters to understand and go through the process of CE marking, but hopefully this section provides some background and clarification. Products manufactured to standards adopted by CEN, CENELEC and ETSI, and published in the Official Journal as harmonized standards, are presumed to conform to the requirements of EU Directives. The manufacturer then applies the CE marking and issues a declaration of conformity. With these, the product will be allowed to circulate freely within the EU. A manufacturer can choose not to use the harmonized EU standards, but then must demonstrate that the product meets the essential safety and performance requirements. Trade barriers occur when design, rather than performance, standards are developed by the relevant European standardization organization, and when Thai companies do not have access to the standardization process through an European presence. The CE marking address itself primarily to the national control authorities of the Member States, and its use simplifies the task of essential market surveillance of regulated products. Although CE marking is intended primarily for inspection purposes by Member State inspectors, the consumer may well perceive it as quality mark. The CE marking is not intended to include detailed technical information on the product, but

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there must be enough information to enable the inspector to trace the product back to the manufacturer or the authorized representative established in the EU. This detailed information should not appear next to the CE marking, but rather on the declaration of conformity, the certificate of conformity (which the manufacturer or authorized agent must be able to provide at any time, together with the products technical file), or the documents accompanying the product. ACCREDITATION Independent certification bodies, known as notified bodies, have been officially accredited by competent authorities to test and certify to EU requirements. Accreditation is handled at Member State level. “European Accreditation” (http://www.european-accreditation.org/default_flash.htm) is an organization representing nationally recognized accreditation bodies. Membership is open to nationally recognized accreditation bodies in countries in the European geographical area that can demonstrate that they operate an accreditation system compatible with EN45003 or ISO/IEC Guide 58. PUBLICATION OF TECHNICAL REGULATIONS The Official Journal is the official gazette of the European Union. It is published daily and consists of two series covering draft and adopted legislation as well as case law, questions from the European Parliament, studies by committees, and more (http://europa.eu.int/eurlex/lex/JOIndex.do?ihmlang=en). It lists the standards reference numbers linked to legislation (http://www.newapproach.org/Directives/DirectivesList.asp). National technical Regulations are published on the Commission’s website http://ec.europa.eu/comm/enterprise/tris/ to allow other countries and interested parties to comment. Member countries of the World Trade Organization (WTO) are required under the Agreement of the Technical Barriers to Trade (TBT Agreement) to report to the WTO all proposed technical Regulations that could affect trade with other member countries. I.V LABELLING AND MARKING REQUIREMENTS Manufactures should be mindful that, in addition to the EU’s mandatory and voluntary schemes, national voluntary labeling schemes might still apply. These schemes may be highly appreciated by consumers, and thus , become unavoidable for marketing purposes. Manufacturers are advised to take note that all labels require metric units although dual labeling is also acceptable until end of December 2009. The use of language on labels has been the subject of a Commission Communication, which encourages multilingual information, while preserving the right of Member States to require the use of language of the country of consumption. The EU has mandated that certain products be sold in standardized quantities. Council Directive 80/232/EC provides permissible ranges of nominal quantities, container capacities and volumes for a variety of products. Please note that this legislation is currently being reviewed in an effort to simply it. Key link: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31980L0232:EN:HTML

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THE ECO-LABEL EU legislation in 1992, revised in 2000, distinguishes environmentally friendly products and services through a voluntary labeling scheme called the Eco-label. Currently, the scheme applies to 7 product groups: cleaning products, appliance, paper products, clothing, lubricants, home and garden products and tourism services. The symbol, a green flower, is a voluntary mark. The Eco-label is awarded to producers who can show that their product is less harmful to the environment that such similar products. His “green label” also aims to encourage consumers to buy green products. However, the scheme does not establish ecological standards that all manufacturers are required to meet to place product on the market. Product without the EU Eco-label can still enter the EU as long they meet the existing health, safety, and environmental standards and Regulations. The EU Eco-label is a costly scheme (up to EUR 1,300 for registration and up to EUR 25,000/year for the use of the label, with a reduction of 25 percent for SMEs) and has therefore not been widely used so far. However, the Eco-label can be a good marketing tool and, given the growing demand for green products in Europe, it is likely that the Eco-label will become more and more a reference for green consumers. Key links: http://ec.europa/comm/environmental/ecolabel/index_en.htm http://www.eco-label.com In June 2005, the European Commission tabled a Communication designed to launch a debate on the best way ahead regarding the eco-labeling of fisheries products. This initiative follows the growing interest by environmental Non-Governmental Organizations and increased public interest in food products associated with considerations related to environmental sustainability. A number of eco-labeling schemes have already been established with regard to fisheries products and other initiatives are being developed. It is not always easy to establish how reliable some eco-labeling claims are. International guidelines on eco-labeling have recently been adopted by the Food and Agriculture Organization (FAO) (www.fao.org) and discussions on these issues and their potential effects on free trade areas are progressing in other international for a such as the World Trade Organization (WTO) (www.wto.org). Companies selling a broad a range of electrical goods in Europe are required to comply with the Waste Electrical and Electronic Equipment Directive (WEEE) and since July 2006 they need to conform to the Restriction of Use of certain Hazardous Substances Directive (RoHS). One of the requirements is that electrical goods be marked so that consumers do not put them in with municipal waste. Manufacturers and distributors should be aware of specific requirements regarding the labeling and traceability of foodstuffs, including seafood, which are covered by several EU regulations: • Regulation 178/2002/EC • • • •

Directive 2000/13/EC, last amended by Directive 2003/89/EC as regards indication of the ingredients present in foodstuffs Commission Directive 2005/26/EC Council Regulation 104/2000/EC (seafood) Commission Regulation 2065/2001/EC (seafood, only for retail channels)

I.VI STANDARD TRADE AGREEMENTS Italy has been a member of the European Union (EU) since its inception. The EU is a union of

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twenty-five independent states based on the European Communities founded to enhance political, economic and social cooperation. The EU forms a large unified market having free trade among the member states. It levies a common tariff on imported products coming from non-EU countries such as the United States, Japan and Canada. The EU also has a common agricultural policy, joint transportation policy and free movement of goods and capital within the member states. Other aspects of commercial activity are being harmonized, such as financial markets, insurance regulation and pension programs. The EU grants tariff preferences to more than 100 developing countries and about 40 overseas territories under the EU’s Generalized System of Preferences (GSP). Imports of nearly all semi-manufactured goods originating in these countries and territories enter the EU duty free. Annual duty-free quotas are established for those products, and a system with certificates of origin has been established to ensure that third parties through the GSP countries do not divert goods. The GSP User’s Guide (yet to be updated with the recent changes) explains the main features of the GSP: http://europa.eu.int/comm/trade/issues/global/gsp/gspguide.htm Free trade agreements have been developed between the European Union and the European Economic Area (EEA), which included Norway, Iceland and Liechtenstein. Under the terms of these agreements, most industrial products and certain processed agricultural products are exempt from import duties if exchanged within this trading bloc. The result of the agreements reached between the EU members and the EEA members is an open trading area for most industrial products between 19 nations, encompassing population of 380 million, soon to grow even larger as the EU expands. For a list of trade agreements with the EU and its Member States, as well as concise explanations, please see http://tcc.export.gov/Trade_Agreements/index.asp

II. BUSINESS OPPORTUNIES IN ITALY Auto Components - Many of the opportunities in this sector relate directly to Italy’s major car manufacturer, Fiat Group, across the whole range of components as the company begins to recognize Thai capability. Apart from Fiat, the best prospects for overseas suppliers include components and accessories for 4WD vehicles and pick-ups, sport utility vehicles, alternative fuels (especially gas or organic) and fuel additives Cosmetics and Toiletries - Opportunities exist in the areas of hair care products, pre- and after-shave products, perfumes, eau de perfume, eau de toilette, and eau de cologne, lip care products, moisturizers and cleansers as well as personal hygiene (soaps, deodorants, etc) Since Italy imports virtually all its raw materials, it is possible to supply Italian manufacturers with ingredients such as aloe vera, lavender, and essential oils. There are also good prospects for products that distinguish themselves from what is already available on the Italian market, e.g. tea-tree and eucalyptus-based products. However, the packaging must be of good quality and stylish design. Flowers and Plants - The main opportunities in Italy's flower and plant industry include cut flowers and foliage for arrangement, indoor and outdoor plants, shrubs and trees Food and Beverages - Thai fruit and vegetables exporters have excellent opportunities for supplying Italy in the off-season. The best opportunities for Thai suppliers are in seafood, alternative meat varieties, exotic fruit, herbs and vegetables and organic and natural foods e.g. rice and cane sugar.

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Information and Communications Technology - Currently, the best prospects for IT in Italy are E-government, E-security, E-learning and E-commerce (B2B and B2C).Another area offering good prospects for Thai companies is multimedia products and services. However, CD-ROMs need to be translated into Italian and adapted to specific local needs. Italy has a shortfall of specialist ICT consultants, which means that there could be opportunities for Thai companies to provide night-and-day services from Thailand, or in Italy. Good opportunities exist for exporters and service providers in the telecommunications sector include value-added services for mobile telephony, services for broadband technology and services for wireless fidelity (WiFi) technology.

III. ITALIAN TRADE FAIR There are more than one thousand venues taking place in Italy: 195 international events, 422 national and 113 at a regional level: all information about these venues can be found on AEFI's web site. Economic categories represented are 27 besides the trade fairs. These figures highlight the importance of the national trade fairs system. It is a system based upon the industrial structure of our country, which looks at the sector specialization and to the peculiarity of district as a starting point for its development and for its international grandeur. In recent years the Italian trade fairs system has been involved in many changes: growth plans, juridical transformation of the trade fairs Bodies in Spa, decentralization of the competences regarding trade fairs and exhibitions at a regional level. Gathering articles, researches, studies, gatherings specifically carried out give organizers and users of the Italian trade fairs system the chance to be constantly updated on the developments.

BERGAMO FIERA NUOVA S.p.A. via Pasubio, 5 24044 - Dalmine (Bg) Tel. 035/6224202 Fax 035/6224200 Email [email protected] Web www.bergamofieranuova.it

BOLOGNAFIERE S.p.A. Viale della Fiera 20 40128 Bologna Tel. 051/282111 Fax 051/282332 E-mail [email protected] Web www.BolognaFiere.it

BRIXIA EXPO Immobiliare Fiera di Brescia S.p.A. 24

Via Caprera 5 - 25125 Brescia Tel. 030/3463470 Fax 030/3463480 E-mail [email protected] Web www.brixiaexpo.it

CARRARAFIERE S.r.l. Viale Galileo Galilei 133 Marina di Carrara - 54033 Carrara Tel. 0585/787963 Fax 0585/787602 E-mail [email protected] Web www.carrarafiere.com

CENTRO AFFARI E CONVEGNI Via Spallanzani 23 – 52100 Arezzo Tel. 0575/9361 Fax 0575/383028 E-mail [email protected] Webwww.centroaffariarezzo.it

CESENA FIERA S.p.A. Via Dismano 3845 47020 Pievesestina di Cesena (FC) Tel. 0547/317435 Fax 0547/318431 E-mail [email protected] Web www.cesenafiera.com

CREMONA FIERE S.p.A. P.zza Zelioli Lanzini 1 Località Cà Dé Somenzi 26100 Cremona Tel. 0372/598011 Fax 0372/453374 E-mail [email protected] Web www.cremonafiere.it

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E. A. FIERA DEL LEVANTE Lungomare Starita 13 - 70123 Bari Tel. 080/5366111 Fax 080/5366486 [email protected] Web www.fieradellevante.it

E.A. FIERA DEL MEDITERRANEO Via Anwar Sadat 13 90142 Palermo Tel. 091/5000111, Fax 091/5000148 E-mail [email protected] Web www.fieramediterraneo.it

E.A. FIERA DI FOGGIA Corso del Mezzogiorno 71100 Foggia Tel. 0881/3051 Fax 0881/305305 E-mail [email protected] Web www.fieradifoggia.it

E.A. FIERA DI MESSINA Viale della Libertà - 98100 Messina Tel. 090/364011 Fax 090/5728818 E-mail [email protected] Web www.fieramessina.it

E.A. FIERA DI TRIESTE P.le De Gasperi 1 - 34139 Trieste Tel. 040/9494111 Fax 040/393062 E-mail [email protected] Web www.fiera.trieste.it

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E.A. PER LE FIERE DI VERONA Via del Lavoro 8 - 37100 Verona Tel. 045/8298111 Fax 045/8298288 E-mail [email protected] Web www.veronafiere.it

E.R.F. Ente Regionale Fieristico Largo Fiera della Pesca 11 60125 Ancona Tel. 071/58971 Fax 071/5897213 E-mail [email protected] Web www.erf.it

FERRARA FIERE CONGRESSI S.r.l. Via della Fiera 11 - 44100 Ferrara Tel. 0532/900713 Fax 0532/976997 E-mail [email protected] Web www.ferrarafiere.it

FIERA BOLZANO S.p.A. MESSE BOZEN AG Piazza Fiera 1 - MessePlatz 1 39100 Bolzano Tel. 0471/516000 Fax 0471/516111 E-mail [email protected] Web www.fierabolzano.it

FIERA DI FORLI S.p.A. Via Punta di Ferro 2 47100 Forlì Tel. 0543/793511 Fax 0543/724488 E-mail [email protected] Web www.fieraforli.it

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FIERA DI GENOVA S.p.A. P.le Kennedy 1 - 16129 Genova Tel. 010/53911 Fax 010/5391270 E-mail [email protected] Web www.fiera.ge.it

FIERA DI ROMA S.p.A. Via dell'Arcadia 2 - c/o Palafiera 00147 Roma Tel. 06/5178582 Fax 06/5178585 E-mail [email protected] Web www.fieradiroma.it

FIERA DI VICENZA S.p.A. Via dell'Oreficeria 16 36100 Vicenza Tel. 0444/969111 Fax 0444/563954 [email protected] Web www.vicenzafiera.it

FIERA INT. DELLA SARDEGNA Via A. Diaz 221 - 09126 Cagliari Tel. 070/34961 Fax 070/3496310 E-mail [email protected] Web www.fieradellasardegna.it

FIERA MILANO S.p.A. Strada statale del Sempione, 28 20017 Rho - (MI) Tel. 02/4997.1 Fax 02/4997.7379 Email [email protected] Web www.fieramilano.com

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FIERA MILLENARIA DI GONZAGA S.r.l. Via Fiera Millenaria, 13 Gonzaga (MN) Tel. 0376/58098 Fax 0376/528153 E-mail [email protected] Web www.fieramillenaria.it

FIERE DI PARMA S.p.A. Via F. Rizzi 67/A 43031 Baganzola (PR) Tel. 0521/9961 Fax 0521/996319 E-mail [email protected] Web www.fiereparma.it

FIERE DI PESARO S.r.l. Via delle Esposizioni 33 61100 Pesaro Tel. 0721/40681 Fax 0721/25300 [email protected] Web www.fierapesaro.com

FIRENZE FIERA S.p.A. Congress & Exhibition Center Via Leone X, 3 - 50129 Firenze Tel. 055/49721 Fax 055/4972206 E-mail [email protected] Web www.firenzefiera.it

LARIO FIERE Centro Espositivo e Congressuale Viale Rasegone 20 22036 Erba (Co) Tel. 031/6371 Fax 031/637403 E-mail [email protected] Web www.lariofiere.com

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LINGOTTO FIERE PROMOTOR INTERNATIONAL S.p.A. Via Nizza 294 - 10126 Torino Tel. 011/6644208 Fax 011/6646648 E-mail [email protected] Web www.lingottofiere.it

LONGARONE FIERE S.r.l. Via del Parco 3 32013 Longarone (Bl) Tel. 0437/577577 Fax 0437/770340 E-mail [email protected] Web www.longaronefiere.it

MODENA ESPOSIZIONI S.r.l. Viale Virgilio 58/B - 41100 Modena Tel. 059/848380-848899-848673 Fax 059/848790 E-mail [email protected] Web www.modenafiere.it

MOSTRA D’OLTREMARE S.p.A. P.le V. Tecchio 52 - 80125 Napoli Tel. 081/7258000 Fax 081/7258009 E-mail [email protected] Web www.mostradoltremare.it

PADOVA FIERE S.p.A. Via N.Tommaseo 59 35131 Padova Tel. 049/840111 Fax 049/840570 E-mail [email protected] Web www.padovafiere.it

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RIVA DEL GARDA FIERECONGRESSI S.p.A. Loc.tà Parco Lido 38066 Riva del Garda (TN) Tel. 0464/520000 Fax 0464/555255 E-mail [email protected] Web www.rivadelgardafierecongressi.it

PIACENZA FIERE S.p.A. SS. 10 Loc. Le Mose 29100 Piacenza Tel. 0523/602711 Fax 0523/602702 E-mail [email protected] Web www.piacenzafiere.it

PORDENONE FIERE S.p.A. Viale Treviso 1 - 33170 Pordenone Tel. 0434/232111 Fax 0434/570415 E-mail [email protected] Web www.fierapordenone.it

RIMINI FIERA S.p.A. Via Emilia 155 - 47900 Rimini Tel. 0541/744111 Fax 0541/744200 E-mail [email protected] Web www.riminifiera.it

SIPER FIERE DI REGGIO EMILIA S.r.l. Via Filangeri 15 42100 Reggio Emilia Tel. 0522/503511 Fax 0522/503555 E-mail [email protected] Web www.fierereggioemilia.it

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UDINE E GORIZIA FIERE S.p.A. Via Cotonificio 96 33030 Torreano di Martignacco(Ud) Tel. 0432/4951 Fax 0432/401378 E-mail [email protected] Web www.udinegoriziafiere.it

UMBRIA FIERE S.p.A. Piazza Moncada 1- Centro Fieristico 06083 Bastia Umbra (Pg) Tel. 075/8004005 Fax 075/8001389 E-mail [email protected] Web www.umbriafiere.it

VILLA ERBA S.p.A. Largo L. Visconti 4 22012 Cernobbio (Co) Tel. 031/3491 Fax 031/340540 [email protected] Web www.villaerba.it

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INVEST IN ITALY I. NEW BUSINESS ENVIRONMENT Foreign companies looking to invest in Italy have the same kinds of choices and guarantees for setting up business that other leading developed countries offer. Following a thorough reform of Italian business law in early 2003, the legal framework for companies can now be considered one of the most modern and dynamic in Europe. The reform amended and supplemented portions of the Italian Civil Code (ICC) and modified Italy's Unified Rules on financial intermediation (Law 58/1998, known as the 'TUF') which now include specific provisions for listed companies. The TUF has been significantly amended by means of law no. 262 dated December 28, 2005 which provides rules aimed to safeguard savings. Overall the 2003 reform successfully introduced: •

• •

Changes to the structure of commercial companies (Joint Stock Company, Limited Liability company) which simplify and speed up the procedures for establishing a business New financial instruments for companies to create special categories of shares New rules providing greater flexibility and choice in corporate governance

Corporate responsibility for groups clarifying issues related to liability, transparency and publicity.

II. BUSINESS SOLUTIONS Prospective foreign investors wanting to set up a business in Italy may either: • •

establish a representative office, Branch; or incorporate a company with a more permanent presence.

It may also set up a representative office to explore local marketing and business opportunities and later decide to incorporate a company. Foreign investors that prefer to establish a more stable organization may incorporate a company. The joint stock company (società per azioni) and limited liability company (società a responsabilità limitata) are the most common types. For both, liability for social obligations is limited to the company's corporate assets.

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III. REPRESENTATIVE OFFICE & BRANCH Foreign companies intending to establish a representative office must comply with certain formalities at local Company Registries. The following information should be filed: corporate details of the representative office, personal details of the individual(s) accountable for the representative office, together with the responsible Company Registry. Failing to comply, the individual(s) accountable for the representative office are personally liable, without limitation, for the office's obligations III.I BRANCH OFFICE Foreign investors not intending to incorporate an Italian subsidiary may conduct their business in Italy through a branch office. It's considered as a permanent establishment and is consequently subject to corporate income tax and must keep proper books and file its VAT returns as well as the annual financing statement of the parent company including profit and loss accounts. The following documents are required to register a branch office in Italy: • • • •

Certified copy of the deed of incorporation and by-laws of the parent company Certificate of good standing of the parent company Application for the VAT number of the branch and for the tax code number of the legal representative of the parent company and of the manager Registration of the deed of deposit in an official foreign Companies' Register of chamber of Commerce.

EVERYTHING FOR ESTABLISHING AND MAINTAINING A BUSINESS AVAILABLE ON LINE In Italy, all businesses must be registered in a specific list (the “Registro delle Imprese”, Commercial Register) held by the local Chamber of Commerce. It is sufficient to sign an agreement with the Chamber of Commerce in order to absolve on line all the administrative fulfillments through the “Telemaco” IT System. Registered users have access to software which allows rapid and simple preparation of requests for registration and modifications to the existing registrations with the Commercial Register. Telemaco also allows access to much of the information managed by the Chamber of Commerce. Further information on the service is available from www.infocamere.it and www.cameradicommercio.it sites. The site of the Ministry for Productive Activity (www.mindustria.it) offers research, documentation, statistical data and other information (for example, on localization contracts). Other information for businesses is available from www.sviluppoitalia.it, the website of Sviluppo Italia, the national agency for business development and the attraction of investments, which is also responsible for promoting new investments in Italy, with particular reference to the South and to under-used areas of Central and Northern Italy with strong development potential. The agency acts as a single voice for the management and coordination of every stage of the process of establishment: from the identification of localization opportunities to the support for the implementation of the project, from assistance in relations with public administration and Governmental institutions to the direct granting of concessions, up to and including after care services. A Single Office for Productive Activity (“Sportello Unico per le Attivita’ Produttive”-SUAP) has been activated in 69% of Italian municipalities, where those entrepreneurs who plan to start

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up a new business can request information and fulfill the necessary obligations, without having to contact separately all the government offices involved. The Single Office simplifies procedures and reduces the time and costs involved in business start up. More information can be obtained from the websites of individual municipalities (a list of which can be found at www.finanze.gov.it ) and on www.formez.it

IV. TYPES OF COMPANIES IV.I Joint Stock Options (Societa’ per Azioni – SpA.) An S.p.A. has autonomous legal personality and is therefore a separate entity from its shareholders. It has its own assets and resources, on which its creditors must rely completely for redress. The participation of stockholders is represented by shares of stock. Incorporation One may establish an S.p.A. either by executing a contract or by the unilateral act of a single shareholder. An S.p.A. can also be participated by partnerships (provided they are not informal partnerships) or by other S.p.A.s. The minimum equity capital required is 120,000 Euro. There is no limit on the company's lifetime. Incorporation Procedure A summary of the main steps: • • • • • •

executing contract (or unilateral act) with articles of association and bylaws, in the form of a notarial public deed full underwriting of the equity capital bank deposit of one fourth of the financial contribution or the entire contribution in case of unilateral formation checking for special legal requirements, e.g., government authorization for activities envisaged by the company checking with the Notary Public about the essential conditions required, by law, to form the company filing by the Notary Public of all documentation with the Company Registry within 20 days of the signing of the articles of association.

Contributions Contributions can be in money, in kind and/or by assignment of credits, of which, the latter two must be paid in full when underwriting the corresponding shares. A designated expert of the competent territorial court estimates the contributions and renders sworn statements regarding their value. Shareholders Agreements These bind signatory shareholders only, and may cover: • • •

voting trusts concerning the exercise of voting rights in the company or its subsidiaries selling syndicates limiting the transfer of shares in the company or in its subsidiaries agreements for exercising a dominant influence over the company or its subsidiaries.

The maximum duration of shareholders agreements is five years renewable. If the duration is unlimited, participants may withdraw giving six-months prior notice.

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IV.II Limited Liability Company (Societa’ a Responsabilita’ Limitata – Srl) Quotas represent the extent of member participation. The SRL is accountable with its own assets for the obligations it undertakes. The minimum capital required is 10,000 Euro. Incorporation The SRL can have unlimited duration. Contributions include money and, depending on the articles of association, any items of economic value including services supplied by quota holders, if adequately guaranteed. Upon formation, each quota holder shall pay in one fourth of his/her money contribution and the full premium. The articles of association and the bylaws shall be in the form of notarial deeds. Limited liability company with sole quota holder A sole quota holder SRL requires a unilateral deed, full payment of the capital contribution, and certain disclosure requirements. Should a sole quota holder acquire an existing, non-sole quota holder SRL, he/she shall disclose publicly the changes of quota holders and cover outstanding contributions. During insolvency, sole quota holders are liable without limitation if contributions remain unpaid or disclosure requirements about them are incomplete. Funding The SRL may receive financing from quota holders. Reimbursement ranks after repaying the company's creditors. Any reimbursement made within the year preceding a bankruptcy declaration must be returned. Issuing bonds is allowable under the articles of association if subscribed to only by professionals investors.

IV.III Other types of company General partnerships (società in nome collettivo) All members of the SNC are jointly and severally liable for the obligations assumed by the company. Nonetheless, creditors of the SNC cannot claim payments from the members until after all remedies against the SNC have been exhausted. The SNC, although it is not a legal person (it is not incorporated), can to certain extents be regarded as an autonomous entity distinguished from its members. Limited partnerships (società in accomandita semplice) both having unlimited liability for the partners. General members are jointly and severally liable without limits for the obligations of the partnership whilst silent partners are only liable to the extent of their contributions. The business name must consist of at least the name of a general partner, and a mention of the limited partnership status. The rules governing the general partnership are applicable to the limited partnership insofar as they are compatible with this model. The article of association must include the names of the general members as well as those of the silent partners. Partnership limited by shares (società in accomandita per azioni) There are two categories of members: general partners, who are liable jointly and severally liable without limitation for the partnership obligations, and special partners who are liable within the limit of subscribed capital. Creditors of the SAPA cannot claim payments from the general partners until after all remedies against the company have been exhausted.

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Participations are represented by shares. General partners are directors by operation of law and are subject to the same duties as the directors of an S.p.A.. Rules concerning the Shareholder Meeting and the Board of Statutory Auditors of the S.p.A. are also applicable, to the extent compatible, to the SAPA.

V. GROUPS OF COMPANIES After the 2003 reform of business law in the Italian Civil Code (ICC) the concept of the 'group' and its ties to companies changed considerably. A Group is not an autonomous legal entity. Direction of the companies in a Group may follow a common economic strategy but are distinct from each other as well as the Group. Each company is subject to the laws for the model under which it is incorporated. Parent company resolutions do not, therefore, directly affect subsidiaries or controlled companies even if intended for direction and coordination. Nevertheless, the group's interests can be pursued through acts, which may initially affect the interest of the subsidiary. The final result of the group's act, however, must eventually favor the individual subsidiary. Duties of Parent Companies Parent companies must disclose publicly financial information and other sensitive data regarding subsidiaries, controlled companies and affiliated entities. Parent companies are liable towards shareholders and creditors of their subsidiaries and controlled companies if such companies are mismanaged. Duties of Subsidiaries Subsidiaries and controlled companies must make public their links with the group's other companies and the parent company's powers of direction and coordination, as recorded at the Company Registry. They must also explain the reasoning behind any of their decisions derived from their dependence on a group. Shareholders of subsidiaries or controlled companies may withdraw from the company under specific circumstances.

VI. LITIGATION-CORPORATE PROCEEDINGS Dispute Resolution The 2003 reform of the Italian Civil Code (ICC) amended comprehensively dispute resolution mechanisms for corporate disputes. Out of Court Conciliation Procedure This procedure is chaired by a private or public entity registered with the Ministry of Justice. It does not prevent the parties having recourse to ordinary courts. Should the court believe the relevant bylaws to be broken, it may suspend the trial and fix a term for filing the conciliation request. Special Judiciary Proceeding There are two special procedures, ordinary and summary, for corporate disputes within the ordinary judicial procedure. The competent court has jurisdiction to deal with these specific procedures.

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Arbitration The ICC reform amended arbitration clauses in company bylaws dealing exclusively with corporate matters. Disputes over the courts' mandatory interventions during the lifetime of a company and public interest pursued by companies are excluded from arbitration. The reform also amended the terms for appointing arbitrators, precautionary measures, incidental questions, intervention of third parties, and appealing against international arbitration. There is also a simplified arbitration procedure for disputes arising among the managing members of SRLs and partnerships about the company's management.

VII. BANKRUPTCY Failure by a company to meet its obligations may result in bankruptcy proceedings. The 'Italian Bankruptcy Law' provides pre-liquidation, rehabilitation, or moratorium procedures aimed, providing certain conditions are met, at avoiding bankruptcy. The bankruptcy procedure There are two pre-requisites for bankruptcy proceedings: • •

It involves a commercial entrepreneur, whether an individual or a company; and It must be in a state of insolvency.

Insolvency occurs when a business cannot pay its due debts by ordinary means, and the situation is permanent and not a temporary difficulty. Bankruptcy proceedings are unavoidably collective because they concern all a debtor’s assets, and the interests of all the creditors. Equality of treatment applies to creditors, subject only to cases of legal priority. During the bankruptcy procedure certain categories of the business’s acts or contracts may be subject to claw back actions, provided that certain requirements are met. Such requirements have been recently amended following the coming into force of Law Decree no. 35 dated March 14 2005 converted by Law no. 80 dated May 14 2005 which has widened number of acts which may not be subject of claw back actions. On January 9 2006 the Italian Government has enacted a legislative decree aimed to reform the regulation applicable to bankruptcy procedures. Such decree whose provisions shall entirely come into force in June 2006 provides for the following changes: • • • • •

• • • •

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the acceleration of bankruptcy legal proceedings; to enlarge the competences of the creditors committee; to amend the personal consequences of the bankruptcy; to amend the effects of the revocation; to reduce the term of exercise of claw back action; to modify the consequences of bankruptcy on the existing legal relationships including on the assets destined to a specific project; to modify the regulation of the provisional carry out of the business of the bankrupt company; to modify the debts assessment procedure, reducing the timing and simplifying the regulation applicable to the claims filing; the preparation by the receiver of a restructuring plan containing the timing and modalities envisaged for the liquidation of the assets; to modify the allocation of the assets reducing the timing of the procedure and

• • •

simplifying the fulfilments associated thereof; to amend the rules applicable to bankrupt composition (concordato fallimentare) reducing the timing and envisaging the subdivision of the creditors into classes; to introduce the debts discharge; to abrogate the summary bankruptcy procedure and moratorium (amministrazione controllata).

Pre-liquidation procedures Italian bankruptcy Law provides three special instruments for pre-liquidation, rehabilitation, and moratorium procedures, which enable a debtor to avoid a bankruptcy declaration: •

•

•

Composition or deed of arrangement (Concordato preventivo): Available to companies and individuals in business and supervised by the courts. The debtor enters into a deed of arrangement with its creditors for settling its outstanding debts through available assets. Moratorium (Amministrazione controllata): Available to companies in temporary financial difficulties, when a moratorium is likely to enable it to reorganize its business. Supervised by the courts, a moratorium may last a maximum two years. The courts may terminate it at any time should the commissioner appointed by the Court report that the procedure no longer protects the interests of the creditors. Arrangement for debt restructuring (Accordi di ristrutturazione dei debiti): Available to individuals and companies it is constituted by an arrangement reached between the debtor and creditors representing at least 60% of the receivables towards the debtor. The agreement should be filed with the competent companies' register and must be homologated by the Court.

Special procedures apply to particular types of companies: •

•

Compulsory administrative liquidation (Liquidazione coatta amministrativa) This procedure applies to certain types of businesses depending on both the sector and number of employees, eg, insurance companies, credit institutions and cooperative societies. Extraordinary administration (Amministrazione straordinaria) This particular insolvency procedure applies to industrial and commercial enterprises with 200 employees or more and whose debts amount to no less than two-thirds both of the assets and of income derived from the latest financial year.

VIII. INTELLECTUAL AND PROPERTY RIGHTS A SECURE SETTING FOR INNOAVATION Foreign companies investing in the Italian market can rely on the same legal protection of intellectual property rights (IPR) granted to Italian companies. These rights extend to all the key areas - patents, trademarks, copyright, and designs - that companies are used to enjoying in their home countries. The foundations of this legal certainty rest on Italy's membership of and respect for all the leading international agreements on IPR.

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As a founder member of the European Union, Italy is at the forefront of European IPR developments and has some of the most modern and up-to-date intellectual property practices in the world. Recent innovations include introducing new measures to combat counterfeiting, protection for internet-related intellectual property, merging and simplifying patent and trademark rules, and the advent of online filing options for claims. PATENT LAW Under the Italian system, one may patent new products or processes in any technological field. One may not, however, patent methods for human or animal therapy, plant varieties, or essentially biological methods for producing plants or breeding animals. To be patented, any filed invention must have the following features: An industrial application: in one or more sectors A novelty: the filing party must not disclose any information before the filing date of the patent application • An inventive step: the invention must represent a technological advance that would be non-obvious to an expert in the relevant field of industry. The filing of an Italian patent can represent the basis for a claim in any member country of the Paris Convention: http://www.bitlaw.com/source/treaties/paris.html • •

TRADEMARK LAW Italy's trademark system grants trademark owners the exclusive right to use new, lawful and distinctive signs capable of graphical representation. This includes the right to request custom seizure of any counterfeited good, as set down in the TRIPs Agreement. Under Italian law, three-dimensional signs, graphically represented sounds, color combinations and original shades of colors are also enforceable marks. Using symbols to indicate that the trademark has been filed or is registered is not mandatory under Italian law. A trademark enjoys protection once filed with the Italian Patent and Trademark Office. Protection is also granted to non-registered trademarks, according to the Paris Convention (http://www.bitlaw.com/source/treaties/paris.html) on unfair competition. Trademarks are valid for ten years from the filing date, renewable for an unlimited number of subsequent ten-year periods. The international classification of goods and services in Italy is based on the Nice Agreement system (http://www.epa.ee/eng/treaties/nice.htm). One may transfer or license a trademark for all or part of the goods and/or services related to it.

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COPYRIGHT LAW Italy's copyright law is based on the principles of the Berne Convention (http://www.wipo.int/treaties/en/ip/berne/trtdocs_wo001.html) for the protection of literary and artistic works.

An author's original work is protected by copyright from the moment it is created. No application or other formalities are required to enjoy intellectual property protection. Copyright protected works of authorship include literary works, motion pictures, musical works, sound recordings, software, data bases, architectural works, and drawings amongst others.

Protection lasts for the lifetime of the author plus a further seventy years; different terms apply to secondary works of authorship.

DESIGN PROTECTION A Design qualifies for protection if it is: • •

A novelty: no such design was available to the public before filing the application An individual character: the overall impression it gives to an informed user must differ from that of any other design publicly available before the application was filed.

Following registration, the design is protected for one or more periods of five years from the filing date, renewable for a total of up to twenty five years The registration of a design gives the holder the exclusive right of use (ie, to make, offer, put on the market, import, export) and of preventing any third party from using it without their consent.

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RECENT DEVELOPMENT IN ITALY’S INTELECTUAL PROPERTY LAWS In recent years, Italy has further increased the protection of intellectual property rights. New provisions

Setting up of 12 Intellectual Property Tribunals

Under Law Decree No. 168 of June 27, 2003, the Italian Government has established 12 Intellectual Property Tribunals (‘Sezioni Specializzate in material di Proprietà Intellettuale') in the following major Italian cities: Bari, Bologna, Catania, Florence, Genoa, Milan, Naples, Palermo, Rome, Turin, Trieste, Venice.

Adoption of EC Directive 29/2001 on the harmonization of certain aspects of copyright and related rights in the information society (the "Information Society Directive")

Italy was one of the first EU countries to amend its domestic copyright laws to keep pace with the provisions of the recent Information Society Directive, embodying the provisions of the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty of 1996. Law Decree No. 68 of April 9, 2003 brought the changes into effect.

Setting up of the "Alto Comissariato per la lotta alla contraffazione"

Law Decree March 14, 2005 converted by Law no. 80 dated 14 May 2005 established an Anti-counterfeiting committee to co-ordinate the fight against piracy and counterfeited goods. Administrative sanctions for individuals who put into the market counterfeited goods have been increased by from Euro 1,032 up to Euro 20,000.

"Made in Italy"

The 2004 Fiscal Law also recognized a new form of collective label to distinguish and increase demand for Italian-produced goods worldwide. Using the "Made in Italy" label on non-Italian originating goods and services is punishable by law. A National Fund of 35 million Euros in 2004, 55 million in 2005, and 35 million in 2006 is available to encourage Italian companies to adopt the label.

Further, in May 2002 the Italian Parliament granted the Government law-making powers to reorganize and update the current patent and trademark rules into a "single law" (Testo Unico). On February 10, 2005 the Government has enacted Legislative Decree no.30/2005 (the "Industrial Property Code") which provides for the following major changes to the previous regulation: • • • • •

• •

the reorganisation in a single law of the regulation applicable to trademarks, patents and designs; the introduction of a wider definition of industrial property; a reform of the regulation applicable to inventions created by employees and physicians in research the reorganization and the enlargement of the tasks entrusted with the Italian Patent and Trademark Office (PTO); a better definition of the competences of the 12 Intellectual Property Tribunals and the application to legal proceedings relating to Industrial Property rights of dispute resolution mechanisms and special procedures for corporate disputes approved in 2003; stronger criminal sanctions for serious infringements of Industrial Property rights; and new actions aimed to fight against piracy and counterfeiting goods.

The Industrial Property Code is already in force with the exception of the regulation applicable to legal proceedings which will come into force in September 2005.

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The Industrial Property Code provides for a new definition of industrial property which expressly includes also designations of origin (denominazioni d'origine) geographical indications (indicazioni geografiche) and company confidential information. Company confidential information are deemed those information which are secret within the meaning they are not in their configuration known or easily accessible by experts in the same field of activity, have an economical value due to their secrecy, are subject to adequate control procedures aimed to keep such information as secret or which relate to tests conducted on products before their marketing. With reference to inventions created by employees in accordance with the Industrial Property Code they belong to the employer so long as they relate to the tasks defined in the employment contract and specific compensation is paid to the employee. If a specific compensation for the invention is not envisaged by the employment contract and the invention is created in the performance of the employment relationship the invention, if patented, belongs to the employer but a fair compensation must be paid to the employee. If the above conditions are not met and the invention relates to the field of activity of the employer, the invention belongs to the employee but the employer is granted with an option right to use on an exclusive or not exclusive basis or to purchase the invention. In case an agreement is not reached between the employer and the employee on the amount of the fair compensation or of the consideration for the invention, the assessment thereof is made by an arbitrators panel. Criminal sanctions related to the infringement of Industrial Property Rights are stricter. Furthermore, in determining the amount of damages arising from a counterfeiting, the courts shall be entitled to consider also the proceeds obtained by the counterfeiter and the royalties he should have paid to be granted a license to use the Industrial Property Right infringed. Furthermore a new definition of piracy has been introduced. Based on such new definition piracy acts on Industrial Property Rights are deemed those acts which are carried out with fraud and in a systematic way. New legislation awaiting the Italian Parliament's approval in 2005, provides stronger protection for internet domain names (already protected under current trademark laws). The PTO will offer on-line users access to a new data base of Italian patents and trademarks on file.

IX. INCENTIVES At la glance Incentives are subsidies disbursed by EU, national and local bodies. Their purpose is to support entrepreneurial development, business creation, strengthen existing or recentlystarted initiatives, provide business-support services, and promote and integrate research, innovation and training. Many incentive opportunities are based on national laws to support investments that encourage: - creation of new and existing production plants (eg, Law 488/1992);

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- investments in re-launching and production areas (eg, Law 181/89); - local development (eg, Location Agreement); - creation of special business typologies (eg, Decree 185/00); - women entrepreneurship (Law 215/92) 1

- research and technological innovation (Law 140/1997 and the PIA Innovazione ); - agro-industry development (Law 266/97); - new investments and new employment (Law 388/00, art. 7, 8). Other opportunities arise from EU national programming documents, such as Regional 2 3 Operational Programs and Single Programming Documents . These often specify investment priorities in fields like research and technological innovation, training, development of local entrepreneurship, and business creation. More info: http://europa.eu/index_en.htm

1

Pacchetto Integrato di Agevolazioni Programmi Operativi Regionali (POR) 3 Documento Unico di Programmazione (DOCUP) 2

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LIVING AND WORKING IN ITALY Business stay up to 90 days Business trips generally require a visa. However, citizens of certain countries like the United States, Canada, Argentina, Brazil and Japan, do not require a visa for business stay of up to 90 days. EU citizens do not require visas. Work Permits and Residence 1. Non EU Nationals Entry for Employment (over 90 days): Application Procedure A written job offer or an employment contract is not sufficient for working in Italy. A work permit (autorizzazione di lavoro) is compulsory for non-EU nationals either having a job offer in Italy, or willing to work in the country, temporarily or permanently. The prospective employer is responsible for obtaining such permit by applying to the provincial labour office (Ufficio provinciale del lavoro) for preliminary clearance. If granted, the prospective employer must then obtain the approval of the regional and central authorities. When receiving the work permit, the prospective employee must apply for an entry visa at the Central Police Station. With this (generally granted within 20 days) and the work permit, he can then apply for an Italian visa (at the Italian Embassy / Consulate in his home country) usually issued within 30 days. Within eight days of entering Italy, the applicant and his/her family must visit the local police station to obtain an Italian stay permit (Permesso di soggiorno). For further information: 2. EU Nationals Only a stay permit is required. Documents required: valid passport, health insurance certificate, employment contract, proof of abode (eg, rent agreement). Residence in Italy: After obtaining a stay permit, one should register at the local Population Registration Office (Anagrafe). Documents required: stay permit, valid passport Release timing/delivery timing: 2 months Tax-code Number (codice fiscale): All citizens, whether Italians or foreigners have to get a tax-code number, even if not subject to Italian taxes. One needs such code a (codice fiscale, obtainable from the Provincial Tax Office) to open a bank account, to register a vehicle, or to sign any official contract. Documents required: valid ID or passport, stay permit. Release timing/delivery timing: immediate

Banking and Bank Accounts Opening an Account: resident foreigners can freely open a normal account. Non-residents (visitors present in Italy for less than six months per year) can generally open a special foreign account.

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Opening an account requires a valid codice fiscale. Some banks may ask for a residence certificate, but this is not a legal requirement. Documents required: codice fiscale, valid passport. Transfers to or from other countries, by residents or non-residents, of cash or securities in domestic or foreign currencies and amounting to more than 12,500 Euro must be declared to the UIC (Ufficio Italiano dei Cambi - Italian Exchange Controls Office). Cash Cards: Bancomat cards are very popular and widely accepted. These Italian cards can be used in automatic teller machines (ATM) throughout the country as well as at most shops, restaurants or similar commercial sites. Chequing Accounts are interest-bearing. For calculating interest the date on the cheque rather than the date of the transaction applies. Services charges include a conventional charge, the so-called "giorni di valuta" charge (meaning that after an agreed number of days the bank is supposed to receive the accrued interests). This conventional charge may vary from bank to bank (i.e., usually one day for cash, three days for an in-town cheque, and between 8 and 20 days for an out-of-town cheque). Transferring Cheques: it is allowed to give uncrossed cheques to someone else to deposit in one's own bank account by endorsing it on the reverse. Writing "non transferibile", (meaning not transferrable), ensures against the cheque being cashed by anyone else. Level of Protection: all Italian banks belong to an official deposit guarantee scheme. Branches of banks established in the EU can join an Italian deposit guarantee scheme on top of the protection offered under their home country guarantee scheme. Branches of banks from outside the EU and licensed to operate in Italy must join an Italian deposit guarantee scheme unless they are members of an equivalent foreign scheme. For further information: www.uic.it

Social security National Health Service: Italy's national health service (Servizio Sanitario Nazionale) operates through local health authorities and provides low-cost or free health care to all EU citizens. A recent law transferred several important administrative and organizational responsibilities from the central government to the 20 regions. EU Citizens in Italy can take advantage of mutual health agreements. Before arriving, one should apply for a temporary certificate of entitlement to treatment (form E111). Non-EU Citizens visiting Italy require private insurance cover (either Italian or foreign). Within 8 days of arrival the local police station must approve the health policy, which is valid for the duration of the entry permit (visto d'ingresso). Getting Insured: foreign workers (EU and non-EU alike) must visit the nearest local health authority (Azienda Sanitaria Locale) to register with a family doctor affiliated with the health convention. Once registered, one is entitled to a health number and health card (tessera sanitaria). Drugs and Medicine: if required, the family doctor may issue a prescription (ricetta) for drugs or medicine. Where applicable, one may qualify for a state-subsidy (known as a 'ticket')

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reducing the overall cost.

Schools Arriving in Italy, foreign families have a broad choice of schools, both Italian and international. The Italian school system is divided into three main stages: • • •

compulsory elementary school for 6 to 10-year olds compulsory middle school from 11 to 13 high school from 14 to 19.

The international schools present in Italy are mainly American and British. English-taught Education in Italy: there are several independent, private schools offering courses and classes taught in English. Some of these provide classes from kindergarten through high school, while others offer curricula at the elementary or high school levels. There are many international schools in Italy that follow the British education system. About 30 of them are members of the European Council of International Schools. American College, University and Research Programs: over 90 American institutions are present in Italy (36 are based in Rome, and 30 in Florence). Most of these institutions are members of the Association of American College and University Programs in Italy (AACUPI). Other international schools, located in many of Italy's main cities, include French, Spanish, German and Japanese curricula. International Baccalaureate: Most international schools in Italy offer this preparatory college program, or foundation course, during the last two years of high school. It is recognized by over 600 universities around the world.

Driver’s Licenses Non-residents in Italy with a stay permit can drive on their foreign license or on an international license until they become an Italian resident. After one year of residency, non-EU citizens must acquire an Italian license, while those with an EU license can continue to use it. Conversion: Non-EU residents with a driver's license issued by a country with a mutual recognition agreement with the Italian Motor Vehicles Authority, may convert their license into an Italian one without having to take a new driving test. One may request an Italian license after one year of residency in Italy

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USEFUL LINK AND CONTACTS In Thailand: OSMEP Office of SME's Promotion Ministry of Industry Royal Thai Government 21 TST Tower, floor 17th, Viphadi-Rangsit Rd. Chomphon, Jatujak, Bangkok, Thailand 10900 tel. 662 278 8800 fax. 662 273 8851 Email: [email protected] Website: www.sme.go.th DEP Department of Export Promotion Ministry of Commerce Royal Thai Government 22/77 Rachadapisek Road,Chatuchak, Bangkok 10900,Thailand Tel. (66 2)511-5066-77 Fax. (66 2)512-2670 Email: [email protected] Website: www.depthai.go.thai Royal Thai Ministry of the Foreign Affairs Sri Ayudhya Road Address : Sri Ayudhya Rd., Bangkok 10400. Tel. (662) 643-5000 Website: www.mfa.go.th

Embassy of Italy in Thailand Commercial Office 40th CRC Tower, All Seasons Place, 87 Wireless Road, Lumpini, Phatumwan Bangkok 10330 Tel: +66/022504970-3 Fax: +66/022504985 E-mail: [email protected] 48

Italian Trade Commission-Bangkok Office 14th floor, Bubhajit Building 20 North Sathorn Rd., Silom Bangrak, Bangkok 10500 Tel. +662 6338491, +6338355 Fax. +662 6338494 Email: [email protected] Website:www.ice.it www.italtrade.com www.investinitaly.com

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Thai Italian Chamber of Commerce 16th floor (Room 1601 B) 1126/2 Vanit Builing 2, New Petchuberi Road, Bangkok 10400 Tel. +662 2539909, +662 2558695 Fax. +662 2539896 Email: [email protected] Website: www.thaitch.org

In Italy: Royal Thai Embassy in Italy Via Nomentana 132, 00162 Roma, Tel. +39(06)8622-051 Fax. +39(06)8622-0555 Email: [email protected] Website: http://www.mfa.go.th/web/1229.php?depid=211

Italian Ministry of the Foreign Affairs Piazzale della Farnesina, 1 00194 Rome Tel: 0039 - 06.36911 Website: http://www.esteri.it

Italian Ministry for the International Trade Viale Boston, 25 - 00144 Roma tel.+39 06 59931 Email: [email protected] Website: www.mincomes.it

World Trade Organization Centre William Rappard, Rue de Lausanne 154, CH-1211 Geneva 21, Switzerland. Website: www.wto.org

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The European Union Tel + 32-2-299.96.96 Email form: http://europedirect-cc.cec.eu.int/websubmit/?lang=en Website: www.ec.europa.eu Delegation of the European Commission in Thailand Kian Gwan II, 18th Floor, 140/1 Wireless Road, Bangkok 10330 Tel. 02 305 2645 Fax. 02 305 2791 Email. [email protected] Website: www.deltha.ec.europa.eu/bic EC Delegation in Thailand Website: www.deltha.ec.europa.eu Other EU websites: Trade DG Trade: www.ec.europa.eu/trade Expanding Exporters Help Desk: www.exporthelp.europa.eu Customs duties and procedures Tarrifs: www.ec.europa.eu/taxation_customs/dds/en/tarhome.htm GSP: www.ec.europa.eu/trade/issues/global/gsp Rules of origin: www.ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/in dex_en.htm EU law Official Journal & Legislation: www.eur-lex.europa.eu Summaries of EU legislation: www.europa.eu/scadplus/scad_en.htm Enviroment Waste management: www.ec.europa/environment/waste Eco-labeling: www.ec.europa.eu/enviroment/ecolabel Product safety and standards CE marking: www.newapproach.org Chemical Policies REACH: www.ec.europa.eu/enterprise/reach Intellectual Property IPR Help Desk: www.ipr-helpdesk.org Community Trade Mark: www.oami.eu.int/en/mark Community Design: www.oami.eu.int/en/design 5151

EU Economic Cooperation in Asia Asia Invest: www.ec.europa.eu/comm/europeaid/projects/asiainvest/html2002/main.htm AEFI Associazione Esposizioni e Fiere Italiane Italian Trade Fairs & Exhibitions Association General Secretariat Via Emilia, 155 47900 Rimini, Italy Tel. +39 0541 744 229 Fax. +39 0541 744 512 Email: [email protected] Website: www.aefi.it Fiera Milano S.p.A. Milan Exhibition Center Phone: +39 02 4997.1 Fax: +39 02 4997.7379 email: [email protected] Website: www.fieramilano.it Exhibitors trade services: Phone: +39 02 4997.7238 Fax: +39 02 4997.7349 email: [email protected] Foreign Office Network: Phone: +39 02 4997.7175 Fax: +39 02 4997.7192 email: [email protected]

Fiera Roma S.p.A. www.fieraroma.it

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SOURCES: Website: www.ice.it www.italtrade.com www.investinitaly.com www.thaitch.org www.ambbangkok.esteri.it/Ambasciata_Bangkok www.economist.com www.worldbank.com www.cia.gov www.simest.it www.sace.it www.distretti.org www.unioncamere.it

Papers: •

•

• • • • • •

•

Setting up a business, http://www.investinitaly.com/context_investmentguide01.jsp?ID_LIN K=10&area=17 Regional Focus, http://www.investinitaly.com/context_regfoc02.jsp?ID_LINK=444&ar ea=44®ionalfocus Italian districts map http://www.distretti.org/Distretti/mappe/Industrial-Districts.jpg Brochure: Italian Trade Fairs, a passport to the world, Published by ICE/Italtrade, 2006 Business Guide: Tailandia, guida per le imprese italiane Published by Italian Embassy of Italy, 2006 Rapporto ICE, l’Italia nell’economia Internationale 2006-2007 Published by ICE, 2007 Focus on Italy n.15 Published by the British Chamber of Commerce for Italy, 2006 Doing Business in Italy: A Country Commercial Guide for U.S. companies Published by U.S. Embassy, Rome, 2007 The New Italian Custom Administration, Agenzia delle Dogane, 2007

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