Doing Business in Italy: 2016 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2016. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Table of Contents Doing Business in Italy .......................................................................................................................5 Market Overview ...........................................................................................................................5 Market Challenges .........................................................................................................................6 Market Opportunities.....................................................................................................................6 Market Entry Strategy ....................................................................................................................6 Political and Economic Environment ...................................................................................................8 Political Environment .....................................................................................................................8 Selling US Products & Services ............................................................................................................9 Using an Agent to Sell US Products and Services ..............................................................................9 Establishing an Office ................................................................................................................... 10 Franchising ................................................................................................................................... 10 Direct Marketing .......................................................................................................................... 12 Joint Ventures/Licensing .............................................................................................................. 14 Selling to the Government ............................................................................................................ 14 Distribution & Sales Channels ....................................................................................................... 16 Express Delivery ........................................................................................................................... 16 Selling Factors & Techniques ........................................................................................................ 17 eCommerce .................................................................................................................................. 17 Trade Promotion & Advertising .................................................................................................... 23 Pricing .......................................................................................................................................... 27 Sales Service/Customer Support ................................................................................................... 28 1 Due Diligence ............................................................................................................................... 29 Local Professional Services ........................................................................................................... 29 Principle Business Associations: .................................................................................................... 30 Limitations on Selling US Products and Services ............................................................................ 30 Selling U.S. Products and Services Web Resources ......................................................................... 31 Trade Regulations, Customs, & Standards ......................................................................................... 34 Import Tariff ................................................................................................................................ 34 Trade Barriers .............................................................................................................................. 34 Import Requirements & Documentation ....................................................................................... 34 U.S. Export Controls ..................................................................................................................... 39 Temporary Entry .......................................................................................................................... 40 Labeling/Marking Requirements ................................................................................................... 42 Prohibited and Restricted Imports ................................................................................................ 59 Customs Regulations .................................................................................................................... 60 Trade Standards ........................................................................................................................... 60 Trade Agreements ........................................................................................................................ 65 Licensing Requirements for Professional Services .......................................................................... 65 Trade Regulation Web Resources .................................................................................................. 66 Investment Climate Statement ......................................................................................................... 69 Executive Summary ...................................................................................................................... 69 Openness To, and Restrictions Upon, Foreign Investment ............................................................. 70 Conversion and Transfer Policies .................................................................................................. 71 Expropriation and Compensation .................................................................................................. 72 Dispute Settlement ...................................................................................................................... 72 Performance Requirements and Investment Incentives ................................................................. 73 Limits on Foreign Control .............................................................................................................. 75 Protection of Property Rights ....................................................................................................... 75 Transparency of the Regulatory System ........................................................................................ 77 Efficient Capital Markets and Portfolio Investment ....................................................................... 78 Competition from State-Owned Enterprises .................................................................................. 80 Responsible Business Conduct (RBC) ............................................................................................. 82 2 Political Violence .......................................................................................................................... 83 Corruption ................................................................................................................................... 83 Bilateral Investment Agreements .................................................................................................. 87 OPIC and Other Investment Insurance Programs ........................................................................... 88 Labor ........................................................................................................................................... 88 Foreign Trade Zones/Free Ports/Trade Facilitation ........................................................................ 91 Foreign Direct Investment and Foreign Portfolio Investment Statistics ........................................... 91 Contact for More Information....................................................................................................... 93 Trade & Project Financing ................................................................................................................ 94 Methods of Payment .................................................................................................................... 94 Banking Systems .......................................................................................................................... 94 Foreign Exchange Controls ............................................................................................................ 95 US Banks & Local Correspondent Banks ........................................................................................... 95 Project Financing .......................................................................................................................... 95 Web Resources ............................................................................................................................ 98 Business Travel .............................................................................................................................. 100 Business Customs ......................................................................................................................