IX. BUSINESS TRAVEL BUSINESS CUSTOMS By and large, what is considered good business practice in the United States also applies when doing business in Italy. Businesspeople in Italy also appreciate prompt replies to their inquires, and they expect all correspondence to be acknowledged. Before embarking on a business venture to tap the market in Italy, the review of travel guides would be especially helpful. These guides contain useful hints on cultural differences and business protocol. TRAVEL ADVISORY AND VISAS Every U.S. traveler must have a valid passport. No visa is required of U.S. citizens visiting Italy for less than 3 months, but one is required for longer stays. An American citizen entering for permanent residence must register as soon as possible after entering the country. Application for a Stay Permit (Permesso di Soggiorno) is made at the local police station and is valid for two years. U.S. citizens planning to work in the country must first obtain a work permit. The permit is to be presented to immigration upon arrival. Work permit approval must first be obtained by the Italian employer and are usually granted only for specialized work or skills. Management and skilled workers have no difficulty in obtaining work permits. The Italian employer files an application at a Provincial Labor Office which then authorizes an Italian Consulate in the United States to issue a work visa to the prospective employee. The application process should be initiated three to four months before it will be needed. For further information concerning entry requirements for Italy, travelers can contact the Embassy of Italy at 1601 Fuller Street, NW, Washington, DC 20009, telephone: (202) 328-5500, or the nearest Italian Consulate General in Boston, Chicago, Houston, Los Angeles, New Orleans, New York, Philadelphia, or San Francisco. A person seeking to work in Italy in an independent or self- employed capacity, files an application directly with the Italian Consulate along with needed credentials demonstrating experience in the field of work. Italy has a very low rate of violent crime, little of which is directed toward tourists. Petty crime (pickpocketing, theft from parked cars, purse snatching) is a significant problem, especially in large cities. Most reported thefts occur at crowded tourist sites, on public buses, or at the major railway stations, including Rome's Termini, Milan's Centrale, Florence's Santa Maria Novella, and the Centrale in Naples. U.S. Citizens are reminded that certain Alitalia flights between Italy and various middle eastern points (usually Damascus or Amman) make en route stops in Beirut. (The State Department warns U.S. Citizens to avoid all travel to or through Lebanon.) Embassy and consulate locations The U.S. Embassy in Rome is located at Via Veneto 119/A, telephone: 39-6-46741, fax: 39-6-4674-2217. There are U.S. Consulates at the following locations: Florence, at Lungarno Amerigo Vespucci 38, telephone: 39-55-239-8276/8/9, or 217-605; fax: 39-55-284088; Milan, at Via Principe Amedeo 2/10, telephone: 39-2-290351; fax: 39-2-2900-1165; Naples, at Piazza della Repubblica, telephone: 39-81-583-8111; fax: 39-81-761-1869; Palermo (consular Agent), at Via Re Federico 18/bis, telephone: 39-91-611-0020 or 39-337-793284 (cellular); fax: 39-91-611-0434. Trieste (consular agent), at Via Roma 15, telephone: 39-40- 660177, fax: 39-40-631240; Genoa (consular agent), Via Dante 2, telephone/fax: 39-10-584492. The consulate in Palermo does not currently provide consular services. Travelers in Palermo should contact the Consulate in Naples. HOLIDAYS Italian holidays must be taken into account when planning a business itinerary. July and August are poor months for conducting business in Italy since most business firms are closed for vacation during this period. The same is true during the Christmas and New Year period. Italian commercial holidays are listed in the box below and are the official statutory holidays when most com- mercial offices and banks are closed. Certain other days are celebrated as holidays within local jurisdictions. Holidays are also observed by the U.S. Embassy and should be considered when telephoning or visiting the U.S. and Foreign Commercial Service staff there. When an Italian holiday falls on a Saturday, offices and stores are closed. Listed below are Italian holidays for FY 95: 1994 November 1, Tuesday All Saints' Day December 8, Thursday Immaculate Conception December 26, Monday St. Stephen's Day 1995 January 6, Friday Epiphany April 17, Monday Easter Monday April 25, Tuesday Anniversary of the Liberation May 1, Monday Labor Day August 15, Tuesday Assumption Day Patron Saint's Day are observed by the following cities: Milan December 7, 1994, Thursday St. Ambrogio's Day Florence June 24, 1995, Saturday St. John's Day Rome June 29, 1995, Thursday St. Peter and St. Paul's Day Palermo July 15, 1995, Saturday St. Rosalia's Day Naples September 19, 1995, Tuesday St. Gennaro's Day BUSINESS INFRASTRUCTURE Italian is the official language and is spoken in all parts of Italy, although some minority groups in the Alto Adige and Aosta regions speak German and French, respectively. Correspondence with Italian firms, especially if the letter is the first sent, should be in Italian. If a reply comes in English then the subsequent correspondence with the Italian firm can be in English. The use of Italian is not only regarded as a courtesy, but assures prompt attention, and prevents inaccuracies which might arise in transla- tion. Most large commercial firms, however, are able to correspond in various languages in addition to English and Italian, but a business overture or proposal is given more serious attention if written in Italian. The importance of having trade literature, catalogs, and instructions for the use of servicing of products printed in Italian cannot be overemphasized. The agent representative in Italy who has such material is in a far better competitive position than the one who can only show prospective customers and consumers literature in English. The usual Italian business hours are from 8 or 9 a.m. to noon or 1 p.m. and from 3 to 6 or 7 p.m. Working hours for the various ministries of the government are normally form 8 a.m. to 2 p.m. without intermission. Bank hours are from 8:30 a.m. to 1:30 p.m. and 3:00-4:00 p.m.; they are closed on Saturdays. With the ease of telephone communications, international calls are frequently the best method of arranging appointments and maintaining solid commercial relations. Fax machines have increased the speed and ease of international communications and should be used to maintain strong business ties. The Italians are usually adept at handling business calls in English, but you must be prepared to expect some language differences and be able to make simple requests in Italian. The time zone for Italy is 6 hours ahead of the U.S. eastern standard time. Phoning from the U.S. requires the country code prefix 39 followed by the city code. Long distance calls made from within Italy require the city code preceded by 0. Milan's city code within Italy is 02. Calls to Milan from outside Italy require country code 39 followed by city code 2 and the phone number. Medical services are excellent and hospitals compare with those in the United States. Common medical needs are readily obtained, and special supplies are normally available on short notice. An inter- national certificate of vaccination is not required for travelers from the United States. Drinking water is acceptable and most pharmaceuticals are available, and sanitation is at American standards. Rental automobiles are available at numerous locations. An international or state driving license is acceptable. Tipping is as appropriate in Italy as it is in the United States. Generally, tip waiters 10 percent if servizio has not been added to the check. Conservative business attire is recommended at all times. Business appointments are also required, and visitors are expected to be punctual. There is solid sales potential for U.S. goods and services in the Italian market. It is a highly competitive market and the U.S. exporter must keep certain factors in mind to achieve maximum suc- cess. The "golden keys" of customary business courtesy, especially replying promptly to requests for price quotations and to orders, are a prerequisite for exporting success. In general, European business executives are more formal than their American counter- parts; therefore, it is best to refrain from using first names until a solid relationship has been formed. During the first stages of conducting business, it is best to let the prospective buyer take the lead since the American approach of "getting down to business" may be considered abrupt. Avoid commenting on politi- cal events or negative comments about the country. Some positive and sincere observations about the Italian culture, style, art, history, cusine, or music are always appropriate. Italian business executives tend to titles indicating the position in the firm. Friendship and mutual trust are highly valued, and once an American has established this relationship a productive business association can usually be counted upon. Italian buyers appreciate style, quality, and service, but are also interested in delivered price. Care must be taken to assure that stated delivery dates will be maintained and that after-sales service will be promptly honored. Italians, and Europeans in general, are concerned that after placing an order with a supplier that the delivery date be honored. While there are numerous factors that may interfere with prompt shipment, the U.S. exporter must allow for additional shipping time and keep in close contact with the buyer. Meeting delivery schedules is of prime importance. It is much better to quote a later delivery date that can be guaranteed than promise an earlier delivery that is not completely certain. Currency The basic monetary unit is the lira (plural: lire) and is usually indicated as L or Lit. The value of the lira changes with respect to the U.S. dollar. Check the financial section of the daily news- paper for the current exchange rate. Major U.S. credit cards are usually accepted with proper identification, such as a passport but visitors should always ask if a particular card is accepted prior to ordering meals or making hotel reservations. Travelers checks are accepted, but visitors should first inquire on the policy of the bank, hotel, or store before attempting to use them. Obtaining Credit Information In addition to the World Traders Data Reports (WTDR) service provided by the Commerce Department to examine the reliability of a foreign firm, background information on Italian firms can also be obtained from the following sources: - Foreign Credit Interchange Bureau, National Association of Credit Management, 475 Park Avenue South, New York, NY 10003. - Dun and Bradstreet, Inc., 99 Church Street, New York, NY 10007. - Gradon America, 71 West 23rd Street, Suite 1629, New York, NY 10010. - Owens Online, 11701 Belcher Road South, Suite #111, Largo, FL 34643-5116 - Major banks--contact the international section of any large city bank for assistance. - The American Bureau of Collections, Inc., 1100 Main Street, Buffalo, NY 14209-2356 (a collection bureau with an overseas network). U.S. exporters should maintain close liaison with distributors and customers to exchange information and ideas. In most instances, mail, fax, or telephone communication is sufficient, but the understanding developed through periodic personal visits is the best way to keep distributors apprised of new developments and to resolve problems quickly. Prompt acknowledgement of correspondence by air mail or fax is recommended. Further, when sales volume warrants, U.S. exporters should seri- ously consider warehousing in Italy to maintain an adequate local supply and guarantee proper service of their European customers. A vigorous and sustained promotion is often needed to launch products because of entrenched buying habits. Products must be adapted to both technical requirements and to consumer preferences. It is not sufficient to merely label a product in conformity to national requirements for the development of the full market potential. Consumers must also be attracted to the product by the label and packaging as well as ease of use.