Italy vs taxes

Last month, on the Italian most read economy newspaper, the Sole24Ore, there was an interesting article about duties and export.

The Salone del Mobile 2013 in Milan, just ended few weeks ago. This is the perfect period to make some consideration about the market. All Italian furniture companies agree on the same point: they need to export and to open to new international markets, by leveraging on the Made in Italy value.

The furniture sector will increase 72% of its value, before 2017, according to a recent research of Confindustria. This will occur thanks to the rise of 192 millions of "new rich" people, that will spend 30 biliard euros in the Italian furniture sector.
This is not only a very important business chance  but it will have an important influence on the creativity of this industry. We all know that Italian taste in design (and not only) is one of the most respected and lots of foreign designers and industries are in search of it, bringing their own influence.

So... Welcome to all growing countries, such the BRIC group (Brazil, Russia, India and China), or the MIST (Mexico, Indonesia, Korea, Turkey). But also Vietnam, Egypt, Libya, Tunisia, Argentina... But watch out!!!

One of the most problematic issues is the one concerning TARIFFS, that are applied in these countries. They are rated for different import goods and various phases of the import process, but they all causes the same result: the price of the goods imported raises, so export, that should be the lifesaver of Italian economy, risks to sink companies.

Here you can find some examples: in Brazil and in India, it might happen hat taxes rises the value of the imported good up to the 100% of its value! This is caused by the accumulation of indirect tariffs and impost: custom, federal, state and municipal duties, VAT and other taxes.
In Argentina there is a amount bond: import deal must be equal to the export one. Moreover, there is a strict law on certification; this problem can also be found in China. Both countries need specific certificates of safety and quality, that are processed only by specialized companies.

There are different ways to overcome the problems, here you can find the most popular solutions:
- Relocate part of the production path: exporting semi-finished products, components or just know-how procedures is less expensive and less complicate; as matter of the fact, emerging countries get competitive skills from this kind of import.
- Moving the goods through other countries, that are less tax-imposing.
Do you use any other method? Let us know!