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Import Summary ReportITALY

2

DisclaimerSaudi Export Development Authority “SAUDI EXPORTS” have prepared the Import Summary Reports as a part of its continuous publication on countries. The purpose of this report is to provide a high-level view of Saudi Arabia exports to the countries, based on available public information. Its analysis, perceptions, and anticipations are subject to personal judgment. “SAUDI EXPORTS” is not liable for any consequences caused by the understanding and interpretation of any part of this report. In general, the information in the report present a broad view of the imports environment of this country. Saudi exporters are encouraged to carry out further studies to be updated and more informed on potential opportunities that might be identified in this report.Please note that the data for Italy’s imports from KSA might not match the KSA exports to Italy due to logistics cost, insurance costs, classification concept and details, coverage, and valuation etc. Also, this report has been made from data.

ContentsDisclaimer

Overview of Italy Imports

Non-Oil Imports

Industry Import Profiles

Heavy Machinery & Electronics

Building Materials

Chemicals and Polymers

Food Products

Textiles

Importers Guidelines

Overview of Customs Procedures

Appendix 1: Trade Agreements

Appendix 2: Estimated shipping cost from KSA to Italy

2

4

4

6

6

7

9

10

12

13

13

14

14

1.

2.

3.

3.1

3.2

3.3

3.4

3.5

4.

4.1

5.

6.

3

• Italy has the 4th largest GDP in entire Europe and 8th largest across the whole world.

• Non-oil imports of Italy constituted 90% of its total imports of 2016, which has declined at an average rate of 1% since 2012. The top four non-oil industries imported by value Heavy Machinery & Electronics, Automobiles, Building Materials and Food Products.

• Saudi Arabia, at present occupies a marginal share of less than 1% in Italy’s non-oil imports which have been declining at an average rate of 24% since 2012. The Kingdom prominently supplies Chemical & Polymers, Building Materials and Textiles to Italy.

This report looks into Italy’s non-oil imports in the last five years vis-a-vis the Kingdom’s share in it. It also outlines the import potentials of the Kingdom in certain industries such as Heavy Machinery & Electronics, Building Materials, Chemicals & Polymers and Food Products. Services imported by Italy is not covered in this report.

For comments and queries please contact:

Kingdom of Saudi ArabiaSaudi ExportsSaudi Export Development AuthorityTelephone: +966 11 874 2000Fax: +966 11 874 2002E-mail:[email protected]

P.O. Box 75169, Riyadh 11578www.SaudiExports.sa

SUMMARY

4

2012

708

175155

254

1452

20162013 2014 2015

-1 %

160

710

177155

247

1461

172

718

634 630

185

168170 194

257 237 240

1505

1360 1375

178153 153

166 158

2012 2013 2014 2015 2016

-5 %

1,834 1,798 1,778

1,541 1,517

1,309 1,311 1,360 1,238 1,257

143 149 145382 337 273

123 118181 142

in billion SAR

in billion SAR

Italy, a south-central European nation is a well acknowledged regional player in Europe. It was the birthplace of renaissance and trade diversified during this period to Asia and Rest of Europe. Today Italy is a unitary parliamentary republic. It is the 4th largest economy in Europe and accounts for almost one- eighth of Europe’s GDP in nominal terms.Home to the some of the busiest seaports in Europe, almost three quarters of Italy’s border is coastline. Italy is poor in natural resources with most of the land being unsuitable for agriculture due to mountainous terrain and unfavorable climate. Its hegemony in global machinery trade (both mechanical and electrical) is well known.With its economy growing at an average rate of slightly more than 0.7%, Italy has continued its economic dominance based on its potential, infrastructure, business friendly norms and European treaties. However, a slump in GDP, foreign direct investments and increase in public debt are big concerns.Figure 1 shows the distribution of Italy’s imports from 2012 to 2016. Total imports of the country fell by an average rate of 5% during the said period. Imports of all the products, whether oil based or non-oil based witnessed a slump. Oil imports were hardly hit with declining every year at an average rate of 22%. Share of Chemical and Polymers have remained the same around 8% but that of non-oil, non- chemical & polymers have increased by 2% to almost nine tenths of total imports at the expense of oil imports.

Italy primarily imports are Heavy Machinery & Electronics, Automobiles, Building Materials and Food Products. Import substitution affected the demand of these products and led to a fall at an average rate of 1% for the non-oil imports contracting from 1,452 billion SAR in 2012 to 1,375 billion SAR in 2016 (Figure 2).

Figure 1 also shows distribution of Italy’s major import partner’s. Germany is the largest contributor with 16% share in Italy’s total imports followed by France and China having a share of 9% and 7% respectively. The Kingdom had a minor share of 1% in Italy’s total import.

1. Overview of Italy Imports

2. Non-Oil Imports

Figure 2: Non-oil products imported by Italy

Figure 1: Imports of Italy

OthersOil Chemical & Polymers

Total imports 1,517 bn SAR

Germany

France

China

Netherlands

Spain

Belgium

KSA

Others

Heavy Machinery Automobiles Building Material Food Products Others

16%

6%

9%

7%

5%5%1%

51%

16%

9%

7%

6%

5%

5%

1%

51% Dis

trib

utio

n of

201

6 im

port

s

5

2012 2013 2014 2015 2016

-13 %

0.370.45

0.550.71

0.83

4.56

4.04

3.753.75

2.65

4.20 3.59 3.19 2.47 1.82

Figure 3 shows country wise breakup of Italy’s non-oil imports for 2016. Here Germany, France and China were the three biggest contributors commanding a share of 18%, 10% and 8% respectively. They are followed by Netherlands and Spain. Saudi Arabia had mere share of 1% in Italy’s Non-oil imports for the year 2016.

Figure 3: Italy’s non-oil Imports in 2016 - by country

Germany

France

China

Netherlands

Spain

UK

KSA

Others

in billion SAR

Non-oil imports from the Kingdom have been decreasing at an average rate of 13% per year for the period 2012-16. Chemicals and Polymers had a share of 85% in total non-oil imports which was worth 2 billion SAR.

Figure 4: Italy’s non-oil Imports from KSA

Chemicals & Polymer Others

Total Imports 2.65 billion SAR

Total imports 1,375 billion SAR

18%

10%

8%

5%6%5%1%

46%

18%

10%

8%

5%

6%

5%

1%

46%

37%

15%

5%

4%

3%

36%

Building Material

Packaging

Heavy Machinery & Electronics

Textiles

Precious Metals & Jewelry

Others

36%37%

15%5%4%

3%

6

2012 2013 2014 2015 2016

-1%

92 91 96

104 96 96 89 88

89 91

3537 39

254 247257

237 240

22 23 2524 25

35 36

3.Industry Import Profiles

in billion SAR

Heavy Machinery and Electronics accounted for 17% of the total non-oil imports of Italy in 2016. During 2012-16, Italy’s import of Heavy Machinery & Electronics has decreased by an average rate of 1% every year.Figure 5 shows the distribution of Italy’s imports of Heavy Machinery & Electronics. The total imports stood at 240 billion SAR in 2016 with Electronics being the largest product imported having a share of 36% followed by Mechanical engines and parts and tools having a share of 15% and 11% respectively.

3.1 Heavy Machinery & Electronics

Figure 5: Italy’s Imports of Heavy Machinery & Electronics

Dist

ribut

ion

of 2

016

impo

rts

Tools

Others

Electronics

Engines & Parts

Total Imports 240 billion SAR

Figure 6 shows country wise breakup of Italy’s imports of Heavy Machinery & Electronics. Germany is the largest supplier of Building materials for Italy with supplying almost a quarter of its demand. Germany is followed by China and Netherlands having a share of 14% and 11% respectively. Saudi Arabia’s share in its total imports is less than 1% in 2016.

Figure 6: Heavy Machinery & Electronics imports distribution of Italy in 2016- by countries

Total imports 240 SAR billion

36%

15%

11%

7%

5%

26%

Electronics

Mechanical Engines and Parts

Tools

Electrical Batteries & Inductors

Air Pump

Others

11%

7%

5%

36%

26%

15%

37%

<1%3%

5% 6%

23%

14%

11%

23%

14%

11%

6%

5%

3%

<1%

37%

Germany

China

Netherlands

France

U.S.A

Belgium

KSA

Others

7

2012 2013 2014 2015 2016

-2 %

45 4548

41 41

30 31 33 31 32

47 50 52 48 43

175 177185

166 158

5351 53

46 46

2012 2013 2014 2015 2016

2%

5 59

913

17 1215

16

20

7 5 5

98

38

3433

36

42

44

11

36

in million SAR

Italy’s Heavy Machinery & Electronics imports from KSA have increased every year at an average rate of 2% for the period 2012-16. This can be aligned with the fact that export from KSA has increased form 2014 till 2016.

Figure 7: Distribution of Heavy Machinery & Electronics Imported by Italy from KSA

Dist

ribut

ion

of 2

016

impo

rts

Electronics Tools

Engines & Parts Others

Total imports 42 million SAR

in billion SAR

Italy imported Building Materials worth 158 billion SAR in 2016 which accounted for 11% of the total non-oil imports. The imports have decreased at an average rate of 2% from 2012 to 2016 as shown in figure 8.In 2016, Bards & Rods accounted for 28% of the total imports in Building Material followed Metal Sheets and Electric wires & Fittings having a share of 26% and 20% respectively.

3.2 Building Materials

Figure 8: Italy’s Import of building materials

Dist

ribut

ion

of 2

016

impo

rts

Metal Sheets

Others

Electric Wires & Fittings

Bars & Rods

Total imports 158 billion SAR

12%10%

8%

26%31%

13%

26%

13%

12%

10%

8%

31%

Mechanical Engines & Parts

Electronics

Tools

Water Distillation Pumps

Air Pump

Others

20%

28%

6%

5%

15%

26%

28%

26%

20%

6%

5%

15%

Bars and Rods

Metal Sheets


Pipes and Tubes

Glass & Ceramics

Others

8

2012 2013 2015 2016

57 %

275

50 39

376

308

18

41619

13

9

13

811

350 280

Figure 9 shows country wise breakdown of Italy’s imports of Building Materials. Germany is the largest supplier accounting for 18% of the total imports in 2016. It is followed by China, France and Spain having a share of 9%, 8% and 5% respectively. KSA’s share in total imports stood even less than 1% in the year 2016.

Figure 9: Distribution of Building Materials imports of Italy in 2016- by country


in million SAR

In 2016, KSA exported Building Materials worth 308 million SAR to Italy. Drastic rise in exports from 39 million in 2013 to 308 million in 2016 dragged the CAGR up to 57%. Metal Sheets imported by Italy from KSA stood at 280 Million SAR.

Figure 10: Building Materials Imports from KSA

Dist

ribut

ion

of 2

016

impo

rts

Pipes & Tubes

Others

Metal Sheets

Paints & Dyes


9%

8%

5%

4%

52%

4%<1%

18% 18%

9%

8%

5%

4%

4%

<1%

52%

Germany

China

France

Spain

Austria

Netherlands

KSA

Others

2014

111

1519

77

91%

1%1%1%3%3%

91%

3%

3%

1%

1%

1%

Metal Sheets

Paints & Dyes

Pipes & Tubes


Bars & Rods

Others

9

2012

-5%

2013 2014 2015 2016

50 52 5245

61 65 59 50 49

143149 145

123118

15 15 15

1718 17

12

15

11

44

14

in billion SAR

Italy’s imports of Chemical and Polymers declined at an average rate of 5% per year from 143 billion SAR in 2012 to 118 Billion SAR in 2016. One of the reasons for the decline could be the push by the Italian government to boost domestic production. Basic Chemicals and Polymer products witnessed decline in their demands compared to other products.

3.3 Chemicals and Polymers

Figure 11: Chemical and Polymers Imports of Italy

Dist

ribut

ion

of 2

016

impo

rts

Polymer

Others

Basic Chemical

Inorganic Chemicals


Figure 12 shows country wise breakdown of Italy’s imports of Chemical & Polymers. Germany is the major supplier of chemical & Polymers accounting for 20% of the total imports in this segment. Top six player’s accounts for almost 65% of the total imports, indicating Italy’s divergence among its suppliers. Germany is followed by Belgium and France, with a share of 16% & 10% respectively in total imports.

Figure 12: Chemical and Polymers imports distribution of Italy in 2016- by country


9% 41%

10%

2%

38%

41%

38%

9%

2%

10%

Basic Chemicals

Polymer

Inorganic Chemicals

Fertilizers

Others

35%

1%

5%

5%

8%

10%

20%

16%

20%

16%

10%

8%

5%

5%

1%

35%

Germany

Belgium

France

Netherlands

China

Spain

KSA

Others

10

2012 2013 2014 2015 2016

-1 %

19

77

44

20

160

2121 20

24

8269 69

83

46 40 4247

2323 22

24

172

153 153

178

-19%

2012 20162013 2014 2015

2.03 2.17 1.92 1.49 1.22

2.161.40

1.280.98

0.59

4.20

3.593.59

2.47

1.82

in billion SAR

In 2016, Italy imported Chemical and Polymers worth 1.82 billion SAR from KSA, which was 15% of total non-oil goods imported from KSA. But the import has been declining every year since 2012 at an average rate of 19% per annum. The reason for this decline could be safely attributed to sharp decline in the imports of Polymers and Basic chemicals from the Kingdom since 2012.

Figure 13: Italy’s imports of Chemicals and Polymers from KSA

Dist

ribut

ion

of 2

016

impo

rts

Inorganic Chemicals

Others

Polymer

Basic Chemical

Total imports 1.82 billion SAR

in billion SAR

In 2016, Food products globally imported by Italy stood at 153 billion SAR. Meat products were the largest imported products having a share of 27% followed by Fruit & Vegetables and Cooking Oil & Fats with a share of 15% and 13% respectively. Since the last five years the imports of Food products have been declining at an average rate of mere 1% per annum.

Figure 14: Italy’s Imports of Food Product

Dist

ribut

ion

of 2

016

impo

rts

Cooking oil and fats

Others

Meat Products

Fruit and Vegetables


3.4 Food Products

1%

67%

32%

67%

32%

1%

Polymers

Basic Chemicals

Inorganic Chemicals

10%

23% 27%

15%

13%

12%

27%

15%

13%

12%

10%

23%

Meat Products

Fruits & Vegetable

Cooking oil and fats

Fruit Juice & Beverages

Cereals

Others

11

2016

81%

5.03

0.32

2.10

20120.14

0.180.340.70

2013

4.47

0.142.33

0.27

7.217.51

20140.22

1.79

2.29

0.130.15

2015

2.27

3.06

0.14

0.230.43

0.06

Figure 15 shows country wise breakdown of Italy’s imports of Food Products. The charts suggest that Italy has very well diversified its food sourcing partners with the Germany, the largest supplier having a mere share of 13% followed by the UK and France having share of 12% and 11% respectively. KSA has a marginal share of less than 1% in food product imports of Italy.

Figure 15: Italy’s import distribution in 2016- by Country


in million SAR

As shown in figure 16, the Kingdom exported Food products worth 7.5 million SAR in 2016 which have been increasing at an average rate of 81% since 2012. The reason behind this rocketing growth could be attributed to increase in demand of Bakery & Confectionary. The major product imported from KSA were Bakery & confectionary which stood at 67% of total imports, followed by Fruit Juice & Beverages and Fruit & Vegetable having a share of 28% and 4% respectively.

Figure 16: Italy’s Import of Food Products from KSA

Dist

ribut

ion

of 2

016

impo

rts

Bakery & Confectionary

Fruits & Vegetable

Fruit Juice & Bevarages

Others

Total imports 7.51 million SAR

51%

13%

12%

11%

7%

3%3%<1%

13%

12%

11%

7%

3%

3%

1%<

51%

Germany

UK

France

Netherlands

Austria

Belgium

KSA

Others

28%

1%4%

67%

67%

28%

4%

1%

Bakery & Confectionary

Fruit Juice & Bevarages

Fruits & Vegetable

Others

12

2012 2013 2014 2015 2016

-0.5%

23 2426

23 24

17 1818

15 157 7

8

73 73 79 70 71

119 122131

115 117

7 7

Italy imported textiles worth 117 billion SAR in 2016, which were 9% of the total non-oil imports. The major products imported were clothes having a share of 46% in total textiles imports followed by accessories and fabrics having a share of 16% and 10% respectively. Since 2012, Italy’s imports of textiles have witnessed a minor decline share of 0.5%. Apart from accessories, all other products have witnessed a minor decline in their imports.

3.5 Textiles

in billion SAR

Figure 17 : ITALY textiles imports 1

Dist

ribut

ion

of 2

016

impo

rts

Fabrics

Others

Cloths

Accessories


Figure 18 shows country wise breakdown of Italy’s imports of Textiles. China was the largest supplier, supplying 19% of the demands followed by France and Romania having a share of 7% and 6% respectively.

Figure 18: distribution of Italy’s Imports of textiles in 2016- by Country


10%

46%

27%

1%

16%

46% Clothes

16% Accessories

10% Fabrics

1% Carpets

27% Others

51%

7%

6%

6%

6%5%<1%

19% 19% China

7% France

6% Romania

6% Spain

6% Germany

5% Turkey

<1% KSA

51% Others

13

2012 2013 2014 2015 2016

4%

15 28 32 2438

26

33

36

30

42

8

1

1

1

2

4

3

3

22

2

4. Importers Guidelines

Republic of Italy is a part of European Union (EU) – a customs union of 28 countries in Europe, where the member states form a single customs territory, and tariffs and other trade barriers are eliminated on the trade for products originating in these countries.

The TARIC code (TARif Intégré Communautaire; Integrated Tariff of the European Communities) is designed to show the various rules applying to specific products when imported into the EU. This includes the provisions of the harmonized system and the combined nomenclature but also additional provisions specified in Community legislation such as tariff suspensions, tariff quotas and tariff preferences, which exist for the majority of the Community’s trading partners.

The documents which must accompany goods moving between EU countries are the following: • the commercial invoice• the certificate of origin• the health certificate (only necessary, in the case of trade inside the Community, for live animals)• the Single Administrative Document (SAD) (required for trade with overseas Departments, the Channel Islands and the

Canaries).

For a trade outside the European Union, one must add: • Import licenses• Certifications • Single Customs Document

The “Import Control System” (ICS), aims to secure the flow of goods at the time of their entry into the customs territory of the EU.

Operators are required to pass an Entry Summary Declaration (ENS) to the customs of the country of entry, prior to the introduction of goods into the customs territory of the European Union.

Duties range from 0-17%, with the general tariff averaging 4.2%. However, foodstuffs, textiles and clothing still experience some protection measures (quotas, higher tariffs, etc.). Some imports are subject to anti-dumping duties.

For certain goods, customs may require additional information and may also request samples. Customs may also detain goods for other Government departments. The relevant government department then ensures compliance with their applicable laws, regulations and rules.

As shown in figure 19, Saudi Arabia exported textiles worth 30 million SAR in 2016, with Fabrics alone having a share of 82%, which were followed by clothes and accessories having a share of 11% and 6%. Italy’s textile imports from KSA have witnessed an average yearly increase of 4% per annum since 2012. Increase in demand of Fabrics since 2012 is the reason behind the constant growth.

Figure 19: Textiles import of Italy from KSA

in million SAR

Dist

ribut

ion

of 2

016

impo

rts

Accessories

Others

Fabrics

Cloths


82% Fabrics

11% Cloths

6% Accessories

<1% Others less than

82%

<1%6%

11%

4.1 Overview of Customs Procedures

14

5. Appendix 1: Trade Agreements

6. Appendix 2: Estimated shipping cost from KSA to Italy

Italian Trade Agreements

Origin Port

Origin Port

Destination Port

Destination Port

Product Category

Product Category

Market rate (Estimate in SAR)

Market rate (Estimate in SAR)

Countries involved

European Union (EU)

North Atlantic Treaty Organization (NATO)

World Trade Organization

Organization for Economic Co-operation and Development (OECD)

Canada – Italy Bilateral

King Abdul Aziz Port, Dammam





Jeddah Islamic Port

Jeddah Islamic Port

Jeddah Islamic Port

Jeddah Islamic Port

Jeddah Islamic Port

Genoa

Genoa

Genoa

Genoa

Genoa

Genoa

Genoa

Genoa

Genoa

Genoa

Consumer Electronics

Bottled Beverages

Construction Materials

Chemicals

Household Goods


Agriculture (Fruits & Vegetables)


Chemicals

Household Goods

9,669 - 10,686

9,755 - 10,782

10,618 - 11,736

8,805 - 9,732

10,359 - 11,450

5,883 - 6,502

5,935 - 6,560

6,461 - 7,141

5,358 - 5,922

6,303 - 6,966

All European Countries

29 Countries from Europe and North America.

164 Countries across the globe

35 members including Italy, Germany, France

Canada and Italy

Italy has been a part of its regional trade agreements with the European Union and the World Trade Organization (WTO) to name a few. By far, Italy does not have any trade agreement with GCC countries.

Table 1: Trade agreements

Market rate estimate for FCL (Full Container Load), 40 FT from major seaports in KSA to seaports in ItalyA full container load (FCL) is an ISO standard container that is loaded and unloaded under the risk and account of one shipper and only one consignee. In practice, it means that the whole container is intended for one consignee. FCL container shipment tends to have lower freight rates than an equivalent weight of cargo in bulk.

The FCL market rate estimates (40 FT) for exporting products through ocean from KSA to Italy is listed as: below:

15

Origin Port

Origin Port

Origin Port

Origin Port

Destination Port

Destination Port

Destination Port

Destination Port

Product Category

Product Category

Product Category

Product Category






Jeddah Islamic Port

Jeddah Islamic Port

Jeddah Islamic Port

Jeddah Islamic Port

Jeddah Islamic Port

Jubail Port

Jubail Port

Jubail Port

Jubail Port

Jubail Port






Gioia Tauro

Gioia Tauro

Gioia Tauro

Gioia Tauro

Gioia Tauro

Gioia Tauro

Gioia Tauro

Gioia Tauro

Gioia Tauro

Gioia Tauro

Gioia Tauro

Gioia Tauro

Gioia Tauro

Gioia Tauro

Gioia Tauro

La Spezia

La Spezia

La Spezia

La Spezia

La Spezia




Chemicals

Household Goods




Chemicals

Household Goods




Chemicals

Household Goods




Chemicals

Household Goods

10,353 - 11,442

10,445 - 11,544

11,369 - 12,566

9,428 - 10,421

11,092 - 12,260

6,357 - 7,027

6,414 - 7,089

6,982 - 7,717

5,790 - 6,399

6,811 - 7,528

10,353 - 11,442

10,445 - 11,544

11,369 - 12,566

9,428 - 10,421

11,092 - 12,260

9,691 - 10,712

9,778 - 10,807

10,643 - 11,764

8,826 - 9,755

10,384 - 11,477

Origin Port Destination Port Product Category Market Rate (Estimate in SAR)

Market Rate (Estimate in SAR)




Jubail Port

Jubail Port

Jubail Port

Jubail Port

Jubail Port

Genoa

Genoa

Genoa

Genoa

Genoa




Chemicals

Household Goods

9,669 - 10,686

9,755 - 10,782

10,618 - 11,736

8,805 - 9,732

10,359 - 11,450

16

Origin Port

Origin Port

Destination Port

Destination Port

Product Category

Product Category

Product Category

Jeddah Islamic Port

Jeddah Islamic Port

Jeddah Islamic Port

Jeddah Islamic Port

Jeddah Islamic Port

Jubail Port

Jubail Port

Jubail Port

Jubail Port

Jubail Port

Saudi Exports recommends that exporters re-confirm shipping quotes in accordance with global shipping ratehttp://www.worldfreightrates.com/en/freight

Please feel free to review the European Union Import Procedures Guide, available on the Saudi Export Development Authority website, through the following link: http://www.saudiexports.sa/ar/Export-Information/Documents/EU%20English%20Import%20Procedure%20Guide_Final_201016.pdf

La Spezia

La Spezia

La Spezia

La Spezia

La Spezia

La Spezia

La Spezia

La Spezia

La Spezia

La Spezia




Chemicals

Household Goods




Chemicals

Household Goods

5,906 - 6,527

5,958 - 6,586

6,486 - 7,168

5,378 - 5,945

6,328 - 6,994

9,691 - 10,712

9,778 - 10,807

10,643 - 11,764

8,826 - 9,755

10,384 - 11,477

