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A virtual coffee with Riccardo Fuochi, an illustrious protagonist of national and international luxury logistics.

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We stopped in Milan, this time to talk about another fundamental theme for recovery, always drinking a virtual coffee to consume while we talk with another illustrious guest. We wanted to reserve a space of conversation on one of the fundamental clusters of Italian economic life: culture and art, undisputed symbols of a Country, ours, which boasts an absolute primacy for history, for historical artifacts, for illustrious undisputed artists and geniuses that the whole world envies us. Let’s not exaggerate if we say that more than half of the artworks exhibited in museums around the world are attributed to Italian artists.

Culture, in our country system, accounts for about 6% of GDP. The sector is certainly not a discovery, it is an extraordinary driving force for the other production sectors connected to it and above all it is one of the key factors in attracting tourists from all corners of the world.

Internationally, Italy is recognized as a leader and the movement of foreign tourists who choose to enjoy our artistic assets every year, to visit our cities of art, our places of culture, is the incontrovertible proof of this. Our added value doesn’t stop there. We are a real open-air museum, a natural scenario capable of catapulting the visitor into every historical era. We could define Italy as a “Special Cultural Zone” which lacks an official recognition that takes into account the enormous potential of the system capable of “boosting” the economic system, combining tax exemption efficiency and the artistic heritage supplied. Where, if not in our beautiful Italy, we reiterate in all respects definable as a special cultural area, it is possible to draw from the culture, from the history of the inherited artistic heritage, from the breathtaking landscapes, from the food and wine culture of the UNESCO heritage, direct and induced economic advantages with efficient taxation and deburocratization policies? We launch a provocation that we hope will be caught by those who work in the cultural system. In addition, to stimulate the interest of potential investors … Montecarlo, Luxembourg, Geneva, Singapore, Dubai. What do these cities have in common? All have free zones for works of art that allow the artistic heritage of collectors and investors from all over the world to be guarded, transferred, protected and preserved in a protected atmosphere. Not only. Within these free zones it is possible to buy works of art and valuable goods without the application of customs duties and indirect taxes. Of course, it is necessary that these “special areas” operate in the transparency of the operations guaranteeing all parties and, above all, legality. It would also allow to further increase the professionalism of the artistic evaluation services, the recovery of artistic assets located in numerous caveau (usually managed by banks) and concentrate them in a single place that guarantees not only confidentiality but also a set of logistic services that are essential for the conservation over time and space of the works kept. Moreover, the 2018/843 directive on anti-money laundering requires strict checks on the actual beneficiaries of the asset in order to avoid twisted maneuvers that, through fictitious attribution systems, conceal sinister illegal operations. The combination of free zones, including Special Economic Zones, and logistics in this case becomes the efficient solution capable of protecting and protecting artistic and valuable goods without risk to the owner and without the value of the asset itself being reduced due to damage or transport trauma, but there are also enormous advantages for the entire museum circuit. We welcome our virtual coffee to another exceptional guest known all over the world. Today Riccardo Fuochi is with us, who is an important point of reference in the logistics supply chain sector, positioned on the luxury brand segment, which is essential in the evaluation of artistic works, in their storage and in their handling.

RALIAN: Dr. Fuochi, you are an institution in the logistics sector, in particular among many things, you are president of OLG international sarl based in Chiasso and president of the International Propeller Club of Milan. What does your business do and what does the activity of the Propeller Club consist of?

Dott. Fuochi: OLG International is an international company born after having acquired a long experience in the fashion logistics sector for the main luxury brands. Its main office is in Chiasso, where there is a logistics center for works of art, fine wines and precious objects with a development also overseas in Hong Kong. We have developed niche know-how for lifestyle logistics. We continue to offer our services to numerous fashion brands, so we take care of following interior design, visual merchandising and events projects, and we have developed a structure capable of offering a series of services related to the world of artworks and precious objects . We follow galleries, collectors, artists and auction houses trying not only to offer purely logistic transport and storage services, but following them in all their packaging needs, customs and ministerial issues, art handling, condition reports, we offer the possibility to restore the works at our facility, photograph them, show them to experts, exhibit them and archive them in blockchain. The Propeller is a cultural association that promotes the meeting and relationships between people who gravitate to the world of shipping, transport and logistics. It favors training and technical and cultural updating among all those belonging to the economic and professional categories that gravitate to the world of shipping, transport and logistics, organizing meetings, conferences, events, missions also at an international level. Among the most important events I would like to mention the Shipping Weeks in Genoa and Naples and the Shipping Meets Industry in Milan.

Ralian: Culture is the cradle of innovation. Through culture we stimulate creativity and thanks to it we give life to innovation. In your opinion, is culture perceived in our country as a real cluster or do we still have an obsolete vision of its multiplicative potential on the economic system?
Dr. Fuochi: The current emergency has certainly been positive in this respect, it has accelerated innovative and digital development in all sectors, including the cultural one. Certainly culture is perceived as a cluster in its own right, but an evolution is also necessary in this sector to allow the dissemination and creation of international projects. Museums are creating beautiful innovative and digital projects, as well as private galleries. The range of action is decidedly wide, but somewhere you have to start.

Ralian: Creativity and art have always been the highest form of beauty, of human expression. Very often immortal masterpieces have been inspired by human and social hardships, by situations of suffering in the body and spirit, sometimes they have been the denunciation of an injustice, the awareness of a necessary turnaround that has inspired whole epochs of our humanity. It is therefore the highest expression of resilience. In this complicated period in which an unprecedented economic depression is feared, how can art help us and how can it be made accessible to everyone, so as to spread its beneficial and resilient message?
Dr. Fuochi: By educating people to appreciate art in all its expressions, visual arts, performing arts, theater, cinema, music, dance by combining various forms within paths, events, manifestations and combining them with local traditions, thus involving the whole population . All this also aimed at improving living conditions, respecting the environment and culture of the individual territories.

Ralian: What does Italy need to ensure that the art sector, of which our country is the natural cradle for authors, finds, history, landscape beauty, find a leading role in the economic system?
Dr. Fuochi: “culture is the only good of humanity which, divided among all, instead of decreasing becomes greater.” [Cit. Hans Georg Gadamer]
Enhancement. Italy is the country with the largest concentration of artistic and cultural heritage in the world, but not only the historical and past one that attracts tourists from all over the world every year, but also the contemporary one. There are many young people who train every year in our academies to improve their artistic expression and break the canonical schemes and be appreciated by those who observe their works. There are certainly many interesting initiatives, but the enhancement and importance of our territory rich in villages, monuments and historic centers could be further improved and redeveloped and recovered. There is no corner of our country from which beauty, history and culture do not emerge. This immense heritage must be recovered with economic and fiscal measures aimed at attracting investments, including from private individuals, to encourage cultural, artistic and commercial activities, creating areas that we could define as real “special cultural zones”, paraphrasing the concept of SEZs.

Ralian: What do you think are 5 artworks that can help us to understanding that the greatest beauty can come from the ugliest and most complicated things to deal with?
Dr. Fuochi: There are many artworks that can express these feelings. It is inherent in the soul of the artist to be inspired by moments of difficulty to express values ​​of hope and beauty. I could represent some great masterpieces such as:
1. the flagellation of Christ by Piero della Francesca, describes the Christian ignavia in the face of the Turkish advance preceding the fall of Constantinople. The realization will lead to the union of papacy and empire and to the battle of Lepanto.
2. the deposition of Christ by Raffaello, Atalanta rejected his son Grifonetto, who through insane jealousy had participated in the massacre of the red wedding of the Baglioni of Perugia. The repression led him to death and his mother mourned him and made Raphael commemorate him representing him as a divine young man, who bears the feet of the dead Christ … maternal love …
3. massacre of the innocent, by Rubens, the reference to the wars of religions that tormented Antwerp and Flanders, with thousands of innocent civilians killed, is expressed as a beastly madness in Rubens’ masterpiece, whose commitment to peace has always been very vivid
4. Giuditta and Holoferne of Caravaggio The Jewish widow Giuditta beheads the Babylonian general Holoferne: there are many interpretations, but it is certain that reluctant Giuditta performs the will of God for the liberation of her people, which can also be read as a victory of purity, represented by the young and beautiful heroine, on brute force.
5. Guernica of Picasso 1937 German bombing of the Spanish city that upsets French public opinion and leads Picasso to express his disdain in the masterpiece exhibited immediately in Paris at the universal exhibition, helping to awaken free souls and support the indomitable spirit that resisted the subsequent defeat and occupation

Ralian: You deal with logistics. How do you combine this sector with that of culture, art and what do you think are the best practices to consider for an optimization of the entire reference cluster?
Dr. Fuochi: Have you ever wondered how works arrive in museums, how do loans between countries take place for exhibitions? Rather, what happens from the moment a collector buys a work in a gallery and ends up in our house? Here is the link between the logistics sector and the art sector. We take care of this. First of all to create a relationship of trust with the interlocutor – gallery / collector / personal assistant / banks / art advisor / artists – and to be able to assist him in all operations, without leaving him any worries, but rather reassuring him and working in the utmost confidentiality. We take care of training people in the best possible way so that they are able to handle the works of art and assist customers: we start with a documentary check to verify that everything is in order or to request what is necessary, we create the suitable packaging for transport, we draw up a condition report when we collect and when we deliver the work, we take out insurance, we evaluate the means to be used and the number of people necessary for transport, we employ a team of art handlers who can take care of the installation. In short, we follow all the aspects that allow us to transfer the works with the utmost attention from one place to another.

 


We thank Dr. Fuochi for sharing his expertise with us and for allowing us to draw many ideas for a relaunch of the culture sector, as expressed at the beginning of the article.
We are preparing for another virtual coffee and we will see you soon.

 

RALIAN Research & Consultancy srl

© Copyright 2020. All Rights Reserved

 

MEMORANDUM OF UNDERSTANDING BETWEEN FEMOZA AND RALIAN RESEARCH & CONSULTANCY SRL

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Yesterday, May 19 th 2020, RALIAN Research & Consultancy srl signed a Memorandum of Understanding with The World Free & Special Economic Zones Federation (FEMOZA).

Proud of this honor, we share the news with our customers and with all stakeholders, aware that the honor received covers us with great responsibility and motivates us even more in our daily commitment to provide our contribution for the implementation of a economic system which, through tools for accelerating economic development such as Special Economic Zones, Simplified Logistic Zones,  free zones, helps the attraction of investments for the harmonious and sustainable growth of businesses, territories and countries.

FEMOZA, is a non-governmental organization under the aegis of the United Nations which represents the interests of free zones and special economic zones and which promotes their implementation in the world. Founded in 1999, it is the most important organization in the sector, with representatives in over 225 countries. Since 2003 FEMOZA also has the status of Observer at UNCTAD and UNIDO.

At this time when it is necessary to relaunch the economy of many Countries in the world, including Italy, as a consequence of the pandemic from SARS COVID 19, the Special Economic Zones, in all their multiple declinations, can be the most suitable tools to revive the economy and promoting lasting and sustainable development.

We thank Mr. Juan Torrents, Chairman of FEMOZA for the trust shown in us and for the attestation of esteem that he wanted to provide us with the MoU.

A virtual handshake is a seal of a collaboration that we are sure will lead to good results

 

RALIAN Research & Consultancy srl. © Copyright 2020 –  All rights reserved.

Phase 2, Italy as Genoa.

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Phase two must necessarily pass through concrete proposals for administrative simplification, the provision of instruments for accelerating economic development capable of enhancing the extraordinary entrepreneurship that our country has in its economic system. Our “made in Italy” brand is recognized all over the world and needs an extraordinary relaunch. Through special economic zones, customs free zones, simplified logistic zones it is possible to accelerate an economic recovery for a new Italian miracle. Tax exemption accompanied by a massive simplification, together with an essential infrastructure enhancement both in terms of logistics and in terms of stimulating public spending, will push consumption and production upwards for the benefit of our GDP.

The moment of forced stasis makes us reflect on the necessary co-responsibility and participation of citizens in the political-allocative choices of our political representatives. The model used so far has failed miserably by mortifying health, education, culture and innovation, the only pillars that have kept us alive, while collapsing on themselves, in recent months.
There will be no other possibility. Plan with foresight, facilitate businesses, invest in infrastructure, education, health, enhance the social role of culture and creativity, bet on the innovation that derives from it.
Special attention is paid to tourism, the great absence of the programs. The sector generates an important part of GDP and distributes wealth across the entire chain. You can’t just wait. The sector must be supported concretely and restructured also with acceleration logics as happens in other parts of the world (Dubai, for example).

RALIAN has been working tirelessly in recent weeks on a development program that will be fundamental for the next few years. From here we will start to make our voice heard even more on the issues we care about. Our daily commitment in recent months has been, is and will be in this sense. We are an active part in relaunching the Italian post-COVID economy – 19. And we are proud and grateful for this. Silently, stubbornly and incessantly.

The picture of Genoa that proudly shows its reconstructed  Morandi bridge is the warning that inspires our hearts. Italy is there. Italy does not stop like Genoa did not stop. Italy like Genoa does not let itself be overwhelmed by events but reacts, roars, gets up, rebuilds itself, superb, proud and proud.

We want to feel an arrow touch our heart and there in the heart explode. We want to hear that “L’Italia s’è desta ” (, Italy has awakened, as our  National anthem says), once again, in front of the eyes of the world, especially in front of the eyes of that part of the world that told us that we Italians would not have made it.

Simplifying. Reducing taxes. Investing. Relaunching. Taking part. Programming. Starting again.  Flying.

FOREIGN-TRADE ZONES: THE US TOOL FOR THE PROMOTION OF FOREIGN TRADE.

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According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2019, around 5400 Special Economic Zones variously denominated are registered worldwide. Most of them are located in developing and transition countries, especially in Asia and the Far East.

As regards the SEZs existing in the economies of the developed countries, their main connotation consists in the presence of suspensions of a customs nature, that is to say, for example, in case of goods imported in the described areas , duties and VAT by destination and other customs duties till then suspended do not apply until they are released for free circulation. The largest number of this type of zone is into the United States land where they are denominated Foreign-Trade Zones (FTZ).
The further tax concessions that characterize them give to the FTZs a value that they would otherwise not have in terms of the global economy.
This circumstance can be observed in very few European Union countries, including Poland, Bulgaria, Lithuania and Latvia.
The FTZs are customs free zones, under the customs supervision of the United States, considered (as what happens in similar situations in the European Union), through a fictio iuris set outside the U.S. customs territory for the purposes of the duty.
These areas have been established to encouraging national companies’s use compared to foreign ones for the production and distribution phases of the products. The benefits planned in the FTZ consist of relief from tariffs and other customs administrative charges which, otherwise, would penalize the competitiveness of US companies compared to foreign ones. It is possible that each Free Trade Zone for its part will establish Subzones: currently around 500 of them are registered.
As required by current legislation for SEZs in Italy, the FTZs are located in the incoming customs ports or in neighboring territories, and constitute the American model of what are commonly called Free Trade Zones.
The normative source is the Foreign – Trade Zones Act of 18 June 1934, as amended by the Designation of Enterprise Zones, L. 102–550, 1992 and by the Regulations of the Foreign-Trade Zones Board, 15 CFR Part 400, 2012.
Currently, of the 262 authorized Foreign-Trade Zones, 195 are operative, as evidenced by official data of the 80th Annual Report of the Foreign-Trade Zones Board – 2018, presented at the United States Congress in November 2019.
The presence of the FTZs guaranteed a job for over 440,000 people, employed in approximately 3,300 companies that resort to the FTZs for their business activities, for a value of commercial transactions of 793 billion dollars, with an increasing trend compared to the previous year. In particular, the activity of the FTZ is rising in terms of both domestic and foreign trade, with a positive differential of $ 124 billion since 2017.
Of these, approximately 63% concerned production activities, with a turnover of approximately 504 billion dollars, while the remaining 37% concerned warehouse and distribution operations.
It is worth noting that the FTZ are not designed exclusively for foreign goods. In fact, domestic goods have an important positive impact on the activity of the FTZs.
The most represented production sectors concern the automotive, oil, electronics, pharmaceutical and machinery and equipment ones.
he main federal agencies overseeing the development of the Foreign-Trade Zones program are the Foreign-Trade Zones Board of the United States Department of Commerce and the Customs and the United States Border Police (CBP).

Copyright © 2019 —Ralian Research & Consultancy SRL. All Rights Reserved.

 

THE IRISH BORDER AND BREXIT. A POSSIBLE HYPOTHESIS OF A SPECIAL ECONOMIC ZONE WITH ECONOMIC-POLITICAL FUNCTION

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The Irish border​ and Brexit. A possible hypothesis of a special economic zone with economic-political function

The question of finding the best way out to achieve a Brexit that is as satisfying as possible with respect to national and international interests (even divergent ones) in play, as is known, includes a further problem: the management of the “Irish Border” affair.
Evidently it is not a small problem, because without an ad hoc solution, it would be a matter of applying the rigid and complicated rules of the customs regime in force according to the CDU in the commercial relations between the European Union and third countries, on a border of about 500 kilometers that for over 46 years, from the point of view of commodity flows, has been in fact a “weak border” subject to the rules of the single market.
According to the most recent data, about 33% of exports of goods and services produced by Northern Ireland companies go towards Eire.
In 2018, Northern Ireland’s interchange with Eire consisted of about 3 billion pounds in exports and 2 billion pounds in imports, equivalent to a trade balance of 1 billion pounds and a bilateral trade of almost 5 and a half billion pounds.
Eire is both the 1st country of export for Northern Ireland (equal to about 36% of its total exports) and the 1st import market (equal to about 28% of its total imports) .
In detail, most cross-border transactions were carried out by micro and small businesses, which represent the focus the economy of Northern Ireland, with about 74% of exports involving companies with less than 50 employees.
The UK’s trade flow to foreign countries is direct for about 6% towards Ireland, which is the 4th country with which it has greater connections, after the USA, Germany and China.
The same interchange report if analyzed by the Irish side, reveals that on the total foreign trade relations the flow with the United Kingdom accounts for 18%, and constitutes the 2nd country with which it has more connections after the USA.
According to The Guardian, every year 450,000 trailers arrive in Northern Ireland, transporting cars, foodstuffs and textiles: the total import value of the United Kingdom is about 13 billion pounds, of which about 11 billion pounds corresponds to the value of the goods purchased.
The continuity of this trade interchange must be safeguarded.
The United Kingdom before the Brexit process, in the Belt and Road Initiative (BRI), represented the potentially key partner for China to mediate within the European Union on particularly “hot” issues from a commercial point of view.
So now “Downing Street” should find a solution to safeguard its competitive ability in the markets, which could be strongly influenced, both because of the Brexit process and because of the lack of involvement (for the moment) in the BRI.
In this regard, Ireland is ready after Brexit to replace Britain as China’s new trusted interlocutor in the promotion of the Belt and Road Initiative, according to what the Foreign Minister (which is also Irish Deputy Prime Minister) said in recent months. On the other hand, the good link between the Dublin government and the Beijing government historically includes many examples of good trade relations, starting from the role of model played by the Shannon Free Zone created in 1959, and that of its functionaries, tutors for the creation of the first special economic zones in southern China in 1980, to feed the economic and commercial reform, the cd “Open door policy”, launched by Deng Xiao Ping.
So for London it is of vital importance to take this perspective into account because the effects on the United Kingdom could have very negative impact precisely starting from the economic consequences created on the commercial exchanges that take place through the border between Eire and Northern Ireland.
The occurrence of possible negative economic consequences, however, also exposes to the risk of the possible re-emergence of possible political frictions in this delicate area, historically never definitively placated.
This is why the contents of some points proposed by the British Government for the Brexit Agreement go in the direction of creating a sort of special economic zone along the Irish border.
This idea could have an important political value, and this would be in line with the functional evolution in the world of the SEZs. In fact, the increase of its relevance as a political tool to attract investments, will determine an ever greater attention both of the single SEZs and of the countries to look beyond administrative boundaries and therefore to develop integrated transnational approaches to the development of the SEZs.
Therefore in the present case it would be very desirable to create a “cross country” SEZ (for example above all in the area including the cities of Derry and Donegal), as happened in other parts of the world with positive results.
The endorsement by the European Union of this solution could be a good opportunity for the Brussels institutions to abandon their anachronistic position of substantial dogmatic and preconceived ostracism on the SEZs (which worldwide have become increasingly congenial to the historical context of a globalized economic development and dependent from the connection with the Global Value Chains, which today represent almost 50% of exchanges around the world) and to implement a more effective “realpolitik”, with effects of importance not only economic but also, as in this case, of evident specific weight to solve political-diplomatic issues.
© Copyright 2019 – All rights reserved
Valentina Di Milla
Chief Executive Officer
RALIAN Consultancy & Research SRL