S.E.G.E.M. (Société d’Exploitation et de Gestion des Entrepôts de Monaco – Monaco Freeport) was founded in 2012. Its Deputy Chairman Claude Valion summarises just over four years of operations and the future development strategy.
Can you review these four years of operations for us?
We have met our targets.
Our first mission was to help promote Monaco as an art destination. That mission has been fulfilled. Our storage initiative has been very successful, helping the major art fairs: Point Art, European Art Fair, Top Marques, Art Monte-Carlo, and last year’s Francis Bacon exhibition at Grimaldi Forum. We also help the major jewellery exhibitions and auctions.
Furthermore, we had to generate economic activity. We have done that. Around twenty professions make up an economic cluster with us: packaging, carriers, freight forwarders, valuers, galleries, art dealers, insurance, banks etc. The goal is not to act as a storage facility for passive collectors. It is to store goods intended for sale. We have to facilitate the transaction. When an EU-resident buyer is found for a work stored with us, the duties and taxes are collected by Monaco Customs Office. To date they account for over five million euro. That is a significant amount.
The warehouse space was 1000 m2 in 2012
It has grown. Thanks to a major innovation that has already impacted our operation. In 2015, S.E.G.E.M. was certified as an Authorised Economic Operator by the Department of Customs. This status refers to operators fulfilling the following criteria in particular:
- compliance with customs and tax law
- satisfactory financial solvency
- an effective system for managing commercial records, and transport records where necessary, allowing appropriate customs inspections to be made.
- above all, compliance with safety and security procedures.
This is official recognition of our work, following a fairly lengthy audit. It has generated increased business, hence our taking on of 300m2 additional premises. All storage areas are full to date but the goods do turn and applications on hand are always honoured, within approximately one or two months.
Any new goals?
First and foremost to participate in the resumption of prestigious auctions in Monaco.
SEGEM is a good tool for that, but we must necessarily be on the same level as London, New York or Geneva. Every country has a different tax system. For resale rights* for example, we must align and be competitive. The two biggest strengths of S.E.G.E.M. are transparency on the one hand and privacy on the other. Transparency because systematic inspection and identification of all goods placed in warehouse storage are performed by Customs. Regarding privacy, the owner of the work of art is identified of course, but does not appear on any shipping document: the licensed freight forwarder is the operator.
*Resale right is the remuneration paid to the authors of original graphic and plastic works, or their legal successors, on resale of their works which involves an art market professional.
