France

Selling and buying

Reaching the consumers

Marketing opportunities

Consumer behavior: Traditionally, price has been an essential element in the French consumer's buying process. However, quality is becoming more and more important for the French consumer who is now tending to favor products which have a quality label or mark. In the same way, the quality of after-sales service is a decisive element in choosing where to buy.
Consumer profile and purchasing power: France is one of the countries where buying most often equals pleasure. France is famous for its high consumption of leisure and culture products and gifts. The French consumer is impulsive and makes frequent purchases. As regards foodstuffs, the French are more likely to buy domestic products.
Consumers associations: The French Consumer Institute
The Federal Union of Consumers (UFC Que Choisir)
The European Consumer Centre in France (ECC)
Main advertising agencies: Publicis Groupe SA
Havas
Saatchi & Saatchi

Distributing a product

Evolution of the sector: In 2004, the wholesale trade represented 172 000 companies and 53.6 billion euros turnover. The retail trade represented 350 000 companies, 359.8 billion euros turnover. The setting up of hypermarkets is regulated by the Royer law of 1973 and the Raffarin law of 1996 ; they aim to protect local shops.
Market shares: Mass marketing dominates the retail trade sector in France with, in 2006, 5 525 supermarkets and 4 074 hard discount stores. The Carrefour group is in the leading position with a turnover of 77.9 billion euros. Then come Auchan with 35.3 billion, Intermarché with 31. 5 billion, Leclerc and Casino ( 2006 ranking).
Organizations in the retail sector: The Federation of trade and distribution companies (FCD)
The associated trade stores

Market access procedures

International Conventions

Member of World Trade Organisation
Member of OECD
Party to the Kyoto protocol
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboudary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer
Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies
Party of the International coffee agreement 2001

International economic cooperation

Member of the European Union
Member of the European Economic Area which has guaranteed, since 1 January 1993, the free movement of most goods between European countries.
Multilateral agreements and bilateral agreements with many countries. .

Non tariff barriers

At the European level, agricultural products are protected within the Common Agricultural Policy and textile products from China, Belarus, North Korea, Montenegro, Kosovo and Uzbekistan are subject to particular formalities and import licenses or control procedures (export document, monitoring document).
At the national level, trade in plants and seeds, aircraft, and others has to be declared; they have to be certified respectively by the GNIS(the national interprofessional organization for seeds and plants), the Ministry of Defense and the Ministry of Agriculture.

Customs duties and taxes on imports

Operations carried out within the EEA are free of duty.
The Common Customs Tariff of the European Union applies to goods originating outside Europe. Generally the duty is relatively low, especially for industrial products (4.2% on average).

Customs classification

The Combined Nomenclature of the European Community (EC) integrates the HS nomenclature and supplements it with its own subheadings with an eight digit code number and its own Legal Notes created for Community purposes.

Import procedures

For goods of a value under 1 000kg or 1 000 euros, a verbal declaration at Customs, and presenting the invoice, is sufficient.
For higher values, you must deposit at the Customs office:
1) a brief declaration (air or maritime manifest) to conclude the collection of the goods.
2) a common law declaration (SAD, single administrative document), as well as the accompanying documents to allow their clearance.
The SAD form can be obtained from Chambers of Commerce or an approved printer. A computerized Customs clearance platform (SOFI: International freight computer system) can be accessed in Customs offices or in some Chambers of Commerce.

In the case of deliveries and purchases within the European Community, the declaration of exchange of goods (DEB) or Intrastat declaration must be sent to the Customs service.

The case of samples

For the import, export and re-export of commercial samples the ATA (Temporary Admission) book can be used. It must be written on the product that it is a free sample and that it may not be sold.

For further information

French Customs website
Ministry of Foreign Affairs
Ministry of the Economy, Finance and Industry

Organizing goods transport

Main useful means

Goods transport (national and international) in France is dominated by road transport, with more than 2 billion goods transported every year. Road transport of goods is above all practical. Plans for putting trucks on trains and reviving the use of waterways could advance the development of another form of transport than road transport, but their potential remains limited.

International goods transport for its part is dominated by sea transport. This means of transport is economical and France is easy to access because of its extensive sea coast. Five of the fifteen biggest European ports are located in France; they are linked with each other and serve the other large European centers of consumption in the North and in the South thanks to an extensive networking of shipping lines. The ports represent 85% in volume and 66% in value of French foreign trade.

Ports