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| France |
| Trade
Regulations and Standards |
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Tariffs
and Import Taxes
The French tariff on imports from countries outside the European Community
has been harmonized since 1969, with the tariff of other EU members
creating the Common External Tariff. CXT rates of duty are applied
uniformly to imports to all EC countries from non-EC sources, except
for imports from associated countries and countries with special agreements.
Most raw materials can be imported duty free, or as the law rates
that most manufactured goods are subject to rates between 5 to 17
percent. The Common Agricultural Policy (CAP) under which many items
are subject to variable levies designed to equalize the prices of
imported commodities with those produced in the EU covers most agricultural
product imports.
France and other EU member states extend varying preferential tariff
treatment to imports from the African, Caribbean and Pacific developing
countries (under the Lome Convention) such as Turkey, Egypt, Morocco,
Tunisia, Algeria, Israel, Malta, Cyprus, Jordan, Lebanon and Syria.
Tariff preferences are also extended to cover 100 developing countries
under the Generalized System of Preferences (GSP).
To export consumer-ready food products to France, the exporter should
consider market access restrictions and food laws. Most processed
products entering the European Union and France are subject to additional
import charges based on the percentage of sugar, milk fat, milk protein
and starch in the product. These additional import charges may make
certain imported processed products non-competitive in the European
Market. The situation should improve over the next few years because
these charges will be converted to fixed tariff equivalents and reduced
under the World Trade Organization (WTO).
Trade Barriers
As a member of the European Union, France shares common tariff and
in many cases, non-tariff external barriers with other members of
the Union. Product safety and sanitary standards affecting imports
into France are increasingly established at the EU level. Although
France follows import regulations as prescribed by the Common Agricultural
Policy and various EU directives, there are a number of agricultural
products for which France implements unilateral restrictions.
Customs Valuation
Import duties are calculated on an ad valorem basis, i.e. expressed
as a percentage of the value of the imported goods. This dutiable
value is the “transaction value” plus freight, insurance,
commissions and all other charges and expenses incidental to the sale
and delivery of the goods, to the point of entry into EU customs territory.
The invoice price will normally be accepted as the transaction value
if the seller and the buyer are not related.
Under Article V11 of the General Agreement on Tariffs and Trade (GATT),
there are four additional methods for the determination of customs
valuation in the event that the method described above is rejected
by customs authorities.
These methods are to be applied in the following order
 The
transaction value of incidental goods;
The
transaction value of similar goods;
The
deduction method, i.e. the resale price, less such costs as customs
duties, taxes and commissions; and
The
computed value, utilizing costs of production, profit, and other expenses.
Internal Taxes
In addition to the duties levied under the Common External Tariff,
goods imported into France are also subject to a Value Added Tax (VAT).
Currently the VAT in France is generally charged at one of two rates:
- The standard rate of 20.6%
- The reduced rate of 5.5%, applicable mostly to agricultural products
and foodstuffs, original artworks and certain medicines.
VAT must be added to the price of all goods and services sold in France.
The supplier of any goods or services will bill his customer at his
selling price, plus the amount of VAT at the applicable rate. The
supplier collects the full amount, subtracts his own VAT expenditure
from the total amount of VAT collected, and periodically pays over
the difference to the tax authorities.
Export controls
There are no restrictions or regulations on the export of merchandise
from France, with the exception of strategic products (including arms
and dual-use technologies) and antiques. Before exporting these items,
a special license must be obtained from customs officials, to ensure
that the objects being exported are not a part of the national heritage
of France.
Import/Export Documentation
Import and export transactions exceeding French Franc 250,000 in value
must be conducted through an approved banking intermediary. Goods
must be imported/exported no later than six months after all financial
and customs arrangements have been completed.
For products originating in countries other than EU member states
or participants in the World Trade Organization (WTO) and for products
considered to be sensitive, a specific import/export license may be
required by product or by category of products. Otherwise, the following
documents are required in order to import into France.
Shipping
Documents
The documents generally required by France on all sea and air shipments
include the commercial invoice, the bill of loading or airway bill
and a certificate of origin.
Commercial Invoice
As in a domestic transaction, the commercial invoice is a bill for
the goods from the seller to the buyer. No special form of commercial
invoice is prescribed, the firm’s letterhead may be used. The
invoice should contain the following details both in English and French:
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Names and addresses of the seller
and buyer. |
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Place and date the invoice was prepared. |
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Method of shipment. |
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Number, markings of the goods: customary
commercial description according to kind, quality, grade, etc.,
with special emphasis on factors increasing or decreasing their
value. |
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Quantity of goods, expressed in units:
customary in international trade. |
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Delivery and payment terms. |
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Although not a requirement, it is
advisable to have the signature of a responsible official of
the exporting firm on each invoice. |
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Bill of Loading or Air Waybill
This is a contract between the owner of the goods and the carrier.
Certificate of Origin
This document certifies that the goods entering French territory are
made in the exporting country. Although certificates of origin are
not expressly required for all imports into France, they are strongly
recommended.
Temporary Entry
Samples and Carnets - samples of no commercial value enter France
free of duties and taxes. When sending such samples by parcel post,
the sender must specify what types of samples are being shipped. “No
commercial value” should be written on the appropriate shipping
documents.
For samples with commercial value and free of duty/tax to enter France,
a bond or deposit of the total amount of duties and taxes must be
arranged. Samples must be re-exported within one year if the deposit
is to be recouped. Alternatively placing such a deposit will require
applying for an ATA Carnet.
ATA Carnet
An ATA carnet is a special international customs document designed
to simplify and streamline customs entry procedures for merchandise
into participating countries for up to one year. The initials “ATA”
are an abbreviation of the French and English words “Admission
temporaire/Temporary Admission”. Carnets is accepted as a guarantee
that all customs duties and excise taxes will be paid if any of the
items covered by the carnet are not re-exported within the time period
allowed. Carnet may be used for commercial samples, professional equipment
and goods destined for exhibitions and fairs.
Labelling must provide consumers with precise information, which answers
six basic questions about the product.
-What is it?
-What is it used for?
-What is it made of?
-What does it cost?
-How is it used?
-When should it be used?
As labelling is strictly controlled in France, the answers are found
in many regulatory texts.
Export firms entering the French market are strongly advised to examine
EU as well as French laws. Each European Union country is integrating
the rulings of the EU into its national legislation. As much legislation
regarding labelling is still in the developmental stage, EU labelling
regulations and standards need to be carefully monitored. For agricultural
products, the office of Agricultural Affairs has an up-to-date extensive
listing of labelling and packaging regulations and requirements on
a product-by-product basis.
Basic labelling requirements
Though many labelling regulations are sector related, the following
information is generally required for all categories of products:
Language: Label must be written in French. French or international
law must have authorized any foreign words or abbreviations. The writing
must be clear and non-promotional.
Designation: State what the product is, for example: “ Laundry
Soap”
Brand Names/Trademarks: Any names symbols and marks relating to the
product must be found on the exterior of the packaging, the product
label, and the bottle top or lid, as the case applies. The manufacturer
can only use registered brand names and trademarks.
Composition: All ingredients or materials constituting the product
must be listed.
Usage instructions: Explain how the product is to be used.
Required dates: These include when the product was made, the consumption
limit for perishable items, and recommended “use by” date
for pre packaged and frozen food products.
Qualifiers: For example, “made by hand” on leather goods.
Name/Address of manufacturer or vendor
Specifications: Labels must inform the consumer of any particular
product limitations or sales conditions.
Price: The price (including all taxes) must be marked on all pre-packaged
goods, unless they are sold by mail order.
Bar Code Price Labelling (GENCOD): stores are increasingly using this
system to speed up the passage of clients at cash registers. GENCORD,
France’s bar code price labelling system, is generally used
for products with a low per unit value and rapid turnover, as well
as for food and non food products requiring an individual price marking
because of their value, nature, or presentation.
Quality and Ecological Labels: More established quality seals and
labels exist in France than in any other European country. Although
desirable because they offer extra information to the customer, they
are not mandatory.
Quality Labels
There are two types of quality certificates:
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Certificates issued by professional associations:
each must be contacted individually for more information. For
a list of professional associations, contact the Conseil national
du Patronat Fran#ais (CNPF)
CNPF
31, avenue Pierre-ler-de-Serbie
75784 Paris Cedex 16,
France
Tel: (33) 1-40-69-44-44
Fax: (33) 1-47-23-47-32 |
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Certificates issued by AFNOR, which controls
the coveted and highly regarded French “NF” Mark.
This quality seal certifies that a product complies with all
applicable French standards.
Environmental Labels: AFNOR also issues the “NF Environment”
label, which certifies that a specific product meets the environmental
criteria to qualify for a NF mark. This label is only available
for a limited number of goods, as it is still in the early stage
of development. Currently, an “NF Environment” label
can be issued for paints, lubricants, trash bags, household
chemicals, heating equipment, cosmetics, insulating material
and paper.
The member states of the European Union are currently developing
a European "Ecolabel", which would certify products
as environmentally friendly across the EU. AFNOR is the issuer
of the Ecolabel for products manufactured in, first marketed
in, or imported to France. An Ecolabel can already be issued
for washing machines and dishwashers. There are further twenty-five
products, for which certification criteria are currently being
drawn up by member states. |
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Prohibited Imports
France is not considered to be a “closed market”. Certain
regulations exist in both France and EU that limit market access for
certain agricultural products. The ongoing harmonization of EU import
regulations will hopefully result in the revocation of several French
regulations that currently prohibited the importation of some agricultural
and food products. Products that are subject to restrictive regulations
include: poultry, meat, enriched flour, genetic material, “exotic
meats” such as alligator and buffalo, crayfish, and certain
fruits and vegetables, which are subject to seasonal price restrictions.
Other fruits such as pineapple and bananas are subject to import certificates.
Fresh vegetables such as artichokes, cucumber, eggplant, tomatoes,
lettuce, and squash are also subject to seasonal price restrictions
Standards
Exporters should note that all goods entering France should conform
to French and European Union standards. This is mandatory for all
products satisfying publicly funded contracts, as well as for all
machinery, tools, household appliances, sporting equipment and toys.
Conformity is generally optional for other goods satisfying private
contracts. Products that meet French and EU standards have increased
marketability.
Rigorous testing and approval procedures must be undertaken for the
goods of a technologically complex or of potentially harmful nature,
before the goods in question can be sold in France.
Although one of the goals of the European Union is to harmonize standards
across the fifteen EU member states, many of these EU standards remain
in the developmental stage. Where a EU standard does not currently
exist, French standards apply.
The Association Fran#ais de Normalisation (AFNOR) is the French authority
in charge of co-ordinating the establishment of standards. AFNOR prepares
new and revised standards, subjects them to public enquiry, and finally
submit them to the relevant ministry for approval. Copies of the most
up-to-date standards can be obtained directly from AFNOR:
AFNOR
Tour Europe
92049 Paris La defense Cedex
France
Tel: (33) 1-42-91-55-55
Fax: (33) 1-42-91-56-56 |
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