Project Report- France

8/6/2019 Project Report- France

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INTERNATIONAL TRADING

PROJECT REPORT

FRANCESUBMITTED BY:

ISHU GUPTA

KANIKA AGGARWAL

NANDIT SOMANI

PARUL TANDONYORKIST VAZ


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ACKNOWLEDGEMENT

Inspiration & guidance are valuable in all aspects of life especially when we come tothe administration.

We would like to thankProf. Saurabh Kalra, Lecturer (MERCHANDISING OPERATIONS)

for giving us the opportunity of giving Formal Presentation & submitting Formal Report on

INTL. TRADE, as it would have been difficult for us to understand the details & completing

this project in this shape without his necessary guidance & inspiration.

We are obliged to Mr. Piyush Pandey (Associate Professor), Computing Skills who helped us in

providing with necessary information on formatting our final project.

Last but not the least; we would like to take this opportunity to thank our family & friends for

their constant support and guidance.

ISHU GUPTA

KANIKA AGGARWAL

NANDIT SOMANI

PARUL TANDON

YORKIST VAZ

FM-II Pearl Academy of Fashion


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FRANCE

France is 550 000 kms it is the largest country of Western Europe having animportant seacoast. France is bordering Andorra 56.6 km, Belgium 620 km,

Germany 451 km, Italy 488 km, Luxembourg 73 km, Monaco 4.4 km, Spain623 km, and Switzerland 573 km. The capital of France is Paris. It has thepopulation of 60,424,213 approximately. It has generally cool winters andmild summers, but mild winters and hot summers alongthe Mediterranean.

The 5 main Cities are:* Paris population: 9.8 million* Lyon population: 1.4 million* Marseille population: 1.4* Lille population: 1.1 million

* Toulouse population: 0.9 million

FRANCE FLAG

The national flag of France is atricolour featuring three vertical bands

colored blue (hoist side), white, andred.

Nickname:

The Tricolour was used during the Revolution and has since become asymbol of liberty around the world. Other nations have also adopted thedesign. Because France has no arms, the Tricolour is also the nationalemblem. The colours represent those of Paris (blue and red), combined withthat of the Bourbon Dynasty (white), though they are usually associated withfreedom, equality, and brotherhood, the ideals of the French Revolution.

Another possibility is that the colors and design were adapted from the Dutchflag and that symbolic meanings were attributed after the fact.

Design

The colors of the French flag "combine" different symbols, invented after the

fact:


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Blue is the color of Saint Martin, a rich Gallo-Roman officer who ripped

his blue cloak with his sword to give one half of it to a poor who was

begging him in the snow. This is the symbol of care, of the duty that

the rich had to help the poor.

Scheme Blue White Red

Pantone Reflex Blue Safe Red 032

White is the color of the Virgin Mary, to whom the Kingdom of Francewas consecrated by Louis XIII in the 17th century; it is also the color ofJoan of Arc, under whose banner the English were finally driven out ofthe Kingdom (15th century). It became logically the color of Royalty.The King's vessels carried plain white flags at sea.

Red is the color of Saint Denis, the saint patron of Paris. The originaloriflamme (war banner) of the Kings was the red oriflamme of SaintDenis.

DEMOGRAPHICS OF FRANCE:

Age StructureAge Segmentation Male Female Percentage(%)

0-14 years 6,063,181 5,850,272 18.6%15-64 years 20,798,889 20,763,283 65.2%

65 years and over 4,274,290 6,750,011 16.2%Median Age 37.5 years 40.4 years

PopulationTotal: 63,713,926

Note: 60,876,136 in metropolitan France

Education in France

The French educational system is highly centralized, organized, and ramified. It is divided intothree different stages:

Primary education Secondary education

Higher education


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Primary and secondary education are predominantly public (private schools also exist, in

particular a strong nationwide network of primary and secondaryCatholic education). Education

has both public and private elements. The Programme for International Student Assessment,coordinated by the OECD, currently ranks France's education as the 25th best in the world, being

neither significantly higher nor lower than the OECD average

Religions

Roman Catholic 83%-88%, Protestant 2%, Jewish 1%, Muslim 5%-10%,

unaffiliated 4%

Overseas departments and territories: Hindu, Muslim, Buddhist, pagan andatheist.

LanguagesThe most commonly used language is French. Other commonly used

languages are Arabic, Occitan, Portuguese, Oil languages(like Picard, Gallo,Poitevin), Italian, Spanish and Breton.

SOCIOGRAPHICS OF FRANCE:

French Society & Culture:

Cuisine

Food is one of the great passions of the French people.

French cooking is highly refined and involves careful preparation,attention to detail, and the use of fresh ingredients. It varies by region and is heavily influenced by what is grown locally.

French Family Values

The family is the social adhesive of the country and each member hascertain duties and responsibilities.

The extended family provides both emotional and financial support. Despite their reputation as romantics, the French have a practical

approach towards marriage.

Families have few children, but parents take their role as guardiansand providers very seriously.

Relationships - Public vs. Private

The French are private people and have different rules of behavior forpeople within their social circle and those who are not.
http://en.wikipedia.org/wiki/Catholic_educationhttp://en.wikipedia.org/wiki/Catholic_educationhttp://en.wikipedia.org/wiki/Programme_for_International_Student_Assessmenthttp://en.wikipedia.org/wiki/OECDhttp://en.wikipedia.org/wiki/Programme_for_International_Student_Assessmenthttp://en.wikipedia.org/wiki/OECDhttp://en.wikipedia.org/wiki/Catholic_education


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Although the French are generally polite in all dealings, it is only withtheir close friends and family that they are free to be themselves.

Friendship brings with it a set of roles and responsibilities, includingbeing available should you be needed. Friendship involves frequent, ifnot daily, contact.

PSYCHOGRAPHICS OF FRANCE:

French LifestyleFrance is multicultural society and the way of life is homogenous throughoutthe country. With its colorful history and deeply rooted regional traditions,makes France quite interesting. The famed French cuisine and its new flavorsis the only way get to know the locals. The main attraction of France is theevents held there, the celebrations, fetes and markets.

In France a unique blend of customs has emerged, where the traditional ruraland new urban lifestyles live side by side. Globalization has also opened upFrance to many other cultures around the world.

Family Structure:

Family structure 2001 2003 2005 2007 2009Single man 6.4 7.4 8.5 10.1 12.5Single woman 13.8 14.8 16.0 17.1 18.5One-parent family 2.9 3.0 3.6 6.6 7.4

Couple without children 21.1 22.3 23.3 23.7 24.8Couple with children 36.0 36.5 36.1 36.4 31.5Complex household 19.8 16.0 12.5 6.1 5.3Number of households(million) 15.8 17.7 19.6 21.5 23.8

Scope of coverage: metropolitan France.

Marriage is still a highly valued institution in France, but it hasbecome a fragile one. An average of one out of three marriagesends in divorce and live-in arrangement are increasingly common.

Personality rights in France:

Personality rights are strongly protected in France through the protection ofprivate life. This measure has been used to prevent unauthorizedreproduction of images by ordinary and famous individuals alike. It wouldthus appear that personality rights in France are based on dignitary rather


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than commercial concerns although the exercise of the rights can havecommercial implications.

BUSINESS ETIQUETTE:

Meeting Etiquette

The handshake is a common form of greeting. First names are reserved for family and close friends. Wait until invited

before using someone's first name. You are expected to say 'bonjour' or 'bonsoir' (good morning and goodevening) with the honorific title Monsieur or Madame when entering ashop and 'au revoir' (good-bye) when leaving.

Gift Giving Etiquette

Flowers should begiven in odd numbersbut not 13, which areconsidered unlucky.

Some older Frenchretain old-styleprohibitions againstreceiving certainflowers: White lilies orchrysanthemums asthey are used atfunerals; redcarnations as they symbolize bad will; any white flowers as they areused at weddings. If you give wine, make sure it is of the highest quality you can afford.

The French appreciate their wines.

Relationships & Communication

French business behaviour emphasizes courtesy and a degree offormality. Mutual trust and respect is required to get things done.

Trust is earned through proper behaviour.


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Creating a wide network of close personal business alliances is veryimportant.

If you do not speak French, an apology for not knowing their languagemay aid in developing a relationship.

It is always a good idea to learn a few key phrases, since it

demonstrates an interest in a long-term relationship. The way a French person communicates is often predicated by their

social status, education level, and which part of the country they wererose.

In business, the French often appear extremely direct because they arenot afraid of asking probing questions.

Written communication is formal. Secretaries often schedule meetingsand may be used to relay information from your French businesscolleagues.

Business Meetings Etiquette

Appointments are necessary and should be made at least 2 weeks inadvance.

Appointments may be made in writing or by telephone and, dependingupon the level of the person you are meeting, are often handled by thesecretary.

Do not try to schedule meetings during July or August, as this is acommon vacation period.

If you expect to be delayed, telephone immediately and offer anexplanation.

Meetings are to discuss issues, not to make decisions. Avoid exaggerated claims, as the French do not appreciate hyperbole.

Business Negotiation

French business emphasizes courtesy and a fair degree of formality. Wait to be told where to sit. Maintain direct eye contact while speaking. Business is conducted slowly. You will have to be patient and not

appear ruffled by the strict adherence to protocol. Avoid confrontational behaviour or high-pressure tactics. It can be

counterproductive. The French will carefully analyze every detail of a proposal, regardless

of how minute. Business is hierarchical. Decisions are generally made at the top of the

company.


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The French are often impressed with good debating skills thatdemonstrate an intellectual grasp of the situation and all theramifications.

Never attempt to be overly friendly. The French generallycompartmentalize their business and personal lives.

Discussions may be heated and intense. High-pressure sales tactics should be avoided. The French are more

receptive to a low-key, logical presentation that explains theadvantages of a proposal in full.

When an agreement is reached, the French may insist it be formalizedin an extremely comprehensive, precisely worded contract.

Business Cards

Business cards are exchanged after the initial introductions withoutformal ritual.

Have the other side of your business card translated into French.Although not a business necessity, it demonstrates an attention todetail that will be appreciated.

Include any advanced academic degrees on your business card. French business cards are often a bit larger than in many other

countries.

FASHION BRANDS & DESIGNERS IN FRANCE:

LOGO BRAND NAME & DETAILS IMAGE

LOUIS VUITTON: It wasfounded in 1854. It iscommonly referred as LV, is aninternational French fashionhouse specializing in trunks,

leather goods, ready-to-wear,shoes, watches, jewelry,accessories, sunglasses, andbooks.

CHANEL:is a Parisian fashionhouse founded by the latecouturier Coco Chanel,recognized as one of the most


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chic in the haute couture.Specializing in luxury goods(haute couture, ready-to-wear,handbags, perfumery, andcosmetics among others).

CHRISTIAN DIOR:was aninfluential French fashiondesigner, best known as thefounder of one of the world's topfashion houses, also calledChristian Dior. It specializes infashion (for men and women),accessories, fragrance and skincare products.

HERMES:is one of thegrandest houses in the lexicon

of luxury goods. Established in1837 by Thierry Hermes as afine harness-making businessand today world-renowned forits handcrafted, exceptionallydesirable (and expensive)leather goods.

YSL:is a luxury fashionhouse founded by Yves SaintLaurent and his partner,Pierre Berg.It hasglamorized clothing forwomen and some items aretaken from the malewardrobe, such as the blazer,the tuxedo, the pantsuit, theleather jacket.

AGNES B: is a French fashion

designer. She is known for her

self-named brand, which

includes fashion and film

interests.


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JEAN PAUL GAULTIER:is aFrench haute couture fashiondesigner. It specializes inperfumes, clothing for menand women, bags, cosmetics,

shoes and other accessories.

PAULE KA: It operates as afashion boutique. It offerslinen coats, linen hats,platform sandals, leathertouch bags, jackets, stretchpoplin shirts, and trousers.

SONIA RYKIEL: is a Frenchfashion designer. It was firstdesigner to put seams on theoutside of a garment, and toprint words on her sweaters. Itspecializes in long clingingsweaters or small croppedpullovers, large rolled-back cuffsand long shawls.

CHLOE: is famous French

fashion designer. It

specializes in handbags and

perfumes.

FRANCE TRADE SHOWS, EXHIBI T IONS & FASHION EVEN TS :

FASHION TRADE SHOWS & FASHION EVENTS:

Interfiliere ParisInterfiliere Paris is also at the heart of innovation and supports allefforts to develop new products, fibers, weaves and treatments.
http://www.biztradeshows.com/trade-events/interfiliere-paris.htmlhttp://www.biztradeshows.com/trade-events/interfiliere-paris.html


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Vendome Luxury Trade ShowVendome Luxury Trade Show showcased the beautiful products forwomen fashion wear under one roof at Le Meurice Hotel, Paris.

Pret A PorterPret A Porter is a comprehensive fashion event that covers a widerange of lifestyle fashion products. Pret A Porter is a truly internationaltrade fair with exhibitors and buyers coming from all around the world.

Capsule-ParisCapsule-Paris is one of the leading trade fair for Garments and Apparelindustry in Paris. The event will provide a unique opportunity to meetall the professionals from fashion, lifestyle and apparel industry.

AtmospheresAtmospheres is a truly international trade fair with exhibitors andbuyers coming from all around the world.

Whos NextWho's Next has asserted itself as the professional trade show in Paristhat presents the most acute vision of a high-quality men's & women'sfashion.

THE BOXThe Box is a comprehensive fashion event that covers a wide range oflifestyle fashion products. The Box is a truly international trade fair withexhibitors and buyers coming from all around the world.

So Ethic

So Ethic is a comprehensive fashion event for Women's Ready-to-Wearand Accessories Collections that covers a wide range of lifestylefashion products.

PlaytimeThe international trade show dedicated to the junior and children'suniverse and maternity wear, Playtime stands for demanding quality inan international selection of today's best collections from baby tojunior.

Tissue Premier 2010

Tissue Premier 2010 fabrics and accessories for Ladies ready-to-wear/Menswear/ Childrens wear/Casual wear trade fair for majorEuropean retailers.

HOME FURNISHINGS TRADE SHOWS:

AmenagoAmenago is the international Home Furnishings and Decoration trade
http://www.biztradeshows.com/trade-events/vendome-luxury-show.htmlhttp://www.biztradeshows.com/trade-events/pret-a-porter.htmlhttp://www.biztradeshows.com/trade-events/capsule-paris.htmlhttp://www.biztradeshows.com/trade-events/atmospheres.htmlhttp://www.biztradeshows.com/trade-events/whos-next.htmlhttp://www.biztradeshows.com/trade-events/the-box.htmlhttp://www.biztradeshows.com/trade-events/so-ethic.htmlhttp://www.biztradeshows.com/trade-events/playtime.htmlhttp://tradefairs.fibre2fashion.com/industrial-fairs/fairdetails.aspx?show_code=12810http://www.biztradeshows.com/trade-events/amenago.htmlhttp://www.biztradeshows.com/trade-events/vendome-luxury-show.htmlhttp://www.biztradeshows.com/trade-events/pret-a-porter.htmlhttp://www.biztradeshows.com/trade-events/capsule-paris.htmlhttp://www.biztradeshows.com/trade-events/atmospheres.htmlhttp://www.biztradeshows.com/trade-events/whos-next.htmlhttp://www.biztradeshows.com/trade-events/the-box.htmlhttp://www.biztradeshows.com/trade-events/so-ethic.htmlhttp://www.biztradeshows.com/trade-events/playtime.htmlhttp://tradefairs.fibre2fashion.com/industrial-fairs/fairdetails.aspx?show_code=12810http://www.biztradeshows.com/trade-events/amenago.html


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show that will offers you the latest trends to decorate and renew yourhome -interiors as well as gardens and swimming pools.

Paris Furniture ShowParis Furniture Show, a dynamic new furniture show for Paris, anannual international rendezvous for this profession, at the same timeas MAISON & OBJET, the home trade fair exhibition. A unique gatheringfor all in the home market: both furniture and decor.

Scenes D InterieurScenes D Interieur, A combination of fashion and decoration, eleganceand extravagance, signs of the times and the art of living, exclusiveand selective.

FatexFatex the Sourcing Trade Fair is the essential meeting point for allplayers in household linen, fashion accessories, notions, technology

and services sectors.

Maison & ObjetMAISON&OBJET show will take place in September 2010 and will betargeting professionals from the field of Home fashion and design. Itwill serve as a unique opportunity for buyers and suppliers to establishfoundations for new business contacts.

ACCESSORIES & JEWELLERY TRADE SHOWS:

Le ShowroomLe Showroom, the only international trade event dedicated to fashionjewelry and accessories industry in France, which is a majormanufacturing base of fashion industry.

TransitionTransition is highly specialized show for Apparel & Clothing Industry i.e.fashionable handbags, footwear, travel ware, leather garments, fashionaccessories and lifestyle products, impressed participants and otherrelated equipment and supplies etc.

Eclat De ModeIt is the international trade show dedicated to Fashion and DesignerJewellery, Haute Couture and Licensed Jewellery, Fashion Accessories,Silver and Gold Jewellery, Watches.

CUSTOM CLEARANCE PROCEDURES & LAWS:
http://www.biztradeshows.com/trade-events/paris-furniture-show.htmlhttp://www.biztradeshows.com/trade-events/scenes-d-interieur.htmlhttp://www.biztradeshows.com/trade-events/fatexpo.htmlhttp://www.biztradeshows.com/trade-events/maison-objet.htmlhttp://www.biztradeshows.com/trade-events/transition.htmlhttp://www.biztradeshows.com/trade-events/eclat-de-mode.htmlhttp://www.biztradeshows.com/trade-events/paris-furniture-show.htmlhttp://www.biztradeshows.com/trade-events/scenes-d-interieur.htmlhttp://www.biztradeshows.com/trade-events/fatexpo.htmlhttp://www.biztradeshows.com/trade-events/maison-objet.htmlhttp://www.biztradeshows.com/trade-events/transition.htmlhttp://www.biztradeshows.com/trade-events/eclat-de-mode.html


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French Customs has 292 offices throughout the country.

Custom Clearance Methods:

A company can choose either clearance upon entry or exit from Frenchterritory (port, airport or office at an inland frontier), or clearance atdestination (at the nearest customs office from the company's site). Anycompany is free to complete its customs formalities itself or to assign themto a professional operator approved by French Customs Authorities (customsbroker).

Customs clearance in France can be made through several methods:

The customs computer network (SOFI),

The company's own computer system, networked with SOFI

Manual procedure (use of customs entries - S.A.D.).

A wide range of customs methods designed to meet specific customerrequirements are put in place such as Express delivery procedures forexpress parcels (a new high-speed procedure applicable to express deliverycompanies) or one of the customized procedures granted to all import orexport companies for their current trade transactions.

Three Primary Entry Types for importing into France:

1. Standard clearance procedure apply to all shipments2. Simplified clearance procedure regardless of value3. Simplified declaration procedure: It applies to shipments of commercial

samples below EUR 45 and/or to negligible value shipments below EUR22 and provides Duty and Tax relief.

Note: Tobacco, drugs, medicines, weapons and their parts, strategicmaterials and their parts, CITES commodities, alcohol and all otherlicensable commodities cannot be processed under the simplifieddeclaration procedure.

For Import transaction exceeding 38,200 EURO:

These transactions must be conducted through an approved bankingintermediary.

Meeting with French Customs for release of goods: When ashipment reaches France, FedEx will either advise the importer'sbroker or file entry release documents on behalf of the importer ofrecord (owner, purchaser or consignee) with French Customs at thepoint of entry. Imported goods are not legally entered until after the


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shipment has been released by French Customs. French Customs maypull any shipment at any time for review or investigation, which couldresult in clearance/delivery delays.

NOTE: In addition to the Customs Department, importers should contact

other agencies when questions regarding particular commodities arise.For example, questions about textile products should be forwarded to theService des Titres du Commerce Exterieur (SETICE) for import licenserequirements.

Importer of Record or a licensed Customs Broker may accountfor goods: According to the Importer of Record's profile, FedEx GTSFRANCE will either provide notification upon arrival of shipments to theImporter's designated Customs Broker or clear and advance paymentof any duties and taxes levied for the shipments on behalf of theimporter.

NOTE: A Customs (entry and payment processing) account can beestablished at any customs office and by the importer himself for hisshipments or by FedEx for all its customers. Currently only FedEx'saccount is being used. An air waybill may be used for qualifying standardclearance procedure merchandise (samples and low value shipments)arriving by air, but all other merchandise must be presented with acommercial invoice that contains all the data requirements of FrenchCustoms Department.

Clearance of goods from in-bound point: Goods may be

transported in-bond to another point of entry for clearance by re-manifesting (infrequent) to that location, by using house air waybills orby using T docs (EU transit system). A bonded carrier is required totransport the shipment from the point of arrival to point of clearance.Arrangements for transporting the merchandise to an interior point in-bond may be made by the consignee, by the customs broker or by anyother person having sufficient interest in the goods for that purpose.

To Postpone the release of the goods, they may be placed inFedEx's cage in a bonded warehouse until the documentation has beenobtained for appropriate release. If the goods are not released fromCustoms within 5 days, they are reported to the Customs Office

warehouse and abandoned or sent back to the origin at shipper'sexpense.

FedEx Clearance Ports:

Paris Charles de Gaulle Airport (CDG): FedEx operates a state of the artsorting facility at this airport. This is the main sorting and clearance facilityfor most of the European Community (EC).


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IMPORTANT DOCUMENT REQUIRED:

Bills of Lading - No special regulations

Consular Invoices None

Certificates of Origin - Certificates of Origin are required for theimportation of any Textile products valued at over 1000 Euros.Exceptions from this requirement include marked and mutilated

samples; luggage made up of textile materials, canvas bags, and bona-fida gifts, personal effects. A Certificate of Origin is recommended tobe provided for every commodity subject to import licensing and /orquota restrictions from some origin countries and is required for alltextile products imported into France that originate in Hong Kong,Macao, or Singapore regardless of the value.

Certificate of Origin Form A - A Certificate of Origin Form A may berequired for goods under formal entry claiming preferential duty orexemption under the various agreements of Generalized System ofPreferences. It should be produced at the time of entry and must be in

the possession of the Importer at the time of entry. Origin of the goodsmust be detailed on the commercial invoice.

EUR 1formImport - An EUR 1 form may be required for goods underformal entry claiming preferential duty or exemption under variousbilateral agreements by the European Union countries and somespecific countries or groups of countries. It should be produced at thetime of entry and must be in possession of the Importer at the time ofentry. Origin of the goods must be detailed on the commercial invoice.

Quotas - Quotas have been assigned by the European Union tospecific countries for specific products, which allow for the controlledimportation of specific products.

Commercial Invoices - Invoices are required for all dutiableshipments relating to commercial transactions between companies andcompanies; companies and individuals, regardless of the value.Commercial invoices should show freight, insurance and similarcharges as separate items when applicable, regardless of theINCOTERM used on the transaction. It must be in French for export


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shipments or accompanied by a translation. It can be in any officiallanguage for import shipments and, if required by customs, must beaccompanied by a translation. A party who is knowledgeable of thetransaction, must furnish translation, if requested.

Specific invoice details are required for a number of commoditiesincluding the following:

Textiles - the fabric breakdown, whether knit or woven and, forclothing articles, the gender;

Marked/Mutilated samples - the words "mutilated samples" or "marked samples, not for resale" as applicable;

Software on CD's and floppy disks - The value of software must beshown separately from software support.

Dangerous Goods Certification - Some goods will, in addition to thestandard documentation noted above, require DG certificationi.e. Perfumes, Liquor, Chemicals, etc.

Air Waybill - An air waybill or carriers certificate (naming theconsignee for customs purposes) is required as evidence of theconsignee's right to make entry.]

Declaration of Antiquity - A declaration must be shown on theinvoice for goods over 100 years old. The statement must include thewords " circa date" followed by the year of manufacture whether

known or estimated.

Customs ValuationAll goods categorized, as non-document commercial goods shipped toFrance must have a proper value declared and proper descriptionprovided which should convey the shipper's intent related to the goodsas well as any special processing requirements that exist for the goodsshipped. Everything has a value, whether or not a transaction tookplace. Failure to properly document value of any goods will result indelays and or additional fees as deemed necessary in addition towarehouse fees.

Import DutiesAll merchandise coming into France must clear Customs and is subject tocustoms duty assessment unless the goods are duty or tax exempt by law.Customs duties are, generally, an ad valorem rate (a percentage), which isapplied to the transaction value (EUR Euro) of the imported goods based onthe cost of the goods, insurance, and freight charges. Some articles,however, are dutiable at a specific rate of duty (so much per piece, liter, kilo


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etc.) and others at a compound rate (combination of both ad valorem andspecific rates). The dutiable value of merchandise is determined by the EUCustoms code (TARIC). Several appraisal methods are used to arrive at thisvalue. Generally, the transaction value of the merchandise serves as a basisof appraisal. Transaction value is the price the buyer actually pays the seller

for the goods sold and being imported. The Harmonized Tariff Schedule ofEuropean Union (2002 Edition), issued by European Community, prescribesthe rates of duty and classification of merchandise by the type of product;i.e. animal and vegetable products, textile fibers and textile products. Thetariff schedule provides several rates of duty for each item.

France, like most member states of the European Community, bases itsHarmonized Tariff Schedule (Nomenclature Douaniere or SH) on the TARIC(Integrated Tariff of the European Community) which is issued by theCommission and the Member States for the purpose of applying Communitymeasures relating to import and exports, and-when necessary- to trade

between member states. The TARIC also serves as a basis for the workingtariffs and tariff file of France and other Member States.

Shipments of value below 22 EURO (USD 22 circa) may be subject to duty-free import entry.

Import duty rates are divided into two classifications: Most Favored Nation(MFN) and General. Import duties are calculated on ad valorem basis, i.e.expressed as a percentage of the value of the imported goods.

Most imports enter under MFN Rates (Most Favored Nation) rates. Relative

high tariffs apply to textile, automobile, consumer electronics, cereal, meat,dairy, sugar, alcohol, and tobacco.

Excise duty rates may also be applicable on certain items such as alcoholand tobacco. For further information, please contact the French Customs atwww.finances.gouv.fr/douanes/

AntidumpingUnder strict enforcement of unfair trade laws, Customs will assessantidumping duties or countervailing duties. Antidumping duties are

assessed on imported merchandise sold in France (EU) at less than thenormal price of goods in the manufacturer's home market (also called fairmarket value).

CountervailingCountervailing duties are assessed to counter the effects of subsidiesprovided by a foreign government for merchandise exported to Franceresulting in artificially low prices that are detrimental to French and other
http://www.finances.gouv.fr/douanes/http://www.finances.gouv.fr/douanes/


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European Union member states industries.

Excise DutiesExcise duties are assessed against certain commodities, which are normallyidentified as "luxury" goods. The excise tax is normally assessed against

tobacco products, perfumes and alcohol products but can also be assessedagainst other goods as deemed by French regulations.

Additional DutiesWatch Duty RateWatches imported into France are subject to classification and dutyassessment based on a per item basis. The actual duty and the final rate ofduty are determined based on the classification of the watch at the time ofentry processing with customs.

Import Taxes

In addition to duties , goods imported into France are also subject to a value-added Tax (VAT) which is generally charged at one of two rates:

The standard rate of 19.6% applicable to most manufactured goods The reduced rate of 5.5%, applicable mostly to agricultural productsand foodstuffs, original artworks and certain medicines.

Customs FeesInvoice Fee

Customs in some situations will assess additional fees based on the invoicesprovided for a shipment. The fee is usually levied if they deem themnecessary as part of the terms of entry due to the size of the shipment andthe related large number of invoices provided by the shipper for his goods.

Examination FeesAdditional fees can be assessed on some commodities to cover the expenseof performing the examinations and or testing required as a condition of thegoods entry into the commerce of France. Commodities affected: cosmetics,drugs and medicines, artwork.

Exchange ControlsThese were abolished in France in 1990 but notifications of large outwardtransfers are required for the purposes of official statistics. For example,Import transactions exceeding 38,167 EUR in value must be conductedthrough an approved banking intermediary.


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Technical Barriers to Trade (TBT's)Technical barriers or non-tariff barriers to trade, as they are sometimesknown, can cause many problems for exporters looking for new markets for

their products. These barriers can be in the form of regulations, standards,testing and certification procedures. The World Trade Organization (WTO)Agreement on Technical Barriers to Trade tries to ensure that these barriersdo not create unnecessary obstacles. To obtain further information onTechnical Barriers to Trade as well as Notifications on technical regulationsand conformity assessment procedures, go to the WTO website athttp://www.wto.org/english/tratop

TRADE POLICIES: TRADE REGULAIONS & STANDARDS IN FRANCE:

Import Tariffs Trade Barriers Import Requirements and Documentation U.S. Export Controls Temporary Entry Labeling and Marking Requirements Prohibited and Restricted ImportS Customs Regulations and Contact Information Standards

TRADE BARRIERS:

Common EC regulations are also applied to imports of beef, veal, dairyproducts, olive oil, most or her oils and fats, sugar and certain specificfruits and vegetables.

Imports of pearls and imitation jewellery are prohibited.

Ad Valorem import duties are normally levied on CIF value at rateswhich vary according to country of origin.

There are also other charges to compensate for the correspondingduties and taxes on local products.

no import license is necessary except for a limited number of products(mainly agricultural commodities and few- state-traded items.
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France's five principal clients are Germany and Italy, which havealways held first and second position - together with Belgium, theUnited Kingdom and the USA.

Trade with these five countries, make hail of France's external

exchanges.

FREE TRADE AREAS:

EUROPEAN ECONOMIC AREA

The European Economic Area (EEA) was established on 1 January 1994following an agreementbetween member states of the European Free TradeAssociation (EFTA), the European Community (EC), and all member states of

the European Union (EU). It allows these EFTA countries to participate in theEuropean single market without joining the EU.

The contracting parties to the EEA Agreement are three of the four EFTAstatesIceland, Liechtenstein and Norway and the 27 EU Member Statesalong with the European Community.

The EEA is composed of the EFTA member countries and European Unionmember-states

AustriaBelgiumBulgariaCyprusCzech

Republic

DenmarkEstonia

GreeceHungaryIcelandIrelandItalyLiechtenst

einLatvia

NetherlandsNorwayPolandPortugalRomaniaSlovakiaSloveniaSpain
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FinlandFranceGermany

LithuaniaLuxembour

gMalta

SwedenUnited

Kingdom

Switzerland is not part of the EEA. A referendum was held and rejected theproposal to join. Switzerland is linked to the European Union by the SwissEUbilateral agreements, with a different content from that of the EEAagreement.

Organization for Economic Cooperation and Development (OECD)

The Organization of Economic Cooperation and Development is aninternational organization of the industrialized, market-economycountries. At OECD, representatives from Member countries meet toexchange information and harmonize policy with a view to maximizing

growth within Member countries and assisting non-Member countriesdevelop more rapidly. OECD membership is currently comprised of 29members as follows:

AustraliaAustriaBelgiumCanadaCzech Republic

DenmarkFinlandFranceGermanyGreece

HungaryIcelandIrelandItaly

KoreaLuxembourgMexicoNetherlandsNew Zealand

NorwayPolandPortugalSpainSwedenSwitzerlandTurkeyUnited KingdomUnited States

Japan

RETAIL TRENDS OF FRANCE:

Franchising in France: New Trends

At the beginning of the new century, franchising involves 6% of retail storesin France, 2000 store openings per year, 1100 new salaried jobs, EUR 30.5billion of sales and a total of approximately 650 chains. France is fourth in
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the world for franchising. Many of the chains are now called Plural Chainswhich means that both franchised and company-owned units can be foundwithin the same chain. In 2007, the average chain comprised of 74 stores inFrance with 51 franchised units and 23 company-owned units.

Banner Trends in France

In France, the traditional banner popularity is declining but this is still themost used format. The 468x60 banner is still alive because it's acomplementary ad format, which works good when associated to theemerging rich media. Intrusive ads such as pop-ups and pop-under aredisappearing from the French, and are replaced with advertisers ratherpreferring ads which fit into the editorial content.

Project Report- France

Documents

Transcript of Project Report- France