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Customs Procedures

Import Procedures

For goods valued at under 1,000 kg or EUR 1,000, a verbal declaration at customs and presentation of the receipt of purchase is sufficient.
Higher-valued must be declared 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.

An online clearance platform by automated transmission (DELTA) is accessible from the The portal of the General Directorate of Customs and Indirect Taxes (in French).

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.

As part of the 'SAFE' standards advocated by the World Customs Organisation (WCO), the European Union has set up a new system of import controls, the 'Import Control System' (ICS), which aims to secure the flow of goods at the time of their entry into the customs territory of the EU. This control system, part of the Community Programme eCustoms, has been in effect since 1 January 2011. Since then, operators are required to pass an Entry Summary Declaration (ENS) to the customs of the country of entry, prior to the introduction of goods into the customs territory of the European Union.

The Modernised Customs Code entered into force in 2008 simplifies procedures, for example computerising and centralising transactions.

Since 1 July 2009, all companies established outside of the EU are required to have an Economic Operator Registration and Identification (EORI) number if they wish to submit a customs declaration or an Entry/Exit Summary declaration. For more information, please visit the website of the EU Customs Union. For France-specific customs clearance requirements, please visit the the website of the French Customs (in French).

Specific Import Procedures

There are various suspensive systems, both Customs and Fiscal, for storing, using or transforming your goods, consult the pages of the French Customs website devoted to these questions for further information. It is also possible to resort to bonded transit covered by an external transit certificate (T1). In the framework of intra-European trade, some goods are still prohibited or subject to particular formalities (medicines for human use, waste, plants or live animals). For further information, please visit the website of the French Customs (in French).

Importing Samples

For the import, export and re-export of commercial samples an 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.

Customs Duties and Taxes on Imports

Customs threshold (from which tariffs are required)

EUR 150

Average Customs Duty (Excluding Agricultural Products)

Import duty and taxes are due for goods imported to France from outside of the European Union - whether by a private individual or a corporate entity. France is party to the European Union’s Common Customs Tariff, therefore preferential rates apply to imports from countries which the EU has signed agreements with. Duties range from 0-17%, with the general tariff averaging 4.2%. However, foodstuffs, textiles and clothing still experience some protection measures (quotas, higher tariffs, etc.). Some imports are subject to anti-dumping duties.

Products Having a Higher Customs Tariff

The sectors of fabrics and items of clothing (high duties and quotas) and foodstuffs (preferential treatment and many tariff quotas, CAP) still experience protection measures. According to the recently published 2019 EU Trade Policy Review (WTO), the sector with the highest average tariffs is the dairy sector (32.3%), followed by sugar and confectionery (27.0%), meat (19.0%), cereals and preparations (17.2%) and fruit and vegetables (13.0%). Concerning non-agricultural products, fish and fishery products (11.8% on simple average) and clothing (11.6%) are the sectors with the highest tariff protection.

More information can be found in the WTO Tariff profile of the EU.

Preferential Rates

For countries with whom a bilateral or a multilateral agreement have been signed by the European Union.

To get further information consult the website of the European Union.

To get further information on customs policies in the European Union, please check the exhaustive report by the European Commission.

Customs Classification

France uses the harmonised system.

Method of Calculation of Duties

Customs duty is calculated Ad Valorem on the CIF value of the goods, in accordance with the Common Customs Tariff (CCT) for all the countries of the Union. TARIC, the integrated Tariff of the European Union, is a multilingual database integrating all measures relating to EU customs tariff, commercial and agricultural legislation.

Method of Payment of Customs Duties

Duties are payable in cash (in Euros, by check, by cash money order, by bank transfer); an extension of the time limit for payment may be granted through systems of collection credit or duty credit.

Import Taxes (Excluding Consumer Taxes)

None

Labeling and Packaging Rules

Packaging

It must conform to European legislation on the prevention of health risks to consumers and the protection of the environment, especially with regards to waste treatment. Packaging in wood or vegetable matter must be subjected to a phytosanitary inspection.
For further information, consult:
- the summary of European legislation concerning this;
- the official quality marks for products sold on the French market as defined by the Directorate-General of Competition and Fraud;
- the rules of labeling for foodstuffs as defined by the Directorate-General of Competition and Fraud.

Languages Permitted on Packaging and Labeling

All products retailed on the French market must be accompanied by an information leaflet in French. Regarding textile labeling, drawings, symbols or pictograms can be accompanied by statements in foreign language not translated in French as long as they are either equivalent or complementary and are not likely to mislead the consumer.

Unit of Measurement

The use of the metric system is compulsory; the Anglo-Saxon units are not well-known.

Mark of Origin "Made In"

It is compulsory and controlled by Customs.
See the rules concerning mark of origin as defined by the Directorate-General of Competition and Fraud.

Labeling Requirements

Age of consumption for alcohol, colorings, standards, etc. In addition to EU's mandatory and voluntary schemes, national voluntary labeling schemes, often appreciated by consumers, might apply. Regarding food products, labels should include the product definition; its shelf life; precautionary information or usage instructions; statement of contents, including all additives, preservatives and colour agents; the product’s country of origin and name of importer or vendor; and the manufacturer’s lot or batch number.

Specific Regulations

European legislation provides for specific labeling rules for certain products such as foodstuffs, household equipment, sportswear, textiles, cigarettes, etc.
Labeling of seeds from genetically modified varieties or products containing GMOs (Genetically modified organism) is compulsory; the agents of the plant protection services are authorized to make random checks on the conformity of batches of seeds and imported plants, the agents from the Competition and Fraud squad do the same for products suitable for human consumption.

Distribution Network

E-commerce

Internet access

With a population of around 65 million France is the second biggest country in the EU. According to a report from Arcep, internet penetration rate reached 88%, 82% of the population has a computer at home and 85% enjoys fixed internet access. About 92% have their own mobile phone, two-thirds of which are smartphones. According to the same report, 74% of the French population connects to the internet daily. The French now spend an average of 18 hours per week on the internet, almost the same time they dedicate to watching TV (20 hours). The most popular web search engines in France are Google.fr (91%), Bing (5.2%) and Yahoo (2%).

E-commerce market

The French are among the leading consumers in Europe in terms of online purchases: in 2017 the B2C market reached EUR 82 billion, a 14% increase compared to the previous year, and is expected to rise even further in coming years (E-commerce Foundation). E-commerce through internet mobile devices has also shown significant growth in the past few years. At the end of 2017, the French e-commerce federation Fevad estimated that there were about 173,000 active retail websites in France (+10% when compared to 2016). The most visited online store is Amazon, with more than 15 million unique visitors per month. Other big online players are Cdiscount, eBay, Fnac and Priceminister. In the fashion industry La Redoute and 3 Suisses are among the biggest players. Recently, Google signed a deal with Carrefour to sell groceries online in France, so that customers will be able to buy Carrefour’s products through Google’s platforms such as Google Home, Google Assistant and Google Shopping. Smartphones have become popular for online shopping. According to a 2017 survey by iCM Direct, nearly one third of the business volume is now carried out on mobile devices, a 6% increase compared to the previous year. Finally, it has been reported that the French Senate is planning to introduce a tax on e-commerce. The tax would be imposed on deliveries from e-commerce companies to e-shoppers and the declared objective is to protect the shops in the city centres and smaller businesses across the country.

Social media

According to data from Statista, as of January 2018, 58% of the population had an active social network account. A survey conducted by Cint and published by Statista shows that the age group with the highest penetration rate of social media services in France is 18-24 year olds: 94% of respondents in this age group reported using social media services. The rate was 82% among those aged 25-39 years. The average time spent per French visitor on social networks is 247 minutes a month. The most popular social network is YouTube with a 69% penetration rate, closely followed by Facebook. Twitter has a penetration rate of 24%. As reported by eMarketer, almost 27 million accessed Facebook regularly in 2017, while Instagram accounted for 10.3 million users. The professional social networking platform Linked-in has 15 million users in France (data: Thinknum). When it comes to messaging apps, Messenger is the most popular one, followed by WhatsApp.

Direct Selling

Evolution of the Sector

The European Direct Selling Association (SELDIA) shows the French direct selling market grew 3.1% in 2017, reaching EUR 4.429 billion and involving 795,963 independent representatives (80% of whom are women).  According to Euromonitor International, a stronger French economy and lower unemployment rate may negatively affect direct selling in the short term. Euromonitor International also highlights the increased popularity of party plans, which allow consumers to test new products with friends - and the increase in direct sales ranging from home security products and services to housewares, home furnishing, and small consumer appliances. The World Federation of Direct Selling Association (WFDSA) divides French direct sales as follows: home improvement (35%); household goods and durables (26%); clothing and accessories (10%); wellness (9%); and cosmetics & personal care (9%), among other sectors. 

Main direct selling companies in France include Vorwerk - the only company in the industry with a double digit market share and the owner of popular products such as the Thermomix 31 and Thermomix 5 - as well as traditional retail companies that have struggled since 2015 and entered the direct selling market as an alternative distribution channel (Bonduelle Groupe, Phildar, and La Redoute). Ariix has also recently opened operations in France. The Direct Selling Association also created a direct licensing program and participated in a reality television show in which contestants had to sell a product via direct selling; both strategies have improved the perception of the industry in the region. A direct selling university degree was also launched by the Fédération de la Vente Directe (FVD) and the University Paris-Est Créteil Val de Marne (UPEC) in 2015.

Direct Selling Europe also promotes best practices in the industry.

Commercial Intermediaries

Trading Companies

 

• Type of Organization

Being listed with trading groups is an obligatory step for breaking into the hypermarket sales market. The cost of getting onto the listing can be substantial and promotional operations are at the supplier's expense. The distributors do not negotiate with foreign suppliers. That is why it is necessary to go through a French intermediary (a non-manufacturing importer, a manufacturer of similar products, a service company).

• Main Actors

Five trading groups make 90% of purchases from suppliers: Carrefour-Promodès (29% share of the French food market); Lucie, the trading group common to Leclerc and to Système U (22%); Opéra, the trading group bringing together Casino-Cora (but also Franprix, Leader Price, Monoprix-Prisunic) (19%); Auchan (14%); Intermarché (13%).

Wholesalers

 

• Type of Organization

In addition to their role as a commercial intermediary, wholesalers also offer services such as making up, storage, repackaging, delivery, etc. Wholesalers are generally specialized in a certain type of convenience goods (food or not) or in equipment for industry and the craft industry.

• Main Actors

Rungis wholesale market; Pomona

Useful Resources

The Federation of Commerce and Distribution

Using a Commercial Agent

The Advantages

More realistic for a small or medium enterprise in regards to marketing strategy. Most often, they are exclusive agents for the whole country.

Where to Be Vigilant

The agent should be chosen for his motivation, his interest in the product, his references and the range of products he is in charge of. Supplementary commercial investments will be necessary to support the agent's work (catalogs, samples of products, etc.)

Elements of Motivation

The total amount of commission is an important element for motivation. Having recourse to a system of contests and competition between agents is sometimes practiced. Supervision and close contact may be necessary for a good follow-up of the agent's activity.

The Average Amount of Commission

An agent on commission is paid according to the turnover he achieves.

Breach of Contract

The termination of an agency contract is carried out with one month's notice during the first year, two month's notice the second year, and three month's notice the third and following years. The agent is entitled to compensation if he is not the cause of the breach of contract. Council Directive 86/653/EEC establishes the rights and obligations of the principal and its agent, the agent’s remuneration, and the conclusion and termination of an agency contract.

Finding a Commercial Agent

The national federation of commercial agents
Laniac (in french), national and international directory of commercial agents
Independent Agents Home at LibertyMutualGroup.com

Setting Up a Commercial Unit

The Advantages

Setting up in France is very expensive, but the French government encourages the formations of new enterprises, and offers extensive counseling and assistance.

Where to Be Vigilant

It should be considered especially with a long term view.

Different Possible Forms of Settlement

 

• A Representative Office

A representative office may be necessary to obtain data about the market and to provide promotional support. However, as a representative office cannot be involved in commercial transactions or generate income, it cannot manage orders directly.

• A Branch Office

A branch office can take and fill orders and carry out a marketing or advertising program, recruit the sales force and carry out promotional activities. Setting up a branch office is considered as a direct investment and must be declared to the Ministry of Finance. Nevertheless, the branch office is not liable to French taxes.

• A Company

Setting up a subsidiary needs time and leads to considerable expenses. However, it offers a better guarantee of protection for the registered trade mark, of obtaining credit and of breaking into the market.

Franchising

Evolution of the Sector

The French franchise sector is the leader in Europe in terms of sales, with a total turnover of 67.80 billion euros in 2019 (French Franchising Federation), and the third largest in the world. There are about 2049 franchisers (+2.2%) and 78,218 franchises (+4%) in the French market in 2019. There are 757 852 employment generated by the French franchise sector (French federation of franchise, 2019).

Franchises are established in the sectors of real estate, cars, clothing, perfumes, foodstuffs, glasses and restaurants. According to the French federation of franchise, the food sector represented almost 35% of the total sales in 2019, followed by home appliances sector (11,6%). The most important sectors in terms of number of outlets are foodstuff, personal products, car services, beauty centers and hairdressers.

Although the French franchise sector is very competitive, direct investment or area development expansion methods have proven more successful in France.

Some Big Franchises

Ranking of franchises, Complete list of franchises by sector of activity

For Further Information

The French Franchise Federation
The Franchise Observatory
The french entrepreuneurship Agency

Finding Assistance

Export Trading Companies

Harth
The portal for international trade professionals

Recommended Resource

France Trade Portal