Payment Periods in Europe - Euler Hermes

Economic Outlook n° 1182 | Special Dossier | Payment periods
Annexes
Annex I
▶ Law on the Modernisation of the Economy
(LME) and sector round tables in France
Round tables in the automotive components sector
In France: the code of good practice of28 June 2006 allows for balanced and more lasting and harmonious
client/supplier relations through the sector, where the client must:
> send a late payment penalty without the supplier having to request it
> not alter the payment term for reasons not set out in the contract (notably arising from internal failings
in its administrative departments)
> furnish a means of payment that can be mobilised or financed to the supplier who requests it and do
so within 20 days of receiving the invoice, in the absence of any litigation
LME in pharmaceuticals
Following the implementation of the LME of 2008
in France, subject to the decree of 22 September,
trade associations representing French pharmacies
signed an accord with the trade association of
French pharmaceutical manufacturers (LEEM) to
be applied gradually to payments for non-prescription
drugs, which account for 10% of the pharmaceuticals
market.
According to the AFIPA, the trade body that represents
the self-medication medicines industry,
payment periods for non-prescription medicines
were much longer than for other medicines, running
from 180 days to 360 days for seasonal products
(e.g., winter remedies and anti-allergy
drugs).
Agreement on payment periods of 27 January: additional to the code of good practice for payment
periods:
> the payment period between clients and subcontractors is cut to a maximum of 90 days effective 1 September
Client businesses in the sector with turnover in excess of 300 million euros will give an additional reduction
in payment periods of 30 days to suppliers with turnover of less than 50 million euros, according
to the following modalities: maximum payment periods of 75 days effective 1 September and of 60 days
effective 1 September.
LME construction
In France: under derogation in the construction and
civil engineering sector, the parties agree the following
maximum payment periods:
> 70 days from end of month effective 1 January
> 60 days from end of month effective 1 January
> 50 days from end of month effective 1 January
> 45 days from end of month effective 1 January
In France: under a derogation for non-prescription
drugs, the payment periods agreed by the
parties to settle invoices due may not exceed:
> 90 days from invoice date for 2009
> 70 days from invoice date for 2010
> 60 days from invoice date from 1 January.
These payment periods run from the date of issue
of the invoice.
The 35 derogations of the LME
> toys; DIY; watches and jewellery; construction and civil engineering; plumbing, heating
and electrical equipment; book publishing; stationery and office supplies; tyres; metal
packaging closures and metal tins for food; optional non-reimbursable prescription
drugs; sales of pets, products and accessories for pets; two or three-wheeled motorised
and quad bikes; boating; amateur gardening; industrial equipment and hardware; agricultural
supplies; agricultural equipment; paints, inks, colours, glues and adhesives; optical
spectacles; cooperage; sporting goods; print industry; music CDs and DVDs; amateur
fishing; arts and crafts; leather; steel products for construction; recreational vehicles;
marine and inland aquaculture; food supplements; roundwood logs and standing
timber; wholesaling of automotive tools; hunting arms and ammunition; textiles and
clothing.
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