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Doing Business in France:2010 Country Commercial Guide for U.S. CompaniesINTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.DEPARTMENT OF STATE, 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITEDSTATES.• Chapter 1: Doing Business In France• Chapter 2: Political and Economic Environment• Chapter 3: Selling U.S. Products and Services• Chapter 4: Leading Sectors for U.S. Export and Investment• Chapter 5: Trade Regulations and Standards• Chapter 6: Investment Climate• Chapter 7: Trade and Project Financing• Chapter 8: Business Travel• Chapter 9: Contacts, Market Research and Trade Events• Chapter 10: Guide to Our Services2/17/2010 Country Commercial Guide for France 1INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Return to table of contentsChapter 1: Doing Business in France• Market Overview• Market Challenges• Market Opportunities• Market Entry StrategyMarket OverviewReturn to topFrance and the U.S. are long-standing, close allies. Despite occasional differences ofviews, the U.S. and France work together on a broad range of trade, security andgeopolitical issues.With a GDP of approximately $2.9 trillion, France is the world’s fifth-largest economy. Ithas substantial agricultural resources, a large industrial base, and a highly skilledworkforce. A dynamic services sector accounts for an increasingly large share ofeconomic activity and is responsible for nearly all job creation in recent years. Real GDPdecreased by 2.2 % in 2009. According to several sources, projections for 2010 GDPshould show a slight increase of 1.4 percent.France is a member of the G-8 (and instigator of the G-20), the European Union, theWorld Trade Organization and the OECD, confirming its status as a leading economicplayer in the world.France is the second-largest trading nation in Western Europe (after Germany). Franceran a record-setting $79 billion trade deficit in calendar year 2008. Total trade for 2009amounted to $1,033 billion, 61% of which was with EU-27 countries.Trade and investment between the U.S. and France are strong. On average, over 1billion dollars in commercial transactions take place between France and the U.S. everyday, with the U.S. being France's sixth-ranked supplier and its sixth-largest customer.France ranks as the United States' eighth largest trading partner for total goods (importsand exports).“Although trade in goods and services receive most of the attention in terms of thecommercial relationship, foreign direct investment and the activities of foreign affiliatescan be viewed as the backbone of the commercial relationship. The scale of sales ofU.S.-owned companies operating in France and French-owned companies operating inthe United States outweighs trade transactions by a factor of almost five. In 2008,France was the thirteenth largest host country for U.S. foreign direct investment abroadand the United States with investments valued at $75 billion was the number one foreigninvestor in France. During that same year, French companies had direct investments inthe United States totaling $163.4 billion (historical cost basis), making France theseventh largest investor in the United States. French-owned companies employ about760 thousand workers in the United States while over 650 thousand employees work forof U.S. companies established in France.” 12/18/2010 Country Commercial Guide for France 2INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

CRS Report for Congress. Order Code RL32459. U.S.-French Commercial Ties. Updated April 7, 2008 –http://www.fas.org/sgp/crs/row/RL32459.pdfU.S.-France trade in goods, services and income receipts totaled nearly $155 billion in2008, broken-down as 47 percent in goods, 23 percent in services, and 30 percent forincome receipts.The main trading categories in goods are U.S. industrial chemicals, aircraft and engines,electronic components, telecommunications, computer software, computers andperipherals, analytical and scientific instrumentation, medical instruments and supplies,broadcasting equipment, and programming and franchising opportunities, all of whichare particularly attractive to French importers.The trade balance on all bilateral transactions between the United States and Francecan be viewed at:http://www.bea.gov/international/bp_web/simple.cfm?anon=71&table_id=10&area_id=19Market ChallengesReturn to topEnsuring that France's investment climate is attractive to foreign investors is a statedpriority of the French government, which sees foreign investment as a way to create jobsand stimulate growth. Past debate in France over “economic patriotism” has causedsome observers to question the depth of this commitment. Nevertheless, investmentregulations are simple, and a range of financial incentives for foreign investors areavailable.Despite considerable economic reform and market liberalization over the past decade,U.S. and foreign companies often point to the tax environment, high cost of labor, rigidlabor markets and occasional negative attitudes toward foreign investors asdisincentives to investing in France. U.S. investors welcomed tax, labor and pensionreform initiatives launched by President Sarkozy in 2007. In an AmCham France-BainCompany poll, U.S. investors showed optimism for the short- to medium-term, expectingFrance to emerge from the financial crisis by the end of 2009.France has pursued economic reform that increases the attractiveness of the Frencheconomy to foreign investors, and French authorities offer a variety of investmentincentives. France is closing the gap with the U.S. and some other European countriesin personal computer use and Internet access.While today's foreign investors face less interference than before, France has notentirely overcome a traditional preference for state intervention and a sometimesreflexive opposition to foreign investment. In some cases, this can be seen in labororganization opposition to acquisitions of French businesses by U.S. firms, oftenreflecting a perception that U.S. firms focus on short-term profits at the expense ofemployment. In other cases, French firms have stated a preference for working withFrench and European rather than U.S. firms. A degree of opaqueness in the privatizationprocess (see below) can also aggravate suspicions about the equal treatment of foreigninvestors in publicly held firms. In addition, official comments regarding the purpose ofthe French "Strategic Investment Fund" established in 2008 sometimes misleadingly2/18/2010 Country Commercial Guide for France 3INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

eferred to as a French sovereign wealth fund, highlighted French sensitivity abouthostile foreign takeovers.In the case of labor market regulation, the impact of the 35-hour legal workweek oncompanies is mixed. Many companies used the transition to the 35-hour workweek asan opportunity to negotiate annualized work-hour programs with their employees thatallow for greater labor flexibility.Market OpportunitiesReturn to topLeading non-agricultural sectors considered to offer "best prospects" for U.S. business inFrance are (in order of market size): Travel and Tourism (TRA), Aircraft and Parts (AIR),Safety and Security Equipment (SEC), Computers and software (CSF, CSV), Computersand Peripherals (CPT), Telecommunications Equipment (TEL), Water Resourcesequipment and Services (WRE), Medical Equipment (MED), Automotive Parts andEquipment (APS), Plastics (PMR), Cosmetics (COS), Educational Services (EDS),Textile (TXT), Direct Marketing and E-Commerce Business to Consumer (ECC).The French market for food products is mature, sophisticated and well served bysuppliers from around the world. Additionally, an increasing interest in American culture,younger consumers and changing lifestyles are contributing to France’s import demandfor food products from the United States. Generally, high quality food products with anAmerican image can find a niche in the French market, particularly if they can gaindistribution through stores and supermarkets that specialize in U.S. or foreign foods.Significant market opportunities for consumer food/edible fishery products exist in anumber of areas: fruit juices and soft drinks (including flavored spring waters), driedfruits and nuts, fresh fruits and vegetables (particularly tropical and exotic), frozen foods(both ready-to-eat meals and specialty products), snack foods, tree nuts, "ethnic"products, seafood (especially salmon and surimi), innovative dietetic and healthproducts, organic products, soups, breakfast cereals, and pet foods and treats. Inaddition, niche markets that have shown rising demand exist in France for candies,chocolate bars, wild rice and kosher foods. Market opportunities for U.S. exporters alsoexist for oilseeds, protein meals and other feeds, as well as for wood products andgrains.Market Entry StrategyReturn to topIn general, the commercial environment in France is favorable for sales of U.S. goodsand services. Marketing products and services in France is similar to the approach inthe U.S., notwithstanding some significant differences in cultural factors and certain legaland regulatory restrictions. Competition can be fierce, but local partners are readilyavailable in most sectors and product lines.In support of U.S. commercial interests in France, the U.S. Embassy in Paris uses thecombined resources of various U.S. Government agencies to promote the export of U.S.goods and services. It also supplies information on trade and investment opportunities,and serves as an advocate for U.S. firms.Return to table of contents2/18/2010 Country Commercial Guide for France 4INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Return to table of contentsChapter 2: Political and Economic EnvironmentFor background information on the political and economic environment of the country,please click on the link below to the U.S. Department of State Background Notes at:http://www.state.gov/r/pa/ei/bgn/3842.htmReturn to table of contents2/18/2010 Country Commercial Guide for France 5INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Return to table of contentsChapter 3: Selling U.S. Products and Services• Using an Agent or Distributor• Establishing an Office• Franchising• Direct Marketing• Joint Ventures/Licensing• Selling to the Government• Distribution and Sales Channels• Selling Factors/Techniques• Electronic Commerce• Trade Promotion and Advertising• Pricing• Sales Service/Customer Support• Protecting Your Intellectual Property• Due Diligence• Local Professional Services• Web ResourcesUsing an Agent or DistributorReturn to topCompanies wishing to use distribution, franchising and agency arrangements need toensure that the agreements they put into place are in accordance with European Union(EU) and Member State national laws. Council Directive 86/653/EEC establishes certainminimum standards of protection for self-employed commercial agents who sell orpurchase goods on behalf of their principals. In essence, the Directive establishes therights and obligations of the principal and its agents; the agent’s remuneration; and theconclusion and termination of an agency contract, including the notice to be given andindemnity or compensation to be paid to the agent. U.S. companies should beparticularly aware that the Directive states that parties may not derogate certainrequirements. Accordingly, the inclusion of a clause specifying an alternate body of lawto be applied in the event of a dispute will likely be ruled invalid by European courts.Key Link: http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31986L0653:EN:HTMLThe European Commission’s Directorate General for Competition enforces legislationconcerned with the effects on competition in the internal market of "vertical agreements."U.S. small- and medium-sized companies (SMEs) are exempt from these Regulationsbecause their agreements likely would qualify as "agreements of minor importance,"meaning they are considered incapable of affecting competition at the EU level but areuseful for cooperation between SMEs. Generally speaking, companies with fewer than250 employees and an annual turnover of less than €50 million are considered smallandmedium-sized undertakings. The EU has additionally indicated that agreements thataffect less than 10 percent of a particular market are generally exempted as well(Commission Notice 2001/C 368/07).2/18/2010 Country Commercial Guide for France 6INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Key Link: http://eurlex.europa.eu/LexUriServ/site/en/oj/2001/c_368/c_36820011222en00130015.pdfThe EU also seeks to combat payment delays with Directive 2000/35/EC. This covers allcommercial transactions within the EU, whether in the public or private sector, primarilydealing with the consequences of late payment. Transactions with consumers, however,do not fall within the scope of this Directive. In sum, the Directive entitles a seller whodoes not receive payment for goods/services within 30-60 days of the payment deadlineto collect interest (at a rate of 7 percent above the European Central Bank rate) ascompensation. The seller may also retain the title to goods until payment is completedand may claim full compensation for all recovery costs. The current legislation isundergoing review.Key Link: http://ec.europa.eu/enterprise/policies/single-market-goods/documents/latepayments/index_en.htmCompanies’ agents and distributors can take advantage of the European Ombudsmanwhen victim of inefficient management by an EU institution or body. Complaints can bemade to the European Ombudsman only by businesses and other bodies with registeredoffices in the EU. The Ombudsman can act upon these complaints by investigatingcases in which EU institutions fail to act in accordance with the law, fail to respect theprinciples of good administration, or violate fundamental rights.Key Link: http://www.ombudsman.europa.eu/home/en/default.htmConsidering the host of distribution options available in France, the exporter mustcarefully select the method best suited to his or her product. French buyers generallyprefer to purchase through an intermediary, making sales directly to the end-useruncommon. However, sales of expensive, technically sophisticated goods are anexception to this rule.Intermediaries may take one of three primary forms under French law:- Distributor- Agent- Salaried RepresentativeDistributor:A distributor (concessionnaire) is an individual or legal entity who purchases goodsdirectly from a producer for the purpose of resale. The distributor operatesindependently and is only bound by the written provisions of the distribution agreement.These agreements, however, are subject to specific rules and regulations regardingexclusive distribution and price setting.Contract termination conditions are important, and vary with the type of distributionagreement. Either party without prior notification or indemnification may terminate adistribution agreement of specified duration at the end of the contract period. If thetermination takes place before the end of the contract period, the terminating party maybe sued for breach of contract.Either party may terminate a distribution agreement with an unspecified duration withoutindemnification after a fair notice period, usually six months. Termination by the supplierwithout fair notice may be grounds for damage claims by the distributor.2/18/2010 Country Commercial Guide for France 7INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Agent:This category covers commercial agents and those acting as agents but not fulfilling therequisites for commercial agent status. Unlike distributors, agents do not actuallypurchase goods for resale; instead, they match up buyers and sellers on a commissionbasis. All agents exercise their activities in an independent manner, and their principalsare exempt from payment of payroll taxes. Agents assume their own fiscal charges(business license tax and value-added tax) and social charges (health insurance, socialsecurity and retirement/pension benefits).Commercial Agent:Agents with a written contract have the status of commercial agents (agentscommerciaux) if they exercise their activity as a sustained independent profession andfulfill the following conditions:- Do not have a written employment contract;- Negotiate sales and purchases on behalf of producers, manufacturers, or dealers;- Are registered with the Tribunal of Commerce as commercial agents.A commercial agent is independent and free to act on the behalf of any other firm.However, in the case where the agent wishes to represent one of his or her principal'scompetitors, consent of the principal must first be secured.The principal may justifiably terminate the commercial agent contract only if the agentshows substantial deficiency in carrying out his or her obligations. Otherwise, contracttermination gives the agent a right to indemnification, often equal to two years'commissions, in absence of a termination date in the agreement.Other agents: Persons who do not fulfill all the requirements for commercial agency, andwho are not in a position of subordination to the company they represent, are consideredagents. A notarized act or private agreement can effect authorization of an agent.Either party may terminate the agency agreement at will, but the non-terminating partyhas a right to indemnification of losses.Salaried Representatives:Unlike agents, salaried representatives have employment contracts. They and theiremployers share the burden of payroll taxes contributing to social security,unemployment compensation, and retirement/pension plans.Statutory Representatives:Persons are considered statutory representatives if they exercise their activity as asustained, independent profession and fulfill the following conditions:- Act as sales representative for the account of one or more employers;- Abstain from executing commercial operations on their own behalf;- Institute mutual commitments with employers on the nature of goods or servicesoffered for sale, the region of activity or the category of clients, and the rate ofcompensation.2/18/2010 Country Commercial Guide for France 8INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Statutory representatives work according to their employers’ instructions and areprotected by labor law, but they have a special right to indemnification if unjustlyterminated. This indemnity is based on the size and importance of the clientele theycreate.Non-statutory Salaried Representatives:Representatives who are subordinate to their employers and who do not fulfill therequisites for statutory representative status fall into a separate category and areconsidered regular employees.Finding a PartnerThe U.S. Department of Commerce's International Trade Administration (ITA) offersseveral services through the U.S. Commercial Service to help the would-be exporteridentify potential foreign representatives. The three primary services available from theU.S. Commercial Service in France are the Gold Key Service, the International PartnerSearch (IPS) and Industry Targeted Mailings. To request any one of these services andto learn about the other services available, firms should contact the nearest Departmentof Commerce U.S. Export Assistance Center. The number can be found in the U.S.Government pages of your telephone directory or at http://export.gov, or you may call 1-800-USA-TRADE. Additional details about services provided in France, please checkthe U.S. Department of Commerce local web site: http://www.buyusa.gov/france/en.Establishing an OfficeReturn to topEstablishing a subsidiary/branch office in France is also advisable for some industries.The French government encourages the formation of new enterprises. In conjunctionwith the Paris Chamber of Commerce and other Chambers throughout the country, theFrench government offers extensive counseling and assistance in setting up an office inFrance. Detailed "how to" guides are available from the various chambers of commerce,and also from the U.S. Commercial Service and the numerous American consulting firmspresent in France.Companies wishing to use distribution, franchising and agency arrangements need toensure that the agreements they put into place are in accordance with European Union(EU) and Member State national laws. Council Directive 86/653/EEC establishes certainminimum standards of protection for self-employed commercial agents who sell orpurchase goods on behalf of their principals. In essence, the Directive establishes therights and obligations of the principal and its agents; the agent’s remuneration; and theconclusion and termination of an agency contract, including the notice to be given andindemnity or compensation to be paid to the agent. U.S. companies should beparticularly aware that the Directive states that parties may not derogate certainrequirements. Accordingly, the inclusion of a clause specifying an alternate body of lawto be applied in the event of a dispute will likely be ruled invalid by European courts.Key Link: http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31986L0653:EN:HTML2/18/2010 Country Commercial Guide for France 9INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

The European Commission’s Directorate General for Competition enforces legislationconcerned with the effects on competition in the internal market of "vertical agreements."U.S. small- and medium-sized companies (SMEs) are exempt from these Regulationsbecause their agreements likely would qualify as "agreements of minor importance,"meaning they are considered incapable of affecting competition at the EU level but areuseful for cooperation between SMEs. Generally speaking, companies with fewer than250 employees and an annual turnover of less than €50 million are considered smallandmedium-sized undertakings. The EU has additionally indicated that agreements thataffect less than 10 percent of a particular market are generally exempted as well(Commission Notice 2001/C 368/07).Key Link: http://eurlex.europa.eu/LexUriServ/site/en/oj/2001/c_368/c_36820011222en00130015.pdfThe EU also seeks to combat payment delays with Directive 2000/35/EC. This covers allcommercial transactions within the EU, whether in the public or private sector, primarilydealing with the consequences of late payment. Transactions with consumers, however,do not fall within the scope of this Directive. In sum, the Directive entitles a seller whodoes not receive payment for goods/services within 30-60 days of the payment deadlineto collect interest (at a rate of 7 percent above the European Central Bank rate) ascompensation. The seller may also retain the title to goods until payment is completedand may claim full compensation for all recovery costs. The current legislation isundergoing review.Key Link: http://ec.europa.eu/enterprise/policies/single-market-goods/documents/latepayments/index_en.htmCompanies’ agents and distributors can take advantage of the European Ombudsmanwhen victim of inefficient management by an EU institution or body. Complaints can bemade to the European Ombudsman only by businesses and other bodies with registeredoffices in the EU. The Ombudsman can act upon these complaints by investigatingcases in which EU institutions fail to act in accordance with the law, fail to respect theprinciples of good administration, or violate fundamental rights.Key Link: http://www.ombudsman.europa.eu/home/en/default.htmData Privacy/ProtectionReturn to topThe EU’s general data protection Directive (95/46/EC) spells out strict rules concerningthe processing of personal data. Businesses must tell consumers that they are collectingdata, what they intend to use it for, and to whom it will be disclosed. Data subjects mustbe given the opportunity to object to the processing of their personal details and to optoutof having them used for direct marketing purposes. This opt-out should be availableat the time of collection and at any point thereafter. This general legislation issupplemented by specific rules set out in the "Directive on the processing of personaldata and the protection of privacy in the electronic communications sector"(2002/58/EC). This requires companies to secure the prior consent of consumers beforesending them marketing emails. The only exception to this opt-in provision is if themarketer has already obtained the intended recipient’s contact details in the context of aprevious sale and wishes to send them information on similar products and services.2/18/2010 Country Commercial Guide for France 10INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Key Link: http://ec.europa.eu/justice_home/fsj/privacy/index_en.htmTransferring Customer Data to Countries outside the EUThe EU's general data protection Directive provides for the free flow of personal datawithin the EU but also for its protection when it leaves the region’s borders. Personaldata can only be transferred outside the EU if adequate protection is provided for it or ifthe unambiguous consent of the data subject is secured. The European Commissionhas decided that a handful of countries have regulatory frameworks in place thatguarantee the adequate protection of data transferred to them – the United States isNOT one of these.The Department of Commerce and the European Commission negotiated the SafeHarbor agreement to provide U.S. companies with a simple, streamlined means ofcomplying with the adequacy requirement. It allows those U.S. companies that commit toa series of data protection principles (based on the Directive), and who publicly state thatcommitment by "self-certifying" on a dedicated website, to continue to receive personaldata from the EU. Signing up is voluntary but the rules are binding on those who do. Theultimate means of enforcing Safe Harbor is that failure to fulfill the commitments will beactionable as an unfair and deceptive practice under Section 5 of the FTC Act or under aconcurrent Department of Transportation statute for air carriers and ticket agents. Whilethe United States as a whole does not enjoy an adequacy finding, transfers that arecovered by the Safe Harbor scheme will. Companies whose activities are not regulatedby the FTC or DoT (e.g. banks, credit unions, savings and loan institutions, securitiesdealers, insurance companies, not-for-profit organizations, meat packing facilities, ortelecommunications carriers) are not eligible to sign up to the Safe Harbor.EU based exporters or U.S. based importers of personal data can also satisfy theadequacy requirement by including data privacy clauses in the contracts they sign witheach other. The Data Protection Authority in the EU country from where the data is beingexported must approve these contracts. To fast track this procedure the EuropeanCommission has approved sets of model clauses for personal data transfers that can beinserted into contracts between data importers and exporters. The most recent werepublished at the beginning of 2005; work to update these and develop new ones isongoing. Most transfers using contracts based on these model clauses do not requireprior approval. Companies must bear in mind that the transfer of personal data to thirdcountries is a processing operation that is subject to the general data protectionDirective regardless of any Safe Harbor, contractual or consent arrangements.EU countries’ Data Protection Authorities (DPAs) and large multinational companies arealso developing a third major approach to compliance with EU rules on transfers ofpersonal data to countries outside the EU. This is based on country-by-country approvalof “binding corporate rules” (BCRs). Companies that set up BCRs that satisfy EuropeanDPAs will be able to use the presumption of conformity that these approvals provide totransfer personal data from the EU to any location in the world – not just the UnitedStates. BCRs can be a tool for compliance with privacy rules on a global scale. Theprocess of negotiation and approval of the BCRs is currently lengthy and complex, andhas not been attempted by small or medium-sized companies.2/18/2010 Country Commercial Guide for France 11INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Key Links: http://www.export.gov/safeharbor/http://ec.europa.eu/justice_home/fsj/privacy/modelcontracts/index_en.htmhttp://ec.europa.eu/justice_home/fsj/privacy/workinggroup/wpdocs/2007_en.htmFranchisingReturn to topThe French franchise sector ranks first in Europe in sales, and has enjoyed 10 percentaverage growth over the last four years. Although very competitive, it offers manyopportunities for innovative U.S. franchises. Ten percent of franchises operating inFrance are foreign, of which 23 percent are American. In January 2008 total franchisingsales were estimated at € 47.7 billion. Potential remains for U.S. franchisors in subsectorsyet to be fully exploited, such as personal service, i.e. household duties, schooltutoring, child or senior care, renovation services, etc. However, it is important to notethat for the past thirty years direct investment or area development expansion methodshave proven more successful in France than the traditional Master Franchise.Direct MarketingReturn to topThere is a wide range of EU legislation that impacts the direct marketing sector.Compliance requirements are stiffest for marketing and sales to private consumers.Companies need to focus, in particular, on the clarity and completeness of theinformation they provide to consumers prior to purchase, and on their approaches tocollecting and using customer data. The following gives a brief overview of the mostimportant provisions flowing from EU-wide rules on distance selling and on-linecommerce. It is worth noting that the EU is currently overhauling its consumer protectionlegislation. Companies are advised to consult the information available via the hyperlinks,to check the relevant sections of national Country Commercial Guides, and tocontact the Commercial Service at the U.S. Mission to the European Union for morespecific guidance.Processing Customer DataThe EU has strict laws governing the protection of personal data, including the use ofsuch data in the context of direct marketing activities. For more information on theserules, please see the privacy section above.Distance Selling Rules• Distance and Door-to-Door salesThe EU’s Directive on distance selling to consumers (97/7/EC and amendments)sets out a number of obligations for companies doing business at a distance withconsumers. It can read like a set of onerous "do’s" and "don’ts," but in many ways itrepresents nothing more than a customer relations good practice guide with legaleffect. Direct marketers must provide clear information on the identity of themselvesas well as their supplier, full details on prices including delivery costs, and the periodfor which an offer remains valid – all of this, of course, before a contract isconcluded. Customers generally have the right to return goods without any requiredexplanation within seven days, and retain the right to compensation for faulty goodsthereafter. Similar in nature is the Doorstep Directive (85/577/EEC) which isdesigned to protect consumers from sales occurring outside of a normal business2/18/2010 Country Commercial Guide for France 12INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

premises (e.g., door-to-door sales) and essentially assure the fairness of resultingcontracts.Key Links: Consumer Affairs Homepage:http://ec.europa.eu/consumers/cons_int/safe_shop/index_en.htmDistance Selling:http://ec.europa.eu/consumers/cons_int/safe_shop/dist_sell/index_en.htmDoor Step Selling:http://ec.europa.eu/consumers/cons_int/safe_shop/door_sell/index_en.htm• Distance Selling of Financial ServicesFinancial services are the subject of a separate Directive that came into force in June2002 (2002/65/EC). This piece of legislation amends three prior existing Directivesand is designed to ensure that consumers are appropriately protected in respect tofinancial transactions taking place where the consumer and the provider are notface-to-face. In addition to prohibiting certain abusive marketing practices, theDirective establishes criteria for the presentation of contract information. Given thespecial nature of financial markets, specifics are also laid out for contractualwithdrawal.Key Link: http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32002L0065:EN:NOTDirect Marketing over the InternetThe e-commerce Directive (2000/31/EC) imposes certain specific requirementsconnected to the direct marketing business. Promotional offers must not misleadcustomers and the terms that must be met to qualify for them have to be easilyaccessible and clear. The Directive stipulates that marketing e-mails must be identifiedas such to the recipient and requires that companies targeting customers on-line mustregularly consult national opt-out registers where they exist. When an order is placed,the service provider must acknowledge receipt quickly and by electronic means,although the Directive does not attribute any legal effect to the placing of an order or itsacknowledgment. This is a matter for national law. Vendors of electronically suppliedservices (such as software, which the EU considers a service and not a good) must alsocollect value added tax (see Electronic Commerce section below).Key Link: http://ec.europa.eu/internal_market/e-commerce/index_en.htmIntroductionThere is a wide range of EU legislation that impacts the direct marketing sector.Compliance requirements are stiffest for marketing and sales to private consumers.Companies need to focus, in particular, on the clarity and completeness of theinformation they provide to consumers prior to purchase, and on their approaches tocollecting and using customer data. The following gives a brief overview of the mostimportant provisions flowing from EU-wide rules on distance selling and on-linecommerce. It is worth noting that the EU is currently overhauling its consumer protectionlegislation. Companies are advised to consult the information available via the hyperlinks,to check the relevant sections of national Country Commercial Guides, and to2/18/2010 Country Commercial Guide for France 13INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

contact the Commercial Service at the U.S. Mission to the European Union for morespecific guidance.Processing Customer DataThe EU has strict laws governing the protection of personal data, including the use ofsuch data in the context of direct marketing activities. For more information on theserules, please see the privacy section above.Distance Selling Rules• Distance and Door-to-Door salesThe EU’s Directive on distance selling to consumers (97/7/EC and amendments)sets out a number of obligations for companies doing business at a distance withconsumers. It can read like a set of onerous "do’s" and "don’ts," but in many ways itrepresents nothing more than a customer relations good practice guide with legaleffect. Direct marketers must provide clear information on the identity of themselvesas well as their supplier, full details on prices including delivery costs, and the periodfor which an offer remains valid – all of this, of course, before a contract isconcluded. Customers generally have the right to return goods without any requiredexplanation within seven days, and retain the right to compensation for faulty goodsthereafter. Similar in nature is the Doorstep Directive (85/577/EEC) which isdesigned to protect consumers from sales occurring outside of a normal businesspremises (e.g., door-to-door sales) and essentially assure the fairness of resultingcontracts.Key Links: Consumer Affairs Homepage:http://ec.europa.eu/consumers/cons_int/safe_shop/index_en.htmDistance Selling:http://ec.europa.eu/consumers/cons_int/safe_shop/dist_sell/index_en.htmDoor StepSelling:http://ec.europa.eu/consumers/cons_int/safe_shop/door_sell/index_en.htm• Distance Selling of Financial ServicesFinancial services are the subject of a separate Directive that came into force in June2002 (2002/65/EC). This piece of legislation amends three prior existing Directivesand is designed to ensure that consumers are appropriately protected in respect tofinancial transactions taking place where the consumer and the provider are notface-to-face. In addition to prohibiting certain abusive marketing practices, theDirective establishes criteria for the presentation of contract information. Given thespecial nature of financial markets, specifics are also laid out for contractualwithdrawal.Key Link: http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32002L0065:EN:NOT2/18/2010 Country Commercial Guide for France 14INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Direct Marketing over the InternetThe e-commerce Directive (2000/31/EC) imposes certain specific requirementsconnected to the direct marketing business. Promotional offers must not misleadcustomers and the terms that must be met to qualify for them have to be easilyaccessible and clear. The Directive stipulates that marketing e-mails must be identifiedas such to the recipient and requires that companies targeting customers on-line mustregularly consult national opt-out registers where they exist. When an order is placed,the service provider must acknowledge receipt quickly and by electronic means,although the Directive does not attribute any legal effect to the placing of an order or itsacknowledgment. This is a matter for national law. Vendors of electronically suppliedservices (such as software, which the EU considers a service and not a good) must alsocollect value added tax (see Electronic Commerce section below).Key Link: http://ec.europa.eu/internal_market/e-commerce/index_en.htmThe French direct marketing market for consumer products and services is one of thelargest in the world. It accounted for USD 35 billion (Euro 25.1 billion) in 2008 growing13 percent. Sales through the mail have trended downward in recent years just astelephone and specifically Internet sales have rapidly expanded. Internet salesrepresent 80 percent of total direct marketing sales and have been increasing more than20 percent annually in the past recent years. In 2008, 78 percent of French householdsbought through direct marketing, and 21.7 million online buyers made an averagepurchase of USD 128 (Euro 92). Today 65 percent of Internet users have alreadypurchased on-line, primary hi-tech products, followed by travel packages and services.Joint Ventures/LicensingReturn to topA joint venture with a French firm is one recommended approach. The Frenchgovernment encourages this type of investment and offers a wide range of incentives.Traditionally, a French joint venture partner strengthens the marketing activities of anAmerican firm with its in-place distribution system. In certain industries, Frenchmanufacturers have skills that supplement those of the American partner. A jointventure with a French firm that has full French government support can be beneficial aslong as manufacturing decisions can be made independently of governmentinvolvement. Recognizing the differences in each market is essential for success. It isrecommended that companies interested in forming joint ventures consult with the U.S.Commercial Service at the Embassy in Paris before making any alliances.2/18/2010 Country Commercial Guide for France 15INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Selling to the GovernmentReturn to topThe EU public procurement market, including EU institutions and Member States, totalsaround EUR 1,600 billion. This market is regulated by three Directives:• Directive 2004/18 on Coordination of procedures for the award of public works,services and supplies contracts, and• Directive 2004/17 on Coordination of procedures of entities operating in theUtilities sector, which covers the following sectors: water, energy, transport andpostal services.• Directive 2009/81 on Coordination of procedures for the award of certain works,supply and service contracts by contracting authorities in the fields of defenseand security (to be implemented in national laws of EU member states by mid-2011).Remedies directives cover legal means for companies who face discriminatory publicprocurement practices. These directives are implemented in the national procurementlegislation of the 27 EU Member States.The US and the EU are signatories of the World Trade Organization’s (WTO)Government Procurement Agreement (GPA), which grants access to most publicsupplies and services and some works contracts published by national procuringauthorities of the countries that are parties to the Agreement. In practice, this means thatU.S.-based companies are eligible to bid on supplies and services contracts fromEuropean public contracting authorities above the agreed thresholds.However, there are restrictions for U.S. suppliers in the EU utilities sector both in the EUUtilities Directive and in the EU coverage of the Government Procurement Agreement(GPA). The Utilities Directive allows EU contracting authorities in these sectors to eitherreject non-EU bids where the proportion of goods originating in non-EU countriesexceeds 50% of the total value of the goods constituting the tender, or is entitled to applya 3% price difference to non-EU bids in order to give preference to the EU bid. Theserestrictions are applied when no reciprocal access for EU companies in the U.S. marketis offered. Those restrictions however were waived for the electricity sector.For more information, please visit the U.S. Commercial Service at the U.S. Mission tothe European Union website dedicated to EU public procurement. This site also has adatabase of all European public procurement tenders that are open to U.S.-based firmsby virtue of the Government Procurement Agreement. Access is free of charge.Key Link: http://www.buyusa.gov/europeanunion/eu_tenders.html2/18/2010 Country Commercial Guide for France 16INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Distribution and Sales ChannelsReturn to topThe Retail Network:France possesses a diverse and comprehensive retail network, which increasinglyresembles that of the U.S. From the largest department store chains to the smallestindividual proprietorships, French distribution channels are demonstrating somesignificant new trends that could affect how products are sold in France.Small- and medium-sized family-owned firms, which traditionally accounted for amajority of French wholesale and retail trade, are rapidly losing ground to hypermarkets -large retail outlets carrying a wide variety of products at discounted prices. At the sametime, direct marketing and in particular Internet sales, and specialized chain stores haveshown strong growth.The Retail Food Distribution:France’s retail distribution network is diverse and sophisticated. The food retail sector isgenerally defined by six types of establishments: 1) hypermarkets, 2) supermarkets, 3)hard discounters, 4) convenience, 5) gourmet centers in department stores, and 6)traditional outlets. In 2008, sales within the first five categories represented 75 percentof the country’s retail food market, and the sixth, which includes neighborhood andspecialized food stores, represented 25 percent of the market. Hyper and supermarketsare the leading retailers, with 66 percent total food sales in the sector in 2008.Consumer concerns relative to their decrease in purchasing power saw hard discountersgain ground against the hyper/supermarkets during the last quarter of 2008;nevertheless, the growth of hard discounters’ market share has slowed in 2009.Developments in recent years have impacted the country’s retail food distributionsystem. Since 2006, French legislation has limited the number of newhyper/supermarket openings, which has prompted large stores to expand their existingsurface area. However, a modification of the French legislation in 2008 liberalized themarket, and this resulted in new openings of smaller sized stores. In 2009, the mergerand alliance trend among major hyper/supermarkets continued, with seven centralbuying offices among the country’s five largest retailers.Hotels/Restaurants/Institutions/Food Service Sector:In 2008, France’s hotel, restaurant and institution (HRI) food sector servedapproximately 10.5 billion meals worth approximately USD $125 billion. Last year, 2009,was the year a new food outlet concept chain, ‘Chez Jean,’ was introduced. It wasconceived by the supermarket chain Casino and the kiosk chain Relay H. This is acombination of restaurant and general store. Four outlets have are already opened. InNovember, the Belgian group Delhaize launched its own catering chain ‘Delitraiteur’ inFrance.The French HRI/food service sector is an open, yet highly competitive market. Entrythrough this sector must be carefully planned. Successful products or food systems areinnovative and price competitive. For those wishing to enter this market sector, it isrecommended to contact the U.S. Department of Agriculture/Foreign Agricultural Servicetrade and marketing specialists for advice.2/18/2010 Country Commercial Guide for France 17INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

For additional information on the marketing of U.S. food products and distributionsystems, please see the following reports prepared by the Paris Office of the U.S.Department of Agriculture (USDA):Key link:http://gain.fas.usda.gov/Recent%20GAIN%20Publications/RETAIL%20FOOD%20SECTOR_Paris_France_7-17-2009.pdfKey link:http://gain.fas.usda.gov/Recent%20GAIN%20Publications/HRI%20FOOD%20SERVICE%20SECTOR_Paris_France_7-20-2009.pdfPrimary Retail Channels:- Hypermarkets (Hypermarchés)- Supermarkets (Supermarchés)- City-Center Stores & Department Stores (Grands magasins)- Convenience Store (Magasins populaires)- Hard Discounters (Magasins discount)- Large Specialized Stores (Grandes surfaces spécialisées)- Multi-Channel Retail Groups (Groupes de distribution multicanaux)- Traditional Outlets (Magasins de détail traditionnels)- Gas-Marts (Boutiques de stations d’essence)- Central Buying Offices (Centrales d'achats)Hypermarkets (Hypermarchés):Hypermarkets are defined as stores with a minimum selling area of 2,500 squaremeters. French hypermarkets offer 25,000-40,000 products for sale at competitiveprices, of which 3000-5000 food items and 20,000-35,000 non-food articles. Generallylocated in suburbs, they cover a total sales area of 9.3 million square meters. As of2009, there were 1,667 hypermarkets, employing over 305,000 people. The top fivehypermarket companies are Leclerc, Carrefour, System U, Intermarché and Auchan.Supermarkets (Supermarchés):Supermarkets are smaller versions of hypermarkets, with a selling area between 400and 2,500 square meters. They usually carry 3,000-5,000 items, of which 500-1500 arenon-food products, and cover a total sales area of 6.9 million square meters. As of2009, there were 5,709 supermarkets, employing over 158,000 people. The top foursupermarket companies are Intermarché, Carrefour Market, Casino and Super U.City-Center Stores & Department Stores (Grands magasins):Defined as high-quality supermarkets and dating back to the turn of the century, theseare smaller than regular supermarkets, are usually located in town centers and offer awide selection of food and non-food products. They total over 100 and tend to begrouped under major leading companies such as Monoprix/Prisunic. City-center storesseem to be declining: their numbers have dropped 20 percent in the last five years.Currently, the nearly 100 department stores employ over 24,800 people. Paris has themost department stores of any French city; six of the ten top-selling stores are there.2/18/2010 Country Commercial Guide for France 18INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Department stores have lost some market share in all areas except in the medium-tohighprice range. A unique feature of the French department store is that many non-foodproducts are sold by the manufacturers’ own sales staff, which can account for up to 20percent of the store's total sales force. Some department stores in Paris such asGaleries Lafayette, Au Printemps, and Le Bon Marché have gourmet food sections.Although they do not account significantly for total food sales in France, they set thequality standard for product presentation.Convenience Stores (Magasins de proximité):Convenience stores are generally located in city centers of small-to-medium size towns.They are self-service stores run by one or two independent operators, i.e., individualsnot paid by the distribution group. These stores number approximately 1,500 outletsrepresenting no more than three percent of total food sales. In 2009, there was a revivalfor the convenience stores. Hypermarket/supermarket chains understood that there wasa demand from the consumers for convenience stores. Carrefour City, CarrefourContact, U Express, and Monop’/DailyMonop’ are their declension. The opening of thesenew outlets has growth this segment up to 16 percent.Hard Discounters (Magasins discount):Compared to hyper/supermarkets, hard discount stores offer a smaller range of goodsfor lower prices. At the end of 2009, there were 4,531 hard discount stores in France.These stores represent about 14 percent of total food sales and usually sell genericproducts or their own private-label items. The top five hard-discount companies are Lidl,Dia (former Ed), Aldi, Leader Price and Netto. Despite of the economic crisis, the harddiscounter stores did not gain substantive market share. Conventionalsupermarkets/hypermarkets have heavily stocked their low prices shelves in order tohinder the hard discounter expansion.Large Specialized Stores (Grandes surfaces spécialisées):Large specialized stores offer an extensive choice of goods in a specific category at acompetitive price and with an emphasis on customer service. This dynamic sectorincluded over 13,500 stores in 2009, including such store categories as toys, health andbeauty, gardening, and media/books/music. Textiles are the most numerous (3,259),followed by Do-it-yourself equipment stores (2,373) and beauty/heath products (2,264).Multi-Channel Retail Groups (Groupes de distribution multicanaux):The distinctions made above between hypermarket chains, supermarket chains, etc. arebecoming blurred. In recent years, major multi-channel retail groups owning chains ofdifferent types of stores have emerged. Pinault-Printemps and Nouvelles GaleriesReuniées fall into this category, because they own chains of specialty and conveniencestores.2/18/2010 Country Commercial Guide for France 19INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Traditional retail food outlets (Magasins de détails traditionnels):Traditional outlets include a broad array of establishments, from corner grocery stores,bakeries, and neighborhood butcher shops to open air markets to frozen and gourmetfood stores. The aggressive expansion of mass distribution outlets threaten thesetraditional outlets, which account for 17 percent of the country’s total retail fooddistribution and represent a total of about 50,000 stores. To survive, these outlets musthave flexible store hours, product variety, and special services such as home delivery.Small neighborhood store chains offer U.S. suppliers entry into the French market.Gas Station-Marts (Boutiques de stations d’essence):Gasoline companies, having lost about 60 percent of their gas sales to hypermarkets,have equipped their gas stations with small, self-service food stores. These outlets arefrequently used for stop-gap purchases and accounted for about one percent of Frenchfood sales in 2009.Central Buying Offices (Centrales d'achats):In addition to contacting the largest store chains listed above, introducing products viacentral buying agencies is an excellent distribution method. A complete list of Frenchcentral buying agencies, the Atlas de la Distribution, is available for € 244.00 (freightincluded) from:L.S.A - Libre Service Actualités (Groupe GISI)Tel : (33) 1.77.92.99.14 or (33) 1.77.92.92.92Fax: (33) 1.77.92.98.15Website: http://www.lsa.fr/Mass retail distribution Directory:Tel: (33) 1.34.41.62.50Fax: (33) 1.34.41.62.51Website: http://www.tradedimensions.frSelling Factors/TechniquesReturn to topSelling your product or service in France is similar to the U.S. Buying decisions aremade on the basis of quality, price and after-sales service. The principal difference inFrance is, in fact, the language. Since August 1994, the "Loi Toubon" requires that alladvertising, labeling, instructions and promotional programs be in French, so we stronglyrecommend close contact with the Commercial and Agricultural sections in theEmbassy, as well as arranging for local legal representation.2/18/2010 Country Commercial Guide for France 20INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Electronic CommerceReturn to topIn July 2003, the EU started applying Value Added Tax (VAT) to sales by non-EU basedcompanies of Electronically Supplied Services (ESS) to EU based non-businesscustomers. U.S. companies that are covered by the rule must collect and submit VAT toEU tax authorities. European Council Directive 2002/38/EC further developed the EUrules for charging Value Added Tax. These rules were indefinitely extended followingadoption of directive 2008/8/ECU.S. businesses mainly affected by the 2003 rule change are those that are U.S. basedand selling ESS to EU based, non-business customers or those businesses that are EUbased and selling ESS to customers outside the EU who no longer need to charge VATon these transactions. There are a number of compliance options for businesses. TheDirective created a special scheme that simplifies registering with each Member State.The Directive allows companies to register with a single VAT authority of their choice.Companies have to charge different rates of VAT according to where their customers arebased but VAT reports and returns are submitted to just one authority. The VATauthority responsible for providing the single point of registration service is thenresponsible for reallocating the collected revenue among the other EU VAT authorities.Key Link: http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/eservices/index_en.htmElectronic commerce of consumer goods and services:Electronic commerce is booming in France. Product and services sales, as well as thenumber of web sites on the Internet, have increased dramatically in recent years. Retailonline sales estimates (Business-to-Consumer) in 2008 were USD 28 billion (20 BillionEuros) and accounted for 80 percent of total direct marketing sales. The categories ofproducts reporting the best market share in 2008 is consumer electronics (computers/laptops, LCD TVs, GPS, cameras, mobile phones - 52 percent) and cultural products(books, CDs, DVD’s and video games - 46 percent). Internet sales increased by 25percent in 2008. The number of Internet users in France has increased dramatically andin 2008 over 21 million people made purchases online.Trade Promotion and AdvertisingReturn to topGeneral LegislationLaws against misleading advertisements differ widely from Member State to MemberState within the EU. To respond to this imperfection in the Internal Market, theCommission adopted a Directive, in force since October 1986, to establish minimum andobjective criteria regarding truth in advertising. The Directive was amended in October1997 to include comparative advertising. Under the Directive, misleading advertising isdefined as any "advertising which in any way, including its presentation, deceives or islikely to deceive the persons to whom it is addressed or whom it reaches and which, byreason of its deceptive nature, is likely to affect their economic behavior or which forthose reasons, injures or is likely to injure a competitor." Member States can authorizeeven more extensive protection under their national laws.2/18/2010 Country Commercial Guide for France 21INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Comparative advertising, subject to certain conditions, is defined as "advertising whichexplicitly or by implication identifies a competitor or goods or services by a competitor."Member States can, and in some cases have, restricted misleading or comparativeadvertising.The EU’s Audiovisual Media Services Directive lays down legislation on broadcastingactivities allowed within the EU. From 2009 the rules allow for US-style productplacement on television and the three-hour/day maximum of advertising will be lifted.However, a 12-minute/hour maximum will remain. Child programming will be subject toa code of conduct that will include a limit of junk food advertising to children.Following the adoption of the 1999 Council Directive on the Sale of Consumer Goodsand Associated Guarantees, product specifications, as laid down in advertising, are nowconsidered as legally binding on the seller. (For additional information on CouncilDirective 1999/44/EC on the Sale of Consumer Goods and Associated Guarantees, seethe legal warranties and after-sales service section below.)The EU adopted Directive 2005/29/EC concerning fair business practices in a furtherattempt to tighten up consumer protection rules. These rules outlaw several aggressiveor deceptive marketing practices such as pyramid schemes, "liquidation sales" when ashop is not closing down, and artificially high prices as the basis for discounts in additionto other potentially misleading advertising practices. Certain rules on advertising tochildren are also set out.Key Link:http://ec.europa.eu/comm/consumers/cons_int/safe_shop/fair_bus_pract/index_en.htmhttp://ec.europa.eu/avpolicy/reg/avms/index_en.htmMedicineThe advertising of medicinal products for human use is regulated by Council Directive2001/83/EC. Generally speaking, the advertising of medicinal products is forbidden ifmarket authorization has not yet been granted or if the product in question is aprescription drug. Mentioning therapeutic indications where self-medication is notsuitable is not permitted, nor is the distribution of free samples to the general public. Thetext of the advertisement should be compatible with the characteristics listed on theproduct label, and should encourage rational use of the product. The advertising ofmedicinal products destined for professionals should contain essential characteristics ofthe product as well as its classification. Inducements to prescribe or supply a particularmedicinal product are prohibited and the supply of free samples is restricted.The Commission presented a new framework for information to patients on medicines in2008. The framework would allow industry to produce non-promotional information abouttheir medicines while complying with strictly defined rules and would be subject to aneffective system of control and quality assurance.Key Link:http://ec.europa.eu/enterprise/pharmaceuticals/patients/patients_key.htm2/18/2010 Country Commercial Guide for France 22INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Food SupplementsRegulation 1925/2006, applicable as of July 1, 2007, harmonizes rules on the addition ofvitamins and minerals to foods. The regulation lists the vitamins and minerals that maybe added to foods. This list was most recently revised in November 2009. A positive listof substances other than vitamins and minerals has not been established yet, although itis being developed. Until then, Member State laws will govern the use thesesubstances.Key Link: http://useu.usmission.gov/agri/foodsupplements.htmlTobaccoThe EU Tobacco Advertising Directive bans tobacco advertising in printed media, radio,and internet as well as the sponsorship of cross-border events or activities. Advertisingin cinemas and on billboards or merchandising is allowed though these are banned inmany Member States. Tobacco advertising on television has been banned in the EUsince the early 1990s and is governed by the TV without Frontiers Directive.Key link: http://ec.europa.eu/health/ph_determinants/life_style/Tobacco/tobacco_en.htmAdvertisingAdvertising can also be done through many different media, including TV, radio, Internet,or newspapers and magazines. There are far too many newspapers, magazines andtechnical journals to list. Please check the following website for media lists, under“audiovisuel” for TV and radio, and under “presse écrite” for newspapers andmagazines: http://mediasig.premier-ministre.gouv.frIt should be noted that newspapers do not carry nearly the volume of advertising towhich Americans are accustomed. In addition, mass media advertising (press, TV,radio, billboards) represents 35 percent of total promotional spending while directmarketing, promotion, event advertising, public relations, guides and catalogs represent65 percent of the total French market for advertising services.Judicious use of the media is an important part of any and all promotional programs.Below is a list of the most prominent general circulation French newspapers andmagazines:Le FigaroTel: (33) 1.57.08.50.00Fax: (33) 1.57.08.57.84Web Site: http://www.lefigaro.frLe MondeTel: (33) 1.42.17.20.00Fax: (33) 1.42.17.21.21Web Site: http://www.lemonde.frInternational Herald TribuneTel: (33) 1.41.43.93.61Fax: (33) 1.41.43.93.38Web Site: http://www.iht.comLe Nouvel ObservateurTel: (33) 1.44.88.34.34Fax: (33) 1.44.88.37.82Web Site: http://www.nouvelobs.com2/18/2010 Country Commercial Guide for France 24INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Terms of Payment:For U.S. exporters, what is called "the financing of export sales" is not basically differentfrom financing domestic sales. The fundamental concern in both cases is that one bepaid in a timely manner for the goods and/or services delivered.France's modern banking system offers a full range of payment means, the mostsignificant of which are:- Commercial letters of credit- Sight and time drafts (documentary collections)- Bank transfers- Certified checksAlthough bank transfers and certified checks are fairly self-explanatory methods ofpayment, commercial letters of credit and sight and time drafts may be less familiar tothe would-be exporter but are potentially attractive terms of payment.PayPal electronic payment has recently been introduced to France and is beginning tobe used in smaller, usually ‘one-off’ export transactions.Sales Service/Customer SupportReturn to topConscious of the discrepancies among Member States in product labeling, languageuse, legal guarantee, and liability, the redress of which inevitably frustrates consumers incross-border shopping, the EU institutions have launched a number of initiatives aimedat harmonizing national legislation. Suppliers within and outside the EU should be awareof existing and upcoming legislation affecting sales, service, and customer support.Product LiabilityUnder the 1985 Directive on liability of defective products, amended in 1999, theproducer is liable for damage caused by a defect in his product. The victim must provethe existence of the defect and a causal link between defect and injury (bodily as well asmaterial). A reduction of liability of the manufacturer is granted in cases of negligence onthe part of the victim.Key link: http://ec.europa.eu/enterprise/policies/single-market-goods/product-liability/Product SafetyThe 1992 General Product Safety Directive introduces a general safety requirement atthe EU level to ensure that manufacturers only place safe products on the market. It wasrevised in 2001 to include an obligation on the producer and distributor to notify theCommission in case of a problem with a given product, provisions for its recall, thecreation of a European Product Safety Network, and a ban on exports of products tothird countries that are not deemed safe in the EU.Key link: http://ec.europa.eu/consumers/safety/prod_legis/index_en.htm2/18/2010 Country Commercial Guide for France 26INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Legal Warranties and After-sales ServiceUnder the 1999 Directive on the Sale of Consumer Goods and Associated Guarantees,professional sellers are required to provide a minimum two-year warranty on allconsumer goods sold to consumers (natural persons acting for purposes outside theirtrade, businesses or professions), as defined by the Directive. The remedies available toconsumers in case of non-compliance are:- Repair of the good(s);- Replacement of the good(s);- A price reduction; or- Rescission of the sales contract.Key link:http://ec.europa.eu/comm/consumers/cons_int/safe_shop/guarantees/index_en.htmOther issues pertaining to consumers’ rights and protection, such as the New ApproachDirectives, CE marking, quality control and data protection are dealt with in Chapter 5 ofthis report.Although less developed than in the U.S., French businesses also provide all kinds ofservices such as after-sales service, home delivery, maintenance contracts,warehousing facilities, hotlines, or toll free numbers for any technical assistance. Forsome products such as electrical appliances, e.g. TV, replacement service is available.Logistics:Companies wishing to develop long-term marketing and sales capabilities in Franceshould pay close attention to securing proper distribution and storage facilities close tomajor airports and seaports. Many logistics firms, including American ones, operate inFrance and should be considered when firms develop significant market opportunitiesand sales channels in France. (See Chapter 9, Country Contacts - Logistics.)Protecting Your Intellectual PropertyReturn to topIntroductionSeveral general principles are important for effective management of intellectualproperty rights in the European Union (EU). First, it is important to have an overallstrategy to protect IPR. Second, IPR is protected differently in the EU than in the U.S.Third, rights must be registered and enforced in the EU under local laws. Companiesmay wish to seek advice from local attorneys or IP consultants. The U.S. CommercialService can often provide a list of local lawyers upon request.It is vital that companies understand that intellectual property is primarily a private rightand that the US government generally cannot enforce rights for private individuals in theEU. It is the responsibility of the rights' holders to register, protect, and enforce theirrights where relevant, retaining their own counsel and advisors. While the U.S.Government is willing to assist, there is little it can do if the rights holders have not takenthese fundamental steps necessary to securing and enforcing their IPR in a timelyfashion. Moreover, in many countries, rights holders who delay enforcing their rights on2/18/2010 Country Commercial Guide for France 27INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

a mistaken belief that the USG can provide a political resolution to a legal problem mayfind that their rights have been eroded or abrogated due to doctrines such as statutes oflimitations, laces, estoppels, or unreasonable delay in prosecuting a law suit. In noinstance should USG advice be seen as a substitute for the obligation of a rights holderto promptly pursue its case.It is always advisable to conduct due diligence on partners. Negotiate from the positionof your partner and give your partner clear incentives to honor the contract. A goodpartner is an important ally in protecting IP rights. Keep an eye on your cost structureand reduce the margins (and the incentive) of would-be bad actors. Projects and salesin the EU require constant attention. Work with legal counsel familiar with local laws tocreate a solid contract that includes non-compete clauses, and confidentiality/nondisclosureprovisions.It is also recommended that small and medium-size companies understand theimportance of working together with trade associations and organizations to supportefforts to protect IPR and stop counterfeiting. There are a number of theseorganizations, both EU- and U.S.-based. These include:• The U.S. Chamber and local American Chambers of Commerce• National Association of Manufacturers (NAM)• International Intellectual Property Alliance (IIPA)• International Trademark Association (INTA)• The Coalition Against Counterfeiting and Piracy• International Anti-Counterfeiting Coalition (IACC)• Pharmaceutical Research and Manufacturers of America (PhRMA)• Biotechnology Industry Organization (BIO)A wealth of information on protecting IPR is freely available to U.S. rights holders. Someexcellent resources for companies regarding intellectual property include the following:• For information about patent, trademark, or copyright issues -- includingenforcement issues in the US and other countries -- call the STOP! Hotline: 1-866-999-HALT or register at www.StopFakes.gov.• For more information about registering trademarks and patents (both in the U.S.as well as in foreign countries), contact the US Patent and Trademark Office(USPTO) at: 1-800-786-9199.• For more information about registering for copyright protection in the US,contact the US Copyright Office at: 1-202-707-5959.• For US small and medium-size companies, the Department of Commerce offersa "SME IPR Advisory Program" available through the American Bar Associationthat provides one hour of free IPR legal advice for companies with concerns inBrazil, China, Egypt, India, Russia, and Thailand. For details and to register,visit: http://www.abanet.org/intlaw/intlproj/iprprogram.html• For information on obtaining and enforcing intellectual property rights andmarket-specific IP Toolkits visit: www.StopFakes.gov This site is linked to theUSPTO website for registering trademarks and patents (both in the U.S. as wellas in foreign countries), the U.S. Customs & Border Protection website to recordregistered trademarks and copyrighted works (to assist customs in blocking2/18/2010 Country Commercial Guide for France 28INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Copyrightimports of IPR-infringing products) and allows you to register for Webinars onprotecting IPR.- For an in-depth examination of IPR requirements in specific markets,toolkits are currently available in the following countries/territories: Brazil,Brunei, China, Egypt, European Union, India, Italy, Malaysia, Mexico,Paraguay, Peru, Russia, Taiwan, Thailand, and Vietnam.- For assistance in developing a strategy for evaluating, protecting, andenforcing IPR, use the free Online IPR Training Module onwww.stopfakes.gov.The EU’s legislative framework for copyright protection consists of a series of Directivescovering areas such as the legal protection of computer programs, the duration ofprotection of authors’ rights and neighboring rights, and the legal protection ofdatabases. Almost all Member States have fully implemented the rules into national law;and the Commission is now focusing on ensuring that the framework is enforcedaccurately and consistently across the EU.Key Link: http://ec.europa.eu/internal_market/copyright/documents/documents_en.htmThe on-line copyright Directive (2001/29/EC) addresses the problem of protecting rightsholders in the online environment while protecting the interests of users, ISPs andhardware manufacturers. It guarantees authors’ exclusive reproduction rights with asingle mandatory exception for technical copies (to allow caching), and an exhaustive listof other exceptions that individual Member States can select and include in nationallegislation. This list is meant to reflect different cultural and legal traditions, and includesprivate copying "on condition right holders receive fair compensation."Key Link: http://eurlex.europa.eu/pri/en/oj/dat/2001/l_167/l_16720010622en00100019.pdfPatentsEU countries have a "first to file" approach to patent applications, as compared to the"first to invent" system currently followed in the United States. This makes early filing atop priority for innovative companies. Unfortunately, it is not yet possible to file for asingle EU-wide patent that would be administered and enforced like the CommunityTrademark though negotiations are progressing (see below). For the moment, the mosteffective way for a company to secure a patent across a range of EU national markets isto use the services of the European Patent Office (EPO) in Munich. It offers a one-stopshopthat enables rights holders to get a bundle of national patents using a singleapplication. However, these national patents still have to be validated, maintained andlitigated separately in each Member State.Key Links: http://ec.europa.eu/internal_market/indprop/patent/index_en.htmhttp://www.european-patent-office.org2/18/2010 Country Commercial Guide for France 29INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

TrademarksThe EU-wide Community Trademark (CTM) can be obtained via a single languageapplication to the Office of Harmonization in the Internal Market (OHIM) in Alicante,Spain. It lasts ten years and is renewable indefinitely. For companies looking to protecttrademarks in three or more EU countries the CTM is a more cost effective option thanregistering separate national trademarks.On October 1, 2004, the European Commission (EC) acceded to the World IntellectualProperty Organization (WIPO) Madrid Protocol. The accession of the EC to the MadridProtocol establishes a link between the Madrid Protocol system, administered by WIPO,and the Community Trademark system, administered by OHIM. As of October 1, 2004,Community Trademark applicants and holders are allowed to apply for internationalprotection of their trademarks through the filing of an international application under theMadrid Protocol. Conversely, holders of international registrations under the MadridProtocol will be entitled to apply for protection of their trademarks under the CommunityTrademark system.Key Links: http://oami.europa.eu/ and http://www.wipo.int/madrid/enDesignsThe EU adopted a Regulation introducing a single Community system for the protectionof designs in December 2001. The Regulation provides for two types of designprotection, directly applicable in each EU Member State: the registered Communitydesign and the unregistered Community design. Under the registered Community designsystem, holders of eligible designs can use an inexpensive procedure to register themwith the EU’s Office for Harmonization in the Internal Market (OHIM), based in Alicante,Spain. They will then be granted exclusive rights to use the designs anywhere in the EUfor up to twenty-five years. Unregistered Community designs that meet the Regulation’srequirements are automatically protected for three years from the date of disclosure ofthe design to the public.Key Link: http://oami.europa.eu/Trademark ExhaustionWithin the EU, the rights conferred on trademark holders are subject to the principle of"exhaustion." Exhaustion means that once trademark holders have placed their producton the market in one Member State, they lose the right to prevent the resale of thatproduct in another EU country. This has led to an increase in the practice of so called"parallel importing" whereby goods bought in one Member State are sold in another bythird parties unaffiliated to the manufacturer. Parallel trade is particularly problematic forthe research-based pharmaceutical industry where drug prices vary from country tocountry due to national price Regulation.Community wide exhaustion is spelled out in the Directive on harmonizing trademarklaws. In a paper published in 2003, the Commission indicated that it had no plans topropose changes to existing legal provisions.Key Link: http://ec.europa.eu/internal_market/indprop/tm/index_en.htm2/18/2010 Country Commercial Guide for France 30INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Under the French intellectual property rights regime, patents, trademarks, and designsand models protect industrial property, while literary/artistic property is protected bycopyrights. By virtue of the Paris Convention and the Washington Treaty regardingindustrial property, U.S. nationals are entitled to receive the same protection of industrialproperty rights in France as French nationals. In addition, U.S. nationals have a "right ofpriority period" after filing a U.S. patent, trademark, design or model, in which to file acorresponding application in France. This period is twelve months for patents and sixmonths for trademarks, designs and models.Patents:There are two types of patents: patents of invention (Brevets d'Invention) and certificatesof utility (Certificats d'Utilité). Patents of invention cover all inventions. Certificates ofutility cover all inventions except those of a pharmaceutical nature, which are covered bycomplementary certificates (Certificats Complémentaires de Protection).In order to qualify for patent protection, the invention must:* Have an industrial or agricultural application* Imply a non-obvious procedure, and* Have absolute novelty.Duration: Patents for inventions have a twenty-year life span, after which they becomepart of the public domain. Certificates of utility have a six-year, non-renewable life span.Patent Registration: Applications for patent registration must be filed with the FrenchNational Institute for Industrial Property, the Institut National de la Propriété Industrielle(INPI), before the invention is publicly disclosed. INPI receives applications, examinestheir validity, and registers the patents. After the application for a patent is filed, INPIconducts a check for comparable inventions. Upon approval and registration, a patentedinvention may be manufactured, operated, used or sold only with the authorization of thepatent's owner. The owner can transfer, or sell the patent, or grant a license for othersto use it. A patent must be used to be retained. Applicants can consult INPI's library tocheck for the existence of similar inventions prior to filing.INPI - Division des BrevetsTel: (33) 1.71.08.71.63 // (33) 8 20 21 02 11Fax: (33) 1.53.04.52.65Web Site: http://www.inpi.frCertificate of Utility Registration:Certificates of Utility are also granted by INPI (see above). However, in this case, INPIdoes not conduct a check for comparable inventions.Patent protection in France may also be obtained through ownership of a EuropeanPatent, which is filed through the European Patent office in Munich:2/18/2010 Country Commercial Guide for France 31INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

European Patent OfficeErhardtstrasse 2780469 Munich, GermanyTel: (49 89) 23 99 46 36Web Site: http://www.european-patent-office.org/Patent registration in France requires a French address, which may be obtained througha legal representative in France. A list of patent advisors who can act as legalrepresentatives can be obtained from the French Association of Patent Advisors,(Compagnie Nationale des Conseils en Propriété Industrielle):CNCPITel: (33) 1.53.21.90.89Fax: (33) 1.53.21.95.90Web Site: http://www.cncpi.frTrademarksTrademark protection can apply to both goods and services. In a general sense,trademarks recognize and protect indicators, which serve to distinguish one product orservice from similar products or services. In the French regime, trademarks:* Can be written or designed trademarks.* Can be sonorous trademarks, such as musical tunes, jingles, words, slogans.* Must not be deceptive as to the nature or origin of the goods.* Must be recognizable by sight or sound.* Must have novelty for the specified product line.Duration: A trademark has a ten-year life span and is renewable every ten years.Trademark Registration: Applications must be filed with INPI, which receivesapplications, examines their validity, and registers trademarks. After registering thetrademark, it must be publicly and unequivocally used five consecutive years, or alltrademark rights are forfeited. It may be sold totally or partially, by product or servicecategory.INPI - Division des MarquesTel: (33) 1.71.08.71.63 // (33) 8 20 21 02 11Fax: (33) 1.53.04.52.65Web Site: http://www.inpi.frRegistration of trademarks, as in the case of patents, requires a French address, whichmay be obtained through a legal representative in France. A list of trademark advisorswho can act as legal representatives can be obtained from CNCPI, whose address islisted above.2/18/2010 Country Commercial Guide for France 32INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Designs and ModelsDesigns and models have the following characteristics:* Designs are an assembly of traits or colors on the surface of an object. They constitutean original two-dimensional decoration.* Models are all creations (ornaments).* They must have absolute novelty.Although some designs and models can be protected under patent or copyrightprocedures, others fall into a category that requires special treatment. Designs ormodels having an industrial function follow patent procedures, while designs or modelshaving a purely ornamental function follow copyright procedures. Those designs ormodels which have both a practical and an ornamental function are subject to thefollowing:Duration: Infringement protection has a 25 year life span, and is renewable for another25 years.Registration: Exclusive proprietary rights to the design or model are acquired through theact of creation itself. Registration merely serves as proof of that creation. Designs andmodels are to be registered with the INPI:INPI - Designs and Models SectionTel: (33) 1.71.08.71.63 // (33) 8 20 21 02 11Fax: (33) 1.53.04.52.65Web Site: http://www.inpi.frTo prove the date of creation of a design or model without formal registration, a designermay wish to use a special envelope (enveloppe spéciale). The date of creation beginswhen the envelope is received by the INPI.CopyrightsCopyrights cover artistic works, literary works and software. In the French IPR regime,in order to qualify for a copyright, the language used to express the idea must beoriginal, not the idea itself.Duration: Copyrights are valid for 50 years after the death of the author, with two majorexceptions: music copyrights are valid for seventy years after the death of the composer,and software copyrights are valid for 25 years after creation. Contrary to othercopyrights, software designed by a salaried employee belongs to the employer.Registration: Artistic and literary works are automatically protected once created andfixed in tangible form. Therefore, registration is not required, but nonethelessrecommended.2/18/2010 Country Commercial Guide for France 33INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

For musical works, including songs, instruments, poems, sketches less than 20 minutes,monologues, and other musical audiovisual productions, applications must be filed withthe French Society for Musical Authors, Composers and Editors:Société des Auteurs, Compositeurs et Editeurs de Musique (SACEM)Tel: (33) 1.47.15.47.15Fax: (33) 1.47.15.47.16Web Site: http://www.sacem.frMembership acceptances are restricted to reputable applicants who are already knownfor the quality of their works. If not qualified for SACEM, applications must be filed withthe National Association of Musical Authors and Composers:Syndicat National des Auteurs et Compositeurs de Musique (SNACM)Tel: (33) 1.48.74.96.30Fax: (33) 1.42.81.40.21Web Site: http://www.snac.frFor theatrical works, including plays, operas, operettas, musical comedies, films andtheatrical scripts, applications must be filed with the Society for Theatrical Authors andComposers:Société des Auteurs et Compositeurs Dramatiques (SACD)Tel: (33) 1.40.23.44.55Fax: (33) 1.45.26.74.28Web Site: http://www.sacd.fr/For literary works and software, applications must be filed with the French LiterarySociety:Société des Gens de Lettres (SGDL)Tel: (33) 1.53.10.12.00Fax: (33) 1.53.10.12.12Web Site: http://www.sgdl.orgFor documentary and educational works, applications must be filed with the Civil Societyfor Multimedia Authors:Société Civile des Auteurs Multimédia (SCAM)Tel: (33) 1.56.69.58.58Fax: (33) 1.56.69.58.59Web Site: http://www.scam.fr/Due DiligenceReturn to topOnce a U.S. company has identified several potential representatives, it should contactthem directly in writing. Just as the U.S. firm is seeking information on the Frenchrepresentative, the representative is interested in corporate and product information onthe U.S. firm. The U.S. firm should provide full information on its history, resources,personnel, the product line, previous export activity, and all other pertinent matters.2/18/2010 Country Commercial Guide for France 34INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

At the same time the firm is providing information on itself, it should also engage in athorough investigation of the potential representative. Following is a list of importantfacts the firm should endeavor to find out:- Current status and history, including background on principal officers- Personnel and other resources- Sales territory covered- Current sales volume- Typical customer profiles- Methods of introducing new products into the sales territory- Names and nature of U.S. firms currently represented- Trade and bank references- Assessment of whether U.S. firm's special requirements can be met- View of in-country market potential for the U.S. firm’s productsExporters have the right to explore the qualifications of those who propose to representthem overseas. Therefore, the U.S. firm should not hesitate to ask the potentialrepresentative(s) or distributor(s) detailed questions.In addition, the U.S. firm is advised to obtain at least two businesses and credit reportsto ensure that the distributor or representative is reputable.-The US Commercial Service in France provides comprehensive financial reports:Search made through local credit information database provider.For more information see: http://www.buyusa.gov/france/en/14.html - _section18Local Professional ServicesReturn to topLocal service providers focusing on EU law, consulting, and business development canbe viewed on the website maintained by the Commercial Service at the U.S. Mission tothe European Union at: http://www.buyusa.gov/europeanunion/services.html.For information on professional services located within each of the EU member states,please see EU Member State Country Commercial Guides which can be found at thefollowing website EU Member States' Country Commercial GuidesA lawyer with experience in France should be retained as soon as the establishment of aFrench business entity is contemplated. The American Embassy in Paris maintains a listof American lawyers practicing in France, which is available upon request. Moredetailed information about professional backgrounds can be obtained from theMartindale-Hubbell Law Directory and from the Bar Register of Pre-eminent Lawyers.Lawyers and bankers in the United States also will normally have means ofrecommending lawyers in France.France has two major categories of legal practitioners:Avocats: An "avocat" must be a lawyer. "Avocats" may render legal advice on allmatters, draft agreements and contracts, handle commercial disputes and collectioncases, and plead and defend civil and criminal cases before the French courts to which2/18/2010 Country Commercial Guide for France 35INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

they are admitted. See contacts at:http://www.amb-usa.fr/consul/acs/guide/Attorneys.pdfNotaires (Notaries): A French "notaire" is a public official appointed by the Ministry ofJustice. He is not the equivalent of a public notary in the United States. The number of"notaires" in each jurisdiction is limited, and their fees fixed by law. Their functionsinclude the preparation and recording of notarial acts (e.g., wills, deeds, acts ofincorporation, marriage, contracts), the administration and settlements of estates(excluding litigation in court) and serving as the repository of wills. They are not lawyers,but very specialized members of the legal profession. They may not litigate in courts.Web ResourcesReturn to topEU websites:Coordination of the laws of the Member States relating to self-employed commercialagents (Council Directive 86/653/EEC):http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31986L0653:EN:HTMLAgreements of Minor importance which do not appreciably restrict Competition underArticle 81(1) of the Treaty establishing the European Communityhttp://eurlex.europa.eu/LexUriServ/site/en/oj/2001/c_368/c_36820011222en00130015.pdfRegulation on late payment: http://ec.europa.eu/enterprise/policies/single-marketgoods/documents/late-payments/index_en.htmEuropean Ombudsman: http://www.ombudsman.europa.eu/home/en/default.htmEU’s general data protection Directive (95/46/EC):http://ec.europa.eu/justice_home/fsj/privacy/index_en.htmSafe Harbor: http://www.export.gov/safeharbor/Information on contracts for transferring data outside the EU:http://ec.europa.eu/justice_home/fsj/privacy/modelcontracts/index_en.htmData Protection Working Group:http://ec.europa.eu/justice_home/fsj/privacy/workinggroup/wpdocs/2007_en.htmDistance Selling Rules:http://ec.europa.eu/consumers/cons_int/safe_shop/dist_sell/index_en.htmDistance Selling of Financial Services:http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32002L0065:EN:NOTE-commerce Directive (2000/31/EC):http://ec.europa.eu/internal_market/e-commerce/index_en.htm2/18/2010 Country Commercial Guide for France 36INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

VAT on Electronic Service:http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/eservices/index_en.htmThe Unfair Commercial Practices Directive:http://ec.europa.eu/comm/consumers/cons_int/safe_shop/fair_bus_pract/index_en.htmInformation to Patients - Major developments:http://ec.europa.eu/enterprise/pharmaceuticals/patients/patients_key.htmNutrition and health claims made on foods:Regulation 1924/2006Provisions of Nutritional Labeling:Nutritional labeling directive 90/496/ECEU-27 FAIRS Subject Report Health Claims - EU Authorization Procedure 2008:GAIN Report E48055Guidance document on how companies can apply for health claim authorizations:Summary document from EFSA:http://www.efsa.europa.eu/cs/BlobServer/Scientific_Opinion/nda_op_ej530_guidance_summary_en.pdf?ssbinary=trueFull document from EFSA:http://www.efsa.europa.eu/cs/BlobServer/Scientific_Opinion/nda_op_ej530_guidance_%20health_claim_en.pdf,2.pdf?ssbinary=trueHealth & Nutrition Claims:http://ec.europa.eu/food/food/labellingnutrition/claims/index_en.htmTobacco: http://ec.europa.eu/health/ph_determinants/life_style/Tobacco/tobacco_en.htmProduct Liability:http://europa.eu/legislation_summaries/consumers/consumer_safety/l32012_en.htmProduct Safety: http://ec.europa.eu/consumers/safety/prod_legis/index_en.htmLegal Warranties and After-sales Service:http://ec.europa.eu/comm/consumers/cons_int/safe_shop/guarantees/index_en.htmCopyright: http://ec.europa.eu/internal_market/copyright/documents/documents_en.htmHarmonization of certain aspects of Copyright and related rights in the InformationSociety - Copyright Directive (2001/29/EC):http://eur-lex.europa.eu/pri/en/oj/dat/2001/l_167/l_16720010622en00100019.pdfIndustrial Property: http://ec.europa.eu/internal_market/indprop/index_en.htm2/18/2010 Country Commercial Guide for France 37INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

European Patent Office (EPO): http://www.european-patent-office.orgOffice for Harmonization in the Internal Market (OHIM): http://oami.europa.eu/World Intellectual Property Organization (WIPO) Madrid: http://www.wipo.int/madrid/enDirective on harmonizing trademark laws:http://ec.europa.eu/internal_market/indprop/tm/index_en.htmU.S. websites:IPR Toolkit: http://www.buyusa.gov/europeanunion/ipr.htmlEU Public Procurement: http://www.buyusa.gov/europeanunion/eu_tenders.htmlFood supplements: http://useu.usmission.gov/agri/foodsupplements.htmlLocal Professional Services: http://www.buyusa.gov/europeanunion/services.html.EU Member State Country Commercial Guides - Market Research Library: EU MemberStates' Country Commercial GuidesFrench Websites :Retail Distribution Magazine “L.S.A - Libre Service Actualites”: Website[http://www.lsa.fr]Retail Food Sector in France: [http://www.fas.usda.gov/gainfiles/200312/146085288.pdf]Food Service Sector in France:[http://www.fas.usda.gov/gainfiles/200404/146106098.pdf]U.S. Commercial Service France: [http://www.buyusa.gov/france/en]Credit /Financial Reports: [http://www.buyusa.gov/france/en/14.html#_section18].Media lists: [http://mediasig.premier-ministre.gouv.fr]Le Figaro: [http://www.lefigaro.fr]Le Monde: [http://www.lemonde.fr]L'Express: [http://www.lexpress.fr]Liberation: [http://www.liberation.com]France Soir: [http://www.francesoir.fr]Le Parisien: [http://www.leparisien.com]2/18/2010 Country Commercial Guide for France 38INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Le Nouvel Economiste: [http://www.nouveleco.fr]International Herald Tribune: [http://www.iht.com]Le Nouvel Observateur: [http://www.nouvelobs.com]Le Point: [http://www.lepoint.fr]Les Echos: [http://www.lesechos.fr]L'Expansion and La Vie Francaise: [http://www.lexpansion.com]La Tribune Desfossés: [http://www.latribune.fr]French trade shows: [ http://www.buyusa.gov/france/en/142.html]Customized Corporate Promotion Services:[http://www.buyusa.gov/france/en/14.html#_section13]French Government procurement regulations and procedures:[http://www.finances.gouv.fr/minefi/publique/publique4/index.htm]French and EU procurement tenders and bids: [http://www.journal-officiel.gouv.fr/]BERNAN: [http://www.bernan.com]French National Institute for Industrial Property,(INPI): [http://www.inpi.fr]French Association of Patent Advisors, CNCP: [http://www.cncpi.fr]French Society for Musical Authors, Composers and Editors (SACEM):[http://www.sacem.fr]National Association of Musical Authors and Composers (SNACM):[http://www.snac.fr/]Society for Theatrical Authors and Composers (SACD):[http://www.sacd.fr/]French Literary Society (SGDL): [http://www.sgdl.org/]2/18/2010 Country Commercial Guide for France 39INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Return to table of contentsChapter 4: Leading Sectors for U.S. Export and Investment• Commercial Sectors• Agricultural SectorsCommercial SectorsReturn to topThe Showcase Europe program run by the U.S. Department of Commerce’s officesthroughout Europe provides U.S. exporters a broader perspective on the Europeanmarket. It is organized around eight leading sectors (listed alphabetically): aerospace &defense, automotive, energy & power generation, environmental technologies,information & communications technologies, medical & pharmaceutical, safety & securityand travel & tourism. For more information on how to receive an assessment of yourcompany’s product potential in Europe, please visit: http://www.buyusa.gov/quicktake.Commercial Sectors• Travel and Tourism (TRA)• Aircraft and Parts (AIR)• Safety and Security Equipment (SEC)• Computers and software (CSF, CSV)• Computers and Peripherals (CPT)• Telecommunications Equipment (TEL)• Water Resources equipment and Services (WRE)• Medical Equipment (MED)• Automotive Parts and Equipment (APS)• Plastics (PMR)• Cosmetics (COS)• Educational Services (EDS)• Textile (TXT)• Direct Marketing and E-Commerce Business to Consumer (ECC)2/18/2010 Country Commercial Guide for France 40INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Travel & Tourism (TRA)OverviewReturn to top2008 2009* 2010*Total Market Size 114,765 117,060 113,548Total Local Production 132,233 134,877 130,830Total Exports 41,416 42,244 40,976Total Imports 23,360 23,827 23,112Imports from the U.S. 5,142 5,244 5,086Exchange rate: USD1.00 Euro 0.7 Euro 0.7 Euro 0.7(Figures in USD millions; * Estimated figures)The United States remains one of the top choices among long-haul destinations forFrench travelers. France ranks third among European markets, after the UnitedKingdom and Germany, and sixth in the world after Canada, Mexico, Japan, the U.K.,and Germany as an overseas source of income for the tourism industry in the U. S.Best Prospects/ServicesReturn to topAll major actors in the travel & tourism industry indicated good growth for the Frenchmarket in 2008, estimating an average of 28 percent more sales revenue for Frenchtravelers to the U.S. The French market was also very dynamic for 2009, especially withthe opening of a number of non-stop flights between France and the United States. For2010, we expect a small decrease (3 percent), due to the depressed internationaleconomic environment.OpportunitiesReturn to topCalifornia, the U.S. National Parks, New York and Florida remain the favoritedestinations. Increasingly, other regions such as the Southwest and Mountain Statesare becoming popular, particularly with second or third-time visitors. The French arevery individualistic in their travel behavior. The average length of stay is approximatelytwo weeks. Following the closing of the United States Travel and Tourism Administration(USTTA) in 1996, the U.S. Commercial Service has supported the establishment of theVisit USA Committees, a private industry association aimed at promoting the UnitedStates as a travel and tourism destination. The U.S. Commercial Service office in Parisactively supports the Visit USA Committee France.ResourcesReturn to topVisit USA Committee France: www.office-tourisme-usa.comAmerican Embassy – U.S. Commercial Service Commercial Specialist:Valerie.Ferriere@mail.doc.govPhone: (33) 1 43 12 70 77 - Website: http://www.buyusa.gov/france/enU.S. Travel (Travel Industry Association) is the major travel association in the U.S:http://www.USTravel.org2/18/2010 Country Commercial Guide for France 41INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Aircraft and Parts (AIR)OverviewReturn to top2008* 2009* 2010*Total Market Size 21,980 22,840 23,290Total Local Production 37,330 38,070 38,830Total Exports 31,360 31,980 32,620Total Imports 16,010 16,750 17,080Imports from the U.S. 5,490 5,860 5,980Euro exchange rate: USD 1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions)Sources: GIFAS, USDoC, French Customs. Note: French Customs figures are quoted in CIF (HS 8802 +8803), USDoc figures are quoted in FAS. * indicates unofficial estimates based on various industrysources. Year to year figures are adjusted for currency fluctuations.Reported (non-consolidated) revenue for the French civil aerospace industry in 2008increased approximately 9 percent over 2007 to €26.77 billion (GIFAS annual report2009). However, the published figures, which are released in the summer, are notnecessarily consistent with the current economic situation, whose repercussions werenot keenly felt in this sector until the 4 th quarter of 2008.The timing of the economic crisis, financing conditions and the drop in oil prices allowedthe industry to hold its own in 2008 and go into 2009 in better shape than other industrialsectors. In fact, 2009 was a year of record aircraft deliveries and lower than usual butstable orders for Airbus, as replacement demand remained high. This was not the casefor the business aircraft sector, which was harder hit and which doesn’t expect demandto begin recovering until 2011 in Europe and the U.S. But even in this sector, poor U.S.and European sales were offset for French manufacturer Dassault Falcon by strongersales in the Middle East, Asia and South America. Over the next 2 years, overallturnover is expected to remain stable.France’s aerospace industry manufacturers derive over 70 percent of their revenuesfrom civilian sector programs, the majority of which are destined for export. This largeexport market is due to the sustained interest in Dassault Falcon Jet, Eurocopter andAirbus aircraft, all of which have products that now successfully have captured globalmarket share. Over 84 percent of French civil aerospace production was exported in2008.Six manufacturers account for the majority of the French market: Airbus (largecommercial aircraft), Eurocopter (light-to-heavy helicopters), Dassault Falcon Jet (highendbusiness jets), ATR (passenger and cargo turboprop aircraft for regional transport),Socata (light aircraft and business turboprops), and Reims Aviation Industries (lightaircraft). With the exception of Reims Aviation, these manufacturers are owned in part orentirely by the same parent company, EADS (European Aerospace Defense & Space).Created in 2000, this consortium dominates the civil aviation market.2/18/2010 Country Commercial Guide for France 42INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

2010 will continue to present challenges to EADS/Airbus, as the company tries to rampA380 deliveries up to 20 aircraft for 2010, up from 10 in 2009. It will also be a decisiveyear for the A350, as production for some of its components will be launched, for firstaircraft deliveries in 2013.Best ProspectsReturn to topThe overall health of the industry was far more stable than originally feared for 2009.The best prospects for American aerospace firms in this market continue to beassociated with the manufacturing of new aircraft, notably, the Airbus A350, the A380and Airbus Military Company’s A400M (to a lesser degree as it is a European militaryprogram). Many OEM and equipment manufacturers have adopted a “U.S. dollar”strategy on existing and new programs to take advantage of the cost savings offered bythe exchange rate.OpportunitiesReturn to topFrench aerospace manufacturers are seeking to subcontract in order to manage costs.With new projects in various stages of development and the value of the Euro vis-à-visthe U.S. Dollar, the French market provides opportunity to the most competitive andinnovative U.S. aerospace firms.ResourcesReturn to topParis Air Show – June 20-26, 2011Website: http://www.paris-air-show.comFrench Aerospace Industries AssociationWebsite: http://www.gifas.asso.frAmerican Embassy - U.S. Commercial Service Commercial Specialist:Cara.Boulesteix@mail.doc.govPhone: (33) 1 43 12 70 79Website: http://www.buyusa.gov/france/en2/18/2010 Country Commercial Guide for France 43INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Safety and Security Equipment (SEC)OverviewReturn to top2008* 2009* 2010*Total Market Size 26,380 26,910 27,450Total Local Production 16,880 16,950 17,290Total Exports 5,010 5,110 5,490Total Imports 14,510 15,070 15,650Imports from the U.S. 4,060 4,070 4,070Exchange rate: USD 1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions; * indicates unofficial estimates based on various industry sources including Atlasen Toute Sécurité). Year to year figures adjusted for varying exchange rate.The safety and sector represents 23 different security segments in France, which can beloosely grouped into the following areas: anti-terrorism, electronic security, monitoring,guarding, physical security, health and safety products, fire security and cash in transit.The total market was valued at approximately 18.9 billion Euros in 2008 (the latestpublished figures available) with a total growth valued at +4.7% over the previous year.Within the 23 French safety and security industry segments, the segments enjoying thehighest growth rate are anti-terrorist equipment (+16.7% in 2008), personal protectionservices (+13.2%), consulting and engineering (+14.9%), and IT security (+10.9%). Arecent French study shows that between 2003 and 2008, the video surveillance sectorhas known consistent growth, totaling 42% over the 5 years. Segments such as locks,retail theft protection, remote industrial and residential monitoring services, personalprotection equipment, anti-intrusion alarms and guard services remained flat or showeda decrease in 2008. In fact, only about 70% of companies operating in the securitysector in France in 2008 turned a profit. In many segments such as fire protection andguard services, there are simply too many players on the market; fierce competitioncoupled with low prices continues to drive a high number of firms out of business. Thesebusinesses continued to be hit hard in the poor economic climate of 2009, which isexpected to last through 2010, as companies deferred investments in new securityequipment whenever possible. Industry experts expect the security sector to remainrelatively stable overall; some subsectors are very hard hit, while others such ashomeland security have been successful in growing their markets.For the first time, penetration of the security market by foreign companies decreased in2009, although overall the level remains high. Entire sub-sectors of French privatesecurity industry in France are dominated by foreign groups, as opposed to less than 20percent overall ten years ago. For example, in the cash-in-transit sector, non-Frenchgroups control 89 percent of market share in 2008. High ratios exist inequipment/services for professional monitoring and many other market sub-sectors.Overall, foreign firms control more than 36 percent of the industry.2/18/2010 Country Commercial Guide for France 44INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Best ProspectsReturn to topFortunately, there are a few bright spots; demand for homeland security equipment isexpected to be sustained, as is demand for personal monitoring (for elderly people, forexample), CCTV (especially for digital systems), and personal protection. The subsectorexpected to suffer the most is guard services and professional monitoring, as prices arein a downward spiral. The sector expected to expand the most is video surveillance;both public and private entities in France should increase their spending in this particularsector.Closed Circuit TV (CCTV), especially for digital systems, represents an ongoing growtharea in the industrial security market in France. Municipalities continue to install IPCCTV systems; the Ministry of Interior recently announced that it will be pursuing a planto spend 21 million Euros in an effort to triple the number of video surveillance camerasin France. The plan increases the number of cameras from 20,000 to 60,000 in 75French cities by 2011. Of course, this expansion will have many more needs than justcameras, such as security software, infrastructure to support the cameras, installationand maintenance, etc.Among the many technologies, the French are particularly interested in automatic facialrecognition systems, tracking video systems that analyze behavior and intelligentcameras. Biometrics and RFID technologies are generating a plethora of interesting newproducts, such as “all-in-one” cards for health insurance, transportation services oridentification.OpportunitiesReturn to topThe market in France is extremely fragmented and competitive, and it is very importantto work with a local partner or through a local sales office, which many U.S. firms chooseto establish. Some kind of local presence becomes essential when working withgovernment ministries or responding to public tenders.U.S. equipment and security technologies are well known for their innovation and quality.Imports should remain strong, although competition is extremely severe from bothFrench and third country sources.ResourcesReturn to topExpo Protection/FeuInternational Safety & Security and Fire Fighting & RescueParis, France - November 2-4, 2010: http://www.expos-protection.com/expoprot/Alarmes Protection Sécurité (APS)Electronic and Physical Security ShowParis, France – September 2011: http://www.salon-aps.comInformation on the French Security MarketEn Toute Sécurité : http://www.security-info.comAmerican Embassy – U.S. Commercial Service Commercial Specialist:Cara.Boulesteix@mail.doc.gov2/18/2010 Country Commercial Guide for France 45INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Phone: (33) 1 43 12 70 79Website: http://www.buyusa.gov/france/en2/18/2010 Country Commercial Guide for France 46INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Computers and Software (CSF, CSV)OverviewReturn to top2008 2009 2010*Total Market Size 60,428 58,668 59,841Total Local Production 54,989 53,387 54,454Total Exports 11,300 10,970 11,189Total Imports 16,315 15,840 16,156Imports from the U.S. 8,822 8,565 8,736Euro exchange rate: $1.00 Euro 0.7 Euro 0.7 Euro 0.7(Figures in $millions) *EstimatesThe Market place for Business Process TechnologyWith a turnover of $58 billion, the French software and IT services market ranks #2 inEurope, after Germany. Overall turnover dropped by 3%, after four years of steadygrowth averaging over 5%. However, the French economy is the one that resisted bestto the crisis in the EU, as French GIP dropped by only 2.1% vs. 4.3% in the rest of theEuro zone.Over 6,000 French firms specialize in software services, 2,000 with 10 employees ormore. The market is essentially divided among the three following activities:• Software publishing: 29% or $17 billion• Technology Consulting Services: 14% or $8.3 billion• Consulting & Computer Services: 57% or $33 billionPublic and Utilities sectors have continued growing in 2009; Banking resisted well to thecrisis, especially during the second half of the year. Sectors more affected have beenTelecom/Media; the Industry; and Commerce/Distribution/Transport. Below is abreakdown of the situation in the field of Consulting & Computer Services:• Consulting: -6%• Projects & Integration: -3%• Development & Technical Assistance: -6%• Facilities management of applications: +4%• Facilities management of infrastructures: +2.5%While externalized R&D has suffered a drop of 9% in 2009, because of a serious drop inautomobile production during the first half of 2009, the development of on-boardsolutions for computer applications in science, technology and the industry, haveenabled this segment to fare better, with a 1% growth during the same period.According to Market Research Firm Pierre Audoin Conseil (PAC) the twenty softwareservices firms that dominate the French market are IBM ($3.6 billion); Capgemini ($2.9billion); Atos Origin ($2.3 billion); HP + EDS ($1.6 billion); Accenture ($1.3 billion); Logica($1.26); Orange Business Services ($1.15 billion); Sopra Group ($1.02 billion); Altran($1 billion); HP (without EDS) ($908 million); Alten ($873 million); Steria ($750 million);GFI Informatique ($719 million); Assystem ($673 million); CSC ($649 million); Thales 3S2/18/2010 Country Commercial Guide for France 47INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

($571 million); Segula Technologies ($543 million); Doc@Post + Experian ($512 million);Bull Services: ($488 million); and Akka Technologies ($478 million).The French packaged software market is valued at $17 billion and grows at a rate of5.5% per year. The ten largest software publishers on the French market are: Microsoft($2.7 billion); Oracle ($911 million); IBM ($735 million); SAP: ($729 million); Sage: ($428million); Cegid ($338 million); HP Software ($273 million); Symantec ($254 million);Dassault Systemes ($217 million); and EMC ($212 million). Seven of theseorganizations are American. Only two - Cegid and Dassault Systèmes - are French.About 35 million French people or 65% of the total population can access the Internet,including 30 million through a high-speed connection from their home. Six householdsout of ten can now access the Internet. More than 43 million French also own asubscription to a mobile, which represents 70% of the total population. Thanks toHSDPA/3 and 4G technologies, 2009 has seen the advent of revolutionary tools that willenable phone users to surf the Internet faster and do on-line transactions as well aswatch TV from their telephone.The French public sector has greatly contributed to the boost in IT sales, as it currentlyrepresents 6% of total IT investments. Launched in January 1998, the GovernmentAction Program for an Information Society (PAGSI) is investing billions of dollars in theautomation of VAT declaration, customs declaration, the filing of social contributions byemployees. As a result, over 7 million French tax-payers – or 11% of the overallpopulation – filled out their income tax return on the Internet in 2007.France has become a leading Western European nation in high-speed Internet andmobile access. The European Association for Competition in Telecommunicationsannounced that France had become the largest broadband market in Europe. Revenuefrom high-speed subscriptions alone already exceeds $2 billion annually. In France theoverwhelmingly dominant mode of broadband connection is ADSL, representing 94% ofbroadband connections and 97% of growth. However, the current financial crisis shouldadversely affect expenditures for consulting and systems integration services.Best Prospects/ServicesReturn to top• Facilities management and Third-Party Maintenance of Applications (TMA)• Facilities management of infrastructures• On-board solutions for computer applications in science, technology and the industryBanking services• Management consulting in IT systems• Engineering services• Packaged software, especially Integrated Management Software and PLM solutions• Application Service Provider (ASP) solutions - -a $1 billion market that includeshosted CRM solutions.• Service Oriented Architecture Solutions (SOA)2/18/2010 Country Commercial Guide for France 48INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

OpportunitiesReturn to topThe current economic crisis will favor innovative projects that improve efficiency andgenerate. Increased accessibility to high Internet bandwidth and wireless solutions willalso maintain demand for systems integration, especially in the field of E-commerce, a$34 billion market with 23 million customers, which grew by 30% in 2009. Promisingopportunities are therefore available to American firms seeking to export to France,especially for those that provide packaged software, especially knowing that U.S. firmsalready control 70% of this market.ResourcesReturn to topInternational Data Corporation (IDC) http://www.idc.frPierre Audoin Consultants (PAC) http://www.pac-online.frBIPE (leading European provider of forward-looking economic analyses and consultingservices) http://www.bipe.frSyntec Informatique (French association of the software and computing servicescompanies) http://www.syntec-informatique.frAmerican Embassy – U.S. Commercial Service Commercial Specialist:Charles.Defranchi@mail.doc.govPhone: (33)1 43 12 71 63 - Website: http://www.buyusa.gov/france/en2/18/2010 Country Commercial Guide for France 49INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Computers and Peripherals (CPT)OverviewReturn to top2008 2009 2010*Total Market Size 17,050 16,368 16,859Total Local Production 10,239 9,829 10,723Total Exports 783 751 773Total Imports 7,594 7,290 7,508Imports from the U.S. 2,727 2,617 2,695Exchange rate: USD1.00 Euro 0.7 Euro 0.7 Euro 0.7(Figures in USD millions; * Estimated figures)Estimated at $160 billion in 2009, the French market for information and communicationtechnologies - which includes computer hardware/software, telecommunications andelectronic components – is growing at a rate of 5% per year. Telecommunicationsrepresent $78 billion of this market; computer hardware and software, $68 billion; andconsumer electronics, $1.3 billion.The computer & peripherals market dropped by 4% in 2008. The market is driven by thesale of consumer electronics, including smart phones, I-mode, 3G and PDAs. The levelof penetration in individual homes exceeds 50%.About 35 million French people - or 65% of the total population - can access the Internet,including 30 million through a high-speed connection from their home. Six householdsout of ten can now access the Internet. More than 43 million French also own asubscription to a mobile phone, which represents 70% of the total population. Thanks toHSDPA/3 and 4G technologies, 2009 has seen the advent of revolutionary tools that willenable phone users to surf the Internet faster and do on-line transactions as well aswatch TV from their telephone.The French public sector has greatly contributed to the boost in IT sales, as it currentlyrepresents 6% of total IT investments. Launched in January 1998, the GovernmentAction Program for an Information Society (PAGSI) is investing billions of dollars in theautomation of VAT declaration, customs declaration, the filing of social contributions byemployees. As a result, over 7 million French tax-payers – or 11% of the overallpopulation – filled out their income tax return on the Internet in 2007.France is perhaps more than any other country in Western Europe on the threshold ofthe new Internet and mobile revolution; it is accelerating rapidly as one of the top leadersin the new high technology era. The European Association for Competition inTelecommunications announced that France had become the largest broadband marketin Europe. Revenue from these high-speed subscriptions alone already exceeds $2billion annually. In France the overwhelmingly dominant mode of broadband connectionis ADSL, representing 94% of broadband connections and 97% of growth.2/18/2010 Country Commercial Guide for France 50INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

ServersEstimated at $562 million, the server market has dropped by 25% in 2009. Frenchcorporations continue decreasing expenditures related to maintenance and platformadministration and supervision, while increasing expenditures related to informationsystem’s availability, security and quality of service.The five top server manufacturers are HP (45%); Dell (17%); IBM (12%); Fujitsu (7%);and Sun (3%). While HP and Fujitsu have grown by 1.7% and 0.5% respectively, IBMand Sun lost 1.4% and 0.6% of market share. Dell sales have remained stable.The overall server market has stabilized during the fourth quarter of 2009, and it isanticipated to grow again in 2010.Personal ComputersThe French PC market has grown by 1.7%, in 2009, which corresponds to the sale of10.8 million PC’s. Portable PC’s represent 64% of this market, including 20% for miniportablesand netbooks. Growth in this market is essentially related to demand fromconsumers, while demand for professional solutions has significantly dropped. The PCmarket is dominated by Acer (14%), which took the first position before HP (13%),followed by Dell (12%); Lenovo (7%); Apple (6%); and Toshiba (5%). Apple managed torank fifth before Toshiba, thanks to a remarkable growth of 43.5% during the last quarterof 2009, especially through the sale of portables. Market research firm Gartner Groupconsiders that demand for professional PC equipment will pick up in 2010 because ofthe migration of many organizations towards Windows 7.PrintersThe French printer market has dropped by 4% in 2010. It is dominated by HP (43%);Canon (17%); Epson (14%), Brother (7%) and Samsung Electronics (6%).This market isestimated at $1.9 billion. The average price for a printer is about $200. The market forInkjet printers has dropped by a third since 2002. This market is estimated at $240million. The sale of laser printers grew in volume by 10%. Multifunction printersrepresent a $780 million market.Panel displaysThe year 2009 has seen a total removal of CRT Monitors, and the market is now beingdominated by LCD’s – about 80% - followed by Plasma (15%) and Led’s (5% butgrowing steadily). Over 6 million units have been sold in 2010, boosted by theavailability of High Definition television and Blue Ray DVD’s. The pricing of LCD panelshas dropped by 30%, and one can find starting prices of $200.Consumer electronicsAccording to market consulting firm GfK, the French Consumer Electronics market isestimated at $25 billion. Growth for this market has dropped by 11% in 2009 –essentially in market value corresponding to sales of $8.3 billion.2/18/2010 Country Commercial Guide for France 51INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Flat Panel MonitorsSales of LCD TV’s have grown by 36% in volume but not in value, which dropped by11%. However, sales of flat TV monitors have reached 6.5 million in 2009. These setsare all equipped for digital TV- Blu-Ray DVD’s and Home Cinema solutions have known a dramatic growth.The same applies to mobile products such as accessories and automobileradios.Audio-video walkman and GPS navigators have been challenged by theincreased sophistication in smart phones, which now enable users to watch TVthrough 3G connections.- 32” TV’s continue doing very well, and new technologies, including LED ultraslim,200 Hz and Full HD panels represent 35% of the TV’s being sold. Averagepricing for a TV panel has now reached $850, a 25% drop in pricing from 2008.While the sale of LCD panels continue being strong, Plasma panels do not sellas well, especially with the perspective of an upcoming energy tax. Of course,the World Soccer cup in 2010 should further boost sales of HD TV sets.- Blu-Ray DVD’s have sold 300,000 units in 2009, for unit prices starting around$140. Sale of the best Blu-Ray titles already exceeds that of regular DVD’s byone third. Market consulting firm GfK anticipates that 700,000 Blu Ray readerswill be sold in 2010.- Sales of video-cameras have dropped by 4% in 2009, although the coming tomarket of High-definition cameras has boosted sales by 30%- Only electronic games which represent 8% of the overall market continuedgrowing by 20% in value, thanks to blockbusters such as the WII.Best Prospects/ServicesReturn to top• GPS mobiles and Smartphones• Net books• Portable devices (laptops, palm tops, Smartphones, etc.)• Wireless solutions• I-mode related products• Portable storage devices (USB keys, hard-drives, etc.)OpportunitiesReturn to topThe ATAWAD (i.e. “anytime, anywhere, any device”) era causes the French toincreasingly seek portable solutions that provide them with permanent access to dataacross the Internet, whether personal or professional. The market for devices such aslaptops, palmtops, and blackberries is therefore growing very rapidly. Great opportunitiesare also available for wireless solutions both for the home and the office, especially withthe advent of 3G high-speed mobile Internet bandwidth.2/18/2010 Country Commercial Guide for France 52INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

ResourcesReturn to topInternational Data Corporation (IDC): http://www.idc.frBIPE (leading European provider of forward-looking economic analyses and consultingservices): http://www.bipe.frEuropean Information technology observatory (EITO): http://www.eito.comGfK Group: http://www.gfk.frInternational Data Corporation (IDC): http://www.idc.frPierre Audoin Consultants (PAC): http://www.pac-online.frU.S. Commercial Service Commercial Specialist: Charles.Defranchi@mail.doc.govPhone: 33-1 43 12 71 63 - Website: http://www.buyusa.gov/france/en2/18/2010 Country Commercial Guide for France 53INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Telecommunications (TEL)OverviewReturn to top2008 2009* 2010*Total Market Size 18,614 18,932 19,088Total Local Production 15,549 15,612 15,619Total Exports 7,353 7,020 6,994Total Imports 10,418 10,340 10,463Imports from the U.S. 2,705 2,695 2,724Euro exch.rate: USD1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions; *Estimated figures)The IT and telecommunications market is currently being supported by the broadband,wireless and mobile telephony sectors, which should continue their rapid growth andfurther drive the industry. The French broadband market is going through an amazingphase of growth and convergence. The number of traditional wire line broadbandconnections to French residences is increasing steadily, dominated by ADSL. Use ofbroadband-capable, also known as “Third Generation,” cell phones, is also growing, asthey aggressively target a maturing French mobile sector. Wireless broadbandconnectivity is increasing as well, especially through the spread of public hot spots.France is among the five largest markets – the UK, Germany, France, Spain and Italy –which experienced robust growth in broadband penetration. All five countries now havea per-capita penetration rate of higher than 18 percent.For consumers, this rising access to broadband is enabling and driven by the growth ofe-commerce and e-media consumption in France. For businesses, broadbandconnectivity is an increasingly integral part of marketing, communication and distributionstrategies. The trend in French Internet consumption continues to be more connectivityand better services for less. As of September 2009, there were 19.1 million high-speedand ultra high-speed internet subscriptions in France. Ultra high-speed subscribers areestimated at 255,000, including 60,000 in fiber-to-home or building, and 195,000 inoptical fiber with coaxial cable termination. Over 4.5 million houses were located withinreach of an optical fiber network. As of end of September 2009, over 36,000 buildingswere equipped with fiber-to-the-home and connected to at least one operator’s network,this showed an increase of 9 percent over a period of three months. Approximately740,000 households located in these buildings are now eligible to receive a FFTHservice (an increase of 14% since June 30, 2009.) With a total of 9.3 million connectionssold as of 30 September 2009, the wholesale DSL broadband market continues to growat a steady pace. The total number of ADSL subscribers amounted to 8.1 million withpossible access to television via their ADSL line. The new field of competition forInternet providers in France lies in the convergence of services offered. Most Internetproviders now offer VoIP and or Triple Play services (data, television, voice).Mobile usage in France has traditionally lagged behind the European average, but thecountry has been catching up in recent years. The number of mobile subscribers hasincreased by 6%, and reached 61.4 million as of December 2009, and 25% subscribe to3G services. Over 109 text messages (SMS) are sent per month per customer. A totalof 19 billion text messages were exchanged in 2009. Virtual Mobile Network Operatorsor MVNOs continue to increase its market share in the mobile sector. MVNOs buyminutes from one of the major operators (in this case, Orange, SFR or Bouygues) and2/18/2010 Country Commercial Guide for France 54INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

then redistribute those minutes to consumers. As of end of December 2009, MVNOsrepresented 3.5 million subscribers and 5.93 percent of the market.The telecommunications and IT sectors already play a central role in the Frencheconomy. As these sectors experience further growth, the market for infrastructure andequipment and services will continue to offer opportunities to U.S. companies.Best Products/ServicesReturn to topGeneral French business and consumer commitment to mobility and broadbandconsumption is clear. French consumers, particularly the young generation, seem toadapt fully to the continuing convergence of technologies. Consumer demand for mobileproducts, broadband technology, and services such as video on demand, mobiletelevision and videophones is increasing. Also the exact combination of standards(UMTS, Wi-Fi, WiMax, RFID, etc) within France telecom’s infrastructure is being rapidlyestablished.OpportunitiesReturn to topAs broadband and wireless demand matures the French market for telecominfrastructure, equipment and support services will offer many exciting prospects forAmerican exporters.Security is a major concern of the French consumer in regards to their online activities.French consumers have shown a willingness to pay more for equipment or services, withbetter security. As broadband usage increases, so will the demand for protection ofonline transactions, and the need for evolving solutions to old and new Internet menaces(spam, viruses, fraud etc.). Indeed, if demand for security is not satisfied, it maythreaten the growth of demand for broadband in general. American companies havehistorically been more efficient at meeting client demand.ResourcesReturn to topRegulation Authority for Electronic and Postal Communication (Arcep) www.arcep.frFrench National Frequency Agency (ANF) www.anfr.frAssociation of Internet Service Providers (AFA) www.afa-france.comFrench Association of Network & Telecom Service Operators (AFORS)www.aforstelecom.frEuropean Telecommunications standards Institute (ETSI) www.etsi.orgTrade Association for the IT and Communications Sector (TICS) www.alliance-tics.comTrade Association of operators and telecommunications companies (SIOTEL)www.siotel.orgFrench Association of Mobile Operators (AFOM) www.afom.frAmerican EmbassyU.S. Commercial Service Commercial Specialist: Myrline.Mikal-Goide@mail.doc.gov;Phone: 33-1 43 12 70 90 -Website: http://www.buyusa.gov/france/en2/18/2010 Country Commercial Guide for France 55INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Water Resources Equipment and Services (WRE)OverviewReturn to top2008* 2009* 2010*Total Market Size 22,829 23514 23600Total Local Production 21,192 22100 22250Total Exports 4,220 5600 5600Total Imports 6,700 6800 6950Total Imports from U.S. 1,403 1445 1475Exchange Rate: USD 1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions; * Estimated figures)Source: French Ministry of EnvironmentThe total French market for water treatment equipment and related services is estimatedto be worth USD 23 billion. A stable economy and financial institutions, strongerEuropean Union (E.U.) regulations, greater public awareness and the increasing costsassociated with polluting have played a major role in an expanding market for watertreatment equipment and services. In addition, greater interest in complying withenvironmental regulations by national and local government officials has stimulated thismarket. Despite the current financial and economic challenges, the water sector is stillexpected to grow at a stable rate and provide continued market opportunities in anumber of areas.Best Products/ServicesReturn to topBest prospects include wastewater sludge treatment; installation and maintenance ofstand-alone sewage treatment tanks; remote monitoring technology; and membranesand water filters. Non point source pollution management and water conservationincluding leak detection and reclamation are becoming of major importance.OpportunitiesReturn to topStorm water ManagementUrban development, environmental concerns and water quality have brought non pointsource water and rainwater management to the fore in France. Consequently,progressive storm water management policies have been implemented to mitigate theenvironmental impact of urban development. While the main focus has been placed ontreating and disposing of rainwater for environmental reasons, residential applicationshave been used for many years. In addition, industry has recently discovered thebenefits of this vital resource for its own processes that can decrease operating costsand strengthen bottom lines. This is driving the market for rainwater capture, storageand reutilization technologies and includes green house watering, commercial andindustrial water cooling, water jet cutting, car washing and other ultra-pure, low mineralcontent water applications. Further, there are currently 8000 storm water managementinstallations in France while there are approximately 100,000 systems in the Germany.Based on this relative comparison, France is expected to experience high growth in theshort to mid-term.2/18/2010 Country Commercial Guide for France 56INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Wastewater Sludge TreatmentWastewater sludge treatment has remained a hot topic in France. Currently, 30 percentof sludge is incinerated, 31 percent goes to landfills, and 39 percent is used as fertilizer.Innovative technologies will focus on volume reduction and conditioning. The Frenchgovernment continues to recommend recycling and fertilizing as the primary disposalmethod for wastewater sludge. However, this practice has met resistance from thegeneral public due to health and safety concerns and from the agriculture industry forpollution liability concerns. The government has consequently, strengthened its resolveto improve recycling techniques (e.g., composting, dehydration) and broaden the rangeof applications (e.g., farming, landscaping, and revegetation) for recycled sludge. Thegovernment and as a result industry are moving towards “zero sludge discharge andzero waste generation”. Moreover, given the increase in wastewater, effluents andsludge generation, membrane bioreactors are in very high demand. New types ofcontaminants from pharmaceuticals, hormones and pesticides entering the wastewaterstream have also increased demand for membrane bioreactors. In sum, sludgetreatment technologies will continue to be in big demand into the foreseeable future.Stand-alone Sewage Treatment SystemsCurrently there are 5.3 million non-municipal sewage treatment systems (4 million septicand stand-alone sewage treatment tanks) in France. According to the French authoritiesover 90 percent of these systems do not conform to the French Water AgenciesDirectives (over half of the stand alone units do not comply with current or futureenvironmental regulations). They will, therefore, need to be replaced or revamped. Inaddition, approximately 200,000 septic tank units are installed per year. Managing andmaintaining these installations has become a top priority for end-users. While thenumber supplier is growing and competition is increasing market demand still outpacessupply. All this combined is expected to provide continued market opportunities in thissector.Remote Monitoring TechnologyWith the arrival of broadband networks, remote monitoring technology has becomeextremely prevalent. The industry is continuously restructuring to leverage these newand evolving technological capabilities. Consequently, water and wastewater operatorsare in constant search of equipment and instrumentation that can increase operationefficiency and decrease total cost of ownership. Market players will be looking fortechnology with broader applications, easy installation and greater flexibility andautonomy. Further, remote monitoring technology will offer solutions to the increasingcosts to comply with evolving storm water management policies. This is especially truesince many water districts and municipalities do not have the financial or humanresources to invest in full storm water management systems. Hence, sharing remotestorm water management systems with several water districts and municipalities hasbecome a cost effective way to comply with more stringent regulations and ensurehigher quality water management.Analytical InstrumentationThe European Directive for water quality adopted in 2000, which requires all naturalexisting bodies of water to attain satisfactorily ecological state by 2015, is expected todrive the market for biological and toxic substances analytical instrumentation. ThisDirective will also require a greater number of parameters to be measured. The primary2/18/2010 Country Commercial Guide for France 57INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

market applications include continuous monitoring in aquatic environment and in-linemonitoring; flood control and prevention in sewer networks and grids; reduction ofchemical reagents and energy in water treatment.Filters, Membranes and Water ReclamationOrganic membranes for urban wastewater treatment and reclaimed water are anemerging market. A growing interest and acceptance in reclaimed water has beendriving the market for disinfection technologies such as UV, ozone and chlorination aswell as other membrane technologies including nano-filtration, microfiltration, ultrafiltration and reverse osmosis. Membranes capable of treating wastewater dischargedinto sensitive ecological systems are also in high demand. This offers an importantopportunity for U.S. companies, which are generally market leaders in this sector. In theUV market France (with less than 100 water treatment plants using UV systems) is muchfurther behind compared to Germany, Switzerland, the UK and the US.ResourcesReturn to topUnion des Entreprises et Industries de l’Eau et de l’EnvironnementThe French Federation for the Water and Environmental Industrieshttp://www.french-water.comCanalisateurs de FranceFrench Waterline Construction Associationhttp://www.canalisateurs.comSNITER (Syndicat National des Industries du Traitement des Eaux)National Association for the Water Treatment IndustryIFEP (Industriels français de l'Eau de pluie)The French Institute for Stormwaterwww.ifep.infoUAE (Union des Entreprises d’Affinage de l’Eau)French Water Quality Associationhttp://french-water.com/uae/uae.htmlU.S. Commercial Service Commercial Specialist:Everett.Wakai@mail.doc.gov – Phone: 33-1 43 12 70 45Website: http://www.buyusa.gov/france/en2/18/2010 Country Commercial Guide for France 58INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Medical Equipment (MED)OverviewReturn to top2008* 2009* 2010*Total Market Size 6,167 6,227 6,290Total Local Production 5,088 5,138 5,190Total Exports 2,197 2,219 2,240Total Imports 3,276 3,308 3,340Imports from the U.S. 998 1,008 1,018Exchange rate: USD1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions) * indicates unofficial estimates)Total market demand in France for medical equipment was estimated at USD 6,227million in 2009, with imports accounting for USD 3,308 million. Imports from the UnitedStates were forecast at USD 1,008 million, or 30 percent of total imports. Thispercentage is expected to remain approximately the same over the next three years, withoverall demand growing at 1 percent annually.The best sales prospects for medical equipment include newly developed areas such asnon-invasive surgery, orthopedics, and disposable medical equipment. Healthcareprofessionals are highly optimistic about new technologies such as telemedicine, whichis expected to have a major impact on medical care institutions. The recent growth ofAmerican medical procedures and techniques in France such as (outpatient) same-daysurgery should benefit American medical product manufacturers.Best Products/ServicesReturn to topDiagnosis:The diagnostic sub-sector represents 35 percent of the total medical equipment market.State-of-the-art diagnostic medical imaging systems are in great demand. Applicationsfor this technology already exist for pediatrics, cardio-vascular care, digestion, urology,and spinal/nerve treatment. As it is well accepted and effective, the demand for this typeof technology will continue to grow. Health care professionals are very optimistic abouta feature of medical imagery equipment known as "image networking." This willdramatically improve diagnostics by providing an image data bank that would enable aspecialist to compare the image of a current case to hundreds of previous cases.Rehabilitation:This sub-sector represents 26 percent of the total medical equipment market. It includesall types of disposable medical products. The increasing elderly population reinforcesthe demand for all kinds of disposable equipment and supplies such as incontinenceproducts and care kits used by nurses and families for home-care.Surgery:The surgery instrument and supplies sub-sectors represent approximately 17 percent ofthe total sector. Recent developments in the non-invasive surgery field could have astrong impact on everyday hospital practice. These latest advances offer superiorresults and also present a significantly reduced risk to patients.2/18/2010 Country Commercial Guide for France 59INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Technical aids:The French market for medical prosthesis, 8 percent of the total medical equipmentmarket, is characterized by a strong potential for innovative internal prosthesis such asknees, hips, ligaments, and elbows, and with a slightly decreasing market for externalprosthesis. Technological evolution, especially in the field of anesthesia, offers thepotential for rapid changes in this market.Intensive care:Intensive care equipment such as respiratory monitoring, pumps and incubatorsrepresent about 8 percent of the total medical equipment market. Intensive careequipment includes the latest technological advances. Both public and private hospitalsshow a rising demand for intensive care equipment and supplies.Hygiene:The hygiene sub-sector represents approximately 6 percent of the total medicalequipment sector. Patient and medical personnel safety is of growing concern to bothmembers of the medical profession and the public. Best sales prospects will certainlyfocus around assuring stringent personnel safety requirements. This is especially due tothe concern regarding AIDS and other contagious diseases. In the future, preventionshould receive similar emphasis considering the present focus on protection.OpportunitiesReturn to topAlthough the idea of implementing controls on health expenditures is not foreign todeveloped countries, the expansion of such alternatives has caused a decline in themarket for hospital-care equipment. This decline has created a demand for a whole newrange of medical equipment that will facilitate fewer and shorter hospital stays. Theneed for medical home-care and long-stay hospitalization for the increasing elderlypopulation will bring new prospects for the American medical equipment market.Consequently, the demand for medical equipment and products that will assist newFrench health care controls will continue to increase.ResourcesReturn to topApproval and testing:G-MED (Groupement pour l'évaluation des dispositifs médicaux)National agency for the evaluation of medical equipmenthttp://rwww.gmed.frSyndicat National de l'Industrie des Technologies Médicales - S.N.I.T.E.M.(Medical equipment trade association)http://www.snitem.frAmerican Embassy - U.S. Commercial Service Commercial Specialist:Alain.Levy@mail.doc.govPhone: (+33-1) 43 12 70 14 - http://www.buyusa.gov/france/en2/18/2010 Country Commercial Guide for France 60INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Automotive parts Equipment (APS)OverviewReturn to top2008 2009* 2010*Total Market Size 34,285 27,428 27,428Total Local Production 35,742 28,593 28,593Total Exports 28,497 22,797 22,797Total Imports 27,040 21,632 21,632Imports from the U.S. 809 797 797Exchange rate: USD 1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions: * estimated figures)Source: FIEV (French Vehicle Suppliers Association)France is the fourth largest European automotive market after Germany, the U.K.and Italy, with 2,050,283 new registered passenger vehicles and 5,393,000 second handpassenger vehicles in 2008. France is facing a most difficult year due to the economiccrisis that has hit the worldwide automotive industry. The entire French automotivebusiness chain suffered essentially because of the decrease in passenger vehiclesproduction, which plunged 15.3% in 2008 to 2.5 million vehicles (instead of 2.9 million in2007).French automotive parts suppliers’ sales totaled approximately USD 34.2 billion in2008, which represented a decrease of 12.1% compared with 2007. Professionalswithin the industry estimate a turnover decrease of 20% to 25% for 2009. The drop inproduction and demand for passenger cars in France will also affect automotive partssuppliers in 2010. Estimates for 2010 are difficult to establish but figures should besimilar to 2009. The industry is still very prudent as incentives (which help boost sales ofsmall and green vehicles) will not be renewed in 2010.The main categories of automotive parts included in these figures are: power trainequipment (41.9%), vehicle interiors (29.6%), tire-to-road link components (13.7%), bodycomponents (11.5%) and equipment for measurements, checks, diagnostics and repairs(3.3%). This equipment is sold to the OEM market (Original Equipment Manufacturers)and the aftermarket, which includes the OES (Original Equipment Suppliers) and theIAM markets (Independent Market).OEM auto parts sales reached approximately USD 28.2 billion, a 12.6% decreasecompared to 2007. On the other hand, automotive parts suppliers’ sales to theaftermarket (OES + IAM) decreased by 9.5% to approximately USD 6 billion in 2008.France lost 7,000 automotive workers in 2008 for a total of 107,000 employees.Best Prospects/ServicesReturn to topThe automotive parts market in France is dominated by big multinational firms, manyof them American with French or European operations. The FIEV (The French VehicleEquipment Industries Association) regroups the main parts and equipment suppliers inFrance. Large U.S. suppliers are already present in France and are doing well. Amongthe twenty top suppliers, eight are American (Delphi, Visteon, Johnson Controls, Lear,TRW Automotive, Dana, Arvin Meritor, Federal Mogul). There is little or no room for mid-2/18/2010 Country Commercial Guide for France 61INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

sized exporters in this very closed environment, where competitive requirements,transportation costs, etc., make it very difficult for firms not physically established here tosell their products to OEM and OES. U.S. industry generally supplies the French marketfrom its European subsidiaries or via local joint ventures.Direct imports from North America decreased in 2008 to 797 million dollars. The trend isstill to source in Asia, the Middle East and North African countries.The FIEV, the French Vehicle Suppliers Association, has mapped the evolution of thesupply chain, and it is obvious that French manufacturers encourage their key suppliersto co-locate in manufacturing plants adjacent to the in-country assembly operations, or inEuropean countries close by.Most of the larger vehicle manufacturers have rationalized their suppliers’ base ofcomponents and sub-assemblies and have stopped manufacturing parts in-housewherever possible. The trend is toward Tier One suppliers that provide complete subassembliesof parts sourced from the variety of Tier Two and Tier Three componentmanufacturers. Key suppliers are gaining greater competence in modules, systems, andeven complete vehicle manufacture and have to meet the highest standards to be ableto compete in this industry.OpportunitiesReturn to topOpportunities for U.S. suppliers will be on highly technological products or those that areinnovative in the context of the environment or security and safety. On-boardcommunication tools are enjoying good growth.ResourcesReturn to topEquip Auto 2011-Trade Show – October 2011Website: http://www.equipauto.comFrench Vehicle Equipment Industries AssociationWebsite: http://www.fiev.frFrench Association of Automotive Independent DistributorsWebsite: http://feda.frAmerican Embassy - U.S. Commercial Service Commercial Specialist:Stephanie.Pencole@mail.doc.govPhone: (33-1) 43 12 71 38 - http://www.buyusa.gov/france/en2/18/2010 Country Commercial Guide for France 62INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Plastics (PMR)OverviewReturn to top2008 2009* 2010*Total Market Size 44,571 42,342 44,571Total Local Production 41,071 38,498 41,071Total Exports 10,343 9,930 10,343Total Imports 13,843 13,774 13,843Imports from the U.S. 380 372 380Exchange rate: USD 1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions: * estimated figures)Source : Panorama de la Plasturgie (French Plastics Industry Association)The French plastics industry ranks second in Europe after Germany and fourth in theworld after the United States, Japan and Germany.The French plastics industry is composed of 3,800 plastic manufacturing and processingcompanies, 4,100 plastics processing plants and a workforce of approximately 147,300individuals.France produces around 20 million tons of plastic materials per year, which represents3% of European production.As with its European counterparts, France’s industrial plastics processing companiesfaced rising costs, especially for raw materials. In 2008 and 2009, the production oftechnical parts decreased mainly due to the weakness of the automotive market. In2008, plastic processing turnover reached 44 billion dollars, broken down as follows:technical parts 30%; packaging 27%; building products 19%; semi-finished products18%; other 6%.In 2009, the economic crisis precluded increases in production and turnover. Statisticsare not available yet, but professionals within the industry estimate losses at about – 5%.We have based our estimations for 2010 on 2008 figures, in order to show growth over2009, but which also express results which are not totally back to normal.In 2008, exports and imports are also down: -4% in exports totaling 10 billion dollars and– 0.5% in imports totaling 13 billion dollars. Estimates for 2009 are not available.The European Union (mainly Germany, the United Kingdom, Spain, Belgium and Italy) isFrance’s main trading partner, accounting for 76% of exports and 78% of imports.Outside of Europe, France’s main clients are: Switzerland, the U.S., Tunisia, Turkey andRussia. France’s main suppliers outside of the E.U. are China, the U.S., Switzerland,Japan and Turkey.The U.S. sold 380 million dollars in plastic products to France in 2008 (-2% comparedwith 2007), mostly in technical parts. French exports to the U.S. have been fairly stablefor the last two years but decreased by 5% between 2006 and 2008 to total 297 milliondollars.2/18/2010 Country Commercial Guide for France 63INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Best Prospects/ServicesReturn to topAdditives, high performance plastics, bioplastics, biodegradable plastics,nanocomposites and wood plastics-composites all have good potential in France.Market access:• REACH for supply chain in the EU that produce, import and use chemicals.Based on volume (of/or exceeding 1 ton)• Bio Plastics: EU standard EN 13442/ EN 14995 for compostable orbiodegradable advertisements.Customs duties:• Resins: 3901 through 3915: 6.5%• Products: 3916 through 3926: between 5.3% and 6.5%To be added to the standard value-added French tax of 19.6%.OpportunitiesReturn to topThe International Trade Fair for Plastic and Rubber (K Show) is the major Europeanexhibition for the plastics industry. It takes place in Dusseldorf every 3 years. The next KShow is October 27-November 3 rd , 2010. It presents a good opportunity for U.S.companies to study the potential of the European market, to access competition andmeet with French partners.http://www.k-online.deResourcesReturn to topFrench Plastic Industry Association – Fédération de la Plasturgiehttp://www.laplasturgie.frFrench Federation of Composites and Plastics Transformers (GPIC)http://www.gpic.frEmbassy U.S. Commercial Service Commercial Specialist:Stephanie.Pencole@mail.doc.govPhone: (33-1) 43 12 71 38 - http://www.buyusa.gov/france/en2/18/2010 Country Commercial Guide for France 64INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Education Services (EDS)OverviewReturn to topAcademic Year 2007-2008* 2008-2009* 2009-2010*Total Market Size USD 19.651 USD 19,847 USD 20,839Total Local ProductionFrench and ForeignUSD 27 831*(2 254 386)USD 28 109*(2,276,929)USD 29 514*(2,390,775)Students in FranceTotal ExportsForeign Students in FranceUSD 3 144*(263 126)USD 3 175*(265,757)USD 3 333*(279,044)Total ImportsFrench Students OverseasUSD 774.0*(52,500)USD 781.0*(53,025)USD 820.0*(55,676)Imports from the U.S.French Students in the U.S.USD 152.3*(6,704)USD 153.0*(7,050)USD*(7,421)Exchange rate: USD1.00 Euro 0.7 Euro 0.7 Euro 0.7* Estimated figures in million USD and (unit person)Source: Open Doors: Report on International Educational Exchange published with the support of the U.S.Department of State’s Bureau of Educational & Cultural Affairs, November 2009.Historical trendsReturn to topThe number of French students in the U.S. rose steadily in the 1990s until it peaked at7,401 students in 2001/2002. After a four-year decline, international students fromFrance began to rise again in 2005/2006 and rose by 5.3% in 2008/2009.Best Products/ServicesReturn to topEducation abroad has increasingly become an important factor for French universitygraduates seeking to stand out in the employment market, especially with the expansionof the European Union. English is now effectively the business language of Europe.Best prospects within this sector include: intensive “American” English language trainingprograms (summer programs for students or adults); programs in businessadministration; one-year university programs for French high-school graduates (postbaccalaureate)usually between graduation and entry into French university; secondaryboarding schools; work/study programs (internships); academic summer camps; andundergraduate and graduate degrees.OpportunitiesReturn to topOpportunities exist for U.S. schools wishing to expand their enrollment of Frenchstudents. A select number of undergraduate and graduate students prefer to go abroadto expand their university and post-graduate training and experience. For the academicyear 2008-2009, they were 7,421 students from France studying in the USA (up 5.3%from the previous year). France is the eighteenth leading place of origin for internationalstudents in the United States. Opportunities for U.S. schools are expected to continuegrowing due to the favorable view of the French toward studies in the United States.American educational institutions should increase their efforts to promote their programs2/18/2010 Country Commercial Guide for France 65INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

in France. There is an increased competition from other markets – Australia, U.K. SouthAfrica, New Zealand, other EU countries, due to the ease of the application process andthe perception of saving money.ResourcesReturn to topOfficial organization: Fulbright Commission - http://www.fulbright-france.orgTrade Events:Education: International Studies Fairhttp://www.letudiant.frEXPOLANGUEShttp://www.letudiant.frSALON SPECIAL MASTERSET 3EMES CYCLES (L’Etudiant)SALON DE L'ETUDIANT DE PARISEducation: Bachelor & Graduate Studieshttp://www.letudiant.frPARIS MBA FORUM STUDYRAMAEducation: MBA Programshttp://www.studyrama.comJanuary 29-30, 2010, ParisFebruary 3-6, 2010, ParisFebruary 5-6, 2010, ParisMarch 12-14, 2010, ParisMarch 12-13, 2010, ParisOctober 2010 (TBD)American Embassy - U.S. Commercial Service Commercial Specialist:Valerie.Ferriere@mail.doc.govPhone: (+33-1) 43 12 70 77Website: http://www.buyusa.gov/france/en2/18/2010 Country Commercial Guide for France 66INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Textile (TXT)OverviewReturn to top2008 2009 2010*Total Market Size 25,993* 24,692* 25,000Total Local Production 19,182* 18,222* 18,500Total Exports 11,120* 10,564* 10,800Total Imports 17,931* 17,034* 17,300Imports from the U.S. 537.9* 511.0* 519.0*Exchange Rate: USD 1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions)* Official statistical figures including only textile companies employing at least 20 people.* Statistical import figures including French customs classification N0. 61- 62 - 63.In 2008, the French textile industry (including apparel) had about 804 companies (with atleast 20 persons) employing 82 160 people. French companies have suffered alongwith the rest of the industry from the general economic slowdown as evidenced by the3.3 percent decrease in jobs offered by these companies from 2007 to 2008. Theeconomic slowdown was reflected in the production number as well as in the foreigntrade numbers. According to market analysts, the textile industry will have to face againwith the consequences of the economic recession for a few years.In 2008, the consumption of textile and apparel has declined as follows:• Women’s wear: minus 3.8 percent• Household textiles: minus 2.7 percent• Men’s wear: minus 2.1 percent• Children’s wear: minus 1.7 percent• Baby’s wear: minus 0.2 percentAs in previous years, the major textile suppliers remained China (19%), Italy (13%), andGermany (7%), followed by Turkey (6%), Belgium (5%), Bangladesh, India (4%),Tunisia, Portugal, and Spain (3%).French imports of Chinese are still growing, and China is anticipated to remain as theworld’s number one exporter once again. Consequently, Europeans and Americanssuppliers have to face the challenge of competing against low-prices and large suppliesrepresenting a real challenge. In addition, the textile industry is subject to the strongestconstraints because it must meet retailing requirements and end consumers’ multipleaspirations. Its growth will depend on creativity, marketing, and innovation, theorganization of an industry supply chain, dynamic business initiatives, image, andcommunication.United States textile exports to France are mainly composed of sportswear and technicaltextiles. The advantageous of American suppliers are their know-how and their ability toadapt quickly to the change and create new products.Technical textiles or “textiles of the future” are more and more represented in a widerange of industries. Consequently, they representing about 10% of the textile industry,2/18/2010 Country Commercial Guide for France 67INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

and are anticipated to increase their market share in the following years, particularly inthe following industries: transportation, sport and leisure, packaging, and industrialprotection.Best Prospects/ServicesReturn to topThe U.S. technical textiles manufacturers have a strong reputation for their technologicalknow-how. Therefore, their new challenges are to develop functional textiles called“textiles of the future” for the following industries: transportation, construction, andindustrial protection.Best prospects within this sector are:- health/well-being, and “techno-textiles” for the sportswear (i.e.: anti-bacterial,anti-odor, insect repellent, and breathable products);- Techno-textiles with electronic devices and communication systems incorporatein the garments;- Technical textiles for transportation (automotive and aeronautics) and forpackaging industries.OpportunitiesReturn to topThe best opportunities will be offered to U.S. companies, which are able to create newtechnologies and to develop innovative products which will be able to bring newsolutions to a large number of industrial sectors.ResourcesReturn to topSources and textile trade associations:Union des Industries Textiles – U.I.T.(Textile Trade Association)http://www.textile.frEmail: uit@textile.frUnion Française des Industries de l’Habillement – U F I H(French Trade Association for apparel industries)http://www.ufih.frCentre de Renseignements Statistiques des Douanes(French Customs Authorities – Statistical Data)Tel: (33-1) 55.04.65.28http://www.douane.gouv.fr2/18/2010 Country Commercial Guide for France 68INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Major trade shows:• Lingerie trade show –http:// www.lingerie-paris.com(January 2010-January 2011)• Paris Mode City (lingerie, swimwear and fabrics)http:// www.mode-city.com(September 4- 6, 2010)• Inters Selection trade show (International fashion exhibition for multiple retailers)http:www.interselection.net(April 13-15, 2010 / November 2010)• Women’s wear trade show – http://www.pretaporter.fr(September 4-6, 2010 / January, 2011)• Who’s Next trade show (International Fashion Show) –http://www.whosnext.com(September 4-6, 2010 /January, 2011)• Premiere Vision (Fabrics trade show) – http://www.premierevision.fr(February 9-12, 2010)American Embassy - U.S. Commercial Service Commercial Specialist:Caroline.deVilloutreys@mail.doc.govPhone: (+33-1) 43 12 71 98Website: http://www.buyusa.gov/france/en2/18/2010 Country Commercial Guide for France 69INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Direct marketing and E-Commerce B2COverviewReturn to top2008 2009 2010 *Total Market Size 30 34 38Total Local Production n/a n/a n/aTotal Exports n/a n/a n/aTotal ImportsExchange Rate: USD 1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD billion; * Estimated figures)Best Prospects/ServicesReturn to topFrench direct marketing for consumer products and services is one of the largestmarkets in the world and one of the fastest growing in Europe, with a 13 percent growthrate between 2007 and 2008. This market represents over 6 percent of the non-foodretail business in France. It was valued at USD 34.8 billion (Euros 25 billion) in 2008,with product sales accounting for 52 percent of total sales, and sales of servicesaccounting for 47 percent.In 2008, 78 percent of the French used distance purchasing through mail order, internet,telephone and mobile phones. A general downward trend has been observed in recentyears in sales made through the mail due to rapid expansion in Internet sales.The total number of Internet users in France and the total number of commercialwebsites has increased drastically. Currently, there are approximately 33 million Internetusers and over 21 million online buyers in France.Retail online sales estimates (B-to-C) in 2008 were USD 27.8 billion (20 billion Euros)and accounted for 80 percent of total direct marketing sales, while they represented only8 percent in 2000. From 2007 to 2008, total online sales of products and servicesincreased by 25 percent, thus confirming the already prominent role that the Internet hasin direct marketing sales. Today 65 percent of Internet users have already purchasedonline, primarily hi-tech and services, and travel packages, followed by clothing andcultural products. The average purchase on-line is USD 128 (92 Euros).OpportunitiesReturn to topThe categories of products that reported the best growth rates in 2008 are travel andtourism, clothing, followed by high-tech products (computers, televisions, cameras…).ResourcesReturn to topFrench Direct Marketing Association (Fédération du E-commerce et de la Vente àDistance – FEVAD) - http://www.fevad.comE-commerce Trade Association (Association pour le commerce et les services en ligne –ACSEL) - http://www.acsel.asso.fr2/18/2010 Country Commercial Guide for France 70INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Trade events:Direct Marketing Show (product and service providers to the industry)MD Expo Paris - http://www.md-expo.comE-Commerce Paris (service providers to the industry) -http://www.ecommerceparis.comAmerican Embassy – U.S. Commercial Service Commercial Specialist:Rose.Marie.Faria@mail.doc.gov – Phone: (33-1) 43 12 71 49http://www.buyusa.gov/france/en2/18/2010 Country Commercial Guide for France 71INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Agricultural SectorsReturn to top• (Fish and Seafood, Fresh and frozen)• (Processed fruits and Vegetables, including fruit Juices)• (Beverages including Mineral Water, Beer, Wine and Spirits)• (Fresh and Dried Fruits, including Nuts)• (Fresh and Dried Vegetables)Fish and Seafood, Fresh and Frozen (HS Code 03)OverviewReturn to topReturn to top2008 2009 2010*Total Market Size 5,596 5,827 5,929Total Local Production 2,170 2,370 2,379Total Exports 1,626 1,891 1,950Total Imports 5,052 5,348 5,500Imports from the U.S. 150 155 140Exchange rate: USD1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions; * Estimated figures)France is a major consumer of seafood products and a net importer of many seafoodproducts, because domestic production is significantly lower than demand. In 2008, theUnited States was France’s fifth largest supplier of seafood products after Norway, theUnited Kingdom, Spain, and the Netherlands. U.S. seafood products exported to Francemainly consist of frozen fillets and frozen scallop, live and frozen lobster, and frozensalmon.Processed Fruits and Vegetables, including Fruit Juices (HS Code 20) Return to top2008 2009 2010*Total Market Size 9,756 12,059 12,024Total Local Production 8,562 10,705 10,713Total Exports 1,226 1,025 1,029Total Imports 2,420 2,379 2,340Imports from the U.S. 13 14 15Exchange rate: USD1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions; * Estimated figures)Fruit juices and soft drinks in France are currently the most dynamic growth sectorsamong non-alcoholic beverages, with per capita consumption of fruit juices estimated at28 liters per year. The primary imports from the United States consisted of fresh andfrozen orange and grapefruit juices. Competition in the juice sector is very strong,principally from Brazil, Israel and Spain, which benefit from preferential tariffs.2/18/2010 Country Commercial Guide for France 72INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Beverages, including Mineral Water, Beer, Wine and Spirits(HS Code: 22.01 to 22.06 and 22.07 + 22.08)Return to top2008 2009 2010*Total Market Size 15,082 17,323 17,332Total Local Production 25,584 29,338 29,379Total Exports 13,306 15,370 15,450Total Imports 2,804 3,355 3,403Imports from the U.S. 78 104 90Exchange rate: USD1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions; * Estimated figures)In 2009, French imports of U.S. wine totaled $10 million, representing 4.8 percent of totalFrench wine imports by value. U.S. wine in France faces strong competition from Italy,Spain, and Greece, as well as from new world producers such as Australia, South Africa,and Chile.The French are also significant consumers of spirits. In 2009, U.S. spirits exports toFrance valued at $85 million represented 8 percent of total French spirits imports ofapproximately $1.12 million.Opportunities exist for ethnic, new and innovative U.S. beverages, particularly thoselinked with Tex-Mex foods.France is the fifth largest European producer of beer with a total production of 17 millionhectoliters. Ten percent of the production is exported. The French beer industryconsists of six major breweries.Fresh and Dried Fruits, including Nuts (HS Code: 08)Return to top2008 2009 2010*Total Market Size 4,028 4,671 4,775Total Local Production 2,467 2,740 2,850Total Exports 1,813 2,011 2,100Total Imports 3,374 3,942 4,025Imports from the U.S. 209 186 182Exchange rate: USD1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions; * Estimated figures)Prime opportunities for U.S. suppliers are in off-season and extended-season sales, andyears of short French fruit crops. France is one of the most important markets for U.S.grapefruit. The U.S. market share for citrus fruits represents 25 percent of total Frenchimports in value and 20 percent in volume. France imports apples and pears in shortcrop years. There is also a niche market for berries, cherries, and tangerines. TheUnited States is the largest supplier of dried nuts (mainly almonds, pistachios andwalnuts) to France with $ 125 million exports in 2009. The snack and nut product marketis important for U.S. exporters, who profit by promoting their products as healthy andhigh-quality choices.2/18/2010 Country Commercial Guide for France 73INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Fresh and Dried Vegetables (HS Code: 07)Return to top2008 2009 2010*Total Market Size 5,309 5,525 5,523Total Local Production 4,851 4,935 5,003Total Exports 1,992 2,426 2,500Total Imports 2,450 3,016 3,020Imports from the U.S. 19 27 30Exchange rate: USD1.00 Euro 0.7 Euro 0.7 Euro 0.7*(Figures in USD millions; * Estimated figures)U.S. dried vegetables exports to France remained stable in value in 2009, to reach $24million. Opportunities exist for U.S. suppliers of dried beans, peas and lentils.Very few opportunities exist for U.S. fresh vegetables, except for green asparagus andhigh quality, off-season produced fresh vegetables, such as eggplant, zucchini, sweetpeppers and iceberg lettuce.For additional information on the above product opportunities and market informationmay be found in various reports from the following website:www.fas.usda.gov (Click on Attaché Reports)Return to table of contents2/18/2010 Country Commercial Guide for France 74INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Return to table of contentsChapter 5: Trade Regulations and Standards• 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 Agreements• Web ResourcesImport TariffsReturn to topMember states of the European Union have established a Community Integrated Tariff(TARIC) system, where duties are applied to imports from non-EU countries. TARICwas established by the 1958 Treaty of Rome as part of the European EconomicCommunity (EEC). The Uruguay Round has reinforced the Single Market program. Itfocuses on the consolidation of an integrated European market, rather than ondeveloping new policy directions. There are combined bilateral, regional, andmultilateral policies.Duties levied on imports from non-EU countries, including the United States, aremoderate. Most raw materials enter duty-free or at low rates, most manufactured goodsare subject to rates between 5 and 17 percent. Most agricultural product imports arecovered by the Common Agricultural Policy (CAP), subjecting many items to variedlevies designed to equalize the prices of imported commodities with those produced inthe EU. Agricultural products are strictly regulated based on EU and French standards.France and other EU member states have a network of bilateral and regional tradeagreements. The EU has entered into customs union agreements (with Turkey, Cyprus,Andorra and Malta) and 26 free trade agreements under either GATT Article XXIV orGATS Article V. There are free trade agreements (two-way free trade without commonexternal tariffs) and other sorts of preferential trade agreements with Norway, Iceland,Switzerland, Liechtenstein, Israel, the Palestinian Authority, Tunisia, Morocco, Jordan,Egypt, Lebanon, Syria and Algeria. Free Trade Agreements with Mexico and SouthAfrica were concluded in 1999. The EU provides non-reciprocal preferential access toits markets to ACP countries (African, Caribbean and Pacific developing countries)under the Cotonou Agreement, and to other developing countries under the GeneralizedSystem of Preferences (GSP).To export consumer-ready food products to France, a U.S. exporter should considermarket access restrictions and food laws. Most processed products entering theEuropean Union and France are subject to additional import charges based on thepercentage of sugar, milk fat, milk protein and starch in the product. These additional2/18/2010 Country Commercial Guide for France 75INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

import charges may make certain imported processed products non-competitive in theEuropean market, vis-à-vis similar products produced in the EU. Interested U.S.exporters should contact the Office of Agricultural Affairs for up-to-date information onthis issue.The EU tariff schedule is based on the Customs Cooperation Council Nomenclature(CCCN), which is also referred to as the Harmonized System. This system wasintroduced to provide a standard tariff classification regime for all products imported andexported throughout the world. Agriculture has high import tariffs in order to maintain astrict regime of what type of produce and meat are accepted into the EU. Hormonetreatedbeef continues to be banned by the EU despite WTO rulings that the ban violatesinternational trade agreements. The decreasing average for industrial manufacturinggoods is expected to be around 3 per cent over the next few years (Insert text here)Trade BarriersReturn to topFor information on existing trade barriers, please see the National Trade EstimateReport on Foreign Trade Barriers, published by USTR and available through thefollowing website:http://www.ustr.gov/sites/default/files/uploads/reports/2009/NTE/asset_upload_file348_15473.pdfInformation on agricultural trade barriers can be found at the following website:http://www.fas.usda.gov/posthome/useu/To report existing or new trade barriers and get assistance in removing them, contacteither the Trade Compliance Center at http://www.trade.gov/tcc or the U.S. Mission tothe European Union at http://www.buyusa.gov/europeanunion.(Insert text here)Import Requirements and DocumentationReturn to topThe Integrated Tariff of the Community, referred to as TARIC (Tarif Intégré de laCommunauté), is designed to show various rules applying to specific products beingimported into the customs territory of the EU or, in some cases, when exported from it.To determine if a license is required for a particular product, check the TARIC.The TARIC can be searched by country of origin, Harmonized System (HS) Code, andproduct description on the interactive website of the Directorate-General for Taxationand the Customs Union. The online TARIC is updated daily.Many EU Member States maintain their own list of goods subject to import licensing.For example, Germany's "Import List" (Einfuhrliste) includes goods for which licensesare required, their code numbers, any applicable restrictions, and the agency that willissue the relevant license. The Import List also indicates whether the license is requiredunder German or EU law. For information relevant to Member State import licenses,please consult the relevant Member State Country Commercial Guide: EU MemberStates' Country Commercial Guides or conduct a search on the CommerceDepartment’s Market Research Library, available from:http://www.export.gov/mrktresearch/index.asp.Key Link: http://ec.europa.eu/taxation_customs/common/databases/taric/index_en.htm2/18/2010 Country Commercial Guide for France 76INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Import DocumentationNon-agricultural DocumentationThe official model for written declarations to customs is the Single AdministrativeDocument (SAD). European Free Trade Association (EFTA) countries including Norway,Iceland, Switzerland, and Liechtenstein also use the SAD. However, other forms may beused for this purpose. Information on import/export forms is contained in Title VII, ofCouncil Regulation (EEC) No. 2454/93, which lays down provisions for theimplementation of Council Regulation (EEC) No. 2913/92 establishing the CommunityCustoms Code (Articles 205 through 221). Articles 222 through 224 provide forcomputerized customs declarations and Articles 225 through 229 provide for oraldeclarations.Additional information on import/export documentation can be found in Title III, ofCouncil Regulation (EEC) No. 2913/92 of October 12, 1992, establishing the CommunityCustoms Code (Articles 37 through 57). Goods brought into the customs territory of theCommunity are, from the time of their entry, subject to customs supervision untilcustoms formalities are completed.Goods presented to customs are covered by a summary declaration, which is lodgedonce the goods have been presented to customs. The customs authorities may,however, allow a period for lodging the declaration, which cannot be extended beyondthe first working day following the day on which the goods are presented to customs.The summary declaration can be made on a form corresponding to the model prescribedby the customs authorities. However, the customs authorities may permit the use, as asummary declaration, of any commercial or official document that contains theparticulars necessary for identification of the goods. It is encouraged that the summarydeclaration be made in computerized form.The summary declaration is to be lodged by:• the person who brought the goods into the customs territory of the Community orby any person who assumes responsibility for carriage of the goods followingsuch entry; or• the person in whose name the person referred to above acted.Non-EU goods presented to customs must be assigned a customs-approved treatmentor use authorized for such non-Community goods. Where goods are covered by asummary declaration, the formalities for them to be assigned a customs-approvedtreatment or use must be carried out:• 45 days from the date on which the summary declaration is lodged in the case ofgoods carried by sea;• 20 days from the date on which the summary declaration is lodged in the case ofgoods carried other than by sea.Where circumstances so warrant, the customs authorities may set a shorter period orauthorize an extension of the period.The Modernized Customs Code (MCC) of the European Union is expected to be fully putinto place by 2013 although there are concerns that this deadline may be missed due tothe complexity of the project. Some facets of the MCC implementation have already2/18/2010 Country Commercial Guide for France 77INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

een put into place such as Economic Operators Registration and Identification (EORI)numbers. The MCC will replace the existing Regulation 2913/92 and simplify variousprocedures such as introducing a paperless environment, centralized clearance, andmore. Check the EU’s Customs website periodically for updates:http://ec.europa.eu/taxation_customs/customs/procedural_aspects/general/community_code/index_en.htm.BatteriesEU battery rules changed in September 2006 following the publication of the Directive onbatteries and accumulators and waste batteries and accumulators (Directive 2006/66).This Directive replaces the original Battery Directive of 1991 (Directive 91/157). Theupdated Directive applies to all batteries and accumulators put on the EU marketincluding automotive, industrial and portable batteries. It aims to protect the environmentby restricting the sale of batteries and accumulators that contain mercury or cadmium(with an exemption for emergency and alarm systems, medical equipment and cordlesspower tools) and by promoting a high level of collection and recycling. It places theresponsibility on producers to finance the costs associated with the collection, treatment,and recycling of used batteries and accumulators. The Directive also includes provisionson the labeling of batteries and their removability from equipment. For more information,see our market research report: http://www.buyusainfo.net/docs/x_8086174.pdf or visitthe CS EU website Batteries Direct page at:http://www.buyusa.gov/europeanunion/batteries.htmlREACHREACH is a major reform of EU chemicals policy that was adopted in December 2006and became national law in the 27 EU Member States in June 2007 (Regulation1907/2006). Virtually every industrial sector, from automobiles to textiles, is affected bythe new policy. REACH stands for the "Registration, Evaluation and Authorization andRestriction of Chemicals." Since June 1 2008, REACH requires chemicals produced orimported into the EU in volumes above 1 ton per year per to be registered with a centralEuropean Chemicals Agency (ECHA), including information on their properties, usesand safe ways of handling them. Chemicals pre-registered before December 1 2008,benefit from extended registration deadlines, from three to eleven years depending onthe volume of the substance and its hazard properties. U.S. companies without apresence in Europe cannot register directly and must have their chemicals registeredthrough their importer or EU-based ‘Only Representative of non-EU manufacturer’. A listof Only Representatives can be found on the website of the U.S. Mission to the EU:http://www.buyusa.gov/europeanunion/reach.html.U.S. exporters to the EU should carefully consider the REACH ‘Candidate List’ ofsubstances of very high concern. Substances on that list are subject to communicationrequirements and may at a later stage require Authorization for the EU market. For moreinformation, see the ECHA website:http://echa.europa.eu/chem_data/authorisation_process/candidate_list_table_en.asp2/18/2010 Country Commercial Guide for France 78INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

WEEE & RoHSEU rules on waste electrical and electronic equipment (WEEE), while not requiringspecific customs or import paperwork, may entail a financial obligation for U.S.exporters. They require U.S. exporters to register the products with a national WEEEauthority, or arrange for this to be done by a local partner. Similarly, related rules forEEE restricting the use of the hazardous substances (RoHS) lead, cadmium, mercury,hexavalent chromium, PBBs, and PBDEs, do not entail customs or importationpaperwork. However, U.S. exporters may be asked by a European RoHS enforcementauthority or by a customer to provide evidence of due diligence in compliance with thesubstance bans on a case-by-case basis. The WEEE and RoHS Directives are currentlybeing revised to enlarge the scope and add substances to be banned in electrical andelectronic equipment; the new rules could take effect as early as 2011. U.S. exportersseeking more information on WEEE and RoHS regulations should visit:http://www.buyusa.gov/europeanunion/weee.htmlAgricultural DocumentationPhytosanitary Certificates: Phytosanitary certificates are required for most fresh fruits,vegetables, and other plant materials.Sanitary Certificates: For commodities composed of animal products or by-products, EUcountries require that shipments be accompanied by a certificate issued by thecompetent authority of the exporting country. This applies regardless of whether theproduct is for human consumption, for pharmaceutical use, or strictly for non-human use(e.g., veterinary biological, animal feeds, fertilizers, research). The vast majority of thesecertificates are uniform throughout the EU, but the harmonization process is notcomplete. During this transition period, certain Member State import requirementscontinue to apply. In addition to the legally required EU health certificates, a number ofother certificates are used in international trade. These certificates, which may also beharmonized in EU legislation, certify origin for customs purposes and certain qualityattributes. Up-to-date information on harmonized import requirements can be found atthe following website: http://www.fas.usda.gov/posthome/useu/certificates-overview.htmlSanitary Certificates (Fisheries): In April 2006, the European Union declared the U.S.seafood inspection system as equivalent to the European one. Consequently, a specificpublic health certificate must accompany U.S. seafood shipments. Commission Decision2006/199/EC places specific conditions on imports of fishery products from the U.S.Sanitary certificates for live shellfish are covered by Commission Regulation (EC)1664/2006 and must be used for gastropods, bivalve mollusks, tunicates andechinoderms. The two competent Authorities for issuing sanitary certificates are theFDA and the U.S. Department of Commerce, National Marine Fisheries Service(NMFS/NOAA/USDC).Since May 1, 2007, with the implementation of the second Hygiene Package,aquaculture products coming from the United States must be accompanied by a publichealth certificate according to Commission Decision 2006/199/EC and the animal healthattestation included in the new fishery products certificate covered by Regulation (EC)1664/2006. This animal health attestation is not required in the case of live bivalvemollusks intended for immediate human consumption (retail).2/18/2010 Country Commercial Guide for France 79INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

For detailed information on import documentation for seafood, please contact the NOAAFisheries office at the U.S. Mission to the EU (stephane.vrignaud@mail.doc.gov) or visitthe following FDA dedicated web site: http://www.cfsan.fda.gov/.U.S. Export ControlsReturn to topWeb site: http://www.exportcontrol.org/Web site: http://www.bis.doc.gov/Temporary EntryReturn to topThe Integrated Tariff of the Community, referred to as TARIC (Tarif Intégré de laCommunauté), is designed to show various rules applying to specific products beingimported into the customs territory of the EU or, in some cases, when exported from it.To determine if a license is required for a particular product, check the TARIC.The TARIC can be searched by country of origin, Harmonized System (HS) Code, andproduct description on the interactive website of the Directorate-General for Taxationand the Customs Union. The online TARIC is updated daily.Many EU Member States maintain their own list of goods subject to import licensing.For example, Germany's "Import List" (Einfuhrliste) includes goods for which licensesare required, their code numbers, any applicable restrictions, and the agency that willissue the relevant license. The Import List also indicates whether the license is requiredunder German or EU law. For information relevant to Member State import licenses,please consult the relevant Member State Country Commercial Guide.Key Link: http://ec.europa.eu/taxation_customs/common/databases/taric/index_en.htmLabeling and Marking RequirementsReturn to topAn overview of EU mandatory and voluntary labeling and marking requirements hasbeen compiled in a market research report that is available at:http://www.buyusainfo.net/docs/x_4171929.pdf.The subject has been also been covered in the section about standards (see below).Prohibited and Restricted ImportsReturn to topThe TARIC is designed to show various rules applying to specific products beingimported into the customs territory of the EU or, in some cases, when exported from it.To determine if a product is prohibited or subject to restriction, check the TARIC for thatproduct for the following codes:CITES Convention on International Trade of Endangered SpeciesPROHI Import SuspensionRSTR Import RestrictionFor information on how to access the TARIC, see the Import Requirements andDocumentation Section above.Key Link: http://ec.europa.eu/taxation_customs/common/databases/taric/index_en.htm2/18/2010 Country Commercial Guide for France 80INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Customs Regulations and Contact InformationReturn to topHomepage of Customs and Taxation Union Directorate (TAXUD) WebsiteKey Link: http://ec.europa.eu/taxation_customs/customs/index_en.htmMajor Regulatory Efforts of the EC Customs and Taxation Union Directorate:Electronic Customs Initiative – Deals with major EU Customs modernizationdevelopments to improve and facilitate trade in the EU Member States. The electroniccustoms initiative is essentially based on the following three pieces of legislation:• The Security and Safety Amendment to the Customs Code, which provides forfull computerization of all procedures related to security and safety;• The Decision on the paperless environment for customs and trade (ElectronicCustoms Decision) which sets the basic framework and major deadlines for theelectronic customs projects;• The modernized Community Customs Code which provides for the completion ofthe computerization of customsKey Link:http://ec.europa.eu/taxation_customs/customs/policy_issues/electronic_customs_initiative/electronic_customs_legislation/index_en.htmCustoms Valuation – Most customs duties and value added tax (VAT) are expressedas a percentage of the value of goods being declared for importation. Thus, it isnecessary to dispose of a standard set of rules for establishing the goods' value, whichwill then serve for calculating the customs duty.The EU imports in excess of one trillion euro worth of goods (year 2004 estimate). It isvitally important that the value of such commerce is accurately measured, for thepurposes of• economic and commercial policy analysis,• application of commercial policy measures,• proper collection of import duties and taxes, and• import and export statistics.These objectives are met using a single instrument - the rules on customs value.The EU applies an internationally accepted concept of ‘customs value’.2/18/2010 Country Commercial Guide for France 81INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

The value of imported goods is one of the three 'elements of taxation' that provides thebasis for assessment of the customs debt, which is the technical term for the amount ofduty that has to be paid, the other ones being the origin of the goods and the customstariff.Key Link:http://ec.europa.eu/taxation_customs/customs/customs_duties/declared_goods/index_en.htmCustoms and Security – At the end of July 2003, the Commission presented to theParliament and Council a series of measures to address security issues. Thesemeasures can be found in two communications and a proposal for amending theCommunity Customs Code. This package brings together the basic concepts underlyingthe new security-management model for the EU's external borders, such as aharmonized risk assessment system. The security amendment to the CommunityCustoms Code (Regulation (EC) n° 648/2005 of 13 April 2005) has been published inthe Official Journal of the European Union on 4 May 2005. With this amendment theEuropean Union introduces a number of measures to tighten security around goodscrossing international borders. The measures will mean faster and better-targetedchecks. The results are positive for customs authorities, the public and industry.The measures cover three major changes to the Customs Code:• require traders to provide customs authorities with information on goods prior toimport to or export from the European Union (see Pre Arrival / Pre DepartureDeclarations);• provide reliable traders with trade facilitation measuressee Authorized Economic Operator (AEO);• introduce a mechanism for setting uniform Community risk-selection criteria forcontrols, supported by computerized systems.Key Link:http://ec.europa.eu/taxation_customs/customs/policy_issues/customs_security/index_en.htmContact Information at national customs authorities:http://ec.europa.eu/taxation_customs/taxation/personal_tax/savings_tax/contact_points/index_en.htmFrench Customs:Direction générale des douanes et droits indirects11, rue des deux Communes93558 Montreuil CEDEX.FRANCEFax: 01 57 53 49 37Phone: (+33-1) 40.04.04.042/18/2010 Country Commercial Guide for France 82INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Website: http://www.douane.gouv.fr/http://www.douane.minefi.gouv.fr/French Customs regional offices:http://www.douane.gouv.fr/page.asp?id=140French Customs Legislation “Code des Douanes”:Website: http://www.legifrance.gouv.fr/2/18/2010 Country Commercial Guide for France 83INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

StandardsReturn to top• Overview• Standards Organizations• Conformity Assessment• Product Certification• Accreditation• Publication of Technical Regulations• Labeling and Marking• ContactsOverviewReturn to topProducts tested and certified in the United States to American standards are likely tohave to be retested and re-certified to EU requirements as a result of the EU’s differentapproach to the protection of the health and safety of consumers and the environment.Where products are not regulated by specific EU technical legislation, they are alwayssubject to the EU’s General Product Safety Directive as well as to possible additionalnational requirements.European Union standards created under the New Approach are harmonized across the27 EU Member States and European Economic Area countries to allow for the free flowof goods. A feature of the New Approach is CE marking. For a list of new approachlegislation, go to http://ec.europa.eu/enterprise/policies/europeanstandards/documents/harmonised-standards-legislation/list-references/index_en.htmWhile harmonization of EU legislation can facilitate access to the EU Single Market,manufacturers should be aware that regulations and technical standards might alsofunction as barriers to trade if U.S. standards are different from those of the EuropeanUnion.Agricultural StandardsThe establishment of harmonized EU rules and standards in the food sector has beenongoing for several decades, but it took until January 2002 for the publication of ageneral food law establishing the general principles of EU food law. This Regulationintroduced mandatory traceability throughout the feed and food chain as of Jan 1, 2005.For specific information on agricultural standards, please refer to the Foreign AgriculturalService’s website at: http://www.fas.usda.gov/posthome/useu/There are also export guides to import regulations and standards available on theForeign Agricultural Service’s website: http://www.fas.usda.gov/posthome/useu/Standards OrganizationsReturn to topEU standards setting is a process based on consensus initiated by industry or mandatedby the European Commission and carried out by independent standards bodies, actingat the national, European or international level. There is strong encouragement for non-2/18/2010 Country Commercial Guide for France 84INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

governmental organizations, such as environmental and consumer groups, to activelyparticipate in European standardization.Many standards in the EU are adopted from international standards bodies such as theInternational Standards Organization (ISO). The drafting of specific EU standards ishandled by three European standards organizations:• CENELEC, European Committee for Electrotechnical Standardization(http://www.cenelec.eu/Cenelec/Homepage.htm)• ETSI, European Telecommunications Standards Institute (http://www.etsi.org/)• CEN, European Committee for Standardization, handling all other standards(http://www.cen.eu/cenorm/homepage.htm)Standards are created or modified by experts in Technical Committees or WorkingGroups. The members of CEN and CENELEC are the national standards bodies of theMember States, which have "mirror committees" that monitor and participate in ongoingEuropean standardization. CEN and CENELEC standards are sold by the individualMember States standards bodies. ETSI is different in that it allows direct participation inits technical committees from non-EU companies that have interests in Europe and givesaway its individual standards at no charge on its website. In addition to the threestandards developing organizations, the European Commission plays an important rolein standardization through its funding of the participation in the standardization processof small- and medium-sized companies and non-governmental organizations, such asenvironmental and consumer groups. The Commission also provides money to thestandards bodies when it mandates standards development to the European StandardsOrganization for harmonized standards that will be linked to EU technical legislation.Mandates can be checked on line at http://ec.europa.eu/enterprise/policies/europeanstandards/standardisation-requests/index_en.htmDue to the EU’s vigorous promotion of its regulatory and standards system as well as itsgenerous funding for its development, the EU’s standards regime is wide and deep -extending well beyond the EU’s political borders to include affiliate members (countrieswhich are hopeful of becoming full members in the future) such as Albania, Croatia, FYRof Macedonia, and Turkey among others. Another category, called "partnerstandardization body" includes the standards organization of Australia, which is not likelyto become a CEN member or affiliate for political or geographical reasons. Many othercountries are targets of the EU’s extensive technical assistance program, which is aimedat exporting EU standards and technical Regulations to developing countries, especiallyin the Mediterranean and Balkan countries, Africa, as well as programs for China andLatin America.To know what CEN and CENELEC have in the pipeline for future standardization, it isbest to visit their websites. CEN’s "sectors" page provides an overview by sector and/ortechnical committee whereas CENELEC offers the possibility to search its database.ETSI’s portal (http://portal.etsi.org/Portal_Common/home.asp) leads to ongoingactivities.With the need to adapt more quickly to market needs, European standards organizationshave been looking for "new deliverables" which are standard-like products delivered in a2/18/2010 Country Commercial Guide for France 85INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

shorter timeframe. While few of these "new deliverables" have been linked to EURegulations, expectations are that they will eventually serve as the basis for EU-widestandards.Key Link: http://www.cen.eu/cenorm/products/cwa/index.aspNIST “Notify U.S.” ServiceMember countries of the World Trade Organization (WTO) are required under theAgreement on Technical Barriers to Trade (TBT Agreement) to report to the WTO allproposed technical regulations that could affect trade with other Member countries.Notify U.S. is a free, web-based e-mail subscription service that offers an opportunity toreview and comment on proposed foreign technical regulations that can affect youraccess to international markets. Register online at Internet URL:http://www.nist.gov/notifyus/Conformity AssessmentReturn to topConformity Assessment is a mandatory step for the manufacturer in the process ofcomplying with specific EU legislation. The purpose of conformity assessment is toensure consistency of compliance during all stages of the production process to facilitateacceptance of the final product. EU product legislation gives manufacturers some choicewith regard to conformity assessment, depending on the level of risk involved in the useof their product. These range from self-certification, type examination and productionquality control system, to full quality assurance system. You can find conformityassessment bodies in individual Member State country in this list by the EuropeanCommission.Key Link: http://ec.europa.eu/enterprise/newapproach/nando/To promote market acceptance of the final product, there are a number of voluntaryconformity assessment programs. CEN’s certification systems are the Keymark, theCENCER mark, and CEN workshop agreements (CWA) Certification Rules.. CENELEChas its own initiative. ETSI does not offer conformity assessment services.Product CertificationReturn to topTo sell products on the EU market of 27 Member States as well as Norway,Liechtenstein and Iceland, U.S. exporters are required to apply CE marking whenevertheir product is covered by specific product legislation. CE marking product legislationoffers manufacturers a number of choices and requires decisions to determine whichsafety/health concerns need to be addressed, which conformity assessment module isbest suited to the manufacturing process, and whether or not to use EU-wideharmonized standards. There is no easy way for U.S. exporters to understand and gothrough the process of CE marking, but hopefully this section provides some backgroundand clarification.2/18/2010 Country Commercial Guide for France 86INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Products manufactured to standards adopted by CEN, CENELEC and ETSI, andpublished in the Official Journal as harmonized standards, are presumed to conform tothe requirements of EU Directives. The manufacturer then applies the CE marking andissues a declaration of conformity. With these, the product will be allowed to circulatefreely within the EU. A manufacturer can choose not to use the harmonized EUstandards, but then must demonstrate that the product meets the essential safety andperformance requirements. Trade barriers occur when design, rather than performance,standards are developed by the relevant European standardization organization, andwhen U.S. companies do not have access to the standardization process through aEuropean presence.The CE marking addresses itself primarily to the national control authorities of theMember States, and its use simplifies the task of essential market surveillance ofregulated products. Although CE marking is intended primarily for inspection purposesby Member State inspectors, the consumer may well perceive it as a quality mark.The CE marking is not intended to include detailed technical information on the product,but there must be enough information to enable the inspector to trace the product backto the manufacturer or the authorized representative established in the EU. This detailedinformation should not appear next to the CE marking, but rather on the declaration ofconformity (which the manufacturer or authorized agent must be able to provide at anytime, together with the product's technical file), or the documents accompanying theproduct.AccreditationReturn to topIndependent certification bodies, known as notified bodies, have been officiallyaccredited by competent national authorities to test and certify to EU requirements.However, under U.S.-EU Mutual Recognition Agreements (MRAs), notified bodies basedin the United States and referred to as conformity assessment bodies, are allowed totest in the United States to EU specifications, and vice versa. The costs are significantlylower which results in U.S. products becoming more competitive. At this time, the U.S.-EU MRAs cover the following sectors: EMC (in force), RTTE (in force), medical devices(in transition), pharmaceutical (on hold), recreational craft (in force) and marineequipment (in force). The U.S. Department of Commerce, National Institute of Standardsand Technology (NIST), has a link on its website to American and European ConformityAssessment bodies operating under a mutual recognition agreement.Key Link: http://ts.nist.gov/Standards/Global/mra.cfmAccreditation is handled at Member State level. "European Accreditation"(http://www.european-accreditation.org/content/home/home.htm) is an organizationrepresenting nationally recognized accreditation bodies. Membership is open tonationally recognized accreditation bodies in countries in the European geographicalarea that can demonstrate that they operate an accreditation system compatible withEN45003 or ISO/IEC Guide 58.French Certification body “AFNOR CERTIFICATION”:2/18/2010 Country Commercial Guide for France 87INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

NF networkTo expand its activities and thus improve recognition of its labels, AFNORCERTIFICATION relies on the strength and expertise of a network of impartial andcompetent bodies whose scientific knowledge and technical know-how ensure the valueand credibility of its certifications.AFNOR Certification [http://www.afnor.org/metiers/certification/panorama-certification]calls upon mandated bodies (to which all the certification operations are assigned),technical secretariats (to which part of the certification process is subcontracted),specialized laboratories and inspection and auditing bodies, a network of specializedauditors. All these bodies meet the requirements for impartiality, competence andintegrity described in NF EN 45011 or NF EN ISO/IEC 17025 that define the respectiveobligations to be fulfilled by the product certifying bodies and laboratories. AFNORCERTIFICATION controls the entire NF network and ensures its consistency.Mandated Bodies for CertificationThe "mandated" bodies occupy a special position in this NF network, as they are highlyexperienced in the certification business and experts in their respective fields. Inaddition, they undertake to develop new NF mark applications. AFNORCERTIFICATION delegates all the certification operations to certified bodies (see fullcontacts information at the end of this section).Laboratories and inspection and auditing bodies for Certification:The network also includes several dozen laboratories and auditing and inspectionbodies. These partners are recognized on a national, European or even internationallevel and carry out the tests and audits specified by the NF mark. They are experts inspecific applications and leading practitioners in test methods and industrydevelopments in their sector.Technical Secretariats mandated for CertificationFor certain certifications only, AFNOR CERTIFICATION subcontracts some of thecertification operations to a body known as a "technical secretariat". AFNORCERTIFICATION nevertheless remains in overall control of the certification processATCG/Association Technique de Certification des GranulatsATITA/Association Technique des Industries Thermiques et Aérauliques:http://www.atita.comCEBTP/Centre Expérimental de recherches et d'études du Bâtiment et des TravauxPublics: http://www.cebtp.fr/menu.htmlCSTB/Centre Scientifique et Technique du Bâtiment: http://www.cstb.frCTTB/Centre Technique des Tuiles et Briques: http://www.cttb.frINFOCERT: http://www.infocert.org2/18/2010 Country Commercial Guide for France 88INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

LEMVP/Laboratoire d'Essais des Matériaux de la Ville de ParisQUALIBAT: http://www.qualibat.comSETRA / Service d'Etudes Techniques des routes et autoroutes: http://www.setra.frLaboratories mandated for Certification:ATS/Assistance Technique Scientifique: http://www.atsfrance.frCEBTP/Centre Expérimental de recherches et d'études du Bâtiment et des TravauxPublics: http://www.cebtp.fr/menu.htmlCEMAGREF/Centre de recherche pour l'ingénierie de l'agriculture et l'environnementhttp://www.cemagref.frCERIB/Centre d'Etudes et de Recherches de l'Industrie du Béton: http://www.cerib.comCESAME LNE/Centre Atlantique de Métrologie et d'EssaisCETIAT/Centre Technique des Industries Aérauliques et Thermiques:http://www.cetiat.frCETIM/Centre Technique des Industries Mécaniques: http://www.cetim.frCNPP/Centre National de Prévention et de Protection: http://www.cnpp.comCRITT Sports et loisirs - Centre Régional d'Innovation et de Transfert de TechnologieSports et loisirsCSTB/Centre Scientifique et Technique du Bâtiment: http://www.cstb.frCTICM/Centre Technique Industriel de la Construction Métallique: http://www.cticm.frCTIF/Centre Technique de l'Industrie de la Fonderie: http://www.ctif.comCTP/Centre Technique du Papier: http://www.ctp.inpg.frCTTB/Centre Technique des Tuiles et Briques: http://www.cttb.frCTTN/Centre Technique de la Teinture et du Nettoyage: http://www.cttn-iren.comEDF-CEMETE - Electricité de FranceGDF CERUG - Gaz de FranceINERIS/Institut National de l'Environnement Industriel et des Risques:http://www.ineris.frLCA/Laboratoire Centre Atlantique: http://lca-web.net2/18/2010 Country Commercial Guide for France 89INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

LCIE/Laboratoire Central des Industries Electriques: http://www.lcie.frLCPP/Laboratoire Central de la Préfecture de PoliceLEMPA/Laboratoire d'Essais des Matériels et Produits Alimentaires:http://www.inbp.com/lempa.htmlLEMVP/Laboratoire d'Essais des Matériaux de la Ville de ParisLILCO/Laboratoire Interprofessionnel Laitier de la Côte D'OrLNE/Laboratoire National d'Essais: http://www.lne.frLPGL-IFPLaboratoire Professionnel des Gaz Liquéfiés - Institut français du Pétrole1 et 4 avenue de Bois Préau, BP 31192852 RUEIL MALMAISON CEDEX - FRANCELRCCPLaboratoire de Recherche et de Contrôle du Caoutchouc et des Plastiques:http://www.lrccp.comLaboratoire Wolff20 22 Rue Charles Paradinas, Clichy, Hauts-de-Seine 92110Fax: 0147304096Labosport: http://www.labosport.comLerpacLaboratoire d'Etudes et de Recherches pour l'Alimentation Collective:http://www.afssa.frMRTCentre technique électronique et informatique multimédia: http://www.mrt72.comNF/ List of ‘Normes françaises’ (NF) mark laboratoires: http://www.marquenf.com/pages.asp?ref=reseau_liste_laboratoires&Lang=FrenchPRIMACONTROLRLPC/Réseau des Laboratoires des Ponts et ChausséesSFC/Société française de Céramique: http://www.ceramique.frSNPE/Société Nationale des Poudres et Explosifs: http://www.snpe.com2/18/2010 Country Commercial Guide for France 90INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

UTAC/Union Technique de l'Automobile du Motocycle et du Cycle: http://www.utac.comInspection and Auditing Bodies mandated for CertificationAFG/Association française du Gaz: http://www.afgaz.frATITA/Association Technique des Industries Thermiques et Aérauliques:http://www.atita.comCEBTP/Centre Expérimental de recherches et d'études du Bâtiment et des TravauxPublics: http://www.cebtp.frCEMAGREF/Centre de recherche pour l'ingénierie de l'agriculture et l'environnement:http://www.cemagref.frCSTB/Centre Scientifique et Technique du Bâtiment: http://www.cstb.frCTTB/Centre Technique des Tuiles et Briques: http://www.cttb.frCTTN/Centre Technique de la Teinture et du Nettoyage: http://www.cttn-iren.comEDF-CEMETE - Electricité de FranceJIA/The Japan Gas Appliances Inspection Association:http://www.jia-page.or.jp/jia/english/main.htmlLCIE/Laboratoire Central des Industries Electriques: http://www.lcie.frLEMVP - Laboratoire d'Essais des Matériaux de la Ville de ParisLNE/Laboratoire National d'Essais: http://www.lne.frLabosport: http://www.labosport.comSFC - Société française de Céramique: http://www.ceramique.frSNCF DEPART OUVRAGE D'ART - Société Nationale des Chemins de FerSNPE - Société Nationale des Poudres et Explosifs: http://www.snpe.comCertification Bodies mandated by AFNOR:Environmental Measuring Instrumentation:ACIME - Association pour la Certification des Instruments de Mesure pourl'Environnement: http://www.ine.fr & http://www.ineris.frIndustrial, Asbestos and Food IndustryAFAQ ASCERT International: http://www.afaq.org/2/18/2010 Country Commercial Guide for France 91INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Reinforced concrete structuresAFCAB/Association française des Armatures du Béton: http://www.afcab.orgRoads and Highways EquipmentASQUER/Association pour la Qualification des Equipements de la Route – ASQUER:http://www.asquer.asso.frResidential homesCEQUAMI: http://www.constructeurs.frConcreteCERIB (Centre d'Etudes et de Recherches de l'Industrie du Béton):http://www.cerib.comGas related EquipmentCERTIGAZ sas: http://www.afgaz.fr/francais/certification.shtmlCNMIS sas: http://www.cnmis.orgBuilding ConstructionCSTB/Centre Scientifique et Technique du Bâtiment: http://www.cstb.frFurniture and wooden-made building construction componentsCTBA/ Centre Technique du Bois et de l'Ameublement: http://www.ctba.frElectrical equipment & apparatusLCIE/Laboratoire Central des Industries Electriques (LCIE): http://www.lcie.frLNE/Laboratoire National d'Essais: http://www.lne.frResidential buildingsQUALITEL: http://www.qualitel.orgPublication of Technical RegulationsReturn to topThe Official Journal is the official gazette of the European Union. It is published daily onthe internet and consists of two series covering draft and adopted legislation as well ascase law, studies by committees, and more (http://eur-lex.europa.eu/JOIndex.do)It liststhe standards reference numbers linked to legislation(http://ec.europa.eu/enterprise/policies/european-standards/documents/harmonisedstandards-legislation/list-references/index_en.htm).National technical Regulations arepublished on the Commission’s website http://ec.europa.eu/enterprise/tris/index_en.htmto allow other countries and interested parties to comment.Member countries of the World Trade Organization (WTO) are required under theAgreement on Technical Barriers to Trade (TBT) Agreement to report to the WTO allproposed technical regulations that could affect trade with other member countries.Notify U.S. is a free, web-based e-mail subscription service that offers an opportunity toreview and comment on proposed foreign technical regulations that can affect access to2/18/2010 Country Commercial Guide for France 92INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

international markets. Register online at Internet URL:http://tsapps.nist.gov/notifyus/data/index/index.cfmLabeling and MarkingReturn to topManufacturers should be mindful that, in addition to the EU’s mandatory and voluntaryschemes, national voluntary labeling schemes might still apply. These schemes may behighly appreciated by consumers, and thus, become unavoidable for marketingpurposes.Manufacturers are advised to take note that all labels require metric units although duallabeling is also acceptable. The use of language on labels has been the subject of aCommission Communication, which encourages multilingual information, whilepreserving the right of Member States to require the use of language of the country ofconsumption.The EU has mandated that certain products be sold in standardized quantities. CouncilDirective 2007/45/EC, , harmonizes packaging of wine and spirits throughout the EU.Existing national sizes will be abolished with a few exceptions for domestic producers.Key Link: http://ec.europa.eu/enterprise/prepack/packsize/packsiz_en.htmThe Eco-labelThe EU eco-label is a voluntary label which US exporters can display on products thatmeet high standards of environmental awareness. The eco-label is intended to be amarketing tool to encourage consumers to purchase environmentally-friendly products.The criteria for displaying the eco-label are strict, covering the entire lifespan of theproduct from manufacture, to use, to disposal. These criteria are reviewed every three tofive years to take into account advances in manufacturing procedures. There arecurrently twenty-three different product groups, and approximately 250 licenses havebeen awarded for several hundred products.Applications to display the eco-label should be directed to the competency body of themember state in which the product is sold. The application fee will be somewherebetween €300 and €1300 depending on the tests required to verify if the product iseligible. The eco-label also carries an annual fee equal to 0.15% of the annual volume ofsales of the product range within the European community. However, the minimumannual fee is currently set at €500 and maximum €25,000.There are plans to significantly reform the eco-label in the near future, reducing theapplication and annual fees and expanding the product ranges significantly. It is alsopossible that future eligibility criteria may take into account carbon emissions.Key Links: Eco-label Home PageProduct Categories eligible for the Eco-labelEco-Label CatalogueList of Competent BodiesRevision of the Eco-labelThe Eco-label and Carbon Footprint2/18/2010 Country Commercial Guide for France 93INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Biotech:In June 2008, the Government of France passed a new biotech bill which mandatedpublic disclosure of commercial biotech fields at the plot level. The law also reorganizedthe national authority evaluating genetically-engineered products, the High BiotechCouncil (HCB), to include not only a scientific committee, but also a socio-economiccommittee. For the full text of the bill, please see:http://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000019066077&dateTexte=HCB’s reports are available on the inter-ministerial website on biotechnology athttp://www.ogm.gouv.fr. A HCB recommendation published in October 2009, definedbiotech-free production, and detailed the overall biotech-free conditions as below athreshold of 0.1 percent biotech DNA content. In December 2009, the HCB releasedrecommendations relative to the renewal of the MON810 authorization. The HCB’sscientific committee positive view, and the socio-ethics and economic committeenegative perception differ significantly on the dossier.In January 2008, France banned the only biotech corn authorized for cultivation (pendingits ten-year reevaluation by European Union authorities). Please see the full text of thedecree at:http://www.legifrance.gouv.fr/affichTexte.do;jsessionid=0B42F0CDB7535ADBC44B690111653AA2.tpdjo02v_3?cidTexte=JORFTEXT000018089220&dateTexte=&oldAction=rechJO&categorieLien=idThe French Presidency to the EU in 2008 resulted in the Council of EnvironmentalMinisters. The Council unanimously adopted a document that lays the groundwork forbroadening biotech reviews in terms of increased Member States (MS) involvement inassessment and monitoring, and for eliciting input from a wider range of scientists andother stakeholders. While the societal preference issue failed to get traction in the AgCouncil, the Environmental Council under the French Presidency adopted languageencouraging MS to gather socio-economic data on biotechnology for further discussion.For full conclusions of the December 4 EU Council on biotechnology, please see:http://www.consilium.europa.eu/ueDocs/cms_Data/docs/pressData/en/envir/104509.pdfFrance implemented the EU Novel Food/Novel Feed and Traceability and LabelingRegulations on April 18, 2004, and the Fraud Control Office of the French Ministry ofEconomy, Finance and Industry (DGCCRF) is the enforcing authority.ContactsReturn to topFor a list of trade agreements with the EU and its Member States, as well as conciseexplanations, please see http://tcc.export.gov/Trade_Agreements/index.asp.2/18/2010 Country Commercial Guide for France 94INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Trade AgreementsReturn to topEU websites:Online customs tariff database (TARIC):http://ec.europa.eu/taxation_customs/common/databases/taric/index_en.htmThe Modernized Community Customs Code MCCC):http://ec.europa.eu/taxation_customs/customs/procedural_aspects/general/community_code/index_en.htm.ECHA: http://echa.europa.eu/doc/press/pr_08_38_candidate_list_20081028.pdfTaxation and Customs Union:http://ec.europa.eu/taxation_customs/customs/index_en.htmRegulation (EC) 648/2005:Security and Safety Amendment to the Customs CodeDecision N° 70/2008/EC:http://ec.europa.eu/taxation_customs/customs/policy_issues/electronic_customs_initiative/electronic_customs_legislation/index_en.htmRegulation (EC) 450/2008): Modernized Community Customs CodeLegislation related to the Electronic Customs Initiative:http://ec.europa.eu/taxation_customs/customs/policy_issues/electronic_customs_initiative/electronic_customs_legislation/index_en.htmInternational Level: Customs valueWhat is Customs Valuation?http://ec.europa.eu/taxation_customs/customs/customs_duties/declared_goods/index_en.htmCustoms and Security:Two communications and a proposal for amending the Community Customs Codehttp://ec.europa.eu/taxation_customs/customs/policy_issues/customs_security/index_en.htmEstablishing the Community Customs Code:Regulation (EC) n° 648/2005 of 13 April 2005Pre Arrival/Pre Departure Declarations: Pre Arrival / Pre Departure DeclarationsAEO: Authorized Economic Operator2/18/2010 Country Commercial Guide for France 95INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Contact Information at National Customs Authorities:http://ec.europa.eu/taxation_customs/taxation/personal_tax/savings_tax/contact_points/index_en.htmNew Approach Legislation: http://ec.europa.eu/enterprise/policies/europeanstandards/documents/harmonised-standards-legislation/list-references/index_en.htmCenelec, European Committee for Electrotechnical Standardization:http://www.cenelec.eu/Cenelec/Homepage.htmETSI, European Telecommunications Standards Institute: http://www.etsi.org/CEN, European Committee for Standardization, handling all other standards:http://www.cen.eu/cenorm/homepage.htmStandardisation – Mandates: http://ec.europa.eu/enterprise/standards_policy/mandates/.http://ec.europa.eu/enterprise/policies/european-standards/standardisationrequests/index_en.htmETSI – Portal – E-Standardisation : http://portal.etsi.org/Portal_Common/home.aspCEN – Sector Fora: http://www.cen.eu/cenorm/sectors/index.aspNando (New Approach Notified and Designated Organizations) Information System:http://ec.europa.eu/enterprise/newapproach/nando/Mutual Recognition Agreements (MRAs):http://ts.nist.gov/Standards/Global/mra.cfmEuropean Co-operation for Accreditation:http://www.european-accreditation.org/content/home/home.htmEur-Lex – Access to European Union Law:http://eur-lex.europa.eu/en/index.htmStandards Reference Numbers linked to Legislation:htt http://ec.europa.eu/enterprise/policies/european-standards/documents/harmonisedstandards-legislation/list-references/index_en.htmp://ec.europa.eu/enterprise/newapproach/standardization/harmstds/whatsnew.htmlNational technical Regulations: http://ec.europa.eu/enterprise/tris/index_en.htmNIST - Notify us: http://tsapps.nist.gov/notifyus/data/index/index.cfmMetrology, Pre-Packaging – Pack Size:http://ec.europa.eu/enterprise/prepack/packsize/packsiz_en.htmEuropean Union Eco-label Homepage:http://ec.europa.eu/comm/environment/ecolabel/index_en.htmEco-Label Catalogue: http://www.eco-label.com/default.htm2/18/2010 Country Commercial Guide for France 96INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Web ResourcesReturn to topNational Trade Estimate Report on Foreign Trade Barriers:http://www.ustr.gov/about-us/press-office/reports-and-publications/2009/2009-nationaltrade-estimate-report-foreign-tradAgricultural Trade Barriers:http://www.fas.usda.gov/posthome/useu/Trade Compliance Center: http://www.trade.gov/tccU.S. Mission to the European Union: http://www.buyusa.gov/europeanunionThe New EU Battery Directive: http://www.buyusainfo.net/docs/x_8086174.pdfThe Latest on REACH: http://www.buyusa.gov/europeanunion/reach.html.WEEE and RoHS in the EU: http://www.buyusa.gov/europeanunion/weee.htmlOverview of EU Certificates:http://useu.usmission.gov/agri/certificates-overview.htmlCenter for Food Safety and Applied Nutrition: http://www.cfsan.fda.gov/EU Marking, Labeling and Packaging – An Overviewhttp://www.buyusainfo.net/docs/x_4171929.pdf.The European Union Eco-Label: http://buyusainfo.net/docs/x_4284752.pdfTrade Agreements: http://tcc.export.gov/Trade_Agreements/index.aspReturn to table of contents2/18/2010 Country Commercial Guide for France 97INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Return to table of contentsChapter 6: Investment Climate• Openness to Foreign Investment• Conversion and Transfer Policies• Expropriation and Compensation• Dispute Settlement• Performance Requirements and Incentives• Right to Private Ownership and Establishment• Protection of Property Rights• Transparency of Regulatory System• Efficient Capital Markets and Portfolio Investment• Competition from State Owned Enterprises• Corporate Social Responsibility• Political Violence• Corruption• Bilateral Investment Agreements• OPIC and Other Investment Insurance Programs• Labor• Foreign-Trade Zones/Free Ports• Foreign Direct Investment Statistics• Web ResourcesOpenness to Foreign InvestmentReturn to topEnsuring that France's investment climate is attractive to foreign investors is a statedpriority for the French government, which sees foreign investment as a way to createjobs and stimulate growth. Past debate in France over “economic patriotism” has causedsome observers to question the depth of this commitment. Nevertheless, investmentregulations are simple, and a range of financial incentives for foreign investors areavailable. A public and commercial establishment, the French Agency for InternationalInvestment (Agence Française pour les Investissements Internationaux – AFII)integrates all offices responsible for promoting investment in France. The agencycombines the overseas offices of the Invest in France Agencies (IFA), with the Invest inFrance Network (IFN) association.Foreign investors say they are attracted to France by its skilled and productive laborforce, good infrastructure, technology, and central location in Europe. EU membership,which mandates the free (with certain limitations) movement of people, services, capitaland goods across the European Union, took on even greater significance with theintroduction of Euro coins and bills in January 2002. However, despite considerableeconomic reform and market liberalization over the past decade, U.S. and foreigncompanies often point to the tax environment, high cost of labor, rigid labor markets andoccasional negative attitudes toward foreign investors as disincentives to investing inFrance. U.S. investors welcomed tax, labor and pension reform initiatives launched by2/18/2010 Country Commercial Guide for France 98INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

President Sarkozy in 2007. In an Amcham poll, U.S. investors showed optimism forshort- to medium-term, expecting France to emerge from the financial crisis by the endof 2009.The Formal Investment Regime:The formal French investment regime remains among the least restrictive in the world.While there is no generalized screening of foreign investment, legislation passed at theend of 2005 dictates that acquisitions, irrespective of size or nationality, involving“sensitive” sectors are subject to prior approval by the Finance Minister(http://www.legifrance.gouv.fr – search for the 31 December 2005 French OfficialJournal, decree 2005-1739 of 30 December 2005). Acquisitions involving sensitivesectors are screened. Sensitive sectors include: gambling activities, private securityservices, research, development or production of chemical or biological medicines,equipment for intercepting communications or eavesdropping, security services forcomputer systems, dual-use (civil and military) technologies; cryptology, firms that arerepositories of defense secrets, firms that research, produce and sell military equipment,and lastly any other industry supplying the defense ministry any of the goods or servicesdescribed above. Some investments in sensitive sectors require the consensus ofseveral ministries, including the Defense Ministry. Only a few dozen cases are examinedby the Finance Ministry each year and virtually all are approved. Only two transactionsrelated to defense matters were rejected in the last ten years.The EU Commission initially questioned whether the December 2005 decree respectedthe free circulation of capital and the freedom of establishment within the EU. The 2005decree introduced a distinction between E.U. investors and non-EU investors, with a lessrestrictive regime applying to the former. However, the difference in treatment is oftenminimal.The decree also changes the triggers for Government of France (GOF) investmentscrutiny for firms in the sensitive sectors, stating that any investment that grants controlof a firm, or surpasses the 33 percent threshold, or involves any part of any branch ofany firm that has established headquarters in France, is subject to GOF review.Authorities also consider the place of residence rather than the nationality of a potentialinvestor. The place of residence of a corporate investor is determined by the location ofits owners, without regard to place of incorporation. While firms owned or controlled byAmerican citizens who are legal residents in an EU country will usually be considered asEU residents, France will normally consider firms established or incorporated in other EUcountries, and owned or controlled by American residents as non-EU residents.To determine if non-EU investors control a firm, the French government looks at theresidency of the headquarters (“siège social”) and the ability of non-EU investors to vetokey management decisions or commercial ties (such as loans, guarantees, options,licenses, or contracts) that might effectively make the French company dependent on2/18/2010 Country Commercial Guide for France 99INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

foreign investors. Firms with questions about their residency status should contact theOffice of Foreign Investments at the following addresses:Ministère de l'Economie, de l'Industrie et de l'Emploi,Direction Générale du Trésor et de la Politique Economique:Multicom 3 – Investissement, Criminalité Financière et Sanctions Intellectuelle139, rue de Bercy75012 Paris, FranceTel: (33)1 44-87-72-87Agence des Participations de l’Etat139, rue de Bercy75012 Paris, FranceTel: (33)1 40-04-04-04Information may be found on the Finance Ministry’s website:http://www.ape.bercy.gouv.fr/ .AFII’s website (http://www.investinfrance.org/NorthAmerica in English) explains the basicregulations covering foreign direct investment. It provides a general framework on legalissues to help businesses in its "Doing Business in France" section. The website of theParis Chamber of Commerce and Industry provides French summaries of regulationsapplicable to foreign direct investment: (http://www.inforeg.CCIP.fr; search "Fichespratiques" – "S'implanter en France").Informal Impediments to Foreign Investors:France has pursued economic reform that increases the attractiveness of the Frencheconomy to foreign investors, and French authorities offer a variety of investmentincentives. France is closing the gap with the U.S. and some other European countriesin personal computer use and Internet access.While today's foreign investors face less interference than before, France has notentirely overcome a traditional preference for state intervention and a sometimesreflexive opposition to foreign investment. In some cases, this can be seen in labororganization opposition to acquisitions of French businesses by U.S. firms, oftenreflecting a perception that U.S. firms focus on short-term profits at the expense ofemployment. In other cases, French firms have stated a preference for working withFrench and European rather than U.S. firms. A degree of opaqueness in the privatizationprocess (see below) can also aggravate suspicions about the equal treatment of foreigninvestors in publicly held firms. In addition, official comments regarding the purpose ofthe French "Strategic Investment Fund" established in 2008 sometimes misleadinglyreferred to as a French sovereign wealth fund, highlighted French sensitivity abouthostile foreign takeovers.2/18/2010 Country Commercial Guide for France 100INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Most businesses must deal with significant tax and labor market regulatory issues.Corporate tax rates are high in comparison to other leading industrial countries. Foreigninvestors most often cite complicated and pervasive labor regulation, and high incomeand payroll taxes as the greatest disincentives to investing in France. In the case oflabor market regulation, the impact on companies of the 35-hour legal workweek ismixed. Many companies used the transition to the 35-hour workweek as an opportunityto negotiate work-hour annualization programs with employees that allow for greaterlabor flexibility. Companies also benefited from a further cut in payroll taxes on lowwages. On the negative side, the 35-hour workweek increased unit labor costs sincetotal wages remained unchanged even though the number of hours worked declined.The current government has taken measures to make the law less rigid. It also hasintroduced more flexibility in employment contracts (See D. Labor).The July 2009 increase in minimum wage (“Salaire Minimum Interprofessionnel deCroissance – SMIC”) of 1.3% kept pace with inflation. Gross wages per employee in theprivate sector increased at a lower rate in 2009 (1.7 percent) than in 2008 (3.0 percent)as inflation declined. Income and payroll tax cuts on low wage positions in 2009,combined with payroll tax cuts on overtime paid by employers, and government supportto job creation in very small companies between December 2008 and June 2010 madeFrance a more attractive place for both French and foreign investors (http://www.travailsolidarite.gouv.fr/informations-pratiques/fiches-pratiques/remuneration/allegementcharges-patronales-bas-moyens-salaires.html).The French have two social security taxes, the "Contribution Sociale Generalisee"(CSG) and the "Contribution au Remboursement de la Dette Sociale" (CRDS). U.S.contributors to the U.S. Social Security system do not pay these taxes. (Based on the"May 2 2001-377 ordonnance" to apply the 1408/71 EEC regulation, only "individualswho are subject to income taxes in France and contribute to the French social securitysystem including health insurance pay CSG and CRDS".) The related "circulaired'application" was published in the May 20, 2001 "Bulletin Officiel du Travail, de l’Emploiet de la Formation Professionnelle": http://www.travail-solidarite.gouv.fr/documentation-publications-videotheque/bulletins-officiels/annee-2001/bulletin-officiel-no-2001-09-du-20-mai-2001-.html.On December 8, 2004, the United States amended the income tax convention betweenthe United States and France to avoid double taxation and prevent tax evasion; alongwith the estate and gift tax convention to avoid double taxation with respect to taxes onestates, inheritances and gifts: http://www.ustreas.gov/offices/taxpolicy/library/franceegprotocol04.pdf.In December 2005, the French governmentratified the two amendments that entered into force on December 21, 2006. Theprovisions resolve problems related to the double taxation of partnerships and estates.The U.S. Treasury provided a technical explanation in February 2006:http://www.treas.gov/press/releases/reports/tefrencheg06.pdf.2/18/2010 Country Commercial Guide for France 101INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

On December 23, 2009, the United States and France ratified another protocolhttp://www.ustreas.gov/press/releases/tg504.htm, further amending the tax convention.The agreement eliminates source-country tax withholding on certain direct dividends aswell as cross-border royalty payments, retroactive to January 1, 2009. It also providedfor mandatory binding arbitration of certain cases and a comprehensive limitation onbenefits provision: http://www.treas.gov/offices/tax-policy/library/FranceProtocol2009.pdfhttp://www.treas.gov/press/releases/reports/memorandum%20of%20understanding_.pdfEnglish summaries of labor and tax regulations applicable to foreign companies inFrance are available at the AFII's website: http://www.investinfrance.org/, [search “Yourproject in France”] and at the Paris Chamber of Commerce and Industries' websitehttp://www.inforeg.CCIP.fr [search “fiches pratiques” – droit fiscal].France's Privatization Program:The Socialist-led government that took office in July 1997 returned to the private sectorall or parts of the government’s stakes in a number of large companies, banks andinsurance groups. In 2003 and 2004 the government reduced its stakes in largecompanies such as Air France-KLM, France Telecom, Thales (formerly Thomson CSF),Renault, and Thomson through TSA). Smaller projects, including the privatization ofSAPRR (Paris-Rhine-Rhone Highway Company) and of the electricity company SNET,also were carried out. In the energy sector, the government sold shares in EDF andGDF. In 2009, the electrical transmission and distribution (T&D) business of the 90%state-owned nuclear power company, Areva, was sold to a French consortium, beatingout American and Japanese bids. The T&D unit represented 39% of Areva's sales. ADecember 7, 2006 law authorized the reduction of the government stake in GDF to33.33 percent from 70 percent to permit the merger of Gaz de France (GDF) and Suez.The government sold a 2.5 percent stake in EDF in 2007 and an additional 5.0 percentstake in France Telecom to reduce the public debt.In January 2010, the government has stakes in listed companies including Aéroports deParis (52.13 percent), Air France KLM (15.65 percent), CNP Assurances (1.09 percent),EADS (15.06 percent), EDF (84.48 percent), France Telecom (13.47 percent), GDF-Suez (35.89 percent), Renault (15.01 percent), Safran (30.20 percent), and Thalès(27.05 percent):http://www.ape.minefi.gouv.fr/sections/le_cadre_budgetaire/textes_de_references/downloadFile/attachedFile_1/HistoriqueParticipationsCotees_1mois.pdf?nocache=1187283796.18 , and in unlisted companies including SNCF, RATP, CDC and La Banque Postale.When Norwegian shipbuilder Aker sold its interest in the Chantiers de l'Atlantiqueshipyard to the South Korean company STX in 2008, the French government tookadvantage of conditions of sale (to Aker) take a 33.34% stake in the enterprise. In 2009,the government had a majority stake in 867 smaller firms in a variety of sectors, and aminority stake in 400 other firms.Sales of government interests are conducted either through market-based publicofferings or, more often, through an off-market bidding process. In both cases, key2/18/2010 Country Commercial Guide for France 102INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

decisions are made by the Ministry of Economy, Industry and Employment on the adviceof the quasi-independent "Commission des Participations et des Transfers" (formerlyknown as the Privatization Commission). Both consider the financial and business planssubmitted by bidders. There is a strict legal and procedural process regulating thesedecisions, but the confidential nature of off-market sales can raise suspicions about theequal treatment of foreign versus French bidders. This can have a chilling effect onforeign investment. In the past, a policy of selling former holdings to "core" shareholdersin an effort to avoid the splitting-up of companies or sales of sensitive state assets toforeign investors also hampered market efficiency and tended to favor French firms.When privatizing state-owned firms either through off-market placements or marketbasedofferings, the 1993 privatization law gives the French government the option tomaintain a so-called "golden share" to "protect national interests." This provision is nottargeted at foreign companies and has not been a part of every privatization process. Agolden share gives the government three legal rights:To require prior authorization from the Ministry of the Economy, Industry andEmployment for any investor or group of investors acting in concert to own more than acertain percentage of a firm's capital. The thresholds would apply to all investors;• To name up to two non-voting members to the firm's board of directors; and• To block the sale of any asset to protect "national interests." Assets could includeshares, but also buildings, technology, patents, trademarks, and any othertangible or intangible property.In June 2002 the European Court of Justice reaffirmed the basic principle of freemovement of capital in the EU and stated that the use by some EU countries, includingFrance, of golden shares was a serious impediment to that principle. Nonetheless, aDecember 7, 2006 French law related to the energy sector included the possibility for thegovernment to keep a golden share in Gaz de France (GDF) to oppose any measurethat might jeopardize the security of energy supplies. The Government maintained itsgolden share following the merger of GDF with Suez, with the blessing of the EuropeanCommission. The Government has also considered retaining a golden share in anyrestructuring of Areva through loopholes in the court's decision. Areva’s chairman hasstated that the golden share could be consistent with EU requirements.French Government Participation in R&D Programs:Total annual R&D expenditures as a percentage of GDP remained stable (approx. 2.1percent) for the period 2006-2008. The GOF confirmed in the 2010 budget itscommitment to promoting higher education and research: for the second consecutiveyear, the higher education and research budget will rise in 2010, up 1.8 billion euros(5.3%) compared with 2009 (including 804 million euros for research and innovation).The French government relies on increased tax credits and incentives for thedevelopment of new investment structures to boost industrial research. Those tax credits2/18/2010 Country Commercial Guide for France 103INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

increased from 1.5 billion euros in 2008 to 5.8 billion euros in 2009 and are expected toexceed 4 billion euros in the 2010 budget. Four areas (automobile, pharmaceutical,communication and aeronautics) account for more than 53 percent of researchexpenditure in the private sector. In the public sector, research is handled by researchorganizations, higher education research centers and Defense ministry laboratories.The Research and Innovation Bill, adopted in 2006, encourages closer science-industryrelations and promotes greater strategic direction. In 2007 and 2008, the governmentgave a boost to publicly funded research via a new university governance law conferringon universities a stronger role in driving research. The new legislation provides for aHigh Council for Science and Technology, a National Research Agency, thestrengthening of “competitiveness clusters,” and an Industrial Innovation Agency. Privateenterprise benefits from more flexible working arrangements with government scientists,as well as R&D tax incentives. The GOF also supports partnerships between publicresearch agencies and universities within the framework of “Research and HigherEducation Hubs,” and “Advanced Research Thematic Foundations.”The GOF sponsors R&D and technology development programs at three different levels:1. International/European programs (e.g. ESA, CERN, EUREKA, EU Frameworkprogram);2. Technology development programs in the private sector (approx. 45 percent ofR&D expenditures are funded by the French government), with specificprograms to encourage transfer of research and to aid small and medium firms;and3. National research programs (mostly administered by the Research Ministry), withspecific emphasis given to health and biotech (fight against cancer, research onaging and handicaps, focus on new epidemics, genomics/genetics); resourcemanagement (including food resources, food safety, water management),sustainable development and the fight against greenhouse gases (research onnew sources of energy, clean vehicles, energy storage and use of hydrogen,nuclear systems and nuclear fusion); information and communicationtechnologies and modernization of research networks for higher education;nanotechnologies; and space.Visas, Work Requirements:The government of France requires foreign citizens to complete extensive procedures ifthey wish to work in France. The requirements are essentially the same whether foreigncitizens work for French or foreign-controlled firms. Non-EU nationals who intend to workor conduct any commercial activity in France must receive a long-term visa and a workpermit (Carte de travail) or business permit (Carte de commerçant - foreign trader's card)before establishing residence in France. Information can be obtained from Frenchconsulates in the United States. The web address is:http://www.expatries.org/index.php/Annuaires/Ambassades-et-consulats-francais-a-letranger/(country)/ETATS-UNIS%20D'AMERIQUE. For more information on the foreign2/18/2010 Country Commercial Guide for France 104INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

trader's card, please consult the Invest in France agency web site at: http://www.investin-france.org/north-america/en/launching-your-project.html.For more information onother types of visas and applicable fees, contact your local Consulate General of France.A foreigner's ability to practice a profession may be restricted by government regulationand the regulations of French professional associations. For example, lawyers seekingto practice in France must become members of the French bar before they can practiceany type of law under their own names. This requires passing the bar examination inFrench.Conversion and Transfer PoliciesReturn to topAll inward and outward payments must be made through approved bankingintermediaries by bank transfers. There is no restriction on repatriation of capital.Similarly, there are no restrictions on transfers of profits, interest, royalties, or servicefees. Foreign-controlled French businesses are required to have a resident French bankaccount and are subject to the same regulations as other French legal entities. The useof foreign bank accounts by residents is permitted.For exchange control purposes, the French government considers foreigners asresidents from the time they arrive in France. French and foreign citizens are subject tothe same rules. Residents are entitled to open an account in foreign currency with abank established in France and to establish accounts abroad. Residents must report theaccount number for all foreign accounts on their annual income tax returns. Frenchsourceearnings may be transferred abroad.As part of the international effort to combat money laundering and the financing ofterrorism, France's banking regulations have undergone several changes, which affectthe handling of checks, as recommended by the Financial Action Task Force. As part offight against money laundering, seventeen OECD members including France tasked theOECD with drafting a new expanded blacklist of countries failing to cooperate on taxevasion and transparency by the end of June 2009.France sometimes uses its powers under national law to freeze assets of terrorists.Expropriation and CompensationReturn to topUnder French law, private investors are entitled to compensation if their properties areexpropriated, and such compensation must be adequate and paid promptly. In France'sbilateral investment treaties, the French government promises to provide both promptand adequate compensation. There have been no recent disputes involvingexpropriation of U.S. investments.2/18/2010 Country Commercial Guide for France 105INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Dispute SettlementReturn to topThere have been few major disputes involving established U.S. firms in recent years.Government decisions in investment cases can be appealed to administrative tribunalsand ultimately to the Council of State (Conseil d'Etat). The rights of U.S. investors arealso protected by the U.S.-French bilateral convention (see Section B below).The judicial system is independent. Property and contractual rights are enforced by theFrench civil code. Judgments of foreign courts are accepted and enforced by courts inFrance once they have been "declared executor" by a French judge through "executor"proceedings (Art. 2123 of the French Civil Code and Art. 509 of the Civil ProcedureCode). However, in some civil cases and in bankruptcy cases, foreign judgments arerecognized and enforced by French courts without executor proceedings.France is a member of the World Bank's International Center for the Settlement ofInvestment Disputes (ICSID – http://www.worldbank.org/icsid). In addition, in most of itsbilateral investment treaties (BIT's) France has agreed to accept binding arbitration toresolve investor-state disputes. However, most of France's BIT partners are developingcountries whose investors have few investments in France. (See below).Performance Requirements and IncentivesReturn to topInvestment IncentivesFrance offers a range of financial incentives to foreign investors. The followinginformation reflects incentives as they existed at time of this writing.France's domestic planning and investment promotion agency, DIACT (DélégationInterministérielle à l’Aménagement et la Compétitivité des Territoires) has a broadmandate, including increasing the “attractiveness” of France for foreign investors andassisting potential investors. In addition, financial subsidies and tax incentives areoffered at the local, regional and national government level to attract investment toFrance's less affluent areas. Incentives are available equally to French and foreigninvestors and eligibility requirements are the same.Within the French government, foreign investment promotion is the responsibility of theAFII "Invest in France Mission" headed by an ambassador-at-large, who is based at theMinistry of the Economy, and backed up by DIACT. DIACT maintains offices throughoutFrance and around the world to seek out and advise potential investors on projectdevelopment, site selection, investment incentives (the largest of which are administeredby DIACT) and administrative and legal requirements. DIACT's overseas offices were renamed"Invest in France Agencies" (IFA -- IFANA in North America) in 2001. There arethree DIACT/IFANA offices in the United States:Northern and Eastern StatesIFANA New York810 Seventh Avenue, Suite 3800New York, NY 10019Tel: (212) 757-9340Fax: (212) 245-15682/18/2010 Country Commercial Guide for France 106INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Western and Southern StatesIFANA San Francisco88 Kearny Street, Suite 700San Francisco, CA 94108Tel: (415) 781 0986Fax: (415) 781 0987Midwestern StatesIFANA Chicago205 North Michigan Avenue, Suite 3750Chicago, IL 60611Tel: (312) 628-1054Fax: (312) 628-1033AFII’s internet address is http://www.InvestinFrance.org.DATAR’s site, http://www.datar.gouv.fr/ or http://www.DIACT.gouv.frThe primary investment incentive offered through DIACT is the Prime d'Amènagementdu Territoire (PAT). The government defined a new list of eligible zones for the period2007-2013. Two implementing decrees issued in May and June 2007 (2007-809 decreeon May 11, 2007 and 2007-1029 on June 15 2007) provide details on the current PATsystem. The system requires job creation from investors (see PerformanceRequirements), but its subsidies can be generous. PAT may also be collected by firmsthat maintain employment when the investment is significant. The system is even moreflexible for small and medium sized companies. Other investment incentives may also beavailable. Potential investors should consult DIACT and AFII to determine the full rangeof possibilities, including:• Research and development project grants, notably for businesses located incompetitiveness clusters• Special tax treatment for company headquarters• Local and regional tax holidays and special subsidies• "Industrial conversion" zones featuring tax breaks and grants for job-creation• Special access to credit for small and medium-sized enterprises• Assistance for training, including a portion of wages paid to employees intraining.In 2009, the government has created five temporary government-support schemesrelated to the government economic stimulus plan to boost private investment.Schemes provide businesses greater access to financing tools:http://www.datar.gouv.fr/fr_1/amenagement_du_territoire_655/aides_aux_entreprises_626/aider_entreprises_2424.html . Besides DIACT/IFA at the national level, severalFrench cities and regions have developed their own investment promotion agencies thatadvise potential investors, offer administrative assistance, and oversee investmentincentives. The February 27,2002 Local Democracy Law ("Démocratie de proximité"2/18/2010 Country Commercial Guide for France 107INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

(http://www.legifrance.gouv.fr]) gives regional councils ("Conseils Régionaux") fullpowers to establish (without decree or national convention) schemes for direct aid tocompanies (subsidies, reduced interest rates on loans, and advances). Each "ConseilRégional" has its own website, which can be found with any internet search engine using“conseil régional” and the name of the appropriate region.All incentives are covered under regulations set by the European Commission.Performance RequirementsOther than those linked to incentives, there are no mandatory performance requirementsestablished by law. However, the French government will generally require commitmentsregarding employment or research and development from both foreign and domesticinvestors seeking government financial incentives. PAT and R&D subsidies are basedon the number of jobs created. In addition, the authorities have occasionally soughtcommitments as part of the approval process for acquisitions by foreign investors.Nonetheless, foreign firms need the French government's approval on a variety ofregulatory issues, and in France, officials generally have much wider discretion thantheir U.S. counterparts. This can leave firms subject to "unwritten" performancerequirements, with regulatory officials making it known that a firm's request would bemore favorably viewed if it increased employment, R&D, or exports.Right to Private Ownership and EstablishmentReturn to topThe French government maintains legal monopolies in the following sectors: postalservices (La Poste maintains a monopoly on letter mail below 50 grams), national railtransportation (SNCF), Parisian bus and metro services (RATP), and tobaccomanufacturing and distribution (Altaldis – former Seita). The French government plansto change La Poste into a public-limited company which may lead to the group'sprivatization. The move is necessary to prepare for the sector's liberalization in 2011under EU rules. In the framework of progressive liberalization of the European transportsector, the French market for international rail travel was opened to competition inDecember 2009. Foreign competitors can challenge SNCF on operating high-speedlines, including the Eurostar from Paris to London. The electricity and gas Companies(EDF/GDF) no longer have monopolies on production, distribution and sale of electricityand gas. However, EDF is the exclusive operator of nuclear plants which generate 80percent of the country's electricity. In 2009, the GOF announced it would considerallowing EDF competitors to buy base-load nuclear generated electricity under certainconditions. A final decision is expected is 2010. The public transmission grid operator,Gestionnaire du Réseau de Transport d'Électricité (RTE), which is a division of EDF,continues to hold a monopoly position. In 2008, France joined Germany in leading agroup of member states opposing the European Commission's plan to force statemonopolies to sell of transmission assets provided there is external supervision by thecountry's regulatory agency regarding tariffs and conditions for grid access. Marketopening in Europe has continued to increase -- meaning that consumers are free tochoose another supplier, although few have. In July 2004, the option to switch supplierswas opened to all commercial customers. After a critical piece of energy sector reformlegislation passed that same month, the first public sales of shares for EDF and GDFbegan in 2005, leading effectively to a partial privatization of the two companies.2/18/2010 Country Commercial Guide for France 108INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Protection of Property RightsReturn to topThe French government has taken the lead in Europe on digital copyright protection withan updated version of its 2006 law on “Creation and the Internet” to go into effect in early2010. A new legal enforcement mechanism known as the “graduated response” hasbeen established to combat online piracy: a new High Authority for the Distribution ofWorks and Protection of rights on the Internet (Hadopi) will issue up to 3 warnings; if theillegal downloader fails to comply, Hadopi will send the case before a judge, who has theauthority to cut off Internet service for up to one year. Under the new system, InternetService providers (ISPs) are responsible for sending warning messages on behalf of theAuthority and implementing court sanctions; Web users are responsible for thefraudulent use of their subscription; and the content industry must promote GOFapprovedsecurity devices such as fingerprinting and watermarking.France is a traditionally strong defender of intellectual property rights and has highlydeveloped protection for intellectual property. Under the French system, patents andtrademarks protect industrial property, while literary/artistic property is protected bycopyrights. By virtue of the Paris Convention and the Washington Treaty regardingindustrial property, U.S. nationals have a "priority period" after filing an application for aU.S. patent or trademark in which to file a corresponding application in France. Thisperiod is twelve months for patents and six months for trademarks.Transparency of Regulatory SystemReturn to topThe French government has made considerable progress in recent years improving thetransparency and accessibility of its regulatory system. Government Ministers,companies, consumer organizations and trade associations may petition the CompetitionAuthority to investigate anti-competitive practices.Of most concern to foreign companies has been standards setting. With standardsdifferent from those in the U.S., rigorous testing and approval procedures mustsometimes be undertaken before goods can be sold in France. Where EU-widestandards do not exist, specific French standards apply. The United States and the EUhave negotiated mutual recognition agreements covering the testing and certification ofcertain specified regulated products. Information about these agreements and efforts toextend them can be found at the website of the Trans-Atlantic Business Dialogue,http://www.tabd.com/ . The Transatlantic Economic Council, established in Spring 2007at U.S.-EU annual Summit and which met on December 12, 2008, focuses on improvingregulatory cooperation. In November 2009, President Obama, Swedish Prime MinisterReinfeldt, and President Barroso of the European Commission announced a newpartnership that will be in parallel to the TEC, the U.S.-EU Energy Council. The Councilwill bring the United States and the European Union together to meet our energy-relatedchallenges in the fields of research and technology, policy and regulations, and energymarkets and security.The National Institute of Standards and Technology, http://www.nist.gov/, is representedat the International Bureau of Weights and Measures, http://www.bipm.fr/, located inSevres, France, and may be of assistance to firms.Industry associations have an influential role in developing both government policies andinfluencing self-regulatory organizations. U.S. firms may find it useful to becomemembers of local industry groups. Experience has shown that even "observer" status2/18/2010 Country Commercial Guide for France 109INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

can offer U.S. firms an insight into new investment opportunities and greater access togovernment-sponsored projects, even if U.S. firms sometimes feel they are not alwaysgiven an adequate opportunity to participate in the determination of regulations.Efficient Capital Markets and Portfolio InvestmentReturn to topAccess to Capital and Capital Markets:France has an open financial market that allows firms easy access to a variety offinancial products in both French and international markets. As markets expand, foreignand domestic portfolio investment has become increasingly important. France continuesto modernize its marketplace and in 2007 its main market, Euronext, merged with theNew York Stock Exchange.As with most EU companies, French listed companies have been required to useinternational accounting standards since 2005. Some aspects of French legal, regulatoryand accounting systems may not be as transparent as U.S. systems, but they areconsistent with international norms. Under special arrangement between the SEC andEuropean counterparts, U.S.-listed firms applying U.S GAAP do not need to reconciletheir accounts under IFRS.Commercial banks offer all classic financing instruments, including short, medium, andlong-term loans, short-and medium-term credit facilities, and secured and non-securedoverdrafts. Commercial banks also assist in public offerings of shares and corporatedebt, mergers, acquisitions and takeovers. Banks offer hedging services against interestrate and currency fluctuations. France has 155 foreign banks, one third of which arenon-EU banks (some with sizable branch networks) with total assets accounting foraround 11 percent of total bank assets at the end of 2008. Foreign companies haveaccess to all banking services. Although some subsidies are available for homemortgages and small business financing, most loans are provided at market rates.Increasingly, firms in France are bypassing banks and going directly to financial marketsfor their financing needs. The center of the French market is the Euronext stockexchange, formed on 22 September 2000 when the exchanges of Amsterdam, Brusselsand Paris merged. The Euronext group expanded at the beginning of 2002 with theacquisition of LIFFE (London International Financial Futures and Options Exchange) andthe merger with the Portuguese exchange BVLP (Bolsa de Valores de Lisboa e Porto).In February 2005, Euronext Paris merged the three separate markets of the Parisexchange, the cash market (“Marché au Comptant”), the regulated market (“SecondMarché”) and the “Nouveau Marché” (growth segment) on which new companies,especially smaller ones with an emphasis on growth and technology, can raise start-upcapital. The new market list (“Eurolist”) was split in three segments based on thecapitalization of companies (150 million euros, 150 million to 1 billion euros, and morethan 1 billion euros). In 2005, Euronext created a market, “Alternext,” to offer companiesa new unregulated market (based on the legal definition of the European investmentservices directive) with more consumer protection than the “Marché Libre” still used bysome 260 small businesses for their first stock listing. Euronext also administers thefinancial futures market, commonly known as the MATIF ("Marché à Terme desInstruments Financiers"), for trading of standard contracts on interest rates, short- andlong-term bonds, stock market indices, and commodities. It has established linkageswith its German and Swiss counterparts as well as with the Chicago Mercantile2/18/2010 Country Commercial Guide for France 110INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Exchange. Options are traded on the "Marché des Options Négociables de Paris”(MONEP) exchange, operated by Euronext. Finally, though not nearly as developed asin the United States or the United Kingdom, venture capital has become an increasinglyimportant way for start-up firms to raise capital. The NYSE merged with Euronext inMarch 2007. NYSE Euronext's equities markets – the New York Stock Exchange, NYSEEuronext, NYSE Amex, NYSE Alternext and NYSE Arca – represent nearly 40 percentof the world's equities trading. The merger has increased international exposure to theEuropean exchange and reduced trading fees, which should attract more investors.Foreigners hold approximately 39% percent of the capital of large publicly traded Frenchcompanies (CAC 40) in December 2008. For a foreign company incorporated in anOECD country to be listed on the NYSE Euronext stock exchange, it must be sponsoredby a French bank or broker. It must also prepare a French language prospectus to get apermit from "Autorité des Marchés Financiers - AMF,” the French equivalent of the SEC.Foreign companies are authorized to provide statements in English and a shortsummary in French. Since July 1, 2005, France has applied European regulation 809-2004 that details the content of prospectuses. An application to the AMF must include asummary in French or any other language commonly used in financial issues thatdescribes "essential information related to the content and modalities of operations" aswell as to the "organization, financial situation and development of the activity of thecompany". Details may be found on the AMF web site [http://www.amf-france.org] .The sponsoring bank or broker is responsible for placing the securities with investorswhen the securities are listed and for acting as a market maker. More information isavailable on the Paris Stock Exchange website:http://www.euronext.com/landing/regulation-12602-EN.html .Cross-Shareholding:An intricate network of cross-shareholdings among French corporations has often beenseen as a barrier to foreign acquisition of French firms. Often, two French companies willeach own a significant share of the other, with their executives sitting on each others'Board of Directors. This system, which was traditionally a means to help ensure statecontrolof the economy, has weakened in recent years under the pressure of themarketplace.Mergers and Acquisitions:Although French laws regarding takeovers do not discriminate against foreign investors,a hostile takeover in France by a foreign investor could face public and even officialscrutiny. Provisions of the company takeover law are designed to limit hostile takeoversof publicly traded companies. For example, according to a regulation passed by theParliament on December 15, 2005, stockholders are required to notify companymanagement and AMF when they have decided to prepare a takeover. France extendedits public offering rules by imposing some additional obligations on investors takingcontrol of a company listed on a French market depending on the level of voting rights inthe targeted company and the nature of the proposed acquisition. In April 2009, AMFadded two new thresholds of 15 percent and 25 percent of shares or voting rights to theexisting 33 percent threshold that obliges a company to launch a mandatory tender offer.Other changes in AMF regulations include the creation of mandatory tender offerthresholds of 50 percent and 95 percent of shares or voting rights for companies listedon Alternext, the unregulated market created in 2005. To date, nothing indicates the2/18/2010 Country Commercial Guide for France 111INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

proposed measures are anything other than an attempt to increase transparency of allmarket participants.In transposing the European takeover directive, France has tried to reconcile itsobjectives of reestablishing its credentials as an investor-friendly country, while allowingcompanies to defend themselves against “predators.” French companies may suspendimplementation of a takeover if they are targeted by a foreign company that does notapply reciprocal rules. The government also introduced an amendment allowing a U.S.-style “poison pill” takeover defense, including granting existing shareholders andemployees the right to increase their leverage by buying more shares through stockpurchase warrants (“bons de souscription d’actions - BSA”) at a discount in case of anunwanted takeover. New provisions include a reform of AMF supervisory procedures.Procedures cover declaration of conformity, offer price, declaration of a bid in relation totakeover rumors and nomination of an independent appraiser when conflicts of interestsexist: http://www.amf-France.org/affiche_page.asp?urldoc=mediateur.htm&lang=fr&Id_Tab=0.Competition from State Owned EnterprisesReturn to topSOEs dominate common carrier transportation (rail, bus, air) and are also active inenergy, defense, the postal service, and the media. Companies owned or controlled bythe state behave largely like other companies in France and are subject to the samelaws and tax code. The Boards of SOEs operate according to accepted Frenchcorporate governance principles as set out in the (private sector) AFEP-MEDEF Code ofCorporate Governance updated in 2008. SOEs are required by law to publish an annualreport. The French Court of Audit conducts financial audits on all entities in which thestate holds a majority interest. The French government appoints representatives to theBoards of Directors of all companies in which it has significant share holdings andmanages its portfolio interests through a special unit attached to the Economics Ministry.Until the recent financial crisis, the French government was gradually reducing its stakein companies through privatization. The crisis has prompted a slight reversal of thisgeneral trend with President Sarkozy’s determination to invest in select small andmedium-sized firms having or developing a key technological or "strategic" role in theFrench economy. These long-term (approximately 10 years) minority governmentstakes are typically used to leverage tandem, private-sector investments in the firmsconcerned. The government-sponsored financial institution, Caisse des Dépôts, playsan important role in administering these operations by the Strategic Investment Fund,which it co-owns with the government.Électricité de France holds 85 percent of the overall French electricity market by volumeeven after it was opened to competition mid-2007. EDF is subject to several EuropeanCommission investigations for anticompetitive practices. EDF rivals claim they areprevented from competing against the utility for lack of access to EDF’s nuclear power.The French government plans to implement electricity market reform in 2010 that wouldpromote competition while encouraging investment and preserve the benefit of thecountry's low-cost nuclear power plant fleet for consumers. As a consequence of recentEuropean liberalization measures, the French Government is changing the postalcompany’s legal form to a joint-stock company, and as of December 2009, foreigncompanies are allowed to compete against SNCF in the French market for internationalhigh-speed rail travel passengers.2/18/2010 Country Commercial Guide for France 112INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

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Corporate Social ResponsibilityReturn to topCSR within France is broad, covering environmental, social, and transparency concernsin business operations and in interactions with stakeholders. France became atrailblazer in the European Union for responsible CSR reports and implementation whenthe French Parliament introduced the New Economic Regulations (NRE) in May 2001and made annual sustainability reporting mandatory for all nationally listed companies inFrance. The NRE focuses on financial issues, such as increasing the transparency oftake-over bids, improving corporate governance, and fortifying antitrust regulation butseveral articles also legislate the disclosure of companies' "triple bottom line"performance, which takes into account not only financial but also social andenvironmental indicators. The NRE requires reporting in three key dimensions, humanresources and labor standards (social benefits, health and safety, employment, equalopportunities, etc.), the community (local impact, local partnerships, etc.), and theenvironment (emissions, impact on biodiversity, resource consumption, etc.). While noofficial key performance indicator exists to monitor required disclosure, annual reportsare made available to the public and private-sector organizations such as Observatoiresur la Responsabilité Sociétale des Entreprises (ORSE) collect and analyze documents,publications, and annual reports relevant to CSR and SRI in France.Diversity and work life balance also figure prominently in public debate over CSR inFrance. On the informal urging of the government, more and more companies arepursuing a strategy of diversity promotion, especially with regard to seniors, women, anddisabled people. Since January 1, 2010, all firms of 50 employees or more must abideby a new legal requirement to employ “senior” workers (i.e. 50 years or more) or pay apenalty.There are currently more than 600 different professional organizations in France, manyof which are part of larger business federations. While there is no legal obligation forfirms established in France to join such organizations, one significant motivation fordoing so is the information these federations provide on all their professionalrequirements, including labor and environment-related ones.Political ViolenceReturn to topOccasionally anti-American sentiments, particularly by those who see themselves asthreatened by U.S. policies, result in demonstrations against U.S. investments, but suchincidents are rare. France is one of the world's leading democracies and a foundingmember of the EU; there is little danger of insurrection, belligerent neighbors, orwidespread civil disturbances. Perceived discrimination and a lack of economicopportunity contributed to disturbances that affected poorer, largely Muslim suburbs ofFrance’s largest cities in recent years. Most observers believe the unrest was fanned bysmall groups of youths looking for trouble, and incidents of violence have largelydissipated. Moreover, since the terrorist attacks of September 11, 2001, there have beenrelatively fewer anti-American demonstrations in France as compared to prior years.Nevertheless, as the economic downturn worsened during 2009, some laid-off workers“detained” the managers of several U.S.-based companies in a bid to secure betterseverance packages. These companies included: 3M, Caterpillar and Molex. Similarincidents also took place at French, German and Japanese-owned firms. PresidentSarkozy publicly criticized the workers for these actions. The practice of “bossnapping”2/18/2010 Country Commercial Guide for France 114INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

is generally deemed acceptable as long as workers refrain from violence and release theexecutive within a couple of days. The police rarely intervene and workers usually donot face criminal charges.CorruptionReturn to topTen years into the OECD Anti-Bribery convention, numerous investigations have beeninitiated in France and several persons indicted although nobody has yet been convictedof bribing a foreign official. All the French cases so far concerned the bribery of Frenchpublic officials in connection with the awarding of water distribution and public workscontracts, and also, more recently, with the payment of commissions to secureinternational contracts. Monitoring Phase 2 of France’s compliance with the convention,the OECD Working Group on Bribery in international Business Transactions praisesFrench authorities commitment to continue awareness-raising among businesses andencourage public officials to advise the public prosecutor’s office of any violation of thelaw which transposes the convention. Major French corporations have put in placeethics committees and managers in charge of ethical conduct within the company. Thework of the Central Department for Corruption Prevention (Service Central de préventionde la corruption – SCPC), an inter-ministerial body under the supervision of the Ministerof Justice, has resulted in the signature of partnership agreements with some companiesto share information, review codes of ethics by introducing internal alert systems, andtrain personnel most heavily exposed to the risks of corruption. However, the OECDWorking Group Committee recommended that French authorities make SMEs andaccounting professionals more aware of the provisions of the June 30, 2000 Act, whichtransposed the OECD Anti-Bribery convention into French law. The OECD Anti-BriberyConventions are enforced via amendments to the Criminal code, which have beenintegrated into Articles 435-3 and 435-4 of a new chapter on international corruption(Chapter V, Title III, Book IV). Article 435-3 incriminates the offer or promise of a bribe,but not the actual payment of a bribe, which is explicitly mentioned in the convention.Furthermore, there is a difference in the treatment of victims of bribery, depending onwhether the bribery is domestic, EU or foreign. In cases of bribery of GOF/EU officials,any victim may initiate prosecution. In cases involving the bribery of other foreigngovernment officials, criminal proceedings may be initiated only by the public prosecutoron the basis of a complaint from a Government official in the country where the briberytook place.The OECD Anti-Bribery convention is further enforced via amendments to the Tax Codeand to the Code of Criminal Procedure. Article 39-2 of the French Tax Code puts an endto the tax deductibility of bribes as of the entry into force in France of the Convention(September 29, 2000). Finally, Article 706-1 of the amended Code of Criminal Procedureprovides that acts criminalized by the OECD Convention will be prosecuted in theEconomic and Financial Unit of the Paris Court of Justice.In July 2007, French Parliament approved the additional protocol to the Council ofEurope's criminal convention on corruption.There have been no specific complaints from U.S. firms of unfair competition orinvestment obstacles due to corrupt practices in France in recent years. Moreinformation on the international fight against corruption can be found at the Internet siteof Transparency International: http://www.Transparency.org. According to Transparency2/18/2010 Country Commercial Guide for France 115INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

International’s French Chapter, the sectors most affected by corrupt practices tend to bepublic works and the defense industry.Corruption:Corruption, including bribery, raises the costs and risks of doing business. Corruptionhas a corrosive impact on both market opportunities overseas for U.S. companies andthe broader business climate. It also deters international investment, stifles economicgrowth and development, distorts prices, and undermines the rule of law.It is important for U.S. companies, irrespective of their size, to assess the businessclimate in the relevant market in which they will be operating or investing, and to have aneffective compliance program or measures to prevent and detect corruption, includingforeign bribery. U.S. individuals and firms operating or investing in foreign marketsshould take the time to become familiar with the relevant anticorruption laws of both theforeign country and the United States in order to properly comply with them, and whereappropriate, they should seek the advice of legal counsel.The U.S. Government seeks to level the global playing field for U.S. businesses byencouraging other countries to take steps to criminalize their own companies’ acts ofcorruption, including bribery of foreign public officials, by requiring them to uphold theirobligations under relevant international conventions. A U. S. firm that believes acompetitor is seeking to use bribery of a foreign public official to secure a contractshould bring this to the attention of appropriate U.S. agencies, as noted below.U.S. Foreign Corrupt Practices Act: In 1977, the United States enacted the ForeignCorrupt Practices Act (FCPA), which makes it unlawful for a U.S. person, and certainforeign issuers of securities, to make a corrupt payment to foreign public officials for thepurpose of obtaining or retaining business for or with, or directing business to, anyperson. The FCPA also applies to foreign firms and persons who take any act infurtherance of such a corrupt payment while in the United States. For more detailedinformation on the FCPA, see the FCPA Lay-Person’s Guide at:http://www.justice.gov/criminal/fraud/docs/dojdocb.html.Other Instruments: It is U.S. Government policy to promote good governance, includinghost country implementation and enforcement of anti-corruption laws and policiespursuant to their obligations under international agreements. Since enactment of theFCPA, the United States has been instrumental to the expansion of the internationalframework to fight corruption. Several significant components of this framework are theOECD Convention on Combating Bribery of Foreign Public Officials in InternationalBusiness Transactions (OECD Anti-bribery Convention), the United Nations Conventionagainst Corruption (UN Convention), the Inter-American Convention against Corruption(OAS Convention), the Council of Europe Criminal and Civil Law Conventions, and agrowing list of U.S. free trade agreements. This country is party to [add instrument towhich this country is party], but generally all countries prohibit the bribery and solicitationof their public officials.OECD Anti-bribery Convention: The OECD Anti-bribery Convention entered into forcein February 1999. As of December 2009, there are 38 parties to the Conventionincluding the United States (see http://www.oecd.org/dataoecd/59/13/40272933.pdf).Major exporters China, India, and Russia are not parties, although the U.S. Government2/18/2010 Country Commercial Guide for France 116INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

strongly endorses their eventual accession to the Convention. The Convention obligatesthe Parties to criminalize bribery of foreign public officials in the conduct of internationalbusiness. The United States meets its international obligations under the OECD AntibriberyConvention through the U.S. FCPA. [Insert information as to whether yourcountry is a party to the OECD Convention.]UN Convention: The UN Anticorruption Convention entered into force on December 14,2005, and there are 143 parties to it as of December 2009 (seehttp://www.unodc.org/unodc/en/treaties/CAC/signatories.html). The UN Convention isthe first global comprehensive international anticorruption agreement. The UNConvention requires countries to establish criminal and other offences to cover a widerange of acts of corruption. The UN Convention goes beyond previous anticorruptioninstruments, covering a broad range of issues ranging from basic forms of corruptionsuch as bribery and solicitation, embezzlement, trading in influence to the concealmentand laundering of the proceeds of corruption. The Convention contains transnationalbusiness bribery provisions that are functionally similar to those in the OECD AntibriberyConvention and contains provisions on private sector auditing and books and recordsrequirements. Other provisions address matters such as prevention, internationalcooperation, and asset recovery. [Insert information as to whether your country is aparty to the UN Convention.]OAS Convention: In 1996, the Member States of the Organization of American States(OAS) adopted the first international anticorruption legal instrument, the Inter-AmericanConvention against Corruption (OAS Convention), which entered into force in March1997. The OAS Convention, among other things, establishes a set of preventivemeasures against corruption, provides for the criminalization of certain acts of corruption- including transnational bribery and illicit enrichment, and contains a series of provisionsto strengthen the cooperation between its States Parties in areas such as mutual legalassistance and technical cooperation. As of December 2009, the OAS Convention has33 parties (see http://www.oas.org/juridico/english/Sigs/b-58.html) [Insert information asto whether your country is a party to the OAS Convention.]Council of Europe Criminal Law and Civil Law Conventions: Many Europeancountries are parties to either the Council of Europe (CoE) Criminal Law Convention onCorruption, the Civil Law Convention, or both. The Criminal Law Convention requirescriminalization of a wide range of national and transnational conduct, including bribery,money-laundering, and account offenses. It also incorporates provisions on liability oflegal persons and witness protection. The Civil Law Convention includes provisions oncompensation for damage relating to corrupt acts, whistleblower protection, and validityof contracts, inter alia. The Group of States against Corruption (GRECO) wasestablished in 1999 by the CoE to monitor compliance with these and related anticorruptionstandards. Currently, GRECO comprises 46 member States (45 Europeancountries and the United States). As of December 2009, the Criminal Law Conventionhas 42 parties and the Civil Law Convention has 34 (seehttp://www.coe.int/t/dghl/monitoring/greco/default_en.asp) France is a party to theCouncil of Europe Conventions.Free Trade Agreements: While it is U.S. Government policy to include anticorruptionprovisions in free trade agreements (FTAs) that it negotiates with its trading partners, theanticorruption provisions have evolved over time. The most recent FTAs negotiated nowrequire trading partners to criminalize “active bribery” of public officials (offering bribes to2/18/2010 Country Commercial Guide for France 117INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

any public official must be made a criminal offense, both domestically and transnationally)as well as domestic “passive bribery” (solicitation of a bribe by a domesticofficial). All U.S. FTAs may be found at the U.S. Trade Representative Website:http://www.ustr.gov/trade-agreements/free-trade-agreements. [Insert information as towhether your country has an FTA with the United States: Country [X] has a free tradeagreement (FTA) in place with the United States, the [name of FTA], which came intoforce. Consult USTR Website for date: http://www.ustr.gov/trade-agreements/free-tradeagreements.Local Laws: U.S. firms should familiarize themselves with local anticorruption laws, and,where appropriate, seek legal counsel. While the U.S. Department of Commerce cannotprovide legal advice on local laws, the Department’s U.S. and Foreign CommercialService can provide assistance with navigating the host country’s legal system andobtaining a list of local legal counsel.Assistance for U.S. Businesses: The U.S. Department of Commerce offers severalservices to aid U.S. businesses seeking to address business-related corruption issues.For example, the U.S. and Foreign Commercial Service can provide services that mayassist U.S. companies in conducting their due diligence as part of the company’soverarching compliance program when choosing business partners or agents overseas.The U.S. Foreign and Commercial Service can be reached directly through its offices inevery major U.S. and foreign city, or through its Website at www.trade.gov/cs.The Departments of Commerce and State provide worldwide support for qualified U.S.companies bidding on foreign government contracts through the CommerceDepartment’s Advocacy Center and State’s Office of Commercial and Business Affairs.Problems, including alleged corruption by foreign governments or competitors,encountered by U.S. companies in seeking such foreign business opportunities can bebrought to the attention of appropriate U.S. government officials, including local embassypersonnel and through the Department of Commerce Trade Compliance Center “ReportA Trade Barrier” Website at tcc.export.gov/Report_a_Barrier/index.asp.Guidance on the U.S. FCPA: The Department of Justice’s (DOJ) FCPA OpinionProcedure enables U.S. firms and individuals to request a statement of the JusticeDepartment’s present enforcement intentions under the anti-bribery provisions of theFCPA regarding any proposed business conduct. The details of the opinion procedureare available on DOJ’s Fraud Section Website at www.justice.gov/criminal/fraud/fcpa.Although the Department of Commerce has no enforcement role with respect to theFCPA, it supplies general guidance to U.S. exporters who have questions about theFCPA and about international developments concerning the FCPA. For furtherinformation, see the Office of the Chief Counsel for International Counsel, U.S.Department of Commerce, Website, at http://www.ogc.doc.gov/trans_anti_bribery.html.More general information on the FCPA is available at the Websites listed below under“Anti-Corruption Resources”.Exporters and investors should be aware that generally all countries prohibit the briberyof their public officials, and prohibit their officials from soliciting bribes under domesticlaws. Most countries are required to criminalize such bribery and other acts ofcorruption by virtue of being parties to various international conventions discussedabove.2/18/2010 Country Commercial Guide for France 118INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

France actively pursues public corruption cases. For more information, see the OECDreport, which includes some French cases:http://www.oecd.org/document/19/0,3343,en_2649_34135_35822611_1_1_1_1,00.htmlAnti-Corruption ResourcesSome useful resources for individuals and companies regarding combating corruption inglobal markets include the following:• Information about the U.S. Foreign Corrupt Practices Act (FCPA), including a “Lay-Person’s Guide to the FCPA” is available at the U.S. Department of Justice’sWebsite at: http://www.justice.gov/criminal/fraud/fcpa.• Information about the OECD Antibribery Convention including links to nationalimplementing legislation and country monitoring reports is available at:http://www.oecd.org/department/0,3355,en_2649_34859_1_1_1_1_1,00.html.See also new Antibribery Recommendation and Good Practice Guidance Annex forcompanies: http://www.oecd.org/dataoecd/11/40/44176910.pdf• General information about anticorruption initiatives, such as the OECD Conventionand the FCPA, including translations of the statute into several languages, isavailable at the Department of Commerce Office of the Chief Counsel forInternational Commerce Website: http://www.ogc.doc.gov/trans_anti_bribery.html.• Transparency International (TI) publishes an annual Corruption Perceptions Index(CPI). The CPI measures the perceived level of public-sector corruption in 180countries and territories around the world. The CPI is available at:http://www.transparency.org/policy_research/surveys_indices/cpi/2009. TI alsopublishes an annual Global Corruption Report which provides a systematicevaluation of the state of corruption around the world. It includes an in-depthanalysis of a focal theme, a series of country reports that document majorcorruption related events and developments from all continents and an overview ofthe latest research findings on anti-corruption diagnostics and tools.See http://www.transparency.org/publications/gcr.• The World Bank Institute publishes Worldwide Governance Indicators (WGI).These indicators assess six dimensions of governance in 212 countries, includingVoice and Accountability, Political Stability and Absence of Violence, GovernmentEffectiveness, Regulatory Quality, Rule of Law and Control of Corruption. Seehttp://info.worldbank.org/governance/wgi/sc_country.asp. The World BankBusiness Environment and Enterprise Performance Surveys may also be of interestand are available at: http://go.worldbank.org/RQQXYJ6210.• The World Economic Forum publishes the Global Enabling Trade Report, whichpresents the rankings of the Enabling Trade Index, and includes an assessment ofthe transparency of border administration (focused on bribe payments andcorruption) and a separate segment on corruption and the regulatory environment.Seehttp://www.weforum.org/en/initiatives/gcp/GlobalEnablingTradeReport/index.htm.2/18/2010 Country Commercial Guide for France 119INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

• Additional country information related to corruption can be found in the U.S. StateDepartment’s annual Human Rights Report available at:http://www.state.gov/g/drl/rls/hrrpt/.• Global Integrity, a nonprofit organization, publishes its annual Global IntegrityReport, which provides indicators for 92 countries with respect to governance andanti-corruption. The report highlights the strengths and weaknesses of national levelanti-corruption systems. The report is available at: http://report.globalintegrity.org/.Bilateral Investment AgreementsReturn to top1959 U.S.-France Convention on Establishment:U.S. investment in France is subject to the provisions of the Convention onEstablishment between the United States of America and France, which was signed in1959 and is still in force. Some of the rights it provides to U.S. nationals and companiesinclude:• The right to be treated like domestic nationals in all types of commercial activitiesincluding the right to establish offices and acquire majority control of Frenchfirms, and in obtaining and maintaining patent and trademarks. (This right doesnot apply to firms involved in communications, air transportation, watertransportation, banking, the exploitation of natural resources, certain"professions," and the production of electricity);• The right to receive the best treatment accorded to either domestic nationals andcompanies or third country nationals and companies with respect to transferringfunds between France and the U.S.;• The requirement that property may only be expropriated for a public purpose andthat payment must be just, realizable and prompt.The treaty does not apply to the use or production of fissionable materials, arms or anymaterials that are used directly or indirectly to supply military establishments. The treatydoes not prevent application of measures necessary to protect essential securityinterests.Bilateral Investment Treaties:Investments in France by other EU member states are governed by the provisions of theTreaty of Rome and by Union Law. France has also signed Bilateral Investment Treaties(BITs - “Accords de protection et d’encouragement réciproques des investissements”)with the following 85 countries: Albania, Algeria, Argentina, Armenia, Azerbaijan,Bangladesh, Bolivia, Bulgaria, Cambodia, Chile, China, the Democratic Republic of theCongo, Costa Rica, Croatia, Cuba, Czech Republic, Ecuador, Egypt, El Salvador,Equatorial Guinea, Estonia, Ethiopia, Georgia, Guatemala, Haiti, Hong Kong, Honduras,Hungary, India, Indonesia, Iran, Israel, Jamaica, Jordan, Kazakhstan, Korea (South),Kuwait, Kyrgyz Republic, Laos, Latvia, Lebanon, Liberia, Lithuania, Macedonia,Malaysia, Malta, Mauritius, Mexico, Moldova, Mongolia, Morocco, Nepal, Nicaragua,Nigeria, Oman, Pakistan, Panama, Paraguay, Peru, Philippines, Poland, the Dominican2/18/2010 Country Commercial Guide for France 120INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Republic, Qatar, Romania, Saudi Arabia, Russia, Singapore, Slovakia, Slovenia, SouthAfrica, Sri Lanka, Sudan, Syria, Trinidad and Tobago, Tajikistan, Tunisia, Turkmenistan,Ukraine, United Arab Emirates, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, andthe former Federal Republic of Yugoslavia.Bilateral Investment Treaties signed with the following 12 countries have not yet beenratified: Bahrain, Belarus, Bosnia, Brazil, Ghana, Libya, Madagascar, Mozambique,Namibia, Uganda, Zambia and Zimbabwe. In October 2008, the Foreign and EuropeanAffairs Minister introduced three bills authorizing the approval of BITs with China, Kenyaand Equatorial Guinea. The agreement signed with China replaces the 1984 agreement,and includes norms related to international arbitrage and free capital flows. Theagreements signed with Equatorial Guinea and Kenya (both approved in April 2009)provide investors with a protective and consistent legal framework.French BITs generally cover the following:• Just and equitable treatment that is no less favorable than that accorded todomestic investors or the most favored investor from a third country;• Restrictions on expropriation of investments, and requirements that, in the caseof expropriation, compensation is prompt and adequate;• Free transfers;• The ability to resolve investor-state disputes through binding internationalarbitration.OPIC and Other Investment Insurance ProgramsReturn to topGiven France's high per capita income, investments in France do not qualify forinvestment insurance or guarantees offered by the Overseas Private InvestmentCorporation (OPIC). Further information can be found at: http://www.opic.gov.LaborReturn to topFrance's private sector labor force is one of the country's strongest points in attractingforeign investment, combining high quality with relatively competitive unit-wage costscompared with those of other industrialized countries.The labor code sets minimum standards for working conditions including the workweek,layoffs, overtime, vacation and personal leave. Part of President Nicolas Sarkozy'seconomic reforms ("Work more to earn more”) has aimed at greater flexibility regardingthe 35-hour workweek. Tax exemptions on overtime work were included in the GOF'sfiscal packaged approved by Parliament and took effect October 1, 2007. Employeesworking overtime are exempt from personal income tax on those hours, and employeesand employers benefit from reduced payroll taxes on overtime work. Business welcomedthe GOF’s efforts, but has complained that the implementing regulations are confusingand costly for French companies.2/18/2010 Country Commercial Guide for France 121INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Talks between employers and unions on revising labor contracts to make hiring andfiring easier resulted in agreement on a number of points in early 2008. The governmenthad threatened to introduce a tougher draft bill in Parliament if the talks had brokendown. The agreed-upon measures have subsequently been ratified by Parliament, asrequired by law.The President' proposal to streamline assistance to job-seekers by merging France'snational job placement and unemployment agencies was passed by the Parliament inJanuary 2008, and enacted in September 2008.At the end of 2006, France adopted an employees’ shareholding law (“Loi sur laParticipation”), which involves some changes in the labor code. The law encourages thepurchase of shares by employees, the development of employees’ investment/retirementsavings accounts, and better representation of employees as shareholders. Employeesin large companies who are laid off for economic reasons may benefit from “mobilityleave” which involves training, short-term contracts, or transfer to another company. Anew “transport allowance” will benefit employees who commute using public or privatetransportation. See: http://www.legifrance.gouv.fr (search the 31 December 2006 FrenchOfficial Journal – law 2006-1770 of 30 December 2006).Other labor standards are contained in collective agreements, which are usuallynegotiated by sector on a national or regional basis by the various trade unionfederations and employers' associations. French absenteeism is modest by Europeanstandards, and in the private sector peaceful labor relations generally prevail.While the rate of unionization in France has steadily declined to a little more than halfthat of the United States, French labor law provides an extensive institutional role foremployee representatives and for organized labor.• In companies with more than 10 employees, employee delegates are electedfor a one-year term. They are authorized to present individual or collectiveclaims and grievances relating to working conditions, to inform governmentlabor inspectors of any complaints under the labor law, and to concur withmanagement in any reorganization of the workweek. Management is required tomeet with employee delegates at least monthly.• A company with more than 50 employees must have a jointmanagement/employee enterprise committee, to which employeerepresentatives are elected. The committee must be consulted for all majorcorporate decisions, but has no veto. The enterprise committee must beprovided with the same information that is made available to shareholders. It isfunded by the company at a rate equal to at least 0.2 percent of the firm'spayroll, and uses this money to finance social and cultural activities for thebenefit of employees.• Workers also hold most slots on occupational health and safety committees,which are mandatory in medium and large size companies. Labor tribunals(playing a role largely equivalent to the NLRB in resolving labor disputes) arecomprised of equal numbers of union and employer representatives. Appealsare possible to the level of the “Cour de Cassation,” one of France's high courts.2/18/2010 Country Commercial Guide for France 122INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Following the economic downturn, the GOF showed strong political engagement withunion members. It created a new position, Minister of Industry that coordinatesgovernment activities to lessen the impact of job cuts and plant closures in strategicindustries. In the summer of 2009, Industry Minister Christian Estrosi appointed amediator to broker negotiations with two U.S. firms with links to the troubled internationalautomobile market. The firms had decided to close production facilities in France andthe GOF was pressing them to maintain a social dialogue and find an "industrialsolution" via a buyout. Both cases were exploited by far-left unions for maximumpublicity.Due to a variety of macro and microeconomic factors, including high payroll taxes, a highminimum wage, and rigid labor laws, French businesses traditionally have tended to useless labor-intensive procedures and rely more on labor saving technology thanbusinesses in other countries. This is one reason for France's high unemployment rate.Foreign-Trade Zones/Free PortsReturn to topFrance is subject to all European Union free trade zone regulations and arrangements.These allow member countries to designate portions of their customs territory as freetrade zones and free warehouses in return for commitments in favor of employment.France has taken advantage of these regulations in several specific instances. TheFrench Customs Service administers these zones and can provide more details.Customs can be contacted at the finance ministry web address:http://www.douane.gouv.fr (use search to find information about “zones franches”).France has redesignated trade zones in May 2007. The 2007 version of the decree hasbeen consolidated in November 2009 [see:http://www.legifrance.gouv.fr/affichTexte.do?cidTexte=LEGITEXT000006056358&dateTexte=20100111] In addition, the French government has extended the tax exemptionprogram for five years, until December 31, 2011, in the existing urban "enterprise zones"(“Zones Franches Urbaines”). Since January 2004, all such zones have benefited fromtax exemptions on corporate tax, payroll taxes, professional tax and real estate tax. TheDecember 19, 2006 decree designated new urban zones. Related information isavailable at the City Government web site:http://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000000641190&dateTexte=.More information on enterprise and investment zones is available from various sources:http://www.zones-franches.org; http://www.InvestinFrance.org; http://www.diact.gouv.frand http://www.oseo.fr for assistance to small and medium sized companies.2/18/2010 Country Commercial Guide for France 123INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

France has 70 "competitiveness clusters" designed to reinforce innovation andencourage innovative businesses to remain in France. (Automobile poles mTA andMOV'EO merged in June 2009.) Many clusters are pursuing projects with internationalpartners. By the end of 2008, ten clusters claimed to have "global" aspirations. Theaerospace cluster is the only recognized actor in world markets. Most clusters lack aninternational presence because small and medium sized companies dominatemembership; traditionally SMEs in France do not have strong export capacity. Clustersbenefit from income and social tax exemptions. Clusters involved in research andinnovation also benefit from financial support from the state-owned investment bankCaisse des Dépôts. Directory of French clusters:http://www.competitivite.gouv.fr/spip.php?rubrique36&lang=en;map of clusters: http://www.competitivite.gouv.fr/spip.php?rubrique44&lang=enForeign Direct Investment StatisticsReturn to topForeign investment represents a significant percentage of production in many sectors.Rapid growth in the new technologies sector has given way to renewed growth intraditional sectors: automobiles, metalworking, aerospace, capital goods, consultancyand services. Although the current recessionary environment will impact foreigninvestment, France remains one of the main destinations of foreign direct investment(FDI) in the world. According to UNCTAD estimates, France was the second largestrecipient of foreign direct investment inflows in 2008, after the U.S., progressing from thethird rank in 2007. Foreign direct investment inflows accounted for 3.4 percent of GDP in2008. The U.S. remained one the largest sources of FDI in France. Using Bank ofFrance balance of payments data based on the historical book value of investment, U.S.firms accounted for 11.4 percent of the stock of foreign investment in 2007 (most recentdata available), slightly down from 12.4 percent in previous years.Using the book value instead of the market value of investments tends to underestimatethe value of U.S. investment in France. This is because investments by U.S. companiestend to be considerably older than other countries' investments and because U.S. firmsoften finance expansions and acquisitions on domestic French capital markets orthrough subsidiaries in third countries. Thus, much U.S. investment in France is notrecorded in balance of payments statistics, even though it may ultimately be controlledby U.S. citizens. The December 30, 2005 decree 2005-1739 on financial relations withforeign countries defines foreign investment operations that have to be notified to theBank of France for the establishment of the balance of payments and France’s externalposition. Firms with questions should contact the Bank of France at the followingaddress:Banque de FranceService de la Balance des Paiements31, rue Croix-des-Petits ChampsTel: 01.42.92.42.92Correcting for statistical biases, and including the value of U.S. holdings of Frenchstocks, the market value of the stock of U.S. investment in France might have been asmuch as five times the book value before the financial crisis reported in U.S. Departmentof Commerce data (http://bea.gov search in International). Because of the financialcrisis, the U.S. holdings of French stocks decreased in 2008. More than 1,370 affiliates2/18/2010 Country Commercial Guide for France 124INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

of U.S. firms are established in France. An estimated 650,000 jobs result from U.S.-originated investments.Today, foreign-controlled firms play a significant role in France's economy, accountingfor 20 percent of capital expenditures (source: UNCTAD), 37 percent of sales, 31percent of employment, and 8 percent of employment in the services sector (source:OECD).An updated list of recent U.S. investment projects ors may be found onhttp://www.invest-in-france.org/north-america/successful-business-developments-in-France.html.A list of over 400 foreign investors by industry can be found in the 2009 Amchamdirectory published by:American Chamber of Commerce in France156, boulevard Haussmann75008 ParisTel: 01 56 43 45 67 Fax: 01 56 43 45 60.Information spreadsheets may be sent by e-mail; consult http://www.amchamfrance.org.Useful information on the 1000 largest companies and financial institutions establishedin France can be found in local periodicals such as Expansion ("Les 1000 del'Expansion":http://www.lexpansion.com/economie/classement/atlas.asp?idc=124715&typerec=3&code secteur1000=1]).Stock by country of origin (Book value) (USD billions)2006 2007 2008EU (27) 554 676 n.a.EU (15) 429 527 n.a.of whichNetherlands 110 130 n.a.Belgium 84 107 n.a.Germany 78 95 n.a.Luxemburg 70 94 n.a.Italy 30 32 n.a.Other EU 125 149 n.a.of whichUK 112 133 n.a.Sweden 6 7 n.a.Other Industrialized Countries 147 172 n.aof whichUSA 84 101 n.a.Switzerland 42 50 n.a.Japan 9 10 n.a.Other countries 28 36 n.a.Total 729 884 n.a.Total as percent of GDP 33.5 34.1 n.a.(Exchange rate:USD 1.00 equals Euro) 0.80 0.70 0.70Source: Bank of France2/18/2010 Country Commercial Guide for France 125INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Stock of Foreign Investment in France (Market value) (USD billions)2006 2007 2008Total 1,068 1,174 1,087Total as percent of GDP 49.1 64.7 48.1(Exchange rate:USD 1.00 equals Euro) 0.80 0.70 0.70Source: Bank of FranceStock by Industrial Sector of Origin (Book value)(USD billions)2006 2007 2008Real estateand Services to companies 218 295 n.a.Manufacturing 235 262 n.a.Of which-Chemical Industry 70 80 n.a.-Processed Food 34 40 n.a.Other 131 142 n.a.Financial Intermediation 103 127 n.a.Other 173 201 n.a.Total 729 884 n.a.(Exchange rate:USD1.00 equals Euro) 0.80 0.70 0.70Source: Bank of FranceFlows by country of origin (Market value) (USD billions)2006 2007 2008EU (27) 52 81 68EU (15) 45 65 56of whichNetherlands 17 13 12Spain 9 6 -3Belgium 6 15 14Italy 3 0 -3Other EU 17 16 12of whichUK 6 15 7Other Industrialized Countries 17 16 22Of whichUSA 13 1 12Switzerland 2 4 7Japan 1 0 2Other countries 3 7 8Total 72 104 97Total as percent of GDP 3.3 4.0 3.4(Exchange rate:USD1.00 equals Euro) 0.80 0.70 0.70Source: Bank of France2/18/2010 Country Commercial Guide for France 126INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Stock by country of destination (Book value) (USD billions)2006 2007 2008EU (27) 690 830 n.a.EU (15) 440 557 n.a.of whichNetherlands 117 145 n.a.Belgium 92 127 n.a.Germany 89 97 n.a.Italy 42 56 n.a.Other EU 195 216 n.a.of whichUK 156 173 n.a.Other industrializedcountries 273 302 n.a.of whichUSA 175 200 n.a.Switzerland 46 46 n.a.Japan 20 23 n.a.Other countries 91 127 n.a.Total 999 1,202 n.a.Total as percent of GDP 45.9 46.3 n.a.(Exchange rate:USD 1.00 equals Euro) 0.80 0.70 0.70Source: Bank of FranceStock of French FDI Abroad (Market value) (USD billions)2006 2007 2008Total 1,896 1,681 1,376Total as a percent of GDP 87.2 64.7 48.1Stock by Industrial Sector Destination (Book value)(USD billions)2006 2007 2008Manufacturing 326 363 n.a.Of which-Chemical Industry 67 71 n.a.-Processed Food 41 42 n.a.-Other 219 259 n.a.Finance Intermediation 218 251 n.a.Real estate andServices to companies 142 204 n.a.Other 313 384 n.a.Total 999 1,202 n.a.(Exchange rate:USD 1.00 equals Euro) 0.80 0.70 0.70Source: Bank of France2/18/2010 Country Commercial Guide for France 127INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Flows by country of destination (Market value) (USD billions)2006 2007 2008EU (27) 59 141 135EU (15) 44 122 137of whichBelgium 16 7 67Germany 9 8 11Italy 5 24 3Netherlands 10 51 17Other EU 15 18 -2of whichUK 12 12 15Other Industrialized Countries 38 18 31of whichUSA 22 24 17Switzerland 13 1 8Japan 1 1 2Other countries 38 18 31Total 111 169 201Total as a percent of GDP 5.1 6.5 7.0(Exchange rate:USD 1.00 equals Euro) 0.80 0.70 0.70Source: Bank of FranceMONACOThe Principality of Monaco, the world’s second smallest country, has an open economywhich welcomes foreign investment. Monaco enjoys a high standard of living and lowunemployment. Except for French citizens, foreigners (and Monegasque) actually livingand working in Monaco are not subject to personal income tax. Corporations are alsofrequently able to benefit from various tax incentives. There are no restrictionspreventing foreigners and non-residents from opening bank or brokerage accounts inMonaco or from buying property. More than half of the real estate investments inMonaco are estimated to be made by non-residents. Monaco is well known for itssecurity and political stability.Monaco’s economic and regulatory system is closely tied to that of France and Monacouses the Euro as its currency. The convention of May 1, 1963 brought French andMonegasque territories, including territorial waters, under one customs union resulting inthe application of French customs law in Monaco. Although Monaco is not a full memberof the European Union, the customs union with France brings it under EU customs laws,thus guaranteeing that the transfer of goods and services from and into Monaco withinthe single European market.Economic activity within Monaco is strictly monitored by the Government. Prior approvalof the government is required before conducting any economic activity in ThePrincipality. The Monegasque authorities issue approvals based on the type of businessto be engaged in. The approval is personal and may not be re-assigned. Any change in2/18/2010 Country Commercial Guide for France 128INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

the terms requires the issuance of a new approval. In the financial sector, the creationof any financial organization is subject to both the approval of the French CECEI(Committee for Credit and Investment Institutions) in Paris and the Monegasquefinancial supervisory authorities. Offshore companies are subject to the same duediligence and suspicious transaction reporting regulations as other banking institutions.In March 2009, The Principality of Monaco announced that it would follow theinternational norms in matters of tax transparency. In September 2009, Monaco wasremoved from the Organization for Economic Cooperation and Development (OECD) listof “non-cooperative” countries in terms of provision of tax information. Thirteen taxinformation exchange agreements (TIEA) have been signed by the Principality ofMonaco, including one with the United States on September 8, 2009.Monaco does not publish national income figures nor does it publish its GDP figures.The country’s budget comes from taxes on industry, trade and services, a vibranttourism sector, and several government-owned enterprises, most notably on thecountry’s famous casinos. Approximately 50% of the government revenue is estimatedto come from the Value Added Tax (VAT) applied by the French Administration onMonaco.There is a high concentration of financial professionals, as might be expected, in thiscenter of international business. French banking law applies in Monaco, thus subjectingbanks in Monaco to the same level of supervision as French banks. There areapproximately 460 banks and financial institutions operating in Monaco, managing anestimated 750 billion Euros. 46% of the clientele is non-resident.There is no World Bank “Doing Business” report for Monaco; no TransparencyInternational “Country Corruption Report” for Monaco, and no Heritage Foundation“Economic Freedom Index” report for Monaco.Web ResourcesReturn to topReturn to table of contents2/18/2010 Country Commercial Guide for France 129INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Return to table of contentsChapter 7: Trade and Project Financing• How Do I Get Paid (Methods of Payment)• How Does the Banking System Operate• Foreign-Exchange Controls• U.S. Banks and Local Correspondent Banks• Project Financing• Web ResourcesHow Do I Get Paid (Methods of Payment)Return to topFor U.S. exporters, financing export sales is basically the same as financing domesticsales. The fundamental concern in both cases is that one is paid in a timely manner forthe goods and/or services delivered.France's modern banking system offers a full range of payment methods, the mostsignificant of which are:• Commercial letters of credit• Sight and time drafts• Bank transfers• Certified checksElectronic payments including electronic payment orders, pre-formatted inter-bankpayment orders, electronic commercial trade bills, and electronically processedpromissory notes. As of January 28, 2008, businesses are able to make faster eurocredit transfers in the Single Euro Payments Area (SEPA). By November 1, 2010,payments with direct debit will follow and businesses will be able to set up cross-borderdirect debits in euro between any two SEPA countries. SEPA will also help businessessimplify business management, as all financial transactions can be done centrally fromone bank account using SEPA payment instruments.Although bank transfers and certified checks are fairly self-explanatory methods ofpayment, commercial letters of credit and sight and time drafts may be less familiar tothe would-be exporter but are potentially attractive terms of payment.How Does the Banking System OperateReturn to topThe French banking system underwent a fundamental structural reform in 1984, whichremoved most of the distinction between commercial banks and merchant banks andgrouped most financial institutions under a single supervisory system. The largestcommercial banks, such as Crédit Agricole - LCL, Société Générale, BNP Paribas,Natixis, Crédit Mutuel - CIC group, and HSBC France rank among the largest banks inthe world. These commercial banks offer all classic financing instruments, includingshort, medium, and long-term loans, short-and medium-term credit facilities, andsecured and non-secured overdrafts. Commercial banks also assist in public offeringsof shares and corporate debt, as well as mergers, acquisitions and takeovers. Banks2/18/2010 Country Commercial Guide for France 130INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

also offer hedging against interest rate and currency fluctuations. France also has 155foreign banks; some have sizeable branch networks.The Bank of France (Banque de France) is a member of the European Central Bank(ECB) system and the Banque de France's governor sits on the executive board of theEuropean Central Bank. The Banque de France introduced Euro-denominatedbanknotes and coins in January 2002, completing the transition to the Euro, andeliminating the French franc.The Banque de France participates in the regulation and supervision of the Frenchbanking and financial system. Its governor is the chair of the Committee on CreditInstitutions, which grants or withdraws banking licenses. The governor is also presidentof the Banking Commission, which ensures that banks adhere to banking regulations.The system also includes two consultative committees, the Committee on FinancialRegulation, and the Financial Sector Consultative Committee.The French government has sold its majority equity stakes in major banks and insurancecompanies. However, it retains ownership of the Caisse des Dépôts et Consignationsand minority stakes in several major financial institutions. The French postal service, LaPoste, an independent public entity, holds 10 percent of the French financial servicesmarket. La Poste has created its own bank, La Banque Postale, which in 2006 acquiredthe status of a regular bank.Foreign-Exchange ControlsReturn to topAs part of the international effort to combat money laundering and the financing ofterrorism, France's banking regulations have undergone several changes, which affectthe handling of checks, as recommended by the Financial Action Task Forcehttp://www.fatf-gafi.org. In addition to implementing EU Common Positions regardingterrorists or arms proliferators, France sometimes uses its powers under national law toexecute asset freeze orders against terrorists. In general, all inward and outwardpayments must be made through approved banking intermediaries by bank transfers.Repatriation of Capital and Earnings:There is no restriction on repatriation of capital provided this is carried out through anapproved bank and the investment in question was authorized. Similarly, there is norestriction on transfers of profits, interest, royalties, or service fees, provided theinvestment was authorized and made through approved banks.Businesses:Foreign-controlled French businesses are required to have a resident French bankaccount and are subject to the same regulations as other French legal entities. The useof foreign bank accounts by residents is permitted.2/18/2010 Country Commercial Guide for France 131INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Individuals:France has few controls on the use of foreign exchange. For exchange controlpurposes, foreigners are considered to be residents from the time they arrive in France.French and foreign citizens are subject to the same rules. Residents are entitled to openan account in foreign currency with a bank established in France and to establishaccounts abroad. Residents must report the account number for all foreign accounts ontheir annual income tax returns. French-source earnings may be transferred abroad,without limitations if carried out through an approved bank.U.S. Banks and Local Correspondent BanksReturn to topAll large French banks have correspondent U.S. banking arrangements. ManyFrench banks also have subsidiaries or branch offices in the United States based onFederal Reserve listBNP Paribas: BancWest (Bank of the West and First Hawaiian Bank in 19 West and MidWest States); BNP Paribas (Chicago, Dallas, New York, Houston, Miami, SanFrancisco); Banque Privée Miami; Cardif Etats-Unis; CIB Etats-Unis; Investmentpartners; Banca Nazionale Del Lavoro (New York, Chicago);http://www.bnpparibas.comSociété Générale: Société Générale (Chicago, Dallas, Houston, New York); Trust Co ofthe West (Los Angeles): http://www.socgen.comCrédit Industriel et Commercial: CIC (New York); Banque Transatlantique (Washington)http://www.cic.fr; http://www.transat.tm.frNATIXIS (Los Angeles, Houston, New York): http://www.natixis.comCrédit Agricole: Calyon (Chicago, Dallas, Houston, Miami, New York); LCL (Miami);http://www.credit-agricole.fr ; http://www.caylon.comDexia Credit Local (New York): http://www.dexia.comMajor American banks and financial institutions present in Paris:American Express Cartes France4, rue Bleriot92500 Rueil-Malmaison CEDEXTel: (+33) 1 47 77 77 07Website: http://www.americanexpress.frBank of America51, rue François Premier75008 ParisTel: (+33) 1 45 02 68 00 ; Fax: (+33) 1 45 01 77 89Website: http://www.bankofamerica.com2/18/2010 Country Commercial Guide for France 132INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

The Bank of New York Mellon (representative office)13-15, boulevard de la Madeleine75001 ParisTel: (+33) 1 42 97 90 20 ; Fax: (+33) 1 42 97 43 73Website: http://www.bankofnewyork.comBanque AIG (subsidiary)46, rue Bassano75008 ParisTel: (+33) 1.49.52.36.00Website: http://www.aig.comGoldman Sachs (subsidiary)2, rue Thann75017 ParisTel: (+33) 01.42.12.10.00Website: http://www.gs.comCitigroup Global Markets Limited1-5 rue Paul Cézanne75008 ParisTel: (+33) 01.70.75.50.00; Fax: (+33) 01.70.75.50.01Website: http://www.citibank.frJP Morgan Chase Bank (subsidiary)14, Place Vendôme75001 ParisTel: (+33) 1 40 15 45 00Websites: http://www.jpmorganchase.com; http://www.jpmorganassetmanagement.comLazard Frères Bank121, boulevard Haussmann75008 ParisTel: 01.44.13.01.11; Fax: 01.44.13.01.10Telex: LFCX 651666F; LFINTX651684FWebsite: http://www.lazard.comProject FinancingReturn to topForeign companies have access to all banking services described in Section A. Theother main financing is through French financial markets. The center of the French stockmarket is the Paris stock exchange (the "Bourse") that is part of the transatlanticexchange NYSE Euronext. More details can be found in the Investment Climate Sectionof this report (A9).EU financial assistance programs provide a wide array of grants, loans, loan guaranteesand co-financing for feasibility studies and infrastructure projects in a number of keysectors (e.g., environmental, transportation, energy, telecommunications, tourism, publichealth). From a commercial perspective, these initiatives create significant marketopportunities for U.S. businesses, U.S.-based suppliers, and subcontractors.2/18/2010 Country Commercial Guide for France 133INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

The EU supports projects within its Member States, as well as EU-wide "economicintegration" projects that cross both internal and external EU borders. In addition, the EUprovides assistance to accession countries in Eastern and Southern Europe and Turkey,as well as some of the former Soviet republics.The European Union provides project financing through grants from the EuropeanCommission and loans from the European Investment Bank. Grants from the StructuralFunds are distributed through the Member States’ national and regional authorities, andare only available for projects in the 27 EU Member States. All grants for projects in non-EU countries are managed through the EuropeAid Cooperation agency in conjunctionwith various European Commission departments, called "Directorates-General."The CSEU Tenders DatabaseThe U.S. Commercial Service at the U.S. Mission to the European Union offers a tool onits website to help U.S.-based companies identify European public procurementopportunities. The database features all current public procurement tenders issued by allnational and regional public authorities in the 27 Member States of the European Union,plus four other European countries, and that are open to U.S.-based firms under theterms of the Government Procurement Agreement (GPA) implemented in 1995. Thedatabase is updated twice weekly and is easy to use with a range of search options,including approximately 20 industry sectors. The database also contains tenders forpublic procurement contracts relating to structural funds. Readers may access thedatabase at http://www.buyusa.gov/europeanunion/eu_tenders.htmlEU Structural FundsThe EU Structural Funds, including the European Regional Development Fund, werecreated in 1975 to assist economically depressed regions of the European Union thatrequired industrial restructuring. The EU earmarked EUR 308 billion for projects underthe Structural Funds and the Cohesion Fund programs for the 2007-2013 period for theEU-27. In addition to funding economic development projects proposed by MemberStates or local authorities, EU Structural Funds also support specialized projectspromoting EU socioeconomic objectives. Member States negotiate regional and“sectoral” programs with officials from the regional policy Directorate-General at theEuropean Commission. For information on approved programs that will result in futureproject proposals, please visit:http://ec.europa.eu/regional_policy/atlas2007/fiche_index_en.htmFor projects financed through the Structural Funds, Member State officials are the keydecision-makers. They assess the needs of their country; investigate projects; evaluatebids; and award contracts. To become familiar with available financial support programsin the Member States, it is advisable for would-be contractors to meet with local officialsto discuss local needs.Tenders issued by Member States’ public contracting authorities for projects supportedby EU grants are subject to EU public procurement legislation if they meet the EUminimum contract value requirement for the eligible sector. Below this threshold, tenderprocedures are subject to national procurement legislation. There are no overtprohibitions against the participation of U.S. companies, either as developers orconcessionaires of projects supported partially by the Structural Funds, or as bidders on2/18/2010 Country Commercial Guide for France 134INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

subsequent public tenders related to such projects, but it is advisable to team up with alocal partner. All Structural Fund projects are co-financed by national authorities andmost may also qualify for a loan from the European Investment Bank. The private sectoris also involved in project financing. For more information on these programs, please seethe market research section on the website of the US Mission to the EU:http://www.buyusa.gov/europeanunion/mrr.htmlThe Cohesion FundThe Cohesion Fund is another instrument of EU structural policy. Its EUR 61.5 billion(2007-2013) budget seeks to improve cohesion within the EU by funding transportinfrastructure and environmental projects in Portugal, Spain, Greece and the twelve new(since 2004) EU Member States from Central and Eastern Europe. These projects aregenerally co-financed by national authorities, the European Investment Bank, and theprivate sector.Key Link: http://ec.europa.eu/regional_policy/funds/cf/index_en.htmThe Trans-European NetworksThe European Union also provides financial support to the Trans-European Networks(TENs) to develop infrastructure, strengthen cohesion and increase employment acrossgreater Europe. Launched at the Essen Counsel (Germany) in 1994, the TENs are aseries of transport, telecommunications and energy projects that are continually beingexpanded and upgraded. The TENs are largely financed by private sector and non-EUsources. The EU does, however, provide grants from the Cohesion Fund, loans from theEuropean Investment Bank (and loan guarantees from the European Investment Fund),and partial feasibility study grants for the TENs. There are no overt EU restrictions onthe participation of U.S. firms in the TENs.Key Link: http://ec.europa.eu/ten/transport/index_en.htmOther EU Grants for Member StatesAnother set of sector-specific grants offers assistance to EU Member States in the fieldsof science, technology, communications, energy, environmental protection, education,training and research. Tenders related to these grants are posted on the variouswebsites of the directorates-generals of the European Commission. Conditions forparticipation are strict and participation is usually restricted to EU firms or tied to EUcontent. Information pertaining to each of these programs can be found on:http://europa.eu.int/grants/index_en.htmExternal Assistance GrantsThe EuropeAid Cooperation Office is the European Commission agency in charge ofmanaging the EU’s external aid programs. This Agency is responsible for themanagement of the entire project cycle, from identification to evaluation, while theDirectorates-General in charge of External Relations and Development, are responsiblefor the drafting of multi-annual programs. The EuropeAid website offers extensiveinformation on the range of grant programs, the kind of projects that are eligible, as wellas manuals to help interested parties understand the relevant contract law. However,2/18/2010 Country Commercial Guide for France 135INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

participation in calls for tender for contracts financed by EuropeAid is reserved forenterprises located in the EU Member States and requires that the products used torespond to these projects are manufactured in the EU or in the aid-recipient country.European subsidiaries of U.S. firms are eligible to participate in these calls for tender.Key Link: http://europa.eu.int/comm/europeaid/index_en.htmAll tenders related to EU-funded programs outside the territory of the European Union(including the accession countries) are located on the EuropeAid Cooperation Officewebsite: http://europa.eu.int/comm/europeaid/tender/index_en.htmTwo new sets of programs have been approved for the financing period 2007-2013. Asof January 2007, the EU will provide specific Pre-Accession financial assistance to theaccession candidate countries that seek to join the EU through a new instrument calledthe Instrument for Pre-accession Assistance (IPA). Also, the European Neighborhoodand Partnership Instrument (ENPI) will provide assistance to countries that are theSouthern Mediterranean and Eastern neighbors of the EU.IPA replaces the following programs: PHARE (Poland and Hungary Assistance forRestructuring of the Economy), ISPA (Instrument for Structural Pre-Accession financingtransport and environment projects), SAPARD (projects in the agriculture sector),CARDS (aid to southern Balkans) and the Turkey Facility Fund. IPA focuses on prioritieslinked to the adoption of the acquis communautaire (the body of European Union lawthat must be adopted by accession candidate countries as a precondition to accession),i.e., building up the administrative and institutional capacities and financing investmentsdesigned to help them comply with European Commission law. IPA will also financeprojects destined to countries that are potential candidate countries, especially in theBalkans. The budget of IPA for 2007-2013 is EUR 11.4 billion.Key Link: http://ec.europa.eu/enlargement/financial_assistance/ipa/index_en.htmENPI: replaces the former TACIS and MEDA programs. The European NeighborhoodPolicy program covers the EU’s neighbors to the east and along the southern andeastern shores of the Mediterranean i.e. Algeria, Armenia, Azerbaijan, Belarus, Egypt,Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, the Palestinian Authority,Syria, Tunisia and Ukraine. ENPI budget is € 11.9 billion for 2007-2013.Loans from the European Investment BankHeadquartered in Luxembourg, the European Investment Bank (EIB) is the financingarm of the European Union. Since its creation in 1958, the EIB has been a key player inbuilding Europe. As the EIB's lending practices evolved over the years, it became highlycompetent in assessing, reviewing and monitoring projects. As a non-profit bankinginstitution, the EIB offers cost-competitive, long-term lending in Europe. Best known forits project financial and economic analysis, the Bank makes loans to both private andpublic EU-based borrowers for projects in all sectors of the economy, such astelecommunications, transport, energy infrastructure and environment.While the EIB mostly funds projects within the EU, it lends outside the EU as well (e.g.,in Central, Eastern and Southeastern Europe; Latin America; and Pacific and Caribbeanstates). In 2006, the EIB approved loans for projects worth EUR 53.3 billion, of which2/18/2010 Country Commercial Guide for France 136INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

around 14% was lent outside the EU. The EIB also plays a key role in supporting EUenlargement with loans used to finance improvements in infrastructure, research andindustrial manufacturing to help those countries prepare for eventual EU membership.Projects financed by the EIB must contribute to the socioeconomic objectives set out bythe European Union, such as fostering the development of less favored regions;improving European transport and telecommunication infrastructure; protecting theenvironment; supporting the activities of SMEs; assisting urban renewal; and, generallypromoting growth, competitiveness and employment in Europe. Last year, the EIBcreated a list of projects to be considered for approval and posted the list on its website.As such, the EIB website is a source of intelligence on upcoming tenders related to EIBfinancedprojects: http://www.eib.org/projects/. The EIB presents attractive businessopportunities to U.S. businesses. EIB lending rates are lower than most othercommercial rates. Like all EIB customers, however, U.S. firms must apply the loanproceeds to a project that contributes to the European objectives cited above.The EIB’s i2i (Innovation 2010 Initiative) is designed to highlight projects that supportinnovative technology in the European Union, in particular by financing broadband andmultimedia networks; the physical or virtual infrastructure providing local access to thesenetworks; and research and development infrastructures, especially in the lessdeveloped regions of the European Union. i2i will also finance projects to computerizeschools and universities and to provide information technology training in conjunctionwith public authorities.Key Link: http://www.eib.org/Attachments/thematic/innovation_2010_initiative_en.pdfWeb ResourcesReturn to topEU websites:Future project proposals:http://ec.europa.eu/regional_policy/atlas2007/fiche_index_en.htmThe EU regional policies, the EU Structural and Cohesion Funds:http://ec.europa.eu/regional_policy/index_en.htmThe Trans-European Networks (TENs): http://ec.europa.eu/ten/transport/index_en.htmEU Grants and Loans index: http://ec.europa.eu/grants/index_en.htmEuropeAid Co-operation Office: http://ec.europa.eu/europeaid/index_en.htmIPA: http://ec.europa.eu/enlargement/how-does-it-work/financialassistance/index_en.htmThe European Investment Bank: http://www.eib.org/EIB-financed projects: http://www.eib.org/projects/index.htm?lang=-en.2/18/2010 Country Commercial Guide for France 137INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

The EIB’s i2i (Innovation 2010 Initiative):http://www.eib.org/Attachments/thematic/innovation_2010_initiative_en.pdfU.S. websites:CSEU Tender Database: http://www.buyusa.gov/europeanunion/eu_tenders.htmlMarket research section on the website of the US Mission to the EU:http://www.buyusa.gov/europeanunion/mrr.htmlEuropean Union Tenders Database:http://www.buyusa.gov/europeanunion/euopportunities.htmlExport-Import Bank of the United States: http://www.exim.govCountry Limitation Schedule: http://www.exim.gov/tools/country/country_limits.htmlOPIC: http://www.opic.govTrade and Development Agency: http://www.tda.gov/SBA's Office of International Trade: http://www.sba.gov/oit/USDA Commodity Credit Corporation: http://www.fsa.usda.gov/ccc/default.htmU.S. Agency for International Development: http://www.usaid.govExport-Import Bank of the United States: http://www.exim.govCountry Limitation Schedule: http://www.exim.gov/tools/country/country_limits.htmlTrade and Development Agency: http://www.tda.gov/SBA's Office of International Trade: http://www.sba.gov/oit/USDA Commodity Credit Corporation: http://www.fsa.usda.gov/ccc/default.htmU.S. Agency for International Development: http://www.usaid.govSEPA: http://www.banque-france.fr2/18/2010 Country Commercial Guide for France 138INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

U.S. Banks in FranceAMERICAN EXPRESS INTERNATIONAL BANKING CORPORATIONhttp://www.americanexpress.frBANK OF AMERICA: http://www.bankamerica.comBANK OF NEW-YORK: http://www.bankofny.comBanque AIG: http://www.aig.comGoldman Sachs: http://www.gs.comCITIBANK: http://www.citibank.frJP MORGAN: http://www.jpmorganchase.comLazard Frères Bank: http://www.lazard.comFrench BanksFEDERATION BANCAIRE FRANCAISE http://www.fbf.frSOCIETE GENERALE http://www.societegenerale.frBNP-PARIBAS http://www.bnpparibas.comCREDIT AGRICOLE http://www.credit-agricole.com/CREDIT INDUSTRIEL ET COMMERCIAL http://www.cic.frLCL (CREDIT LYONNAIS) http://www.lcl.frNATIXIS http://www.natixis.frReturn to table of contents2/18/2010 Country Commercial Guide for France 139INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Return to table of contentsChapter 8: Business Travel• Business Customs• Travel Advisory• Visa Requirements• Telecommunications• Transportation• Language• Health• Local Time, Business Hours and Holidays• Temporary Entry of Materials and Personal Belongings• Web ResourcesBusiness CustomsReturn to topThe most important characteristic of French business behavior is its emphasis oncourtesy and a certain formality. Appointment schedules and hierarchical titles are to berespected and correspondence – whether by mail or by fax – should be acknowledgedpromptly. A handshake is customary upon initiating and closing a business meeting,accompanied by an appropriate greeting. Professional attire is expected.Today, many French executives put less emphasis on long, heavy business lunches forreasons of health and time. Nevertheless, informal business discussions in restaurantswhere everyone appreciates a good meal are one of the best ways to promote goodworking relations.Travel AdvisoryReturn to topState Department Travel Website: http://travel.state.gov/Visa RequirementsReturn to topU.S. companies that require travel of foreign businesspersons to the United Statesshould be advised that security options are handled via an interagency process. Visaapplicants should go to the following links.State Department Visa Website: http://travel.state.gov/visa/index.htmlUnited States “Visas.gov”: http://www.unitedstatesvisas.gov/Consular Section of the U.S. Embassy Paris:http://france.usembassy.gov/consulara.htmlU.S. Companies that require travel of foreign businesspersons to the United Statesshould be advised that security options are handled via an interagency process. Visaapplicants should go to the following links.State Department Visa Website: http://travel.state.gov/visa/index.html2/18/2010 Country Commercial Guide for France 140INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

United States Visas.gov: http://www.unitedstatesvisas.gov/For information on this topic please consult the Commerce Department’s CountryCommercial Guides on EU Member States: EU Member States' Country CommercialGuides.Alternatively, search the Commerce Department’s Market Research Library, availablefrom: http://www.export.gov/mrktresearch/index.asp under Country and Industry MarketReports.U.S. Companies that require travel of foreign businesspersons to the United Statesshould be advised that security options are handled via an interagency process. Visaapplicants should go to the following links.State Department Visa Website: http://travel.state.gov/visa/index.htmlTelecommunicationsReturn to topTelecommunications to and from Paris compare favorably with those in any large U.S.city. A direct-dial telephone system links France to the U.S. and most of the world.Calls to the States may be charged to international telephone cards such as AT&T, MCIand Sprint; international directory inquiries may be reached by dialing 0-800-99-00-11(AT&T Direct U.S. operator). Most public phones in France are equipped for theconvenient "Télécartes" (pre-paid cards) available in tobacco shops, post offices andsubway/railway stations at 15 Euros for 100 units and 7.50 Euros for 50 units.TransportationReturn to topFrequent direct air service is available to many U.S. and French cities. The two airportsserving Paris – Charles De Gaulle Roissy and Orly – are easily accessible by excellentbus (Air France) and rail service. The French railway system is among the best in theworld; its efficient network ties in conveniently with public transportation in most Frenchcities.Buses and the Metro (subway) may be crowded during rush hours, but they provide fastand efficient service; however, a word to the wise: as in many large cities worldwide, oneshould be alert to the dangers of pickpockets while in public places.LanguageReturn to topWhile French is the official language in France, many business people speak English.Product literature, correspondence and negotiations in the French language provide adistinct advantage over competitors who use only English. It should be noted that otherEU suppliers are accustomed to dealing in the French language.2/18/2010 Country Commercial Guide for France 141INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

HealthReturn to topConsular Section of the U.S. Embassy Paris:http://france.usembassy.gov/consulara.htmlAmerican Hospital in Paris63, boulevard Victor Hugo92200 Neuilly sur SeineTelephone: (+33) 1.46.41.25.25(24-hour English-speaking medical and dental emergency service; credit cardsaccepted.)Emergency Medical Team and Ambulance (SAMU)Telephone: 15 or (+33) 1.45.67.50.50Website: https://www.american-hospital.orgLocal Time, Business Hours, and HolidaysReturn to topThe working days abutting the French holidays and vacation periods are not prime timefor business meetings; this includes the month of August and the several vacationperiods between Christmas and Easter. Business hours in France are generally 9:00AM to 6:00 PM (banking hours 9:00-4:30) Monday through Friday, while stores aregenerally open 10:00 AM to 7:00 PM, Monday through Saturday. To ensure availability,advance appointments are recommended.French HolidaysJanuary 1, 2010April 5, 2010May 1, 2010May 8, 2010May 21, 2010July 14, 2010August 15, 2010November 1, 2010November 11, 2010December 25, 2010New Year's DayEaster MondayLabor Day / Ascension DayVeterans' Day (WWII)Whit MondayFrench National DayAssumption DayAll Saints' DayVeterans' Day (WWI)Christmas (Noël)Temporary Entry of Materials and Personal BelongingsReturn to topEvery U.S. citizen entering France must present a valid American passport; for stays ofless than 3 months there is no requirement for visas, entry permits or health certificates.Bona fide personal effects in a visitor's luggage (or hand-carried) are not normallysubject to customs duties no to the 19.6 percent value-added tax. Items to be declared,however, include those intended to be left in France, goods for professional/commercialuse as well as any prohibited items. Goods imported for exhibition may enter underbond, deposit or an ATA carnet.2/18/2010 Country Commercial Guide for France 142INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Professional equipment may be temporarily imported into France free of duty and taxunder the Customs Convention on Temporary Importation of Professional Equipment;the appropriate carnet may be obtained from the U.S. Council of the InternationalChamber of Commerce.Web ResourcesReturn to topState Department Travel Website: http://travel.state.govState Department Visa Website: http://travel.state.gov/visa/index.htmlUnited States Visas.gov: http://www.unitedstatesvisas.gov/Consular Section of the U.S. Embassy Paris:http://france.usembassy.gov/consularaa.htmlCommercial Service of the U.S. Embassy Paris: http/www.buyusa.gov/france/en/Return to table of contents2/18/2010 Country Commercial Guide for France 143INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Return to table of contentsChapter 9: Contacts, Market Research, and Trade Events• Contacts• Market Research• Trade EventsContactsReturn to topEuropean UnionEuropean Parliament: http://www.europarl.europa.eu/European Court of Justice: http://curia.europa.eu/United States Department of Commerce - Contacts at the U.S. Mission to the EU:Minister Counselor for Commercial AffairsBeryl Blecher 32.2.508.27.47 beryl.blecher@mail.doc.govDeputy Senior Commercial OfficerVal Huston 32.2.508.27.55 val.huston@mail.doc.govStandards AttachéLouis Santamaria 32.2.508.26.74 louis.santamaria@mail.doc.govMarket Access and Compliance, and Trade AttachéAshley Miller 32.2.508.27.69 ashley.miller@mail.doc.govCommercial AttachéJohn Fay 32.2.508.28.40 john.fay@mail.doc.govNOAA Fisheries RepresentativeStephane Vrignaud 32.2.508.28.42 stephane.vrignaud@mail.doc.govU.S. Commercial ServiceU.S. Mission to the European UnionRue Zinner 13B-1000 Brussels, BelgiumTel.: 32.2.508.27.46Fax: 32.2.513.12.28E-mail: brussels.ec.office.box@mail.doc.govWebsite: http://www.buyusa.gov/europeanunion2/18/2010 Country Commercial Guide for France 144INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

United States Department of Agriculture - Contacts at the U.S. Mission to the EU:Office of Agricultural AffairsU.S. Mission to the European UnionRue Zinner 13B-1000 Brussels, BelgiumTel.: 32.2.508.27.60Fax: 32.2.511.09.18E-mail: AgUSEUBrussels@fas.usda.govWebsite: http://www.fas.usda.gov/posthome/useu/Org Chart: http://useu.usmission.gov/agri/staff.htmlThe European Commission:European CommissionRue de la Loi 200 / Wetstraat 200B-1049 Brussels, BelgiumTel: 32.2.299.11.11 (switchboard)Fax: 32.2.295.01.38 (also 295.01.39 and 295.01.40)Websites: http://ec.europa.eu/index_en.htm (European Commission)http://ec.europa.eu/comm/external_relations/us/intro/index.htm (EU-U.S. relations)For general information about the European Union:Delegation of the European Commission to the United States2300 M Street, N.W.Washington, D.C. 20037Tel: (202) 862-9500Fax: (202) 429-1766Website: http://www.eurunion.org/EFTA – European Free Trade AssociationRue Joseph II, 12-16B – 1000 BrusselsTel: 32.2.286.17.11Fax: 32.2.286.17.50Website: http://www.efta.int/For Information on Customs-related Matters within the European Union:Mr. Robert Verrue, Director GeneralDirectorate General Taxation and Customs UnionRue de la Loi 200B-1049 BrusselsTel: 32.2.295.43.76Fax: 32.2.296.90.46Website: http://ec.europa.eu/taxation_customs/customs/index_en.htm2/18/2010 Country Commercial Guide for France 145INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Standards Contacts:Mr. Gordon GillermanChief of the Global Standards and Information ProgramNational Centers for Standards and Certification Information (NCSCI)National Institute of Standards & Technology100 Bureau Dr.Mail Stop 2100Gaithersburg, Maryland 20899Tel: (301) 975-2573Website: http://ts.nist.gov/Standards/Global/about.cfmCEN – European Committee for StandardizationAvenue Marnix 17B – 1000 Brussels, BelgiumTel: 32.2.550.08.11Fax: 32.2.550.08.19Website: http://www.cen.eu/CENELEC – European Committee for Electrotechnical StandardizationAvenue Marnix 17B – 1000 Brussels, BelgiumTel: 32.2.519.68.71Fax: 32.2.519.69.19Website: http://www.cenelec.eu/ETSI - European Telecommunications Standards InstituteRoute des Lucioles 650F – 06921 Sophia Antipolis Cedex, FranceTel: 33.4.92.94.42.00Fax: 33.4.93.65.47.16Website: http://www.etsi.org/European Commission -Directorate - General Enterprise and IndustryAvenue d’Auderghem 45/Rue Belliard 100B – 1049 Brussels, BelgiumTel: 32.2.299.56.72Fax: 32.2.299.16.75Website: http://ec.europa.eu/enterprise/standards_policy/index_en.htmNORMAPME – European Office of Crafts Trades and Small and Medium-SizedEnterprises for StandardizationRue Jacques de Lalaing 4B – 1040 Brussels, BelgiumTel: 32.2.282.05.30Fax: 32.2.282.05.35Website: http://www.normapme.com/2/18/2010 Country Commercial Guide for France 146INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

ANEC - European Association for the Co-ordination of Consumer Representationin StandardizationAvenue de Tervueren 32, Box 27B – 1040 Brussels, BelgiumTel: 32.2.743.24.70Fax: 32.2.706.54.30Website: http://www.anec.orgECOS – European Environmental Citizens Organization for Standardizationrue d’Edimbourg 26B – 1050 Brussels, BelgiumTel: 32.2.894 46 55Fax: 32.2.894 46 10Website: http://www.ecostandard.org/EOTA – European Organization for Technical Approvals (for constructionproducts)Avenue des Arts 40B – 1040 Brussels, BelgiumTel: 32.2.502.69.00Fax: 32.2.502.38.14Website: http://www.eota.be/Private Sector Associations:AmchamEU53 Avenue des ArtsB-1000 Brussels, BelgiumTel: 32.2.513.68.92Fax: 32.2.513.79.28Website: http://www.amchameu.eu/Business EuropeThe Confederation of European BusinessAvenue de Cortenbergh 1681000 BrusselsTel: 32.2.237.65.11Fax: 32.2.231.14.45Website: www.businesseurope.euEuropean-American Business Council – EU OfficeRue de l'Industrie 26B-1040 Brussels, BelgiumTel: 32.2.513.38.72Website: http://www.eabc.org/European-American Business Council – US Office919 18 th Street, NW #220Washington, DC 20006Tel: (202) 828-9104Fax: (202) 828-9106Website: http://www.eabc.org/2/18/2010 Country Commercial Guide for France 147INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

The European Institute1001 Connecticut Avenue, N.W., Suite 220,Washington DC, 20036-5531Tel: (202) 895-1670Website: http://www.europeaninstitute.org/Centre for European Policy Studies (CEPS)1 Place du CongresB-1000 Brussels, BelgiumTel: 32.2.229.39.11Fax: 32.2.219.41.51Website: http://www.ceps.eu/index.phpThe European Policy CentreRésidence Palace155 Rue de la Loi1040 Brussels, BelgiumTel: 32.2.231.03.40Fax: 32.2.231.07.04Website: http://www.epc.euEuropean Round Table of Industrialists (ERT)Place des Carabiniers 18aB-1030 BrusselsTel: 32 2 534 31 00Fax: 32 2 534 73 48Website: http://www.ert.be/The Transatlantic Policy NetworkRue Froissart 115, 1st floorB-1040 Brussels, BelgiumTel: 32.2.230.61.49Fax: 32.2.230.58.96Website: http://www.tpnonline.org/Transatlantic Business Dialogue – TABD EU OfficeRésidence Palace115 Rue de la Loi, 4 th floorB-1040 Brussels, BelgiumTel: 32.2. 238.52.40Fax: 32.2.238.52.42Website: http://www.tabd.com/Transatlantic Business Dialogue – TABD US OfficeTABD c/o CSIS1800 K Street, NW, Suite 400Washington, DC 20006Tel: (202) 775 32 51Fax: (202) 775 31 99Website: http://www.tabd.com/2/18/2010 Country Commercial Guide for France 148INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

The Trans European Policy Studies Association (TEPSA)11 Rue d’EgmontB-1000 Brussels, BelgiumTel: 32.2.511.34.70Fax: 32.2.511.67.70Website: http://www.tepsa.be/Key EU-related websites:For general information on the European UnionThe EU’s portal website: http://www.europa.euResource for EU news, policy positions and actors: http://www.euractiv.com/A to Z index of European Union websites: http://www.eurunion.org/infores/euindex.htmFor information on topics related to doing business in the European UnionEU’s “One Stop Internet Shop for Business” (EU funds, technical standards, intellectualproperty law, and free access to public procurement tender notices via the TendersElectronic Daily (TED) database).http://ec.europa.eu/youreurope/business/index_en.htmEU Member State Chambers of Commerce in the U.S.http://www.eurunion.org/eu/index.php?option=com_content&task=view&id=2345&Itemid=9EU market access database (information on tariffs and other trade information)http://madb.europa.eu/EURLEX – Access to EU law: http://eur-lex.europa.eu/en/index.htmCORDIS – Community Research and Development Information Service (EU researchand innovation website): http://cordis.europa.eu/European Commission Statistical Office (Eurostat): http://epp.eurostat.ec.europa.eu/EU Office of Official Publications: http://publications.europa.eu/EU official website on the euro: http://ec.europa.eu/euro/index_en.htmlEuropean Central Bank, Frankfurt: http://www.ecb.int/European Investment Bank, Luxembourg: http://www.eib.org/Council of the European Union: http://www.consilium.europa.eu/EU Who is Who – The Official Directory of the European Unionhttp://europa.eu/whoiswho/public/2/18/2010 Country Commercial Guide for France 149INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

France:U.S. Embassy Trade Related ContactsAMBASSADORCharles RivkinAmerican Embassy2, avenue Gabriel75008 ParisFrancePhone: (+33-1) 43.12.27.00Fax: (+33-1) 42.66.97.83Website: http://france.usembassy.gov/DEPUTY CHIEF OF MISSIONMark A. PekalaAmerican Embassy2, avenue Gabriel75008 ParisFrancePhone: (+33-1) 43.12.28.00Fax: (+33-1) 42.66.97.83Website: http://france.usembassy.gov/U.S. Postal Address:Unit 9200, DPO AE 09777U.S. Postal Address:Unit 9200, DPO AE 09777MINISTER-COUNSELOR FOR ECONOMIC AFFAIRSSeth WinnickAmerican Embassy2, avenue Gabriel75008 ParisFrancePhone: (+33-1) 43.12.26.54Fax: (+33-1) 42.66.97.83Website: http://france.usembassy.gov/MINISTER-COUNSELOR FOR COMMERCIAL AFFAIRSDaniel E. Harris - FCSAmerican Embassy2, avenue Gabriel75008 ParisFranceU.S. Postal Address:Unit 9200, DPO AE 09777U.S. Postal Address:Unit 9200, DPO AE 09777Phone: (+33-1) 43.12.70.83: Fax: (+33-1) 43.12.70.50Email: Paris.office.box@mail.doc.gov; Website: http://www.buyusa.gov/france/en/MINISTER-COUNSELOR FOR AGRICULTURAL AFFAIRSDaryl A. Brehm - FASAmerican Embassy2, avenue Gabriel75008 ParisPhone: (+33-1) 43.12.23.29Fax: (+33-1) 43.12.26.62Email: AgParis@usda.gov; Website: www.usda-france.frU.S. Postal Address:Unit 9200, DPO AE 097772/18/2010 Country Commercial Guide for France 150INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

REGIONAL DIRECTOR FOR ANIMAL, PLANT AND HEALTH INSPECTION SERVICESU.S. Mission to the European Union40, boulevard du Régent, B31000 BrusselsBelgiumTel: 32 2 508 27 62 ; Fax: 32 2 511 09 18Contact: Peter FernandezEmail: peter.fernandez@aphis.usda.govAMERICAN PRESENCE POST - BORDEAUXKenneth Forder, Consul10 Place de la BourseBP 7733025 Bordeaux CEDEXPhone: (+33-5) 56.48.63.80 ; Fax: (+33-5) 56.51.61.97Email: usabordeaux@state.gov or forderK@state.govWebsite: http://france.usembassy.gov/bordeaux.htmlVIRTUAL AMERICAN PRESENCE POST - LILLEAttn: Cynthia Doell, VPP LilleAmerican Embassy2, avenue Gabriel75008 ParisE-mail: usalille@state.govWebsite: http://france.usembassy.gov/lille.htmlAMERICAN PRESENCE POST – LYON1 Quai Jules Courmont, 69002 LyonPh.: 33-4-78-38-33-03Fax: 33-4-7241-7181E-mail: usalyon@state.gov or SullivanHR@state.govWebsite: http://france.usembassy.gov/lyon.htmlU.S. CONSULATE GENERAL - MARSEILLEKathleen A. Riley, Consul GeneralPlace Varian Fry13286 MarseilleFrancePhone: (+33-4) 91 54 92 00Fax: (+33-4) 91 55 56 95E-mail: nebatti-cherguim@state.gov or RileyKA3@state.govWebsite: http://france.usembassy.gov/marseille.htmlAMERICAN PRESENCE POST - RENNESEdward O’Brien, Consul30, quai Duguay-Trouin35000 RennesPhone: (+33-2) 23 44 09 65Fax: (+33-2) 99 35 00 92E-mail: usarennes@state.gov or Obrienev@state.govWebsite: http://france.usembassy.gov/rennes.html2/18/2010 Country Commercial Guide for France 151INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

U.S. CONSULATE GENERAL - STRASBOURGVincent Carver, Consul General15, avenue d'Alsace67082 Strasbourg CEDEXFrancePhone: (+33-3).88.35.31.04Fax: (+33-3).88.24.06.95Email: CarverVVP@state.govWebsite: http://france.usembassy.gov/strasbourg.htmlAMERICAN PRESENCE POST - TOULOUSEDavid Brown, Consul25, Allées Jean Jaurès31000 ToulousePhone: (+33-5) 34.41.36.50 ; Fax: (+33-5) 34.41.16.19Email: BrownDK@state.govWebsite: http://france.usembassy.gov/toulouse.htmlU.S. CONSULAR AGENCY - NICE7, avenue Gustave V06000 NicePhone: 04 93 88 89 55Email: citizeninfomarseille@state.govWebsite: http://france.usembassy.gov/nice.htmlWashington-based USG Country ContactsUNITED STATES DEPARTMENT OF STATEOffice of Western European Affairs EUR/WE Christopher PALMER, France Desk OfficerWashington, DC 20520Phone: (202) 647-4372 ; Fax: (202) 647-3459Email: PalmerCG@state.govWebsite: http://www.state.govUNITED STATES DEPARTMENT OF COMMERCEOffice of European Union and Regional AffairsJen Levin, France Desk Officer14th Street and Constitution AvenueRoom 3042Washington, DC 20230Phone: (202) 482-3748; Fax: (202) 482-2897Email: Jen.Levine@trade.govWebsites: http://www.export.gov/tradeproblems/index.aspUNITED STATES DEPARTMENT OF AGRICULTUREOffice of Trade Programs (OTP)Director for Market Developments and Grants Management Division14th Street and Independence Avenue SWWashington, DC 20250Tel: (202) 690 159; Fax: (202) 690 0193Website: http://www.fas.usda.gov2/18/2010 Country Commercial Guide for France 152INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Office of Capacity Building and Development (OCBD)Pat Sheikh, Deputy Administrator14th & Independence Ave. SWWashington, DC 20250Tel: (202) 720 68 87; Fax: (202) 720 690 2079Website: http://www.fas.usda.gov/OCBD.aspENERGY DEPARTMENTOffice of International Energy Relations Ken Workman, Western Europe 1000Independent Avenue, SW, Room 7C-034, Washington, DC 20585Phone: (202) 586-8660; Fax: (202) 586-0861Website: http://www.doe.govENVIRONMENTAL PROTECTION AGENCYInternational Environmental PolicyDale Medearis, Western EuropeUSEPA HeadquartersAriel Rios Building1200 Pennsylvania Avenue, N.W.Mail Code: 2650RWashington, DC 20460Phone: (202) 564-6607; or (202) 564-6400 (general number)Website: http://www.epa.govFOOD AND DRUG ADMINISTRATIONDepartment of Health and Human ServicesParklawn Bldg.Mail Code: HF-15600 Fishers LaneRockville, MD 20857Phone: (301) 827-24 10; Fax: (301) 443-31 00Website: http://www.fda.govLABOR DEPARTMENTBureau of International Labor AffairsWilliam Brumfield, European Desk200 Connecticut Avenue, NWRoom S-5006Washington, DC 20210Phone: (202) 219-6234; Fax: (202) 219-5613Email: Brumfield-william@dol.govWebsite: http://www.dol.govTREASURY DEPARTMENTInternational AffairsLeslie Hull, France DeskRoom 54411500 Pennsylvania Ave., NWWashington, DC 20220Phone: (202) 622-1233; Fax: (202) 622-2308Website: http://www.treas.gov2/18/2010 Country Commercial Guide for France 153INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

OFFICE OF THE U.S. TRADE REPRESENTATIVEChristopher Wilson & David Weiner, Office of Europe and the Mediterranean600, 17 th Street, NWWashington, DC 20506Phone: (202) 395-9471Fax: (202) 395-3511Website: http://www.ustr.govEmail: Christopher_Wilson@ustr.eop.govEmail: David_Weiner@ustr.eop.govU.S.-Based Multipliers Relevant for CountryFRENCH EMBASSY ECONOMIC & COMMERCIAL AFFAIRSWebsite: http://www.ubifrance.fr/www.info-France-usa.orgwww.ambafrance-us.orgFRENCH-AMERICAN CHAMBER OF COMMERCE IN THE U.S.http://www.faccnyc.orgINVEST IN FRANCE AGENCY (I.F.A.)http://www.investinfrance.org/NorthAmerica/Country Government AgenciesPRESIDENT OF FRANCE: http://elysee.frFRENCH GOVERNMENT: http://www.premierministre.gouv.fr/en/acteurs/gouvernement/PRIME MINISTER: http://www.premier-ministre.gouv.fr/MINISTRY OF ECOLOGY & SUSTAINABLE DEVELOPMENThttp://www.developpement-durable.gouv.frMINISTRY OF INTERIOR: http://www.interieur.gouv.fr/MINISTRY OF FOREIGN AFFAIRS: http://www.diplomatie.gouv.fr/MINISTRY OF ECONOMY, TRESURY, INDUSTRY AND FOREIGN TRADEhttp://www.minefi.gouv.frMINISTRY OF IMMIGRATION, NATIONAL IDENTITY & CO-DEVELOPMENThttp://www.premier-ministre.gouv.frMINISTRY OF JUSTICE: http://www.justice.gouv.fr/MINISTRY OF AGRICULTURE: http://www.agriculture.gouv.fr/2/18/2010 Country Commercial Guide for France 154INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

MINISTRY OF LABOR: http://www.travail.gouv.fr/MINISTRY OF EDUCATION: http://www.education.gouv.fr/MINISTRY OF HIGHER EDUCATION AND RESEARCH: http://www.recherche.gouv.fr/MINISTRY OF DEFENSE: http://www.defense.gouv.fr/MINISTRY OF HOUSING: http://www.logement.gouv.fr/MINISTRY OF HEALTH, YOUTH & SPORTS: http://www.jeunesse-sports.gouv.fr/MINISTRY OF CULTURE & COMMUNICATION: http://www.culture.gouv.fr/MINISTRY OF BUDGET & CIVIL SERVANTS: http://www.minefi.gouv.frOther Country Government Sub-AgenciesAgency For Corporate Development Of Ile De FranceAGENCE REGIONALE DE DEVELOPPEMENT PARIS-ILE DE FRANCEhttp://www.paris-region.comFrench Statistical InstituteInsee Infos Services INSEE: http://www.insee.frFrench CustomsSERVICE DES DOUANES: http://www.douane.gouv.fr/French Foreign Investment Control AgencyMINEFI: http://www.minefi.gouv.frFrench National Testing LaboratoryLABORATOIRE NATIONAL D’ESSAI - L.N.E.: http://www.lne.frOfficial Gazette - JOURNAL OFFICIEL: http://www.journal-officiel.gouv.frNational Agency For entrepreneurship – OSEO: http://www.oseo.fr/National French Standards Association:ASSOCIATION FRANCAISE DE NORMALISATION – AFNOR : http://www.afnor.frNational Institute Of Industrial PropertyINSTITUT NATIONAL DE LA PROPRIETE INDUSTRIELLE – INPI: http://www.inpi.frFrench Export Promotion Agency – UBIFRANCE: http://www.ubifrance.com/2/18/2010 Country Commercial Guide for France 155INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Other Country Trade AssociationsAmerican Chamber of Commerce In FranceCHAMBRE DE COMMERCE AMERICAINE EN FRANCEhttp://www.amchamfrance.orgU.S. Travel & Tourism Promotion AssociationVISIT USA COMMITTEE France (OFFICE DU TOURISME – USA)http://www.office-tourisme-usa.comEuropean-American Chamber of CommerceCHAMBRE DE COMMERCE EUROPEENNE-AMERICAINEhttp://www.eaccfrance.eu/Association of French Chambers of Commerce and IndustryASSEMBLEE DES CHAMBRES FRANCAISES DE COMMERCE ET D’INDUSTRIEShttp://www.acfci.cci.frChamber of Commerce and Industry of ParisCHAMBRE DE COMMERCE ET D’INDUSTRIE DE PARIShttp://www.ccip.frChamber of Commerce and Industry of Val D'oise – YvelinesCHAMBRE DE COMMERCE ET D’INDUSTRIE DU VAL D’OISEhttp://www.versailles.cci.frImporters' Association For Mechanics And ElectronicsFEDERATION DES ENTREPRISES INDUSTRIELLES ET COMMERCIALESINTERNATIONALES DE LA MECANIQUE ET DE L’ELECTRONIQUEhttp://www.ficime.frFrench Employers Association - MEDEFhttp://www.medef.frAppliance Manufacturers' AssociationGROUPEMENT INTERPROFESSIONEL DES FABRICANTS D’APPAREILSD’EQUIPEMENT MENAGERhttp://www.gifam.frAutomotive Equipment Industry AssociationFEDERATION DES INDUSTRIES ET EQUIPEMENTS POUR VEHICULEShttp://www.fiev.frBakery Equipment Industry AssociationUNION DES FABRICANTS FRANCAIS D’EQUIPEMENTS POUR LA BOULANGERIEhttp://www.uffeb.comBusiness Gifts Professionals UnionSYNDICATS DES PRODUCTEURS DE CADEAUX D’AFFAIRES ET D’OBJETSPUBLICITAIRES - SYPOGRAFhttp://www.syprocaf.fr2/18/2010 Country Commercial Guide for France 156INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Chemical Industry AssociationUNION INDUSTRIELLE DE LA CHIMIEhttp://www.uic.frCycle Manufacturers AssociationCONSEIL NATIONAL DE LA PROFESSION DU CYCLEWebsite: http://www.tousavelo.comFarm Machinery Industry AssociationSYNDICAT GENERAL DES CONSTRUCTEURS DE TRACTEURS ET MACHINESAGRICOLEShttp://www.sygma.orgFederation of Electric and Electronic IndustriesFEDERATION DES INDUSTRIES ELECTRIQUE ELECTRONIQUE ET DECOMMUNICATIONhttp://www.fieec.frFrench Federation of Jewelry, Gifts, Diamonds, Gems, Pearls and Related ActivitiesUNION FRANCAISE DE LA BIJOUTERIE, JOAILLERIE, ORFEVRERIE, DES PIERRESET DES PERLEShttp://www.bjo-france.comFrench Federation of Toy IndustriesFEDERATION JOUET ET PUERICULTUREhttp://www.fjp.frFrench International Trade AssociationCONFEDERATION DU COMMERCE DE GROS ET INTERNATIONALhttp://www.cgi-cf.comFrench Aeronautic And Space Industry AssociationGROUPEMENT DES INDUSTRIES FRANCAISES AERONAUTIQUES ET SPACIALEShttp://www.gifas.asso.frFrench Automobile Manufacturers CommitteeCOMITE DES CONDUCTEURS FRANCAIS D’AUTOMOBILEShttp://www.ccfa.frGas And Petroleum Industry AssociationASSOCIATION FRANCAISE POUR LA PROMOTION DES TECHNOLOGIESD’EQUIPEMENTS ET DE SERVICE DE L’ENERGIE PETROLIERE ET GAZhttp://www.gep-france.comLaboratory Equipment Industry Association - FABRILABOhttp://www.fabrilabo.comMeasuring And Control Equipment Industry AssociationSYNDICAT DE LA MESUREhttp://www.syndicat-mesure.fr2/18/2010 Country Commercial Guide for France 157INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Mechanical Engineering Industries AssociationFEDERATION DES INDUSTRIES MECANIQUEShttp://www.fim.netMedical Industry AssociationSYNDICAT NATIONAL DE L’INDUSTRIE DES TECHNOLOGIES MEDICALEShttp://www.snitem.frMinerals And Non-Ferrous Metals Industry AssociationFEDERATION DES CHAMBRES SYNDICALES DES MINERAIS, MINERAUXINDUSTRIELS ET METAUX NON FERREUXhttp://www.mineraux-et-metaux.orgNational Union of Product AdvertisingSYNDICAT NATIONAL DE LA PUBLICITE PAR L’OBJEThttp://www.europv.comNational Building FederationFEDERATION FRANCAISE DU BATIMENThttp://www.ffbatiment.frNational Federation of Public WorksFEDERATION NATIONALE DES TRAVAUX PUBLIQUEShttp://www.fntp.frNational Confederation Wood Industry For ConstructionUNION DES INDUSTRIES DU BOIShttp://www.industriesdubois.comInternational Association Of D.I.Y. ProduceursUNION NATIONALEDES INDUSTRIES DU BRICOLAGE DU JARDINAGE ET DESACTVITES MANUELLES DE LOISIRhttp://www.unibal.orgNational Union of French Furniture Industries - UNIFAhttp://www.meublefrance.comNational Wood FederationFEDERATION NATIONALE DU BOIShttp://www.fnbois.comNautical Industry FederationFEDERATION DES INDUSTRIES NAUTIQUEShttp://www.france-nautic.comOptical Industry AssociationGROUPEMENT DES INDUSTRIES FRANCAISES DE L’OPTIQUEhttp://www.gifo.org2/18/2010 Country Commercial Guide for France 158INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Paints & Inks Industry AssociationFEDERATION DES INDUSTRIES DES PEINTURES, ENCRES, COULEURS, COLLESET ADHESIFShttp://www.fipec.orgPaper, Cardboard, Cellulose Industry AssociationCONFEDERATION FRANCAISE DE L’INDUSTRIE DES PAPIERS, CARTONS, ETCELLULOSEShttp://www.copacel.frPERFUME INDUSTRY ASSOCIATIONFEDERATION DES INDUSTRIES DE LA PARFUMERIEhttp://www.fipar.comPharmaceutical Industry AssociationLES ENTREPRISES DU MEDICAMENThttp://www.leem.orgPhotographic and Video Equipment Industry AssociationFEDERATION FRANCAISE DES INDUSTRIES DE L’IMAGEhttp://www.federation-image.frPLASTIC TRANSFORMERS FEDERATIONhttp://www.proplast.orgPrinting and Graphic Arts FederationFEDERATION DE L’IMPRIMERIE ET DE LA COMMUNICATION GRAPHIQUEhttp://www.ficg.frProfessional Union of Plastics ManufacturersSYNDICAT DES PRODUCTEURS DE MATIERE PLASTIQUEhttp://www.lesplastiques.comRailroad Industry FederationFEDERATION DE L’INDUSTRIE FEROVIAIREhttp://www.fif.asso.frShip Builders UnionCHAMBRE SYNDICALE DES CONSTRUCTEURS DE NAVIREShttp://www.cscn.frSporting Goods Industry AssociationFEDERATION FRANCAISE DES INDUSTRIES DE SPORThttp://www.fifas.comStationary Producers' UnionsFEDERATION DES ARTICLES DE PAPETERIEhttp://www.fap-fr.org2/18/2010 Country Commercial Guide for France 159INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Telecommunication Industry UnionGROUPEMENT DES INDUSTRIES DES TECHNOLOGIES DE L’INFORMATION ETDE LA COMMUNICATIONhttp://www.gitep.frTextile Industry UnionL’UNION DES INDUSTRIES TEXTILEShttp://www.textile.frUnion of Plastic and Rubber Industry DistributorsUNION DES SYNDICATS DES PME DU CAOUTCHOU ET DE LA PLASTURGIEhttp://www.ucaplast.frVeterinarian Drug Industry AssociationSYNDICAT DE L’INDUSTRIE DU MEDICAMENT VETERINAIRE ET REACTIFhttp://www.simv.orgMarket Research Firms in FranceALGOE: http://www.algoe.frARTHUR D. LITTLE FRANCE: http://www.adlittle.com or http://www.arthurdlittle.comAVISO CONSEIL: http://www.aviso.frB.V.A (Brule Ville Associates): http://www.bva.frCEGOS: http://www.cegos.comGROUPE MV2: http://www.mv2.frU.S. Banks in FranceAMERICAN EXPRESS INTERNATIONAL BANKING CORPORATION:http://www.americanexpress.frBANK OF AMERICA: http://www.bankamerica.comBANK OF NEW YORK: http://www.bankofny.comCITIBANK; http://www.citibank.comJP MORGAN; http://www.jpmorganchase.com2/18/2010 Country Commercial Guide for France 160INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

French BanksFEDERATION BANQUAIRE FRANCAISE: http://www.afb.frSOCIETE GENERALE: http://www.socgen.comBNP-PARIBAS: http://www.bnpparibas.comCREDIT AGRICOLE: http://www.credit-agricole.fr/CREDIT INDUSTRIEL ET COMMERCIAL: http://www.cic.fr/CREDIT LYONNAIS: http://www.creditlyonnais.com/NATIXIS: http://www.natixis.fr/Logistics and Transportation Services in FranceFEDERATION DES ENTREPRISES DE TRANSPORT ET DE LOGISTIQUE DEFRANCEhttp://www.e-tlf.comASSOCIATION FRANCAISE DU TRANSPORT ROUTIER INTERNATIONALhttp://www.aftri.comProvidersAIR FRANCE CARGO: http://www.airfrance.frBRITISH AIRWAYS WORLD CARGO: http://www.britishairways.comCALBERSON: http://www.calberson.comDHL INTERNATIONAL: http://www.dhl.frEXEL LOGISTICS : http://www.exel.comEXPEDITORS INTERNATIONAL FRANCE SA: http://www.expeditors.comFEDEX: http://www.fedex.comPROLOGIS-GARONOR: http://www.prologis.comGEODIS: http://www.geodis.comREGUS: http://www.regus.comSERNAM: http://www.sernam.frSNCF FRET: http://www.sncf.fr2/18/2010 Country Commercial Guide for France 161INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

TNT: http://www.tntew.comUPS: http://www.ups.comMarket ResearchReturn to topFor information on this topic please consult the Commerce Department’s CountryCommercial Guides on EU Member States: EU Member States' Country CommercialGuidesAlternatively, search the Commerce Department’s Market Research Library, availablefrom: http://www.export.gov/mrktresearch/index.asp under Country and Industry MarketReports.Trade EventsReturn to topPlease click on the link below for information on upcoming trade events.http://www.export.gov/tradeevents/index.aspLocal sources:http://www.foiresalon.comhttp://www.salons-online.comReturn to table of contents2/18/2010 Country Commercial Guide for France 162INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Return to table of contentsChapter 10: Guide to Our ServicesThe U.S. Commercial Service offers customized solutions to help your business enterand succeed in markets worldwide. Our global network of Commercial Specialists willwork one-on-one with you through every step of the exporting process, helping you to:• Target the best markets with our world-class research• Promote your products and services to qualified buyers• Meet the best distributors and agents for your products and services• Overcome potential challenges or trade barriersFor more information on the services the U.S. Commercial Service offers U.S.businesses in France, please click on the link below:http://www.buyusa.gov/france/en/Return to table of contentsU.S. exporters seeking general export information/assistance or country-specific commercialinformation should consult with their nearest Export Assistance Center or the U.S. Departmentof Commerce's Trade Information Center at (800) USA-TRADE, or go to the following website:http://www.export.govTo the best of our knowledge, the information contained in this report is accurate as of the datepublished. However, The Department of Commerce does not take responsibility for actionsreaders may take based on the information contained herein. Readers should always conducttheir own due diligence before entering into business ventures or other commercialarrangements. The Department of Commerce can assist companies in these endeavors.2/18/2010 Country Commercial Guide for France 163INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.