Doing Business In (Insert Country Name Here) - BNA

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Return to table of contents Chapter 3: Selling U.S. Products and Services • Using an Agent or Distributor • Data Privacy • 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 Resources Using an Agent or Distributor Return to top Companies wishing to use distribution, franchising and agency arrangements need to ensure 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 certain minimum standards of protection for self-employed commercial agents who sell or purchase goods on behalf of their principals. In essence, the Directive establishes the rights and obligations of the principal and its agents; the agent’s remuneration; and the conclusion and termination of an agency contract, including the notice to be given and indemnity or compensation to be paid to the agent. U.S. companies should be particularly aware that the Directive states that parties may not derogate certain requirements. Accordingly, the inclusion of a clause specifying an alternate body of law to be applied in the event of a dispute will likely be ruled invalid by European courts. Key Link: [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31986L0653:EN:HTML] The European Commission’s Directorate General for Competition enforces legislation concerned with the effects on competition in the internal market of such "vertical agreements." Most U.S. exporters are small- and medium-sized companies (SMEs) and are therefore exempt from the Regulations because their agreements likely would qualify as "agreements of minor importance," meaning they are considered incapable of affecting competition at the EU level but useful for cooperation between SMEs. Generally speaking, companies with fewer than 250 employees and an annual turnover of less than €50 million are considered small- or medium-sized undertakings. The EU has additionally indicated that agreements that affect less than 10 percent of a particular market are generally exempted as well (Commission Notice 2001/C 368/07). 2/15/2008 Country Commercial Guide for France 6 INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, © 2007. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
Key Link: [http://eurlex.europa.eu/LexUriServ/site/en/oj/2001/c_368/c_36820011222en00130015.pdf] The EU also seeks to combat payment delays with Directive 2000/35/EC. This covers all commercial transactions within the EU, whether in the public or private sector, primarily dealing 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 who does not receive payment for goods/services within 30-60 days of the payment deadline to collect interest (at a rate of 7 percent above the European Central Bank rate) as compensation. The seller may also retain the title to goods until payment is completed and may claim full compensation for all recovery costs. Key Link: [http://ec.europa.eu/comm/enterprise/regulation/late_payments/] Companies’ agents and distributors can take advantage of the European Ombudsman when victim of inefficient management by a EU institution or body. Complaints can be made to the European Ombudsman only by businesses and other bodies with registered offices in the EU. The Ombudsman can act upon these complaints by investigating cases in which EU institutions fail to act in accordance with the law, fail to respect the principles of good administration, or violate fundamental rights. Key Link: [http://www.ombudsman.europa.eu] Considering the host of distribution options available in France, the exporter must carefully select the method best suited to his or her product. French buyers generally prefer to purchase through an intermediary, making sales directly to the end-user uncommon. However, sales of expensive, technically sophisticated goods are an exception to this rule. Intermediaries may take one of three primary forms under French law: • Distributor • Agent • Salaried Representative Distributor: A distributor (concessionnaire) is an individual or legal entity who purchases goods directly from a producer for the purpose of resale. The distributor operates independently and is only bound by the written provisions of the distribution agreement. These agreements, however, are subject to specific rules and regulations regarding exclusive distribution and price setting. Contract termination conditions are important, and vary with the type of distribution agreement. Either party without prior notification or indemnification may terminate a distribution agreement of specified duration at the end of the contract period. If the termination takes place before the end of the contract period, the terminating party may be sued for breach of contract. Either party may terminate a distribution agreement with an unspecified duration without indemnification after a fair notice period, usually six months. Termination by the supplier without fair notice may be grounds for damage claims by the distributor. 2/15/2008 Country Commercial Guide for France 7 INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, © 2007. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
Page 1 and 2: Doing Business in France: 2008 Coun
Page 3 and 4: The trade balance on all bilateral
Page 5: Return to table of contents Chapter
Page 9 and 10: Statutory representatives work acco
Page 11 and 12: that for the past thirty years dire
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Page 15 and 16: French food retailers generally fal
Page 17 and 18: France employing 39,000 people. The
Page 19 and 20: Retail online sales estimates (B-to
Page 21 and 22: Key link: http://ec.europa.eu/healt
Page 23 and 24: Product Liability Under the 1985 Di
Page 25 and 26: Designs The EU adopted a Regulation
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Page 29 and 30: For documentary and educational wor
Page 31 and 32: Financial services [http://ec.europ
Page 33 and 34: Retail Distribution Magazine “L.S
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Page 37 and 38: Project Management Software The mar
Page 39 and 40: Aircraft & Parts (AIR) (CSF, CSV) R
Page 41 and 42: Travel & Tourism (TRA) Return to to
Page 43 and 44: Penetration of the security market
Page 45 and 46: Computers and Peripherals (CPT) Ret
Page 47 and 48: Best Prospects/Services Return to t
Page 49 and 50: Best Products/Services Return to to
Page 51 and 52: Small- and Medium-Sized Plants In o
Page 53 and 54: Medical Equipment (MED) Return to t
Page 55 and 56: Syndicat National de l'Industrie de
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This report does not cover consumab
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Plastics (PMR) Return to top Overvi
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Cosmetics (COS) Return to top Overv
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Education Services (EDS) Return to
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TEXTILES (TXT) Return to top Overvi
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Union française des Industries de
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Resources Return to top French Dire
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Return to table of contents Chapter
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EU Broadcast Directive and limit ma
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y restricting the sale of batteries
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And Defense Trade Controls Bureau o
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Designation: State what the product
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• The sale or price is not subjec
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governmental organizations, such as
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French Consumer Organization workin
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Underwriters Laboratories, Inc. can
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AFNOR Certification calls upon mand
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CRITT Sports et loisirs Centre Rég
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Inspection and Auditing Bodies mand
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Concrete CERIB (Centre d'Etudes et
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Labeling and Marking Return to top
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U.S. Mission to the European Union
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Proposed Foreign Technical Regulati
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The decree also changes the trigger
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English summaries of labor and tax
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The GOF sponsors R&D and technology
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Within the French government, forei
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Protection of Property Rights Retur
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interest rates, short- and long-ter
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The OECD Anti-Bribery convention is
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Talks between employers and unions
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Foreign direct investment inflows a
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Flows by country of origin (Market
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Web Resources Return to top French
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secured and non-secured overdrafts.
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The Bank of New York Mellon (repres
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European Commission. For informatio
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ENPI: replaces the former TACIS and
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French Banks FEDERATION BANCAIRE FR
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U.S. Companies that require travel
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Temporary Entry of Materials and Pe
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MINISTER-COUNSELOR FOR COMMERCIAL A
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AMERICAN PRESENCE POST - TOULOUSE J
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OFFICE OF THE U.S. TRADE REPRESENTA
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French National Testing Laboratory
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French Federation of Jewelry, Gifts
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Photographic and Video Equipment In
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CREDIT AGRICOLE [http://www.credit-
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Market Research Return to top To vi
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March 11-14 SITL Europe - Internati
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June 16-20 EUROSATORY U.S. PAVILION
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November 15-18 SALON DE LA PISCINE,
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