Trade with France - Tips & Advice to buy from and sell to France

Trade with France – Overview

Trade with France – France is the second-biggest economy in the European Union. It is regarded as one of the vital European Union countries as it straddles the “Northern Countries” and the “Mediterranean Countries”. In 2023, it made up 2.92% of the world’s gross domestic product (GDP) (source: Statistics Times).

In 2024, the French economy ranked as the 7th largest economy in the world, according to the World Bank.

France has a formalised governmental structure with a separate judicial system. The population of France is 68.52 million people, with 60.53% of the population between the ages of 15-64 (source cia.gov).

France is one of the six founding members of the European Union trading block. It makes its international trade deals through the European Union. It is a dominant market within the European Union and accounts for 16.72% of the European Union’s GDP in 2022 (source: Statista)

France Business culture

Understanding the business culture in France is crucial for establishing successful professional relationships in the country. Known for its emphasis on the French language, initiating conversations in French is advisable, even if they later switch to English. Demonstrating an effort to speak French can be seen as a sign of respect.

Formality is key in French business interactions. This extends to using formal titles and surnames in meetings and correspondence. Adherence to a professional dress code is also important, with men expected to wear formal corporate attire and women opting for stylish yet professional outfits.

Building relationships is a fundamental aspect of the French business ethos. French companies value long-term partnerships, necessitating time to foster connections before delving into business discussions. Maintaining these relationships often requires regular visits to France.

French business professionals are known for their direct and analytical approach to discussions, treating them as intellectual exercises where logic prevails. You can engage in intense and constructive business negotiations.

Exchanging business cards is common in France, usually occurring early in a meeting. It’s advisable to use single-sided business cards for this purpose. Punctuality is appreciated, although there’s a general tolerance for slight delays.

Understanding these nuances of France’s business culture can significantly enhance your professional interactions and pave the way for successful business ventures in France.

Setting up in France

The Invest in France (IFA) has information for firms considering setting up in France.

Firms wishing to enter into the French market have a variety of options, including:

Using a sales agent. Firms should verify that any agreements are under EU laws – Council Directive 86/653/EEC.
Establishing a representative office. It is recommended for some industries to set up an office in France. Advice on how to open an office can be sought via the French Chambers of Commerce & Industries.
Franchising. The French franchise sector ranks first in Europe in sales and has doubled over the last ten years. Franchising is highly regulated in France. More information on specific legislation can be found on the European Franchise Federation website.
Joint venture or strategic alliance. European Union rules and regulations must be considered when considering this strategy.
eCommerce. French B2C commerce of products and services is one of the largest markets in the world, ranking second in Europe and fifth in the world in terms of online consumption in 2017. It is recommended to start small and select the markets that show the most potential. If the French market represents an excellent opportunity, seek out local service providers and experts who can help with a digital marketing strategy.

Trade with France – Sourcing Products

France’s primary exported commodities include:

Machinery and transportation equipment,
Aircraft,
Plastics,
Chemicals,
Pharmaceutical products,
Iron and steel,
Beverages

When sourcing from France, you should have the products QC inspected at the seller’s location in France. Goodada’s France Quality Control Inspection Services offer Factory Audits and Product checks across all parts of France.

Banking and Finance

The unit of legal tender in France is the Euro (€ EUR).

There are six main banks in France – Crédit Agricole – LCL, BPCE (Banque Populaire Caisse d’Épargne), Société Générale, BNP Paribas, Natixis, Crédit Mutuel – CIC group,

Frances’s banking and financial system are very well established. Since the 19th century, Paris has served as an important commercial centre. The European Banking Authority is also moving to Paris in March 2019 following Brexit.

Trade with France – Tariffs and Non-Tariff Barriers

Tariff

France is part of the European Union trade bloc. Any agreements with the European Union apply to France. To find out more about the countries which the European Union has trade agreements with, please visit the EU’s Negotiations & Agreements page.

Tariffs and duty rates are constantly revised and are subject to change without notice. It is worth visiting Frances Customs Service to determine any customs or import taxes in France for your goods or service.

Non-tariff barriers

France imposes restrictions on the sale or use of certain products including:

Agricultural products.
Chemical products.
Cultural goods.
Food products.
Fauna and Flora.
Ores and Alloys.
Pharmaceuticals products.
Products for Torture.
Weapons and Explosives

To discover more on restricted products in France, click onto this France restricted and prohibited products listing.

Product labelling, certification, and packaging

Labels in France must not only meet its national regulations but also must conform to European Union requirements. Information on the labelling of products in the interest of consumers and compliance procedures are available at Summaries of EU Legislation. Labels must be in French.

Food information and labelling legislation must comply with EU legislation. Please click on Food Labelling Information to learn more. For organic produce, EU legislation requires that imported organic food from non-EU countries (third countries) be produced to the same standards as that from the EU. For more information, visit Trade in organic products.

The CE mark is a mandatory conformity marking for certain products sold within the European Economic Area (EEA).

The EU also may require certain marks for specific products. A mark is a symbol or pictogram that appears on a product or its packaging—these range in scope from signs of danger to indications of methods of proper recycling and disposal. Such marks intend to provide market surveillance authorities, importers, distributors, and end-users with information concerning safety, health, energy efficiency, and environmental issues relating to a product. For more information about EU Marks and requirements, please click here.

Certification

France abides by the import rules and regulations of the European Union. It is especially true for food products. Information for EU Food requirements can be found here. However, each country may maintain additional elements such as licenses.

Packing

You should have your packaging approved with the importer in France as their market might have some specific preferences. Goods should be marked according to European Union requirements.

Methods of quoting and payment

The most popular method of issuing and receiving payments in France is electronic funds transfer (EFT, equivalent to SWIFT or wire transfers).

Payment terms must be agreed to in advance, which can include 30/60/90 day terms. Whatever payment terms are agreed upon, make sure all parties understand them and that your client, representative, or contact signs a mutually agreed document.

Sellers should practice using secured payment terms such as 100% payment before shipping, letters of credit, sight drafts, or bills of exchange when dealing with new customers.

Companies like Euler Hermes, Coface, and Atradius in France offer private and public credit insurance.

Trade with France – Documentary & Clearance Requirements

Documentation required:

For information about France’s documentary requirement, you should visit the EU’s Trade Help desk page.

The single administrative document (SAD) is a form used for customs declarations in the EU, Switzerland, Norway, Iceland, Turkey, the Republic of North Macedonia and Serbia. It is composed of a set of eight copies each with a different function.

All companies established outside of the EU are required to have an EORI number. For more information on EORI numbers, please visit the EU EORI’s page.

Customs process:

You should lodge an entry summary declaration before moving goods into the Union’s customs territory. The declaration is mainly intended to enable customs to conduct a risk analysis for security and safety purposes. The entry summary declaration must be distinguished from the summary declaration for temporary storage, which is a notification of presentation to customs and serves the purpose of registering the goods.

Exporters to France can find information about the Import requirements of France from the French Customs website.

European Union Customs procedures for import and export can be found here.

Trade with France – Business Risks

It is recommended to get insurance for your products. Goodada Insurance provides clients with online insurance facilities.

Businesses wishing to operate in France should commit to the highest level of corporate behaviour and familiarise themselves with French and European laws on bribery and the penalties for the corruption of officials.

Intellectual Property Protection

France strictly enforces laws against counterfeiting, especially in areas like clothing, leatherwork, etc. Products can be seized and destroyed. For more information, visit the Counterfeiting section of the French government’s Customs website (available only in French).

In France, the INPI administers patents and trademarks. The Madrid International Trademark System (WIPO) and Office for Harmonisation in the Internal Market (OIHM) also cover IP protection for Europe.

Dispute resolution

France has a very well-established legal system. This system also intertwines actively with the European Union’s legal system. Hiring legal expertise comes highly recommended.

So, Trade with France – About the Author

Aidan Conaty ACMA GCMA is the founder of TCI China and Goodada.com. Aidan has spent over 15 years assisting companies to trade internationally. TCI China provides trade support services for China. Goodada helps companies to sell globally. Trinity College Dublin awarded Aidan the Seamus McDermott MBA scholarship.

You can contact Aidan by email at aidan@goodada.com or at