doing business 
 with 
 
 FRANCE 
 
 *2-2£cw 
 
 ?» U. S. DEPARTMENT OF COMMERCE 
 * BUREAU OF FOREIGN COMMERCE 
 
 laiin 
 
THE 
 
 PENNSYLVANIA 
 
 STATE UNIVERSITY 
 
 LIBRARY 
 
doing business 
 with 
 
 FRANCE 
 
 U. S. DEPARTMENT OF COMMERCE, Sinclair Weeks, Secretary 
 
 U.S. BUREAU OF FOREIGN COMMERCE, Loring K. Macy, Director 
 
 For sale by the Superintendent of Documents, U. S. Government Printing Office 
 Washington 25, D. C. - Price 45 cents 
 
"orewor< 
 
 In Doing Business With France, the Bureau of Foreign Commerce 
 has consolidated in one handbook the material appearing in the 10 
 separate reports on France currently available in the Bureau's compre- 
 hensive subscription series known as the World Trade Information 
 Service. In the process of consolidation the material has been updated 
 insofar as possible. 
 
 The data as previously published in the World Trade Information 
 Service were in turn derived largely from reports by the Foreign 
 Service of the United States and from French official publications. 
 
 The information brought together in this book includes, principally, 
 two different types of data: (1) Market research data for foreign 
 traders and investors, covered in chapters I, II, V, YI, VII, and VIII ; 
 and (2) operational data for carrying out two-way trade, covered in 
 chapters III, IV, and IX. 
 
 Of these two types, the market research data are of a more perma- 
 nent and basic nature. The operational data are concerned largely 
 with governmental regulations and thus may become obsolete in a rela- 
 tively short time. The Bureau's principal purpose in publishing this 
 handbook on France is to determine the usefulness of combining these 
 two different types of information in one volume. 
 
 In view of the book's experimental nature, the Bureau solicits com- 
 ments concerning the value to the reader of this combination as com- 
 pared with the publication of the two types of data in two volumes. 
 Separate publication of the operational data would allow for revision 
 as regulations are changed, but would necessitate reference to two 
 volumes to obtain all the data needed. 
 
 The analytical and factual information herein has been assembled 
 and expanded from the original World Trade Information Service 
 reports by B. Robert Sarich, Chief of the France- Yugoslavia Section, 
 European Division, and arranged and edited by Gladys A. West of the 
 Publications Division. 
 
 January 1958. 
 
 Loring K. Macy, I 
 
 Director, Bureau of Foreign Commerce 
 
 Hi 
 
Please note that the Foreword invites businessmen and others 
 to comment on whether they would be best served — in the event 
 that other country books are issued — by the publication of market 
 research information and operational data in a single book, such 
 as this experimental one on France, or by issuance of the opera- 
 tional data in a separate volume to be revised as feasible. 
 
 One way to keep abreast of operational shifts, as well as new 
 economic developments, is to consult Foreign Commerce Weekly, 
 the Bureau's principal periodical for foreign traders and in- 
 vestors, which is available on annual subscription ($4.50, domes- 
 tic, and $6, foreign) ordered direct from the Superintendent of 
 Documents, Government Printing Office, Washington 25, D. C, 
 or through the nearest Department of Commerce Field Office. 
 
Contents 
 
 Page 
 Foreword in 
 
 CHAPTERS 
 
 I. The French Market and Economy 1 
 
 France — Market for the World . 1 
 
 U. S. Share of the Market 2 
 
 Market Components, Characteristics 4 
 
 Physical Setting — Population — Form of Government — 
 
 Economic Structure and Problems — Agriculture — Mining 
 
 and Petroleum — Industry — Power. 
 
 Finance 18 
 
 Prices — Budget — Balance of Payments. 
 
 Foreign Exchange Situation 21 
 
 Commercial Policy 22 
 
 French Market Outlook 23 
 
 Saar Transfer, European Common Market 24 
 
 IT. Distribution Facilities and Services 27 
 
 Marketing Channels and Patterns 27 
 
 Principal Commercial Cities — Distribution Media, Con- 
 sumption Trends — U. S. Private Marketing Aids. 
 
 French Trade Practices 30 
 
 Government Representation 31 
 
 Transportation 32 
 
 Railways — Highways — Water Transport — Air Transport. 
 
 Communications 35 
 
 Banking 36 
 
 Insurance 37 
 
 Trade Fairs and Exhibitions. 38 
 
 Paris International Trade Fair — Other International 
 Fairs — Industry Exhibits (Salons). 
 
 III. Exporting To, Importing From, France 43 
 
 French Import Controls 43 
 
 Import Licensing — Exchange Control on Imports — Special 
 
 Import Procedures. 
 
 United States Export Controls 47 
 
 French Import Duties, Other Levies 48 
 
 Bases of Specific and Ad Valorem Duties — Application of 
 the Tariff — Treatment of Gift Packages — Customs Sur- 
 taxes, Internal Taxes. 
 
III. Exporting To, Importing ? From, France — Continued Page 
 
 Exporters' Shipping Documents 50 
 
 Commercial Invoice — Bill of Lading (or Air Waybill) — 
 Certificate of Origin — Sanitary and Other Special Certifi- 
 cates — U. S. Shipper's Export Declaration — Destination 
 Control Statement. 
 
 Mail Shipments 5 
 
 Parcel Post — Regular Mail. 
 
 Samples and Advertising Matter 57 
 
 Entry, Transit, Transshipment, Warehousing 59 
 
 Also Free Zones^and Ports (p. 63). 
 
 Abandoned and Reexported Goods 63 
 
 Customs Procedures 64 
 
 Advance Rulings on Customs Classification — Penalties and 
 Disputes — Antidumping Provision — Appeals and Claims — 
 Refund of Duty. 
 
 French Export Controls 66 
 
 United States Import Controls 67 
 
 Promotion of Exports to Dollar Area „ 68 
 
 IV. Marking and Labeling 69 
 
 Nature of Country-of-Origin Mark 70 
 
 Origin Mark on Specified Products 70 
 
 Certain Foods and Beverages — Foreign Margarines — Milk 
 Products — Wines . 
 
 Corrective Indication of Origin 73 
 
 Accessories and Labels — Advertising Posters — Automo- 
 biles — Fashion Magazines, Books, Post Cards — Merchan- 
 dise in Transit. 
 
 Exemptions From Corrective Marking 78 
 
 Articles With Trademark or Hallmark 78 
 
 V. Investing in France 79 
 
 Government Policy on Investment 79 
 
 Authorizations Needed by Investors — Importance of Resi- 
 dence Factor — Tariff and Trade Concessions. 
 
 Entry and Repatriation of Capital 82 
 
 Screening Procedure and Criteria — Exchange Controls — 
 Industrial Investment Guaranties — Patent Licensing. 
 
 Protection of Industrial Property Rights 85 
 
 VI. Selecting the Form of Business Organization 87 
 
 Establishment of a Local Entity 87 
 
 Individual Enterprise — Partnership — Limited Partnership — 
 Limited Partnership With Shares — Corporation — Coopera- 
 tive — Limited-Liability Company — Joint Venture. 
 Operation as Branch of U. S. Firm 90 
 
 VII. Taxation 91 
 
 Direct Business Taxes 91 
 
 Corporation Tax — License Tax (Patente) — Wage and 
 
 Apprenticeship Taxes — Income Tax on Business Profits — 
 
 Tax on Dividends, Interest, Bonuses. 
 
 Turnover and Other Indirect Taxes 93 
 
 Taxes on Personal Income. 93 
 
 Proportional Tax — Graduated Tax. 
 Tax Agreement With the United States 96 
 
 VI 
 
Page 
 
 VIII. Labor Conditions 97 
 
 Wages and Hours 97 
 
 Wage-National Income Relationship — The Minimum 
 
 Wage — Hours. 
 
 Productivity 98 
 
 Social Legislation 99 
 
 Health and Safety — Social Security and Insurance. 
 
 Labor Unions 100 
 
 Employment of Alien Workers 100 
 
 Worker's Card 101 
 
 IX. Business Travel and Living Conditions 103 
 
 Requisites for Personal Entry, Stay 103 
 
 Visa — Sojourn Card. 
 Regulations Covering Goods Entry 104 
 
 Travelers' Baggage and Effects — Personal Effects of 
 Foreign Students — Household Effects — Tourists' Auto- 
 motive Vehicles — Pets — Souvenirs Acquired in Transit. 
 
 Living Conditions and Costs 109 
 
 Housing and House Furnishings — Hotels and Restau- 
 rants — Food — Clothing — Other Supplies and Services. 
 
 Health Conditions, Medical Services 112 
 
 Churches and Schools, Recreation 113 
 
 Means of Transport, Communications 114 
 
 TABLES 
 
 In Text: 
 
 1. French Foreign Trade, by Monetary Areas, 1955-56 2 
 
 2. Gross National Product, 1952-55 7 
 
 3. Production of Principal Agricultural Commodities, 1934-38 Averages 
 
 and 1953-55 10 
 
 4. Production of Selected Minerals, 1938 and 1954-56 11 
 
 5. Official Average Monthly Indexes of Industrial Production, by Sectors, 
 
 1929 and 1954-56 13 
 
 6. Industrial Production, by Major Commodities, 1955-56 13 
 
 In Statistical Appendix: 
 
 I. Value of French Foreign Trade, 1936-38 and 1946-56 116 
 
 II. Trade With Foreign Countries and French Oversea Territories, by 
 
 Principal Commodity Groups, 1954-56 117 
 
 III. Trade With Principal Countries, 1954-56 118 
 
 IV. Imports of Principal Commodities, 1954-56 119 
 
 V. Exports of Principal Commodities, 1954-56 120 
 
 VI. Principal Commodity Imports From the United States, 1955-56 121 
 
 VII. Principal Commodity Exports To the United States, 1955-56 122 
 
 MAP 
 
 France viii 
 
viii 
 
CHAPTER I 
 
 The French Market 
 and Economy 
 
 FRANCE— MARKET FOR THE WORLD 
 
 France is one of the great trading nations. The important role 
 that the country plays as a world market is due in large part to its 
 considerable and diversified agricultural production, its high degree 
 of industrialization, and the size of its population. 
 
 French foreign trade presents a pattern which differs somewhat 
 from that common to the other highly industrialized countries of 
 Europe. The importance of agriculture in the national economy 
 and the preeminence in the industrial sector of semimanufactures, 
 such as steel, and consumer goods, such as textiles, are reflected in 
 the country's foreign trade structure. 
 
 The trade balance of metropolitan France with foreign countries 
 is dominated by heavy net imports of fuels, and by somewhat smaller 
 net imports of materials for industry and industrial equipment. On 
 the other hand, France is a heavy net exporter of consumer goods. 
 In 1956, a significant 22 percent of French imports came from the 
 French Oversea Territories. 
 
 The deficit in French trade with foreign countries traditionally 
 has been partially offset by a favorable balance in trade with the 
 Oversea Territories in all categories except foodstuffs, which make 
 up more than 70 percent of imports from the Territories. French 
 exporters have come to rely rather heavily on the Territory markets, 
 especially for sales of textile products, which make up about 15 percent 
 of French exports to the Territories. 
 
 Table II of the Statistical Appendix shows French commodity 
 trade with foreign countries in contrast with her trade with over- 
 sea France. Also presented in the appendix are a summary table 
 showing the value of French imports and exports over a number of 
 
years and detailed statistics on the foreign trade of France by prin- 
 cipal trading partners and by principal commodities. 
 
 Changes in French imports and exports from 1955 to 1956 are 
 shown by monetary areas in table 1, below. Import totals, which 
 aggregated $5,646 million in 1956 compared with $4,783.5 million 
 in 1955, increased over the 1955 totals from all monetary areas and 
 more particularly from dollar sources. On the other hand, overall 
 exports dropped to $4,635.6 million in 1956 from $4,958.8 million in 
 1955. Exports to the sterling area decreased by some $70 million — 
 and to EPU countries by approximately the same amount — while 
 dollar exports rose by about $30 million over the 1955 level. 
 
 Table 1. — French Foreign Trade, by Monetary Areas, 1955-56 
 
 [Millions of dollars] 
 
 Monetary area 
 
 1955 
 
 1956 
 
 
 Exports 
 
 
 3, 318. 
 1, 527. 6 
 
 3, 145. 2 
 
 
 1, 490. 4 
 
 
 
 Total 
 
 4, 845. 6 
 
 2, 350. 8 
 578.4 
 315.6 
 204.0 
 
 4, 635. 6 
 
 Of which: 
 
 2, 281. 2 
 
 Sterling area 
 
 508.8 
 
 
 344.4 
 
 
 223.2 
 
 
 
 
 Imports 
 
 All foreign countries 
 
 3, 565. 2 
 1, 167. 6 
 
 4, 326. 
 
 Oversea Territories 
 
 1, 320. 
 
 
 
 Total 
 
 4. 732. 8 
 
 2, 535. 6 
 
 1, 191. 6 
 
 566.4 
 
 462.0 
 
 5, 646. 
 
 Of which: 
 
 2, 964. 
 
 
 1, 290. 
 
 
 799.2 
 
 United States _ 
 
 680.4 
 
 
 
 U. S. SHARE OF THE MARKET 
 
 The growth of French dollar reserves in recent years permitted an 
 increase in the total volume of imports from the United States, but 
 the structure of French trade with this country continues to reflect the 
 incidence of restrictive measures designed to conserve dollar exchange. 
 
 For many years imports from the United States have mirrored the 
 most indispensable current requirements of France's production 
 apparatus. The traditional import pattern is thus dominated by 
 such continuing basic needs as raw cotton (about 8 percent of 1956 
 imports) ; copper, iron, and steel and other metals (12.5 percent) ; 
 machinery (17.5 percent) ; chemical products such as basic chemicals, 
 plastics, and electrodes (5.9 percent) ; and solid fuels (15 percent). 
 
Imports of transportation equipment range between 7 and 15 percent 
 of total imports from the United States, reflecting periodic Air-France 
 purchases of United States planes, as well as rather limited automo- 
 bile imports. Recurrent European fuel shortages result in heavy 
 imports of United States coal in certain years (notably in 1956) . The 
 remaining 30 percent of French imports from the United States 
 include a wide range of commodities, notably petroleum products, 
 electrical equipment, oilseeds, tobacco, sulfur, and synthetic rubber, 
 but the French market for United States consumer goods and other 
 nonessential products remains extremely limited. 
 
 The high production level at which the French industry operated 
 during 1956 was reflected in still greater requirements of basic raw 
 materials and semifinished products. French imports from the United 
 States attained a new high of $680 million, compared with $482 
 million in 1955 and $381 million in 1954 (see appendix table VI for 
 1955 and 1956). The traditional import pattern remained virtually 
 unchanged. Important receipts included wheat (owing to the crop 
 failure), corn, oilseeds, tobacco, sulfur, coal, chemicals, cotton, iron 
 and steel, copper, machinery, and electrical equipment. Still others 
 were fruits, plastic materials, rubber and rubber products, synthetic 
 textiles, automobiles, aircraft, and optical and scientific instruments. 
 
 French exports to the United States reflect, to an even greater degree 
 than do her total exports, the competitive disadvantages resulting 
 from France's relatively high cost structure. With the exception of 
 certain products of the steel industry, the most important traditional 
 exports to the United States are chiefly specialty items directed to the 
 quality consumer trade rather than to the mass market. 
 
 In the main, these are goods for which regular United States mar- 
 kets exist, and for which Franco-United States trade channels are 
 well established. One or two are products in such demand that 
 United States importers are now taking the initiative in seeking out 
 suppliers; many are quality consumer goods for which France has 
 long had a worldwide reputation. There are indications, however, 
 that French exporters of other commodities are beginning to exploit 
 more fully their opportunities on the American market. For exam- 
 ple, France in recent years has doubled its sales on the United States 
 market of automobiles, plywood, wool and cotton fabrics, cutlery, and 
 fishing tackle. This trend may become increasingly important, for 
 the French Government, in cooperation with the industry-sponsored 
 Franc-Dollar Committee, is making more and more French exporters 
 aware of the potentialities and rewards of the United States market. 
 
 French exports to the United States in 1956 amounted to $223.5 
 million (table VII), compared with $204 million in 1955 and $154 
 million in 1954. As in the past, the exports were, by and large, and 
 with the exception of iron and steel, chiefly specialty items. Major 
 
commodity exports were such traditional items as fruits, beverages, 
 essential oils and perfumes, rubber products, chemicals, leather and 
 leather goods, wool, synthetic fibers, tulle, lace, automobiles, musical 
 instruments, glass, and objects of art. Less significant exports 
 included cheese, preserved fruits and vegetables, paper, books, cloth- 
 ing, ceramic products, aluminum, and toys. 
 
 MARKET COMPONENTS, CHARACTERISTICS 
 
 This section not only outlines the market framework as such, but 
 deals also with the operation of economic forces. The broad discus- 
 sion under the heading "Economic Structure and Problems" is intro- 
 ductory to the detailed analysis of principal sectors of the economy ; 
 France's payments position and other monetary and commercial 
 factors that influence the nature of the market are discussed more 
 fully in later sections. 
 
 Physical Setting 
 
 The total area of France is 212,737 square miles (including the island 
 of Corsica, 3,367 square miles) , or roughly equal to the combined area 
 of Florida, Georgia, Mississippi, and Alabama. The maximum width 
 from the Atlantic Ocean to the Rhine River is 530 miles and the 
 average is about 400. The length from the English Channel to the 
 Mediterranean Sea is about 600 miles. France has approximately 
 1,870 miles of coastline — 670 on the English Channel, 830 on the 
 Atlantic Ocean, and 370 on the Mediterranean. Of the 1,400-mile 
 land frontier, 285 miles adjoin Belgium; 25 miles, Luxembourg; 230, 
 Germany; 260, Switzerland; 250, Italy; and 350, Spain. Corsica 
 lies in the Mediterranean Sea, 142 miles off the south coast of France, 
 and is somewhat smaller than Connecticut. 
 
 France has mountain ranges bordering Switzerland, the Pyrenees 
 range bordering Spain, and the Vosges Mountains paralleling the 
 Rhine River ; a plateau in the south central region ; and fertile coastal 
 plains running from southwest to northwest. In addition to four 
 important rivers — the Seine, Loire, Garonne, and Rhone — France 
 controls the left bank of the Rhine from Basel, Switzerland, to Lauter- 
 bourg, France. 
 
 Because of the great variation in topography, France encompasses 
 10 distinct natural regions: Paris basin; Aquitaine basin (productive 
 lowlands bordering the Bay of Biscay) ; Armorican peninsula 
 (largely Brittany) ; Massif Central (uplands, sparsely populated) ; 
 French Pyrenees; mediterranean France; southeastern mountains 
 
(Alps and Jura) ; Rhone-Saone depression ; northeastern France 
 (Alsace-Lorraine) ; and northern plain. 
 
 In the Mediterranean Sea coastal region, the climate is similar to 
 that of southern California, but elsewhere it is generally temperate and 
 days are often cloudy both in winter and in summer. The average 
 annual rainfall varies from 22 inches at Paris to 31 at Bordeaux and 
 Lyon. The yearly mean temperature is about 50° F. in Paris and 
 57° F. in Nice. 
 
 Population 
 
 The population on January 1, 1957, was 43,787,000. The relative 
 stability in size over the past century has been a factor of prime 
 significance for the country's economic development. During the 
 period 1865 to 1940, the population remained almost static, rising only 
 from 38 million to 41 million. Having declined to 39 million in 1945 
 as a result of World War II, it has been increasing at an average rate 
 of about 355,000 a year over the past 10 years. 
 
 About 57 percent of the population consists of adults between the 
 ages of 20 and 64. Of the total active population of approximately 
 20.2 million in 1955 (latest data available), the occupational distribu- 
 tion was as follows, in percentages : 
 
 Agriculture, forestry, fishing 28. 9 
 
 Industry 34.9 
 
 Energy 2.0 
 
 Metal and metal products 9.7 
 
 Construction, public works 7. 5 
 
 Textiles, clothing 7.0 
 
 Transportation 4.7 
 
 Trade 13.9 
 
 Government and professional services 11.8 
 
 Domestic and personal services 5. 
 
 Other .8 
 
 There are no important racial minority groups. The population is 
 relatively homogeneous although there are regional differences in 
 customs and dialects. 
 
 France is predominantly Koman Catholic. Only about a million 
 people are Protestants. Public education is free. 
 
 Form of Government 
 
 France has a parliamentary government. The executive branch is 
 composed of a Prime Minister and Cabinet collectively responsible 
 to the National Assembly and to the President of the Kepublic, elected 
 for 7 years by the Parliament. The present Fourth Republic was 
 created by a constitution adopted by referendum in October 1946. Its 
 main institutions are largely similar to those of the Third Republic, 
 France's government prior to World War II. 
 
The legislative branch consists of the two houses of Parliament — 
 the lower house, or National Assembly, with 627 deputies (544 from 
 metropolitan France and the others from oversea Departments or 
 Territories), and an upper house, the Council of the Republic, with 
 320 senators, of whom 24G are from metropolitan France. The 
 upper house no longer has full legislative powers, but is called upon 
 for any advisory opinion on laws voted by the lower house. 
 
 Election to the National Assembly, held every 5 years, is by direct 
 universal suffrage under a complex system of modified proportional 
 representation. The Council of the Republic is elected for 6 years, 
 renewable one-half every 3 years. There are about 20 political parties, 
 no one of which controls a clear majority in Parliament, and cabinets 
 are formed by coalition. The tenure of the Prime Minister and his 
 Cabinet depends on the will of the legislature, and Cabinet changes 
 are frequent. 
 
 Following the election of January 1956, the distribution of seats 
 in the National Assembly was as follows : Communists, 150 ; Socialists, 
 98; Moderates, 84; Christian Democrats (MRP), 74; Radical Social- 
 ists (Mendes-France), 60; Poujadists, 45; other elements (USDR, 
 RGR, Peasants etc.), 85. 
 
 Economic Structure and Problems 
 
 France's relatively diversified, highly sheltered economy is remark- 
 able for the extent to which its traditional structures have been 
 preserved. 
 
 A private enterprise economy, it has operated for more than a 
 century within a complex framework of economic regulations applied 
 by the state. Commercial policy, the tax system, and the network of 
 economic subsidies have combined with other factors, such as popula- 
 tion stability and social structure, to perpetuate the traditional forms 
 of economic organization and patterns of production. 
 
 Prior to and immediately following World War II, several im- 
 portant sectors of the French economy were nationalized. Today the 
 Government holds a controlling interest in the railroads, the major 
 airline, the coal mines, electric power, and a few important industrial 
 plants, notably the former Renault auto firm. Heavy state invest- 
 ment in these and other key production sectors has achieved virtually 
 complete modernization and has resulted in a high level of produc- 
 tivity. In private industry, similar dynamic trends have emerged 
 in several branches, and outstanding firms have taken advantage of 
 the rise in consumption to expand output and modernize production 
 facilities. 
 
 In the light of these achievements, public concern has focused on 
 some of the rigidities of the traditional economic structure, which has 
 become a prime target of reform. The traditional structure is charac- 
 
terized by the predominance of small-scale, high-cost production and 
 distribution ; by an unusual degree of regional concentration of popula- 
 tion and industry ; and by a production pattern which has been rela- 
 tively slow to adapt to shifts in the pattern of demand. Important 
 incentives to adaptation, to the expansion of productive capacity, and 
 to the introduction of mass production techniques — an expanding 
 mass market, challenging competition, and a dynamic capital market — 
 have been lacking in France over a long period of time, and are still 
 limited. 
 
 Steps to adjust production to demand. — The major obstacle to 
 economic rationalization today is the chronic balance-of-payments 
 problem, which has brought about the maintenance of a sheltered 
 market. To counteract this effect of protection and to overcome the 
 reluctance of the average French entrepreneur to expand or reorient 
 his production, Government planners have introduced measures de- 
 signed to offer incentives in the form of subsidies and easy credit to 
 firms undertaking relocation, reconversion, or modernization of plant. 
 
 The goal is to readapt the country's productive apparatus to con- 
 form to the probable trend of demand, with increased emphasis on the 
 mechanical and electrical industries, housing construction, and the 
 more intensive sectors of agricultural production. 
 
 For a fuller discussion of the Government's plans see the section 
 below on economic planning and foreign aid. 
 
 Increases in gross national product. — An upward trend in com- 
 ponents of the gross national product from 1952 through 1955 is shown 
 in table 2. The gross national product in 1956 was officially estimated 
 at 17,444 billion francs. 1 
 
 Table 2.- -Gross National Product, 1952-55 
 
 [Billions of francs] i 
 
 Sector 
 
 1952 
 
 1953 
 
 1954 
 
 1955 
 
 Food products ... 
 
 4,090 
 224 
 4,839 
 1,498 
 1,990 
 1,626 
 
 4,142 
 312 
 4,914 
 1,508 
 2,081 
 1,475 
 
 4,314 
 333 
 
 5,197 
 1,650 
 2,257 
 1,575 
 
 4,583 
 
 Energy and raw materials . 
 
 421 
 
 Industry... ... ... ... ... .. 
 
 5,419 
 
 
 1,795 
 
 
 2,460 
 
 Imports... .. ... ... 
 
 1,700 
 
 
 
 Total 
 
 14, 457 
 
 14, 432 
 
 15, 326 
 
 16, 378 
 
 
 
 JJJSOifrancs equaled US $1. 
 
 Industrial growth in 1956. — Unparalleled industrial growth took 
 place in 1956, sustained largely by an enormous increase in imports, 
 which ran down foreign exchange holdings at a rapid rate. The pre- 
 vailing attitude at the end of the year was one of cautious conserva- 
 tism until the meaning of the aftermath of Suez was more clearly 
 
 1 The basic unit of currency in France is the franc of 100 centimes. See the section on 
 commercial policy, page 22, for discussion of the rate of exchange. 
 
defined. Lower petroleum supplies threatened industrial expansion 
 while higher foreign exchange expenditures for petroleum and coal 
 tended to accentuate the large and continuing balance-of -payments 
 deficit. 
 
 The wake of events in the Middle East left the French economy in 
 a state of uncertainty as 1957 got under way despite the considerable 
 economic progress which had marked 1956. The only discernible and 
 significant drops in production were in the petroleum-processing, 
 building, and automobile industries. Cautious optimism seemed to 
 prevail that the level of French industrial production could be 
 maintained, although expansion might be retarded. 
 
 Economic planning and foreign aid. — The First Modernization 
 and Equipment Plan of the French Union ("Monnet Plan") was 
 launched in 1946. Extended to 1953 to coincide with the initial 
 Marshall plan program, the plan fulfilled its objective of rebuilding 
 and modernizing key sectors of basic industry — fuel and power, steel, 
 cement, transport, and agricultural equipment. It was succeeded by 
 the Second Plan for Modernization and Equipment for the period 
 1954-57, which stresses modernization of the processing industries, 
 agriculture, and housing. 
 
 The overall target of the second plan was an increase of 25 percent 
 in national income between 1952 and 1957, comprising gains of 28 
 percent in industrial and 20 percent in agricultural production. By 
 the end of 1955, progress toward these overall targets was well ahead 
 of schedule. Perhaps more important, an approach had been in- 
 augurated toward remedying the structural lag in French industry 
 by encouraging plant conversion, readaptation of labor, and industrial 
 decentralization. 
 
 Unlike the first plan, which involved several nationalized sectors 
 and relied heavily on direct investment by the state, the second plan 
 depends chiefly on encouraging selective investment by private enter- 
 prise. Encouragement is extended through such measures as tax in- 
 centives and medium-term credits from public funds. 
 
 A Third Plan for Modernization and Equipment has been formu- 
 lated for 1957-61. Essentially a continuation of the second plan, it 
 will give increased emphasis to selectivity in expanding agricultural 
 production and to the problems of manpower, technical and profes- 
 sional training, and research. 
 
 France participated in the Marshall aid program, receiving both 
 grants and loans from the United States and an initial credit position 
 in the European Payments Union. Economic assistance extended to 
 France by the United States for the period 1948 to the present has 
 totaled approximately $3.2 billion. 
 
 8 
 
Agriculture 
 
 Agriculture holds an important place in the French economy, em- 
 ploying over 25 percent of the active population and contributing 
 about 15 percent to the national income. The share of the French 
 population engaged in agriculture is the highest in Western Europe. 
 
 French agricultural exports to foreign countries in 1955 reached 
 an exceptionally high level owing chiefly to large exports of sub- 
 sidized surpluses such as wheat, sugar, wine, and beef. France relies 
 on imports of cotton, tobacco, oilseeds, certain fruits and vegetables, 
 and small quantities of other agricultural commodities. 
 
 France had, as of 1954, 96,626,000 acres of agricultural land, of 
 which 54 percent (52,662,000 acres) was arable (excluding uncul- 
 tivated land and permanent grassland). There is a fairly even 
 balance between livestock and arable farming, with a preponderance 
 of mixed farming. 
 
 The small, family-operated farm predominates in France, though 
 to a somewhat lesser degree than in the rest of continental Europe. 
 The average size is 36 acres (compared with 215 acres in the United 
 States). Of some 2,470,000 French farms in 1946, 10 percent were 
 less than 2y 2 acres in size ; nearly 60 percent were less than 25 acres, 
 and 80 percent were under 80 acres. Only 1.1 percent (27,000) 
 covered 247 acres or more. 
 
 With the decline in agricultural population in France during this 
 century, there has been a gradual trend toward the concentration 
 of farms. Successive French governments, however, have remained 
 committed to a policy of protecting and maintaining the traditional 
 social structure of French agriculture. 
 
 An estimated 30 percent of French agricultural land consists of 
 fragmented holdings, composed of scattered or irregular strips, which 
 are in need of consolidation. In the past 10 years nearly 6 million 
 acres have been reallotted to form more compact and more easily 
 cultivated units. The Government extends certain tax benefits to 
 farmers who make such exchanges, and pays half the cost of the 
 exchange. 
 
 Nearly 90 percent of all arable land in France is privately owned. 
 Sixty-five percent of French farmers operate their own land, com- 
 pared with 75 percent in the United States. A little more than half 
 the total cultivated area is farmer owned ; slightly over one-third is 
 rented; and the remainder cultivated under sharecropping arrange- 
 ments which vary from region to region. Fewer than one out of 
 five French farmers employ permanent paid labor. 
 
 The size and productivity of farms also vary from region to region, 
 following the general pattern of industrial and demographic con- 
 centration. The largest and most productive holdings are in the 
 
 429535—58 2 Q 
 
north, while denser agricultural population and lower yields are 
 characteristic of Brittany and parts of the south. 
 
 Production of the principal agricultural commodities in France in 
 1953-55 (1955, latest available year) is shown in table 3. 
 
 Table 3. — Production of Principal Agricultural Commodities, 1934-38 Averages and 
 
 1953-55 
 
 [Thousands of metric tons] 
 
 Commodity 
 
 1934-38 
 average 
 
 1953 
 
 1954 
 
 1955 
 
 
 15,490 
 
 8,143 
 
 15, 883 
 
 8,785 
 
 1,798 
 
 18 
 
 63 
 
 1,700 
 
 146 
 
 200 
 
 800 
 
 16, 525 
 
 8,981 
 
 14, 272 
 
 12, 537 
 
 1,838 
 
 119 
 
 59 
 
 2,270 
 
 170 
 
 275 
 
 1,400 
 
 18, 467 
 
 10, 566 
 15, 865 
 
 11, 657 
 1,938 
 
 108 
 61 
 
 2,460 
 180 
 275 
 
 1,700 
 
 
 Wheat _ 
 
 10, 379 
 
 
 14,120 
 
 
 10, 880 
 
 
 
 Oilseeds... . 
 
 129 
 
 Wine » 
 
 57 
 
 
 2,535 
 
 Milk« 
 
 190 
 
 Butter 
 
 330 
 
 Table fruits 
 
 2,000 
 
 
 
 J Million hectoliters. 
 
 Aggregate agricultural output in 1955 was roughly comparable 
 with that of 1954, for which the index was 125 (1934-39=100), com- 
 pared with 118 in 1953, 109 in 1952, 103 in 1951, 108 in 1950, and 98 in 
 1949. Production thus had risen by 25 percent above the prewar level ; 
 but the official plan for 1954-57 stresses the need for a still higher rate 
 of increase which would more nearly approximate that of other 
 countries. 
 
 In 1956 agriculture did fairly well considering the disastrous freeze 
 which destroyed half the wheat plantings and did extensive damage 
 to pasture, vineyards, winter vegetables and fruit, and nut and olive 
 trees. Part of the wheatland was replanted to spring grains, and some 
 to wheat and, especially, barley. While the resulting 1956 wheat crop 
 was only 60 percent as large as the 1955 crop (two- thirds as much as 
 the recent 5-year average) and far short of domestic requirements, 
 there was an unusually large production of other grains. Conse- 
 quently, total grain production was larger than in recent years, with 
 wheat in short supply but plenty of feed grains and a large export 
 surplus of barley. 
 
 Production of other crops varied widely from sharply reduced 
 production of nuts and prunes and some other fruits to only slight re- 
 ductions in sugar beets and oilseeds and an unusually large crop of 
 potatoes. 
 
 On the whole, France's agricultural production in 1956 was some- 
 what above that of 1955, but the value of production declined slightly 
 owing to shifts from more valuable wheat to less valuable feed grains. 
 
 Although an overall increase in agricultural production remains one 
 of the main objectives of Government agricultural policy, the trend 
 toward surplus production in some sectors has led to increased em- 
 
 10 
 
phasis upon reorientation of production, reduction of production 
 costs, and organization of agricultural markets. Investment, distribu- 
 tion, consumption, and exports are all influenced by a complex of 
 Government measures including credits, tax exemptions, subsidies, 
 price regulation, state trading, import restrictions, and export aids. 
 
 Mining and Petroleum 
 
 A leading producer of coal and iron ore and a developing producer 
 of petroleum, France also has substantial reserves of bauxite, antimony, 
 tungsten, magnesium, pyrites, and radioactive minerals. Reserves of 
 lead and zinc are limited and France is obliged to import about nine- 
 tenths of her requirements. Domestic production of sulfur and asbes- 
 tos constitutes 28 percent and 24 percent, respectively, of domestic con- 
 sumption. France is self-sufficient in fluorspar, potash, and salt. Data 
 on French mineral production are given in table 4. 
 
 Table 4.— Production of Selected Minerals, 1938 and 1954-56 
 
 [Thousands of metric tons] 
 
 Commodity 
 
 1938 
 
 1954 
 
 1955 
 
 1956 
 
 
 46,504 
 
 1,058 
 
 33, 046 
 
 649 
 
 146 
 
 5.7 
 
 .2 
 
 44.3 
 
 72 
 
 54, 405 
 1,910 
 43, 817 
 1,275 
 300 
 16.6 
 19.2 
 58.6 
 508.5 
 
 55, 335 
 2,053 
 
 50, 331 
 
 1,497 
 
 305 
 
 55, 129 
 
 Lignite 
 
 2,252 
 
 Iron ore 
 
 62, 690 
 
 Bauxite 
 
 1,464 
 
 Pyrites 
 
 310 
 
 Lead (metal) 
 
 63 
 
 Zinc 
 
 
 112 
 
 Fluorspar 
 
 
 
 Petroleum, crude. 
 
 875.6 
 
 1,265 
 
 
 
 France is the world's third largest producer of iron ore, contributing 
 about 14 percent of world production. Only 2 percent of the total new 
 supply of iron ore is imported and about 40 percent is exported. Iron 
 ore reserves are estimated at about 8 billion tons, of an average grade 
 of 30-35 percent Fe. 
 
 France is Europe's principal producer of bauxite with reserves of 
 an estimated 15 million to 20 million tons of minable bauxite ore. 
 
 France is the fifth largest world producer of coal. French coal re- 
 serves are estimated at more than 10 billion tons, and lignite re- 
 serves at approximately 400 million tons. Productivity in the French 
 mines is now the highest in Europe, with a daily average production in 
 
 1955 of 1,595 kilograms (1 kilogram equals 2.2 pounds). In 1955 
 about 7 percent of France's domestic coal requirements were supplied 
 by the Saar, and 17 percent derived from imports. Exports from 
 France in 1954 were 2.8 million tons, exclusive of Saar exports of 
 6 million. 
 
 Domestic coal production (anthracite, bituminous, and lignite) in 
 
 1956 of 57.4 million metric tons was almost the same as in 1955 (57.4 
 
 11 
 
million) despite a decline in the number of mine workers, as average 
 output per man-shift increased from about 1,595 kilograms in 1955 to 
 1,660 kilograms in 1956. Coal consumption, however, rose from 70 
 million tons in 1955 to over 78 million in 1956 and imports (including 
 Saar) rose from 16.7 million tons to 22.8 million. Exports dropped 
 to 2.4 million tons from 6.4 million in 1955. Stocks at pitheads 
 decreased from 6.2 million tons to 4.7 million. 
 
 France bought about 6 million tons of coal in the United States in 
 1956, an increase of more than 5 million tons over the preceding year. 
 This gain reflects a European-wide shortage of energy in all forms, 
 which can be reduced only to a relatively small extent by expansion of 
 indigenous European production over the next several years. It is 
 thus likely that large coal imports from the United States will continue 
 and even increase in coming years. 
 
 The French coal mines have been nationalized, and are operated by 
 a national coal authority, Charbonnages de France. The principal 
 mines are in the Departments of Nord and Pas-de-Calais and in the 
 Lorraine basin. Coal supplies about 70 percent of France's energy 
 needs. 
 
 About 95 percent of France's crude petroleum consumption is sup- 
 plied by imports from foreign countries, 2 percent is obtained from 
 Algeria, 2 and 3 percent is furnished by domestic production. Petro- 
 leum output in metropolitan France more than doubled in 1956 over 
 1954, largely as a result of the discovery of a new oil field at Parentis. 
 France produces about 1.2 million tons of its annual consumption of 
 23 million tons. 
 
 Industry 
 
 France's expanding industry has been the focus of the postwar 
 economic effort. Rated high for its record achievements in a number 
 of fields, French manufacturing nevertheless has held an anomalous 
 position in the country's economic structure, employing a smaller 
 share of the active population than does industry in almost any other 
 European country. 
 
 Aided by the revival in population growth and consumption, the 
 Government's postwar program of intensive investment in key indus- 
 trial sectors has succeeded in expanding production capacity through 
 reconstruction, modernization, and reequipment. By 1951, French 
 industrial production had surpassed the prewar high. Notable gains 
 were attained in subsequent years. This upward thrust of major 
 
 2 Indications are that oil deposits are present also in the Sahara, where explorations are 
 under way. 
 
 12 
 
industries continued through 1956. Fourth-quarter industrial pro- 
 duction exceeded that in the third quarter, a seasonal low, by a 
 substantial margin, and the year's production topped that of 1955 by 
 an estimated 10 percent. As the year ended, the production curve 
 seemed to be flattening out to some extent, but the distortion of Decem- 
 ber figures, including as they do the holiday season, make valid 
 generalizations difficult. 
 
 Housing starts in 1956 totaled 300,000 as against 280,000 in 1955. 
 The rate of completions, however, was only some 240,000 units (208,000 
 in 1955). Some 500,000 dwelling units remained under construction 
 compared with 425,000 at the end of 1955. Moreover, since con- 
 struction activity in the fourth quarter of 1956 was no higher than for 
 the like period in 1955, the series of measures the Government took 
 during August to dampen housing credit apparently had the effect 
 desired by the Government in limiting the level of new starts until 
 buildings under way were completed. 
 
 Table 5 gives industrial production indexes, by sectors, for 1954-56 
 compared with 1929. Table 6 shows data on principal production 
 in 1956 in contrast with 1955. For industry as a whole, dips in some 
 sectors were counterbalanced by increases in others. 
 
 Table 5. — Official Average Monthly Indexes of Industrial Production, by Sectors, 1929 
 and 1954-56 
 
 [1938=100] 
 
 Industry 
 
 Overall (including building) 
 
 Energy 
 
 Equipment goods (excluding building).. 
 
 Consumer goods 
 
 Building (including public works) 
 
 General (excluding building) 
 
 Electricity 
 
 Solid fuels 
 
 Extraction of metal ores 
 
 Production of metals 
 
 Fabrication of metals 
 
 Textiles 
 
 Leather 
 
 Chemicals 
 
 Paper and paperboard 
 
 Publishing 
 
 Rubber.. 
 
 1929 
 
 1954 
 
 1955 
 
 133 
 
 152 
 
 166 
 
 95 
 
 164 
 
 175 
 
 157 
 
 165 
 
 186 
 
 108 
 
 128 
 
 133 
 
 190 
 
 138 
 
 147 
 
 125 
 
 154 
 
 169 
 
 76 
 
 218 
 
 239 
 
 110 
 
 114 
 
 117 
 
 147 
 
 134 
 
 152 
 
 151 
 
 172 
 
 206 
 
 150 
 
 172 
 
 197 
 
 120 
 
 115 
 
 109 
 
 117 
 
 65 
 
 57 
 
 113 
 
 178 
 
 201 
 
 63 
 
 143 
 
 156 
 
 n. a. 
 
 133 
 
 152 
 
 161 
 
 171 
 
 190 
 
 90 
 
 229 
 
 242 
 
 n. a.— Data are not attainable or not yet available. 
 
 Table 6. — Industrial Production, by Major Commodities, 1955-56 
 
 Industry 
 
 1955 
 
 1956 
 
 Coal 
 
 
 
 57, 388 
 46, 548 
 25, 092 
 10. 956 
 12, 588 
 724 
 
 57, 384 
 
 
 
 
 50, 796 
 
 
 
 
 26, 808 
 
 Pig iron ... .. . . 
 
 
 do 
 
 11,496 
 
 Crude steel ... ... 
 
 
 do 
 
 13, 392 
 
 
 
 
 826 
 
 
 
 13 
 
Industry appears to have minimized the effect of petroleum short- 
 ages by drawing from oil stocks, reorganizing production schedules, 
 limiting fuel for heating purposes, and effecting a partial conversion 
 to coal in domestic and industrial uses. 
 
 French industry comprises a relatively large number of very small 
 production units. In 1955, official statistics listed a total of some 
 870,000 industrial establishments, of which 47 percent were small 
 workshops employing no hired labor and 43 percent employed fewer 
 than 10 hired workers. Even disregarding these independent artisans, 
 who enjoy a favored legal and social status in France, French manu- 
 facturing shows a relatively low degree of concentration — only about 
 9,000 firms (1.1 percent) employ more than 100 workers and about 
 1,150 employ more than 500. 
 
 Manufacturing is highly concentrated in a few regions, notably in 
 the Paris area, in the coal-producing region of the extreme north (the 
 Departments of Nord and Pas-de-Calais) , near the iron-ore deposits 
 of Lorraine in the northeast, and around Lyon in the valley of the 
 Ehone. Apart from a few Provincial centers the remainder of France 
 is predominantly agricultural. 
 
 The distribution of workers by major French industries in 1955 
 was as follows : 
 
 Workers 
 (thousands) 
 
 Energy --- - 411 
 
 Textiles and clothing 905 
 
 Metals — - 188 
 
 Mechanical and electrical goods 1,326 
 
 Food processing . -- 419 
 
 Chemicals, rubber 239 
 
 Building and public works - - 958 
 
 Transportation - 687 
 
 Commercial and professional services . _ 1,648 
 
 Other 892 
 
 Total .— 7,673 
 
 Textiles. — The French textile industry is one of the largest in the 
 world, employing more than 600,000 workers of whom a large propor- 
 tion are female. It embraces all phases of textile manufacture ; cotton 
 spinning and weaving is the most important branch, followed by wool, 
 hosiery, dyeing and finishing, silk weaving, artificial and synthetic 
 fibers, linen, and jute. 
 
 The textile plants are located predominantly in the Paris area, in 
 the north (Lille, etc.), the northeast (Vosges), and in the region 
 around Lyon. France imports about four-fifths of its requirements 
 of raw textile fibers, but is a net exporter of textile manufactures, 
 which normally constitute about one-sixth of total exports. In the 
 recent postwar period half of these textile exports have normally gone 
 to the French Oversea Territories. 
 
 14 
 
Production of the most important textile products in 1955 and 
 1956 was as follows, in metric tons : 
 
 1955 1956 
 
 Cotton yarn - 265,214 281,244 
 
 Cotton woven fabrics 150, 451 152. 208 
 
 Wool yarn - 128,958 95,844 
 
 Wool woven fabrics. ~ - 69,825 74,952 
 
 Rayon staple fiber 57,875 53,484 
 
 Rayon filament yarn 54,894 55,908 
 
 Synthetic fibers and thread -- 11,177 14,820 
 
 Rayon, silk, and synthetic woven fabrics . 23,495 25,704 
 
 Several branches of the textile industry which had previously ex- 
 perienced difficulties recovered appreciably in 1956. The fourth quar- 
 ter of the year was generally considered more satisfactory than the 
 fourth quarter of 1955. 
 
 Machinery and equipment. — The machinery and equipment indus- 
 tries have had a rather slow rate of overall growth in France, although 
 the producers excel in a number of quality lines. Employment is 
 relatively low and has not increased appreciably in the past 25 years. 
 These industries, along with many others in France, have tended to be 
 slow in adapting to standardization and mass production. Numerous 
 firms make many products of great variety at relatively high cost. 
 One of the goals of current French economic planning is to improve 
 the competitive position of the French mechanical and electrical 
 equipment industries by reviving lagging investment in this sector and 
 encouraging concentration and specialization. 
 
 France's automobile industry is rated one of the most efficient in the 
 world, and is Europe's third largest producer. It is outstanding 
 among French industries for its advanced degree of specialization and 
 concentration — three firms account for three- fourths of the entire out- 
 put — and for its mastery of the techniques of mass production. 
 
 Automobile output, which totaled 724,000 units in 1955, of which 
 nearly one-fourth were exported, rose to 826,000 in 1956. However, 
 the production of larger automobiles has gone down markedly, and 
 December 1956 figures indicated that the output of other types has 
 also declined somewhat. For example, production had soared in Octo- 
 ber to over 84,000 units of all types (63,000 in 1955) but fell in Decem- 
 ber to less than 64,000, as against 70,000 the year before. It is gen- 
 erally agreed that this drop in December production was due to a 
 combination of factors unrelated, in the main, to the petroleum crisis 
 occasioned by the closure of the Suez Canal. Order books remained 
 full for most models, and it seemed likely that a high level of 
 production would continue. 
 
 Chemicals. — The French chemical industry ranks third in Western 
 Europe in terms of labor force employed. It is now one of the fastest 
 growing industries in France, production having expanded at a rate 
 well above the industrial average. France is fourth among exporters 
 of chemicals in the world, with such specialties as perfumery, pharma- 
 
 15 
 
ceuticals, essential oils, and potassium fertilizers, as well as such basic 
 chemicals as caustic soda, aluminum oxide, calcium carbide, and sodi- 
 um carbonate. 
 
 Chemical production is located chiefly in the traditional industrial 
 centers around Paris and Lyon and in the north, with new petrochem- 
 ical capacity growing up in the oil-producing district around Marseille 
 and the production of carbon chemicals developing near the coal mines 
 of Nord, Pas-de-Calais, and Lorraine. 
 
 Production of selected chemicals in 1955 and 1956 was as follows, 
 in thousands of metric tons : 
 
 1955 1956 
 
 Sulfuric acid - 1,474.0 1,634.6 
 
 Chlorine gas -- - 168.1 182.4 
 
 Dyes — 14.5 15.0 
 
 Soda ash - 726.0 781.0 
 
 Calcium carbide - — 260.0 164.8 
 
 Caustic soda — 256.0 190.8 
 
 Synthetic phenol 25.8 27.3 
 
 Raw benzol - 115.5 n. a. 
 
 Raw naphthalene 30.9 32.3 
 
 Synthetic nitrogenous fertilizers 353.8 428.0 
 
 Potash fertilizers (K 2 equivalent) 1,351.8 1,503.2 
 
 Superphosphates. - 1,073.0 1,086.0 
 
 n. a.— Data are not available. 
 
 Steel. — In 1955, France and the Saar produced 15.7 million tons of 
 crude steel, of which about 30 percent was exported. The Saar con- 
 tributed in that year nearly one-fourth of French production of pig 
 iron and steel. Of the remainder, about 79 percent of the pig iron, 67 
 percent of the steel, and 63 percent of the finished products came from 
 the eastern region of France around the Lorraine iron ore deposits. 
 
 In 1956, French production of crude steel (excluding the Saar) 
 reached an all-time record of 13.4 million tons, 800,000 tons more than 
 in 1955, although the rate of production fell off a little in December. 
 Fuel shortages have had little effect on basic steel production, but the 
 scrap iron scarcity continues to be a bottleneck. There have been few 
 cancellations of orders, and steel production is still booked several 
 months ahead. 
 
 The Thomas process predominates, accounting for an average of 
 60.5 percent of output as compared with 31.4 percent for open-hearth 
 and 7.3 percent for electric furnaces. Alloy steels make up about 
 6 percent of total production and high-carbon steels about 4 percent. 
 
 A leading steel producer, France is also an important exporter of 
 steel. The high quality of French specialty products enables them 
 to be exported in quantity even to important steel-producing countries, 
 and the steel industry is France's largest single earner of hard 
 currencies. 
 
 Four large firms contribute more than 50 percent of total French 
 steel production, and more than 90 percent of total output is accounted 
 for by the 16 major producers. 
 
 16 
 
In anticipation of a 20-percent increase in per capita steel consump- 
 tion — from 230 kilograms in 1955 to 300 kilograms in 1960 — the steel 
 industry plans an investment program costing about 350 billion francs 
 in the next 5 years, of which about 30 percent will be financed by state 
 loans. 
 
 Power 
 
 Production and distribution of electric power were nationalized un- 
 der a law of April 8, 1946. The national authority, Electricite de 
 France, now accounts for 77 percent of hydroelectric production and 
 36 percent of thermal production, the remainder being controlled by 
 the nationalized coal or railway authorities, by the agricultural 
 cooperatives, or by small private sources. 
 
 The centers of hydroelectric production are in the Alps (65 percent 
 of total production), in the Massif Central (19 percent), and in the 
 Pyrenees (16 percent), while thermal production is concentrated in 
 the Paris region (22 percent) and near the coal and steel centers of 
 Nord (36 percent) and Lorraine (25 percent). 
 
 Total production of power in 1956 reached 53,980 million kw.-hr., 
 of which 25,945 million were hydroelectric and 28,035 million were 
 thermal. In 1955, the total was 49, 566 million kw.-hr. (25,600 million 
 hydroelectric and 23,950 million thermal) . Total 1956 power imports 
 were 985 million kw.-hr. and exports were 885 million. 
 
 Consumption of power in 1956 was 48,200 million kw.-hr., compared 
 with 44,133 million in 1955, an increase of 8.7 percent. Between 1946 
 and 1955, total consumption of electric power increased by an average 
 of 12.8 percent a year. The increase, corresponding to the increase in 
 use of household appliances, has been of the order of 11 percent a year. 
 An estimated 9 percent of the rural population are still without access 
 to electricity. 
 
 It is estimated that, to meet the increasing demand for electric 
 power, production will need to be doubled in 10 years. A minimum of 
 35 percent of the new capacity will be hydroelectric. As of 1955, in- 
 stalled hydroelectric capacity was 7,850,000 kw. The country's poten- 
 tial maximum hydroelectric production has been estimated at about 
 92,301 million kw.-hr. a year, consisting of 28,250 million kw.-hr. exist- 
 ing capacity, 4,794 million under construction, 23,571 million in the 
 project stage, and 35,686 million in potentially available hydroelectric 
 sites. 
 
 Although long-term prospects of developing the use of atomic 
 energy are very good because of France's substantial uranium re- 
 sources, large-scale development will require some 15 to 30 years. 
 The first atomic plant of a capacity of 50,000 to 60,000 kilowatts is to 
 be placed in operation in 1959, and it is hoped thereafter to double 
 
 17 
 
the production of energy from nuclear sources every 3 or 4 years. 
 Tidal power is also to be exploited, and construction has been started 
 on a $120-million tidal power project at the mouth of the Kance River 
 near St. Malo, which will be the first plant of its kind in the world. 
 
 FINANCE 
 Prices 
 
 Public spending, demands for increased wages, and the continued 
 absorption of resources by activities in North Africa have increased 
 the pressure on prices. Several major price rises (in addition to the 
 increased costs of imports and raw materials brought about by the 
 closure of the Suez Canal) appear inevitable. Steel, wine, and gaso- 
 line are already up. 
 
 The Government has been seeking ways and means to avoid at least 
 direct repercussions of such rises on the Paris cost-of-living index. 
 During the last quarter of 1956, as throughout the entire year, the 
 index was held down largely by extensive and costly tax relief on 
 those items composing the index. In July 1957, however, the Govern- 
 ment abandoned further efforts to keep this index down and with the 
 rise of the cost of living allowed an increase in the minimum wage. 
 Simultaneously, for the calculation of consumer price indexes, two 
 new indexes were introduced, replacing the former index based on 
 213 articles. 
 
 Conscious of inflationary pressures, the Government is attempting 
 to stabilize the price level. By a decree of August 28, 1957, it froze 
 prices and commercial markups of all goods and services at the legal 
 level prevailing on July 31, 1957. Exceptions are provided for im- 
 ported goods, agricultural and fishery products, meat and meat prod- 
 ucts, and contracts to order in mechanical and construction industries 
 concluded prior to August 7, 1957. 
 
 It is anticipated that Government action will probably also include 
 (1) more rigorous antispeculation measures; and (2) budgetary econ- 
 omies, more selective credit extension, and firm wage policies to reduce 
 the purchasing power being pumped into the economy. 
 
 The Government is attempting to lower foreign exchange ex- 
 penditures where possible. Cuts in tourist allocations have been 
 made as a start, task forces are going over Government spending in 
 detail to see where cutbacks in purchases abroad can be made, and 
 import licenses are being scrutinized before approval is given. 
 
 Some import restrictions have already been introduced. It is feared 
 that these restrictive measures may affect the rate of industrial pro- 
 duction and expansion. With consumer demand remaining at a high 
 level, inflationary trends may be given additional impetus. 
 
 18 
 
Budget 
 
 In 1956, the Government was looking forward to continued expan- 
 sion in the internal economy through 1957 at about the same high rate 
 recorded in 1956. It was with such prospect in view that the 1957 
 budget was prepared and submitted to Parliament in October. This 
 budget called for an expenditure of up to $12.8 billion, including an 
 estimated $1 billion for military operations in Algeria for which a 
 supplementary bill was to be submitted. Although this expenditure 
 figure exceeds that of 1956 by $709 million, the budgetary deficit was 
 expected to be somewhat lower. Together with a deficit the Treasury 
 was expected to incur for extrabudgetary financing, the 1957 deficit 
 was estimated at $2.87 to $3.01 billion. The 1956 deficit was $3.17 
 billion, excluding United States aid which offsets $142.9 million. 
 
 In preparing the 1957 budget, the Government placed a ceiling on 
 expenditures. The deficit was to be kept at about 1956 figures without 
 instituting new tax measures. Increased expenditures were to be 
 more than offset by increased revenues, which the existing taxes would 
 yield as a result of growth in the economy. The Government felt that 
 a deficit in 1957 at least no higher than that of 1956 could be supported 
 without seriously adding to the existing price pressures in the economy. 
 
 However, the consequences of Suez will undoubtedly necessitate a 
 revision of the 1957 budget. Unless ways are found to reduce budgeted 
 expenditures, the results of developments throughout the economy may 
 be to increase expenditures, partly for subsidies to prevent a rise in 
 the price level and partly for higher prices of goods produced by 
 nationalized enterprises and services provided by the Government. 
 The effect on the budget on the expenditures side, however, will 
 probably be relatively minor as compared with the receipts side. Be- 
 cause economic growth in 1957 will probably be less than envisaged 
 at the time the budget estimates were prepared, the revenue yield of 
 the Government from taxes will also be lower than expected. Without 
 an overhauling of the 1957 budget, therefore, the Suez crisis will 
 probably cause an increase in the deficit over the original estimate. 
 
 A healthy sign from the point of view of internal production has 
 been the tendency, despite Suez, of industry to stock raw materials ; 
 this tendency, while partly speculative, also indicates confidence in a 
 continued boom period. The limited cutbacks in production and the 
 minimal impact on employment and the number of hours worked are 
 also optimistic signs. Should they continue, deflationary movements 
 would be held in check and budgetary receipts would not be unduly 
 affected. 
 
 One clear effect thus far, however, has been the tendency for price 
 rises (see the preceding section). Also, certain commodities, such as 
 long-staple cotton, are in short supply, while the higher level of freight 
 
 19 
 
rates will apply to a wide range of imported commodities. It is likely, 
 therefore, that even if all other direct consequences of Suez are con- 
 tained pressures for increased prices throughout the economy will be 
 general, adding further to the Government's problem of working 
 effectively toward equilibrium. 
 
 Balance of Payments 
 
 Situation through 1956. — Before World War II France's trade 
 deficit was financed by earnings from invisibles. The staggering 
 deficits of the immediate postwar years were met at first by foreign 
 borrowing and by the loss of gold and foreign exchange and, after 
 1947, by Marshall plan aid. The subsequent recovery of exports 
 permitted some reduction of the trade deficit, despite the growing 
 volume of imports needed to supply the expanding domestic industry. 
 
 A notable improvement in France's balance of payments was 
 achieved in 1955, when a surplus developed of $230 million. This 
 favorable trend was reversed, however, in 1956, which ended with a 
 deficit exceeding $891 million. 
 
 Receipts from tourism and foreign investment remain well below 
 the prewar level, so that the deficit in trade and transport has been 
 covered largely by United States military expenditures and NATO 
 infrastructure expenses in France. These "extraordinary" receipts 
 have made possible the maintenance of a balance in France's overall 
 payments position, but are not regarded by the French Government 
 as a permanent solution to the basic disequilibrium in the payments 
 structure, which can be remedied only by reducing the gap between 
 the country's import needs and its export earnings. 
 
 Recent developments. — The rapid expansion of industrial produc- 
 tion in 1956 was not accomplished without the symptoms of economic 
 dislocation. By mid- 195 6, France had a trade deficit of nearly $500 
 million, and well before the Suez crisis it was apparent that France's 
 domestic and external commitments represented a greater burden 
 than the economy could, in the long run, carry. Not only did military 
 operations in Algeria impose an additional burden and absorb signifi- 
 cant amounts of resources, thus swelling internal demand for goods 
 and services, but the mobilization of reservists removed manpower 
 from an already tight labor market. 
 
 Furthermore, in spite of the fact that 1956 military operations in 
 Algeria cost France the equivalent of about $900 million as compared 
 with some $135 million in 1955, purchasing power for other purposes 
 (investment, social welfare, price and export subsidies) continued to 
 be pumped into the economy at a rate at least as high as in 1955. The 
 resulting gap between supply and demand created persistent infla- 
 tionary pressures, as indicated in preceding discussions. 
 
 20 
 
The Government managed to keep these pressures in check, partly 
 by way of internal expedients, but mainly by means of a more or 
 less deliberate increase in imports. In its 1957 budget proposals, the 
 Government stated that the trade deficit vis-a-vis foreign countries 
 was the means chosen to enable continued expansion of the domestic 
 economy. 
 
 Under this permissive import policy, combined with a number of 
 exceptional burdens, French imports soared far above 1955 levels while 
 exports stagnated. The ensuing substantial trade deficit accelerated 
 the deterioration in the French balance of payments, which at the 
 end of 1956 showed the $891 million deficit referred to above. The 
 Bank of France balance sheet indicated that gold and foreign ex- 
 change reserves dropped to $1,207 million at the end of December 
 for a net decline of $776 million in 1956. France increased its in- 
 debtedness to the European Payments Union (EPU) by $123 million 
 in that year. 
 
 France was able to offset the effects of internal disequilibrium 
 mainly by permitting external disequilibrium, a policy which resulted 
 in a substantial loss of gold and foreign exchange reserves. As indi- 
 cated in the section "Prices," steps have been taken to reduce the extent 
 of this unbalance. 
 
 Coming on top of a long period of drain on the country's foreign 
 exchange holdings, the economic consequences of Suez threatened to 
 accentuate French balance-of-payments difficulties. 
 
 FOREIGN EXCHANGE SITUATION 
 
 The following discussion summarizes what has previously been said, 
 in context with other analyses, about the exchange situation as it 
 affects, and is affected by, other economic forces. 
 
 In 1956, large outlays to replace wheat crop failures and purchases 
 of military supplies for Algeria represented abnormal expenditures 
 abroad, which made serious inroads on French foreign exchange hold- 
 ings. Underlying this, however, was a sizable increase in imports of 
 capital equipment and coal, representing materials necessary to the 
 development of the French economy. Such imports reflect France's 
 continuing efforts to maintain its industrial expansion and moderniza- 
 tion programs ; and serious cutbacks in investment goods might affect 
 the longer run ability of the economy to expand at a high rate. 
 
 Furthermore, payments for petroleum from the dollar area, at a 
 higher cost and with generally higher freight charges, have had the 
 effect of accelerating foreign exchange outpayments. 
 
 This rapid deterioration of foreign exchange reserves must, per- 
 force, continue unless exports improve vastly in the immediate future 
 and recently enacted import restrictions somewhat reduce the level of 
 imports. 
 
 21 
 
Decreasing imports to any substantial degree without affecting the 
 operation of the economy as a whole may be difficult .to accomplish. 
 Since imports are already made up chiefly of items essential to the 
 economy's development, large-scale reduction of imports (with the 
 sole exception of military items for the Algerian campaign) would 
 have direct effects on the ability of the economy to continue a high 
 rate of expansion. On the other hand, relatively high prices and grow- 
 ing internal demand limit the possibilities for increased exports with- 
 out specific governmental encouragement. 
 
 Measures affecting the rate of exchange are discussed in the next 
 section. 
 
 COMMERCIAL POLICY 
 
 French commercial policy during the past 20 years has served the 
 dual objectives of moderation of the chronic trade deficit and pro- 
 tection of domestic industry and agriculture. A system of import 
 licensing and exchange controls supplements the traditional tariff 
 structure, regulating the commodity composition and — to a lesser 
 degree — the geographic origin of imports. 
 
 Under this system, priority in the allocation of available foreign 
 exchange is usually accorded to imports of essential materials and 
 equipment not obtainable from domestic or French Union (franc 
 area) sources. Consideration is also given to the status of the trade 
 and payments balance with the currency area or country of origin, 
 with preference often given to bilateral trade agreement partners. 
 
 As a result of growing balance-of -payments difficulties, outlined 
 above, the French Government suspended, on June 18, 1957, all import 
 liberalization measures. This action affected 82.3 percent of French 
 imports from member countries of the Organization for European 
 Economic Cooperation and 9 percent of imports from the United 
 States. 
 
 To restore an equilibrium in its external trade, the French Govern- 
 ment has introduced a series of important measures in the foreign 
 trade and exchange rate fields, including modifications in the exchange 
 rate system. Since August 11, 1957, the exchange rate of the franc 
 has been effective for all transactions at 420 francs per US$1, cor- 
 responding to a 20-percent decrease in the value of the franc. 
 
 All transactions between metropolitan France, Algeria, French 
 Oversea Departments (Guadeloupe, Guiana, Martinique, and Re- 
 union), French Oversea Territories (except French Somaliland), 
 Togo and Cameroun, on one hand, and countries outside the franc 
 area, on the other, are subject to a 20-percent levy in case of pur- 
 chases of foreign exchange from the market and a 20-percent pre- 
 
 22 
 
mium in case of sales of foreign exchange on the market. The levy 
 and premium are calculated on the basis of the existing exchange 
 rate of 350 francs per US$1 and collected or paid out at the time the 
 foreign exchange is bought or sold, through the intermediary of 
 commercial banks acting on behalf of the Exchange Stabilization 
 Fund. Thus, for all transactions — foreign trade as well as interest, 
 dividends, and royalties converted into dollars — the effective rate is 1 
 now 420 francs per US$1. 
 
 The requirement that importers deposit with their banks, at the 
 time import licenses are applied for, 50 percent of the franc value of 
 the proposed imports has been abolished. However, henceforth all 
 forward purchases of foreign exchange must be accompanied by a 50- 
 percent downpayment at the time the contract is entered into. 
 
 Under the new regulations, the special compensatory tax on imports, 
 levied at the rate of 15 percent and applied to ex-liberalized products, 
 has been abolished. 
 
 The system of export aids, known as "reimbursement of fiscal and 
 social charges," has also been abolished. Instead, exporters benefit 
 from a 20-percent premium. The abolition of the export aid system 
 does not modify other mechanisms for encouraging exports, namely, 
 price guaranties, export aid for agricultural products, compensation 
 transactions, and the currency retention system such as the EFAC 
 accounts (see page 46) . 
 
 In the tourist field, changes include the abolition of exemptions from 
 turnover taxes for purchases made by foreign tourists and paid for 
 in United States or Canadian dollars. Similarly, the 15-percent 
 reduction in hotel bills paid by foreign tourists in foreign exchange is 
 discontinued. 
 
 Changes in the regulations respecting sales of gasoline coupons to 
 foreign tourists against foreign exchange will take into account the 
 20-percent premium henceforth paid for such foreign exchange. 
 
 FRENCH MARKET OUTLOOK 
 
 Despite the balance-of-payments problems, French confidence in 
 the soundness of the country's economy has not been shaken. 
 
 The volume of new securities purchased by the public during the 
 first 9 months of 1956 was nearly 60 percent higher than sales regis- 
 tered for the whole of the postwar record year of 1955. Stock 
 market prices, on the other hand, reflecting the considerable specu- 
 lative nature of the market, were more sensitive to world conditions. 
 Total market value of the French stocks traded on the "official" 
 market rose from 2,637 billion francs at the end of January 1956 
 
 23 
 
to 3,047 billion francs by the end of July. Beginning in October, 
 however, the total fell sharply to 2,914 billion francs and in November 
 to 2,768 billion francs, recovering to 3,077 billion francs in December 
 and then only with difficulty. In sum, while confidence in the franc 
 shows no signs of significant present or future improvement, neither 
 are there indications that confidence is deteriorating. 
 
 Under present circumstances the attitude of the business commu- 
 nity must remain more or less unknown. A "wait and see" outlook 
 would seem best to describe the situation. A majority of the busi- 
 ness leaders who were interviewed on business prospects reported 
 plans to maintain or to increase their capital investment rate during 
 the coining year. Since Suez, however, there has undoubtedly been 
 some tempering of this optimism, some translation of the scare buy- 
 ing psychology from the individual consumer to the industrial plane. 
 The Government, nonetheless, intends to continue its manifold policy 
 of encouraging investment, while simultaneously dampening inven- 
 tory speculation or other speculation based on credit. 
 
 French industry envisages problems in connection with labor short- 
 ages, price increases, and the foreign exchange shortage. While noting 
 these problems with foreboding, business in general is looking ahead 
 with cautious optimism. Efforts are being made by the Government 
 to lighten the continuing strain on France's resources, which has been 
 reflected mostly in the drain on foreign exchange reserves. It is hoped 
 that this will be achieved by measures introduced to limit imports 
 and the individual use of foreign exchange and by internal measures 
 to combat inflation. Despite the rough spots foreseeable on the road 
 ahead, however, the continuing confidence of French industry will 
 undoubtedly offset many of the worst effects of these restrictions. 
 
 SAAR TRANSFER, EUROPEAN COMMON MARKET 
 
 One of the greatest problems in postwar European political and 
 economic history was eliminated with very little fanfare in December 
 1956, when the Franco- German agreement returning the Saar to the 
 Federal Republic of Germany was ratified. Although economic con- 
 trol will not be fully turned over to Germany until the end of a 3-year 
 period, the equanimity with which the agreement was generally re- 
 ceived in the French business world is a pleasant sign of a new era in 
 Franco- German relations. 
 
 Indicative also of a significant change in French thinking has been 
 the ratification of the treaties for a common market and a Euro- 
 pean atomic organization. Ratification of these treaties and the 
 seeming acceptance in France of the principle of European economic 
 
 24 
 
integration are probably indicative of two major changes in the 
 attitudes of large segments of the French population, as well as of 
 business : 
 
 1. Realization that a divided Europe is unable to compete as a politi- 
 cal force in the current world, a realization reinforced by Suez. 
 
 2. The rising confidence in French industry as another year of con- 
 siderable progress was recorded. 
 
 25 
 
CHAPTER II 
 
 Distribution Facilities 
 and Services 
 
 MARKETING CHANNELS AND PATTERNS 
 
 France's foreign trade and wholesale distribution are largely fun- 
 neled through Paris, which contains 32 percent of the country's com- 
 mercial establishments. The major ports and Provincial towns are 
 secondary centers for trade in the products of the particular region. 
 For example, Marseille is the chief port for Mediterranean trade, 
 Le Havre for transatlantic goods, and Rouen for coal. The regional 
 centers of the textile and other industries also serve as secondary 
 market places for commerce in the raw materials and products of the 
 particular industry. 
 
 In the past few years official efforts have been made to investigate 
 the characteristics of the distribution system as well as to initiate 
 market studies, but the results do not yet permit a clear analysis of 
 French distribution and consumption patterns. Small-scale opera- 
 tion and specialization emerge as the chief characteristics of the retail 
 outlet, while studies of French wholesale operations, chiefly in the 
 food trade, emphasize their excessive geographic concentration and 
 inadequate physical plant. The costs of distribution are unusually 
 high in France. Modernization and rationalization of the distribu- 
 tion system are goals of current French planning, and improvements 
 are being effected, especially in storage facilities and traffic patterns. 
 
 Principal Commercial Cities * 
 
 Paris, situated on the Seine River, with 2,850,189 permanent resi- 
 dents (over 5 million with its suburbs), is the capital and largest city 
 and the country's principal commercial, industrial, and cultural cen- 
 ter. It is also an important railroad center, with an extend ve rail 
 
 1 Population figures are official February 1957 estimates. 
 
 27 
 
network linking it to all other parts of France and Europe. As 
 stated above, Paris is a major distribution center for both domestic 
 and foreign goods. 
 
 Many leading industries are located in the Paris region. Over 50 
 percent of total French automobile output is produced there, while 
 production of motorcycles, bicycles, machines, and optical and preci- 
 sion instruments also is important. In addition, Paris is well known 
 for its dressmaking, perfumes, and jewelry. 
 
 Marseille (661,492 inhabitants), on the Mediterranean Sea, is 
 France's leading seaport and the center of important industries, such 
 as chemical, soap, metallurgical products (machinery, ships, electric 
 equipment), ceramics, and food processing. Lyon (471,270 inhabit- 
 ants) is the center of the French silk and rayon industry and 
 the seat of metal and chemical industries. Bordeaux (257,946), in 
 the important wine region, is the export port for French wines, alco- 
 hol, spirits, canned fruits, skins, etc. 
 
 Other significant commercial and industrial centers include 
 Toulouse (268,863), fruit and cereal market; Nice (244,360), famous 
 also as a tourist center; Nantes (222,790), shipbuilding; and Lille 
 (196,616), textile, chemical, and metallurgical center. 
 
 Distribution Media, Consumption Trends 
 
 As in industry, there are in the commercial field a very large num- 
 ber of small establishments with a very small individual turnover. 
 Of a total of 117,500 wholesale establishments in 1954 only 8,220 
 employed more than 10 salaried workers, and of 724,500 retail out- 
 lets only 38,000 employed more than 2 salaried workers. 
 
 In 1954, France had 1,008,076 commercial enterprises. The break- 
 down, by branch, of commercial enterprises was as follows : Agricul- 
 tural and food, 343,552; textile and clothing, 101,094; hotels, res- 
 taurants, liquor and tobacco stores, 291,319 ; and miscellaneous, 272,111. 
 
 France had 2,743 consumer cooperatives in 1954. 
 
 The most commonly used advertising media in France are trade 
 magazines, technical journals, and newspapers and periodicals. There 
 is no radio or television advertising, since both radio and television 
 stations are operated by the Government. 
 
 Trade lists of importers and dealers in France, classified by com- 
 modity, and similarly classified lists of manufacturers and exporters, 
 are available for $2 per commodity list from the Bureau of Foreign 
 Commerce, U. S. Department of Commerce, Washington 25, D. C, 
 or from the Department's Field Offices. World Trade Directory 
 Reports on individual French firms are available from the same 
 sources for $1 each. 
 
 28 
 
One consequence of the overall rise in production has been a pro- 
 nounced increase in the volume of personal consumption accom- 
 panied by a growing shift in the pattern of personal expenditure. 
 The greatest proportionate gains have taken place in purchases of 
 motor vehicles, pharmaceuticals, furniture, and household appliances. 
 Despite these gains, and absolute increases in the consumption of meat, 
 vegetables, dairy products, and clothing, the average French house- 
 hold budget remains relatively limited. Consumer expenditures on 
 goods and services in 1955 amounted to about 260,000 francs per capita. 
 
 The use of consumer credit is very limited, though it has increased 
 in recent years. The total credit extended in 1955 amounted to less 
 than 2 percent of French national income, compared with 10 percent 
 in the United States. The cost of consumer credit ranges from 16 
 to 19 percent for automobiles to 40 or 50 percent for household 
 appliances. 
 
 U. S. Private Marketing Aids 2 
 
 Businessmen unacquainted with the methods and special charac- 
 teristics of financing business with France should seek the advice and 
 guidance of their banks or other financing institutions. Many leading 
 United States banks maintain foreign departments especially for 
 financing oversea shipments and otherwise serving foreign traders. 
 Small banks usually make contacts with larger banks for assistance in 
 this connection. 
 
 Study of foreign controls and barriers to a freer flow of trade is 
 made continuously by private organizations of foreign traders. Some 
 keep their members informed by means of periodic bulletins. For 
 example, the Foreign Credit Interchange Bureau of the National 
 Association of Credit Men, 229 Fourth Ave., New York 3, N. Y., issues, 
 on subscription, minutes of roundtable conferences on exchange 
 problems and other matters relating to foreign credit and finance. 
 
 The National Foreign Trade Council, 111 Broadway, New York 6, 
 N. Y., concerns itself with such matters, among others, as foreign 
 exchange developments, tariffs, trade preferences and trade discrimina- 
 tions, and export and import quotas. The Council has a nationwide 
 membership of companies in the export and import trades ; firms which 
 operate business abroad ; banks and insurance companies ; ocean, rail- 
 road, air, and communications companies; and other types of Amer- 
 ican firms which do business with foreign countries. It concerns itself 
 with the improvement of conditions conducive to the development of 
 business based on the principles of free, competitive enterprise, and 
 supports the enforcement of domestic and foreign legal rights on 
 
 2 Prepared by the Trade Development Division, Bureau of Foreign Commerce. 
 
 29 
 
behalf of American international business. Its consultative and 
 informational services are available to members. 
 
 The National Council of American Importers, Inc., 45 E. 17th 
 Street, New York 3, N. Y., is a nonprofit commercial body for group 
 action in the promotion of import trade. Activities of the council 
 embrace study and action on such matters as problems of customs 
 administration, import regulations, insurance and financing, trans- 
 portation and communications, and international agreements. Bul- 
 letins issued periodically to the membership provide a variety of 
 information of specific value to import interests. 
 
 The Chamber of Commerce of the United States, a federation of 
 chambers of commerce and trade associations in the United States and 
 United States chambers of commerce abroad, has the general purpose 
 of assisting in solving national problems which affect the strength 
 and prosperity of the country as well as in serving its members. Its 
 Foreign Commerce Department collaborates with the chamber's other 
 departments on matters of international scope; one of these, the 
 Foreign Policy Department, is concerned with problems in the field 
 of international political and social affairs. 
 
 Many local chambers of commerce maintain foreign trade bureaus 
 or other facilities to serve the interests of members engaged in foreign 
 commerce. American chambers of commerce abroad, most of which 
 are members of the Chamber of Commerce of the United States, offer 
 export and import services to members and others. For example, the 
 American Chamber of Commerce in Paris, France, is a focal point for 
 the promotion of trade between the two countries. (A comparable 
 group, but not a member of the Chamber of Commerce of the United 
 States, is the French Chamber of Commerce of the United States, 
 with headquarters in New York. This group is composed of French 
 manufacturers, American importers, and others primarily interested 
 in French exports to the United States. ) 
 
 Voluntary associations of foreign traders, such as foreign trade 
 clubs, export managers' clubs, or foreign trade associations or councils, 
 are found in many of the larger cities or trade centers of the United 
 States. Although differing somewhat in objectives, methods, and 
 scope of activity, all such associations have the common aim of 
 promoting the foreign trade interests of their communities or their 
 members. 
 
 FRENCH TRADE PRACTICES 
 
 French importers prefer quotations c. i. f . French ports. They are 
 accustomed to buying United States goods for cash against docu- 
 ments, although exporters in other countries often quote "free de- 
 livered, duty-paid" prices and frequently offer extended credit. Goods 
 
 30 
 
cannot be consigned "to order" on French railroads, but must be 
 consigned direct to some consignee. French railways for a nominal 
 fee will collect on c. o. d. freight shipments and remit the money to 
 the shipper. 
 
 The usual French business hours are from 9 to 12 and from 2 to 6. 
 In August most establishments close for 3 to 4 weeks to allow for 
 paid vacations. 
 
 French is preferred as the language of correspondence, and is likely 
 to bring prompter answers from firms with whom United States firms 
 have had no previous relations ; after contacts have been established, 
 correspondence can, in many cases, be carried on in English. 
 
 The metric 3 system of weights and measures is used exclusively. 
 
 GOVERNMENT REPRESENTATION 
 
 American businessmen interested in trading or establishing business 
 contacts with France may consult with a French commercial counselor 
 at any of the following addresses : 1001 Connecticut Ave., Room 522, 
 Washington 6, D. C. ; 610 Fifth Ave., Room 300, New York 20, N. Y. ; 
 307 North Michigan Ave., Chicago 2, 111.; and International Trade 
 Mart, Office 305, New Orleans 12, La. French commercial attaches 
 are located at 400 Montgomery St., Room 404, San Francisco 4, Calif., 
 and 6030 Wilshire Blvd., Suite 301, Los Angeles 36, Calif. 
 
 France maintains an Embassy in Washington, D. C. The United 
 States has an Embassy and other representation in Paris and con- 
 sulates general or consulates in important French cities. 
 
 French and French Union missions which have procurement and 
 purchasing functions in the United States are listed below, as are 
 French groupements and nationalized companies. 
 
 Joint French Military Technical Mission, 2164 Florida Ave. NW., Washington 
 9, D. C. 
 Naval Section — purchases naval supplies. 
 
 Air Force Section — purchases air equipment, engines, parts and accessories. 
 Army Section — purchases military equipment. 
 French Supply Office, 1001 Connecticut Ave. NW., Washington, D. C. Occasion- 
 ally purchases certain items of civilian use for Government departments. 
 Commercial Counselor, 610 Fifth Ave., New York, N. Y. Occasionally purchases 
 
 certain items for French Oversea Territories. 
 Societe d'Exploitation Industrielle des Tabacs et Allumettes (Purchasing Mission 
 for Matches and Tobacco), 529 North Charles St., Baltimore, Md. Purchases 
 tobacco and other materials for French tobacco and match monopoly. 
 
 s l metric ton equals 1,000 kilograms; 1 kilogram equals 2.2046 pounds; 
 equals 39.37 inches ; and 1 liquid liter equals 1.0567 quarts. 
 
 31 
 
The groupements and nationalized companies are as follows : 
 Electricite de France (Office of French Power Stations), Dupont Circle Bldg., 
 
 Washington, D. C. Purchases powerplant equipment and related items. 
 Charbonnages de France (French Coal Mines), 1704 18th St. NW., Washington 
 
 8, D. C. Purchases coal-mining equipment. 
 Air France (French National Airline), 683 Fifth Ave., New York, N. Y. Pur- 
 chases complete airplanes and air navigation equipment for Air France. 
 Societe Nationale des Chemins de Fer Francais (French National Railroads), 
 
 G10 Fifth Ave., New York, N. Y. 
 Groupement d'Importation des Produits Siderurgiques (Association for Import 
 
 of Steel Products), 39 Broadway, New York, N. Y. Purchases certain iron and 
 
 steel products. 
 Groupement d'Importation et de Repartition des Metaux (Nonferrous Metals 
 
 Importers Association), 56 Liberty St., New York, N. Y. Purchases certain 
 
 nonferrous metals, particularly copper. 
 Association Technique de l'lmportation Charbonniere (Coal Import Association), 
 
 Room 209, 2 Broadway, New York, N. Y. Purchases and ships bituminous 
 
 coal, anthracite, coke, and coal-tar pitch. 
 
 TRANSPORTATION 
 Railways 4 
 
 Since 1938, the French railways have been operated by a nation- 
 alized company, the Societe National des Chemins-de-Fer Francais 
 (SNCF) . The state controls 51 percent of the company's capital. 
 
 The French railway system, in the course of its reconstruction from 
 a condition of nearly complete destruction at the end of World War 
 II, has achieved an advanced state of modernization. About 60 per- 
 cent of all French rail traffic is powered by electricity, and diesel power 
 has also been extensively substituted for steam. Productivity has 
 been substantially increased — the labor force was reduced from 520,000 
 in 1938 to 368,700 in 1956, despite an increase of 65 percent in freight 
 and 20 percent in passenger traffic. Energy consumption for traction 
 has been reduced by 18 percent since 1951 and by 41 percent since 1929. 
 
 As of 1956, more than 40,000 kilometers 5 of railway lines were in 
 operation. The rail network remains centered on Paris, but direct 
 service between Provincial points is being improved. There were 
 7,278 engines, 13,000 passenger cars, and 277,000 freight cars in opera- 
 tion in March 1957 and in 1956 total traffic amounted to 29.7 billion 
 passenger-kilometers and 50.3 billion ton-kilometers. In 1956, pas- 
 sengers carried and freight ton-kilometers showed increases of 6.8 
 percent and 7.5 percent, respectively, over 1955. 
 
 * Two reports published by the U. S. Department of Commerce in the World Trade In- 
 formation Service may be of interest — Part 4, No. 55-10, Developments in Railroad Trans- 
 portation in Western Europe, and Part 4, No. 55-18, Railways of Western Europe . . . 
 Basic Information Sources. They may be purchased for 20 cents a copy from the Super- 
 intendent of Documents, U. S. Government Printing Office, Washington 25, D. C, or from 
 any Department of Commerce Field Office. 
 
 5 1 kilometer equals 0.62137 mile. 
 
 32 
 
Highways 
 
 The highways of France are divided into three basic administrative 
 classes — national, departmental, and local. National roads are through 
 highways, the administration and maintenance of which are controlled 
 by the state. Departmental roads are routes connecting principal 
 towns of a Department or adjoining Departments; administration is 
 by the Department but maintenance work is usually done by the state. 
 Local feeder roads belong to and are maintained by the communes. 
 There are 80,304 kilometers of national, 263,490 kilometers of depart- 
 mental, and 306,104 kilometers of local roads. Most roads are macad- 
 am surfaced with stone and gravel substructure ; they are hard, dur- 
 able, and have been well maintained except during the war years. 
 
 Bridges constitute the principal weakness of the French road 
 system, particularly in the southern part of the country. Many 
 are excessively narrow and on the national highway there are a large 
 number that will not carry more than 20 tons. All principal roads and 
 bridges have been repaired and are open for traffic. Considerable 
 progress has been made in an extensive program of making certain 
 that the through highways are more suitable for fast transport ; curves 
 are being eliminated and detours are being built around villages. 
 
 Eoads in the Alps, the Pyrenees, and the Massif Central are subject 
 to snow blockade during the winter season. 
 
 It is expected that new roads will be needed to accommodate double 
 the present volume of traffic. The Government has recognized the 
 urgency of the road problems and in 1952 authorized modernization 
 of the road system, to be financed from a special Road Investment 
 Fund. Eesources for this fund are derived from a percentage of the 
 tax on motor vehicle fuels. So far despite its modest resources, the 
 fund has made possible a considerable improvement in traffic condi- 
 tions on the main national roads. 
 
 According to the latest estimates (as of January 1, 1955), motor ve- 
 hicles in circulation included 2,677,000 automobiles, 1,080,000 trucks 
 and special vehicles, and 29,500 buses. Eoad traffic doubled between 
 1950 and 1954. 
 
 Wafer Transport 
 
 Canals and navigable rivers play an important role in France's in- 
 ternal transportation system, particularly in moving heavy bulk com- 
 modities, such as minerals, fuels, and building materials. There are 
 8,219 kilometers of navigable waterways in France, 4,814 kilometers of 
 which are canals. The most heavily utilized waterways are those con- 
 necting the Paris industrial area with the coalfields of the east, the 
 industrial regions of northern France and Belgium, the Channel ports, 
 
 33 
 
and the Atlantic seaboard. Almost one- third of all goods moved in 
 France go by water, the volume amounting to 8,840 million ton- 
 kilometers in 1955. The number of navigable craft engaged in the 
 river and canal traffic in 1955 was 10,517, with a total tonnage of 
 3,795,000. 
 
 France has five major maritime ports, each handling more than a 
 million tons of merchandise a year. The leading ports are Marseille, 
 Le Havre, Rouen, Dunkerque, and Saint-Nazaire. 
 
 The French merchant fleet ranks among the leading maritime 
 nations of the world in tonnage, but France must still expend heavily 
 in foreign exchange to fulfill her shipping requirements. French 
 ships on February 1, 1957, numbered 726, with a total gross registered 
 tonnage of 3,780,444. Of the ships, 133 are tankers, with a tonnage 
 of 1,295,959. An estimated 5 percent of the total are tramp ships. 
 
 French ships handle a little over half of the merchandise traffic to 
 and from French ports; the total merchandise traffic amounted to 
 81 million tons in 1956. There is normally a large deficit on the ship- 
 ping account in the balance of payments and this deficit was about 
 47.5 billion francs in 1955. The merchant marine relies heavily on the 
 traffic with the oversea areas of the French Union, which accounts for 
 some 65 percent of French-flag traffic (other than tanker) . Traffic be- 
 tween France, Algeria, and Tunisia has long been protected from for- 
 eign competition under the terms of French agreements with those 
 areas, and occupies about 8 percent of French tonnage. 
 
 To encourage the further expansion and modernization of the 
 merchant fleet and promote French shipbuilding activity, the Govern- 
 ment in 1954 granted long-term credits at 4.5 percent to French ship- 
 owners for construction of vessels in French yards. This measure is 
 expected to bring approximately 1 million gross tons of new orders 
 from French shipowners by 1960. 
 
 The total gross tonnage under construction and on order in French 
 shipyards as of January 1, 1956, was 1,304,232 ; of this amount 40 per- 
 cent was for foreign flags. In 1956 French shipyards laid down 372,- 
 605 gross tons of shipping against 307,000 tons in 1955. Higher cost 
 French yards benefited substantially from orders placed for tankers 
 after the Suez crisis. 
 
 Engaged in the construction of ocean vessels are 26 major privately 
 owned shipyards. Government assistance to the shipyards has taken 
 the form of subsidies and of grants for reconstruction and moderniza- 
 tion. 
 
 Air Transport 
 
 French air traffic totaled 113 million ton-kilometers in 1955 (latest 
 year available) , and passenger traffic reached 3,374 million passenger- 
 kilometers. 
 
 34 
 
Over two-thirds of French air traffic is carried by the nationalized 
 company Air-France. The four major private companies are Aigle 
 Azur, CGTA (Companie Generale de Transport Aerien) , TAI (Trans- 
 ports Aeriens Intercontinentaux) , and UAT (Union Aeromaritime de 
 Transport). 
 
 Air-France handles the largest volume of traffic of any European 
 line. It also carries an important share of the transatlantic traffic. 
 Its air route network, which serves France's far-flung oversea Terri- 
 tories, is the longest in the world. It extends for 260,000 kilometers, 
 serving 70 countries and 200 ports. 
 
 The French aircraft industry is of substantial size, accounting for 
 the employment of approximately 90,000, and is engaged in the design 
 and construction of aircraft frames, engines, and accessories. The 
 industry comprises a nationalized sector and a number of privately 
 owned enterprises. 
 
 COMMUNICATIONS 
 
 The domestic telegraph and telephone facilities serving France 
 are state-owned monopolies operated by the Ministry of Post, Tele- 
 graph, and Telephone (PTT). International telegraph and tele- 
 phone services are also owned and operated by PTT, but nonexclusive 
 concessions are held by French and foreign private entities for inter- 
 national radiotelegraph and submarine cable services. 
 
 Metropolitan France is served by an extensive domestic telegraph 
 system through approximately 38,000 central and local offices. France 
 has no purely telegraphic underground cables, but uses telephone cable 
 facilities. 
 
 PTT offers a "Telex" or teletype service to public subscribers. The 
 system is available in such major cities as Paris, Lyon, Marseille, 
 and Bordeaux and international connections are available to certain 
 countries including the United Kingdom, Belgium, the Netherlands, 
 Switzerland, Norway, Sweden, Finland, Austria, and the United 
 States (New York, N. Y., and Washington, D. C). 
 
 France's communications system is connected by landlines, sub- 
 marine cables, and/or radio telegraph circuits with most countries 
 of the world. 
 
 An estimated 8 percent of French homes are equipped with tele- 
 phones, the ratio being 6.8 telephones per 100 inhabitants as com- 
 pared with 32.2 in the United States and 3.7 for the world as a whole. 
 In Paris alone the concentration is much greater — 28.8 telephones 
 per 100 inhabitants. In 1954, subscribers numbered approximately 
 1,670,000, of whom nearly 479,000 were in the Paris area. The total 
 number of telephone instruments in service in France in January 
 1955 exceeded 2,945,500, of which over 821,000 were in Paris. 
 
 35 
 
Eadio and television broadcasting services in France are conducted 
 by the Government agency, Radiodiffusion-Television Francaise 
 (RTF), which operates as a monopoly under the Prime Minister's 
 office. RTF does not broadcast any advertising. 
 
 As of September 1957, 14 television stations were in operation and 
 4 others were expected to be in operation by the spring of 1958. Tech- 
 nical transmission standards include 819 line-definition, 25 frames, 
 14-mc. channel, and AM sound. France is a member of the Eurovision 
 network. 
 
 On January 1, 1956, there were 9,200,000 licensed radio receivers 
 and an estimated 400,000 unlicensed receivers. On January 1, 1957, 
 television receivers numbered about 500,000. 
 
 BANKING 
 
 By a law of December 2, 1945, the Banque de France and the four 
 largest deposit banks (Banque Rationale pour le Commerce et 
 l'Industrie, Credit Lyonnais, Comptoire National d'Escompte, and 
 Societe Generale) were nationalized. The Banque de France func- 
 tions as a central bank and issues banknotes, makes discounts for other 
 banks, and performs other regular banking services. Most major 
 deposit banks maintain local branches in many centers of metropolitan 
 France and the French Union. The French banking system includes 
 many savings banks and a postal checking-deposit institution. 
 
 In addition to deposit banks, the French banking system includes 
 a number of specialized credit institutions. Among these are the 
 Credit Foncier, which extends long-term credits on mortgaged or real 
 property ; the Banque Francaise du Commerce Exterieur, which pro- 
 vides credit to exporters ; and the Caisses de Credit Agricole, special- 
 izing in credit facilities for farmers. France also has what are known 
 there as "banques d'affaires," financial institutions comparable with 
 investment banking houses in the United States. 
 
 The National Credit Council, established by the law of December 2, 
 1945, is charged with the direction of general credit policy, and fixes 
 the minimum interest rates which banks may charge their customers. 
 The actual cost of borrowing short-term funds can amount to as much 
 as 6 percent for trade bills and 7 to 8 percent for overdrafts. Long- 
 term loans of Credit Foncier are made at about 7.9 percent, and other 
 institutions may charge more than 10 percent on medium-term mort- 
 gage loans. However, certain types of loans are granted at privilege 
 rates by the National Fund for Economic Development and other 
 special institutions created to promote investment under the long-term 
 economic plan. These privilege rates range from 2 percent for 
 Treasury loans for housing or agricultural development to 7 percent 
 on loans for industrial investment. 
 
 36 
 
INSURANCE 6 
 
 The insurance industry is supervised by the Ministry of Finance, 
 acting through an official known as the Director of Insurance. The 
 Ministry is advised by a 21 -member committee called the National 
 Insurance Council, on which the Government, policyholders, and in- 
 surance companies are represented. Foreign insurers are allowed to 
 operate in France under the same conditions as are French companies, 
 provided the country of origin of the foreign insurer extends recipro- 
 cal treatment to French insurers. French insurance law provides for 
 deposit, reserve, and investment requirements. 
 
 In 1955, there were 575 direct-writing insurance companies — 83 life 
 and 492 nonlife — operating in France. Of the total, about 400 are 
 French companies and 175 are foreign companies from more than 
 40 countries, including the United States. In addition, there are 360 
 foreign companies licensed in France for reinsurance only and 15 
 French professional reinsurance companies; most French direct- 
 writing companies also transact reinsurance. 
 
 Direct premium income of all insurers in France (including 
 Algeria) was as follows in 1954: 
 
 Million francs 
 
 Life insurance 62,901 
 
 Automobile 80,889 
 
 Fire 51,059 
 
 Marine 19,632 
 
 Workmen's compensation 17,392 
 
 Accident and health 17, 263 
 
 Public liability 14,174 
 
 Miscellaneous 15,341 
 
 Total 278,651 
 
 French companies 249,450 
 
 Foreign companies . 29,201 
 
 French insurance companies also do business in Territories of the 
 French Union and in some foreign countries. Premium income from 
 these operations totaled 22,616 million francs in 1954. 
 
 A total of 83 companies sell life insurance in France, including 69 
 French and 14 foreign companies. The amount of life insurance in 
 force on the lives of residents of France increased about 12 times from 
 1945 to 1955, going from 161 billion francs to 2,000 billion. 
 
 Under a law enacted in 1946, 34 French insurance companies were 
 nationalized and a reinsurance institute, Caisse Centrale de Reassur- 
 ance, was set up with which all insurers other than those nationalized 
 are required to place a portion of their reinsurance. The 34 national- 
 ized companies have remained financially autonomous and are re- 
 ported to be subject to Government supervision in the same manner 
 
 9 Prepared by the Insurance Staff, Bureau of Foreign Commerce. 
 
 37 
 
as are the nonnationalized companies. A Government guaranty of 
 their policies is excluded by the law. 
 
 The French social insurance system provides for compulsory health, 
 maternity, old-age, invalidity, survivors', and workmen's compensa- 
 tion insurance, as well as for family allowances and old-age and un- 
 employment assistance. The administration of the program is super- 
 vised by the Ministry of Labor and Social Security. The system is 
 financed by contributions paid by workers and employers. Total 
 receipts in 1955 were 1,054 billion francs, while expenditures totaled 
 1,091 billion. This left a deficit from 1955 operations of some 37 
 billion francs, as compared with a 1954 deficit of IT billion. 
 
 TRADE FAIRS AND EXHIBITIONS 7 
 
 French international trade fairs and industry exhibitions constitute 
 a well-established and well-organized pattern of trade promotion, 
 and they furnish an excellent opportunity for American businessmen 
 to display their products and manufactures in France. Experienced 
 managers of the French fairs have arranged these events to achieve 
 the twin commercial objectives of favorable publicity and sales. 
 
 The important role of these institutions in the sales campaigns of 
 French industry is reflected in the attention they receive from both 
 businessmen and the general public. The attendance is large, estab- 
 lished, and firm. There are well over 60 fairs and industry exhibitions 
 each year throughout France, covering almost every product. 
 
 Any American businessman planning to enter the French market, 
 or the broad European markets served by the French fairs, or to 
 expand his efforts in these areas, will find that they form an integral 
 part of the buying and selling traditions and current practices of 
 the respective markets. The American businessman also will be sure 
 to find some fairs that exhibit products of particular interest to him. 
 
 French international fairs and exhibitions offer specific advantages 
 to the American businessman who exhibits his products there. He has 
 a definite on-the-spot opportunity to develop his foreign trade — an 
 opportunity he would not otherwise have except at considerable cost — 
 and to see other foreign products in his line of interest. Exhibitors 
 at the fairs can usually travel at reduced rates on railways, and in 
 some cases the materials and equipment for the fairs are transported 
 on French railways at reduced rates. Storage facilities are usually 
 provided. 
 
 Bureaus connected with the fairs furnish interpreters, reserve hotel 
 rooms, and maintain trade information offices which can give par- 
 ticulars concerning import and export licenses, customs formalities, 
 
 7 Prepared by the Trade Development Division, Bureau of Foreign Commerce. 
 
 38 
 
etc. In some cases France waives some of the customs formalities 
 and import and export duties for products during the period of 
 exhibition. Exhibits are afforded protection at regular insurance 
 rates and are safeguarded with the cooperation of local police and 
 fire departments. Publicity before and during the fairs appears in 
 newspapers, on radio and television, and in other media, and in 
 magazine stories and articles afterward. 
 
 Two types of French fairs are listed below — international trade 
 fairs and specialized international exhibitions which the French often 
 call salons. The exhibitions listed are events believed to be illus- 
 trative of those holding the greatest interest for American business- 
 men. 
 
 All exhibitions are represented in the United States by the French 
 Commercial Counselor, 1C01 Connecticut Avenue NW., Wash- 
 ington, D. C. 
 
 The Bureau of Foreign Commerce is constantly receiving data 
 on fairs and exhibits from the U. S. Foreign Service and other sources, 
 and from time to time publishes in the Department's magazine for 
 international traders and investors, Foreign Commerce Weekly, cur- 
 rent lists of such events with dates and other details. 
 
 Paris International Trade Fair 
 
 This trade fair, the largest in France, has been held annually in 
 May for more than 50 years to promote international trade. Its 
 management, which includes leading businessmen and Government 
 personnel, is highly experienced. 
 
 It is represented by the French Chamber of Commerce in the 
 United States, 630 Fifth Avenue, New York 20, N. Y., as well as by 
 the French Commercial Counselor, Washington, D. C. 
 
 Other International Fairs 
 
 Bordeaux International Trade Fair.— An annual event in June 
 that is chiefly of regional interest, this fair stresses wines and spirits 
 of the Bordeaux area. There are no national exhibits, as such, by 
 foreign countries. Except for the display of French colonial prod- 
 ucts on a country basis, most goods originating outside of France 
 have been shown by French representatives of the foreign firms. All 
 products are admitted from all countries on an equal basis. 
 
 Lille Commercial and International Fair.— Operated under the 
 auspices of the First Economic Kegion, 14 chambers of commerce 
 of the North Region, the Conseil General, and the city of Lille, this 
 annual event (open about 2 weeks, April-May) is a sample fair 
 only. Retail or over-the-counter selling is prohibited. 
 
 39 
 
Limoges Exposition and Trade Fair. — This fair is usually held 
 annually in May-June under sponsorship of the local municipality 
 and chamber of commerce, the Conseil General of Ilaute-Vienne, and 
 professional and trade organizations. 
 
 It is a sample show with foreign participation. 
 
 Lyon International Trade Fair. — This annual (April) event, run 
 as a private organization, is the oldest fair in France and one of the 
 largest commercial fairs in Europe. It is a sample fair to which only 
 manufacturers and their representatives, or wholesalers who offer 
 products bearing their own trademark, are admitted. Ketail sales 
 are prohibited. 
 
 Marseille International Trade Fair. — Founded by a private com- 
 pany in 1924, this annual (September) fair has a quasi-official status 
 and its administrative council includes Government and chamber 
 of commerce officials. It offers a sample market for the Mediterranean 
 Basin, and is strictly commercial in character. Exhibits of a cultural 
 or propaganda nature are not permitted. 
 
 Nice Fair. — This fair is held annually in February-March under the 
 auspices of the Minister of Industry and Commerce, Conseil General 
 of the Alpes-Maritimes Province, City of Nice, and the Chamber of 
 Commerce of Nice and the Maritime Alps to promote international 
 trade. It is a sample fair of "French quality and exporting 
 industries," with foreign participation. All products are admitted. 
 
 Strasbourg Annual European Fair. — This sample trade fair, held 
 in September, admits all products in promoting international trade. 
 West Germany has been the most important exhibitor after France. 
 
 The fair buildings and facilities are good. Strasbourg, with its cen- 
 tral location and proximity to the German border, is well situated for 
 an international trade fair. It is a rail and tourist center, with con- 
 siderable industry in the immediate area. 
 
 Toulouse Exposition and Trade Fair. — Sponsored by the Tou- 
 louse Chamber of Commerce and trade organizations, this is a sample 
 show held annually during April, with foreign participation. 
 
 Industry Exhibits (Salons) 
 
 Among these specialized international fairs are the following : 
 Chemicals and Plastics Salon. — Held every 18 months at the Ex- 
 position Grounds, Paris. Offers exhibitors from all countries the op- 
 portunity of displaying and demonstrating their products to profes- 
 sional visitors, of making contacts with new customers, and discover- 
 ing new markets for their products. 
 
 Farm Machinery Salon. — Held annually in March at Porte de 
 Versailles, Paris. Is one of the most important "vertical" shows held 
 
 40 
 
in France and, from the standpoint of international participation, is 
 probably the largest of its kind held in the country. 
 
 International Aeronautical Salon. — Held at Le Bourget Airport, 
 near Paris, every 2 years. Designed primarily to stimulate and pro- 
 mote interest in aeronautical products and to demonstrate the latest 
 scientific advances in the aircraft-manufacturing field. 
 
 International Exposition of Leather and Leather Products. — 
 Held in Paris annually, usually in September. Encompasses all sec- 
 tors of the leather industry, products being displayed in appropriate 
 surroundings. 
 
 International Household Equipment and Home Furnishings 
 Salon. — Held annually in Paris. Although billed as an international 
 show, it displays mainly products of French manufacture. 
 
 International Photographic, Motion Picture and Optical Indus- 
 tries Fair. — Held in Paris annually, usually in March, its main pur- 
 pose is to make photography more popular among a larger proportion 
 of the French population. 
 
 Paris International Automobile and Cycle Salon. — Held annu- 
 ally in October in two sections : Passenger cars, accessories, filling sta- 
 tion equipment, and auto-camping equipment at Grand Palais; and 
 buses, trucks, motorcycles, bicycles, and related equipment at the Pare 
 des Expositions. 
 
 Paris International Nautical Salon. — Held annually in October 
 along the Seine Kiver, Paris, primarily to stimulate public interest in 
 boating and to promote the sale of recreational as well as commercial 
 watercraf t equipment and accessories. 
 
 41 
 
CHAPTER III 
 
 Exporting To, Importing 
 From, France 
 
 In preparing shipments to France, exporters should observe French 
 regulations with respect to marking and labeling. A partial list of 
 the products that must be labeled or marked and the various laws that 
 bear on the subject are presented in chapter IV. 
 
 FRENCH IMPORT CONTROLS 
 
 In recent years imports into France, particularly from the dollar 
 area, have been tightly screened. Among the factors taken into con- 
 sideration by the licensing authorities are the essentiality of the 
 proposed import, the availability of similar goods within France or 
 from other foreign areas whose currency is more plentifully available 
 to France, price, quality, trade agreement commitments, and any other 
 factors deemed relevant. In general, licenses are not granted for 
 dollar goods considered nonessential. When compensation (barter) 
 deals are involved, import licensing standards may be applied some- 
 what more leniently. 
 
 Import Licensing 
 
 Individual import licenses are required for almost all imports from 
 foreign countries. The few minor categories of imports for which 
 licenses are not required include certain Government purchases, 
 samples which are to be reexported, and certain noncommercial ship- 
 ments (gift packages, 1 etc.). Licenses are not usually required for 
 imports into France from countries of the French Union. 
 
 1 Gift packages weighing 44 pounds or less, sent from individual to individual by letter 
 post, parcel post, or express, do not require an import license except in the case of multi- 
 ple shipments from the same sender to the same addressee. (Note ends on page 44.) 
 
 43 
 
Controls over dollar imports. — Imports from the United States 
 and other dollar countries require individual import licenses. Licens- 
 ing decisions are made on a case-by-case basis. As no advance assur- 
 ance can be had that a license will be granted, United States exporters 
 are advised to ascertain, before shipping, that the French importer 
 holds the requisite license. 
 
 Controls over nondollar imports. — Import licenses are also re- 
 quired for goods imported from all nondollar countries. 
 
 France has concluded numerous bilateral trade agreements under 
 which it has agreed to license the importation of specified amounts 
 of designated commodities from particular countries. The existence 
 of these trade agreement commitments is taken into account by the 
 import licensing authorities. 
 
 Imports may also be effected under officially approved compensa- 
 tion (barter) transactions. Approval of an interministerial committee, 
 established for the purpose in the Ministry of Finance, must be ob- 
 tained for all foreign trade transactions involving imports linked to 
 sales abroad, or vice versa, insofar as they depart from the general 
 foreign trade and exchange controls. These compensation transac- 
 tions, if approved, are subject to the various controls exercised on im- 
 ports or exports. Import or export licenses delivered by the Office des 
 Changes (Exchange Office) for implementation of these transactions 
 are publicized in the same degree as is the issuance of licenses for 
 ordinary import and export operations. 
 
 While the importation of a few products is restricted to special na- 
 tional groups or bureaus, and the importation of certain other products 
 is restricted to Government-sponsored and -controlled "groupements 
 d'importation" (associations of importers and/or manufacturers), 
 the importation of most products into France is open to private trade. 
 The number of commodities subject to "groupement" purchasing is 
 limited. 
 
 Administration of controls. — French import licensing controls are 
 administered by the Exchange Office, 8 rue de la Tour des Dames, 
 Paris 9. This Office also administers French controls on foreign ex- 
 
 The following articles may not be included in gift packages for France : Coins, bank- 
 notes, paper money, manufactured or unmanufactured platinum, gold and silver, precious 
 stones, jewelry stones, other jewelry or precious articles, matches, saccharine tablets and 
 other artificial sweetening substances, nursing bottles and nipples, and certain plant and 
 animal products. Information concerning restrictions on plant and animal products may 
 be obtained from the U. S. Department of Agriculture, Washington 25, D. C, or its agents 
 in the principal United States ports. 
 
 From time to time, the Bureau of Foreign Commerce revises its memorandum entitled 
 "Sending Gift Packages to France," from which the information given here has been 
 taken. It may be purchased for 10 cents a copy from the Sales and Distribution Branch, 
 U. S. Department of Commerce, Washington 25, D. C, or from the Department's Field 
 Offices. 
 
 44 
 
change transactions. The granting of an import license also authorizes 
 the importer to obtain the means of payment for the goods the importa- 
 tion of which is licensed. The Exchange Office works closely with 
 the various French Ministries having commodity competence, but the 
 final import licensing decisions rest with the Exchange Office alone. 
 Working in cooperation with the network of French banks designated 
 as authorized intermediaries, the Exchange Office supervises every 
 licensed import transaction from the time the license is issued until 
 the goods are imported and paid for. 
 
 Import license applications (form AC) must be submitted by the 
 French importer to the Exchange Office. They must contain complete 
 information concerning the proposed importation, including the c.i.f . 
 value, port of discharge, and the f.o.b. value. For imports coming 
 from the United States, the United States Schedule B number should 
 be shown ; this information is usually furnished to the importer by the 
 United States supplier. As noted above, applications are examined 
 by the Exchange Office in conjunction with technical commodity com- 
 missions in the various Ministries. Licensing decisions are made on a 
 case-by-case basis ; the licensing authorities take into consideration the 
 essentiality of the commodity, the availability of the currency in which 
 payment is to be made, price, quality, and any other factors considered 
 relevant. 
 
 Licenses are issued in the names of the importers ; they are personal 
 and nontransferable, cover a single kind of goods of a single origin, 
 and, with some exceptions, refer to a single tariff position. They are 
 generally valid for 6 months, at the expiration of which the mer- 
 chandise must have been dispatched direct to France. Licenses nor- 
 mally may not be renewed or extended. 
 
 "Prior authorizations" are sometimes issued by the Exchange Office 
 to importers who possess commercial contracts or equivalent docu- 
 ments to facilitate placing of orders for certain raw materials and 
 capital goods which require considerable time to fill. These docu- 
 ments, which are not import licenses and have no value for customs 
 purposes, authorize the importer to effect exchange and bank opera- 
 tions, in conformity with exchange regulations, necessary for placing 
 his order. To actually effect the importation an import license must 
 be obtained in the usual manner, but it is issued automatically to the 
 extent that it conforms to the currently valid "prior authorization" 
 against which it is charged. The duration of validity of prior ap- 
 provals depends on delivery dates contained in the contracts, and suc- 
 cessive extensions may be permitted when justified. 
 
 Importers not holding commercial contracts or equivalent docu- 
 ments and wishing to obtain prior approvals for imports must first 
 apply to the Exchange Office for authorization to open a credit. These 
 
 45 
 
authorizations, which are valid for 3 months, do not permit any bank- 
 ing or customs operations. If, before the expiration of the 3 months, 
 the importer is in possession of a commercial contract, he may apply 
 for a prior approval within the limits of the previously opened credit. 
 If, on the contrary, at the expiration of the authorization to open a 
 credit the importer has not acquired a contract or acceptable sub- 
 stitutes which enable him to apply for a prior approval, or if his 
 application therefor is disapproved, the credit is canceled. 
 
 Exchange Control on Imports 
 
 With minor exceptions, all foreign exchange payments and proceeds 
 are strictly controlled. No distinct exchange permit is required for 
 imports, since the import license or the prior approval carries with 
 it the right to acquire foreign exchange of the amount and kind 
 specified in the license or prior approval or to credit a foreign account 
 in francs in this amount. Licenses "without payment" indicate that 
 no payment is required. 
 
 On receipt of an import license or prior approval from the Exchange 
 Office, the holder must present it for domicile to the approved bank 
 designated in his application. Licenses must be accompanied by in- 
 voices or copies of certified contracts ; and prior approvals by a com- 
 mercial contract or an acceptable substitute. Means of payment are 
 made available and all exchange transfers are channeled through the 
 bank of domicile. 
 
 Importations may be made in installments during the period of 
 validity of the import license. Unused foreign exchange acquired 
 under the license must be returned within a month after expiration of 
 the license and in the amount equivalent to the c. i. f . value of the goods 
 which have not been actually imported at that date. 
 
 Spec/a/ Import Procedures 
 
 Imports under the "EFAC" procedure. — Under the so-called 
 EFAC procedure (exportations-frais accessories, or accessory charges- 
 export accounts) , exporters are allowed to use in most cases 10 percent 
 of their export proceeds for the import of raw materials, equipment 
 goods, or merchandise to be used exclusively by the importing enter- 
 prise. Imports made under the EFAC mechanism cannot be resold. 
 
 Equipment and raw material import procedure. — Under this pro- 
 cedure manufacturers of certain specified products destined for ex- 
 port are issued authorizations to import, up to 5 percent of the pro- 
 ceeds of their export transactions, equipment goods and raw materials 
 
 46 
 
necessary for the manufacture of the products to be exported. These 
 imports may come from any country if the export proceeds are in 
 United States or Canadian dollars or Swiss francs. If the proceeds 
 are from exports to OEEC countries (there are a few exceptions) or 
 from exports paid for in pounds sterling or in any sterling-area cur- 
 rency or in Egyptian pounds, imports are restricted to those not pay- 
 able in United States or Canadian dollars or Swiss francs. In all 
 other cases, 5 percent of the export proceeds may be used for im- 
 ports paid for in the currency of the export proceeds. 
 
 IMEX transformation procedure. — Export inducements through 
 the allocation of imported raw materials are employed under the 
 procedure called IMEX, which means imports for exports. Manu- 
 facturers are allocated foreign exchange in order to obtain necessary 
 commodities with which they will make products destined for ex- 
 port. The IMEX system permits imports of raw materials, but in 
 return the French manufacturer must pledge to effect the reexporta- 
 tion of goods for an amount of foreign exchange greater than that 
 used to finance the initial purchase. 
 
 UNITED STATES EXPORT CONTROLS 
 
 At present all exports from the United States or United States 
 possessions to France are subject to the rules and regulations of the 
 Bureau of Foreign Commerce, U. S. Department of Commerce, except 
 for arms, ammunition, and implements of war, which are licensed by 
 the Department of State; gold and narcotics, licensed by the U. S. 
 Department of the Treasury ; 2 and certain source material and 
 facilities for the production of fissionable material, licensed by the 
 Atomic Energy Commission. 
 
 Department of Commerce export licenses fall into two categories — 
 general and validated. A general license is a privilege which permits 
 exporters to make certain shipments without applying for or receiving 
 a validated license document. The commodities subject to validated 
 license requirements, as well all other regulations concerning export 
 control, are shown in the Comprehensive Export Schedule, available 
 for examination at any Department of Commerce Field Office. The 
 Comprehensive Export Schedule and supplementary Current Export 
 
 2 The Treasury Department's Division of Foreign Assets Control, Washington, D. C, 
 should be consulted with respect to the transactions control regulations, which prohibit 
 Americans from shipping strategic materials from any foreign country to a Soviet bloc 
 country. The Division should also be consulted for information on the foreign assets con- 
 trol regulations, which prohibit all unlicensed transactions directly or indirectly involving 
 mainland Chinese or North Korean financing or trade. These regulations, among other 
 things, specifically prohibit the unlicensed purchase in any foreign country of all goods 
 of mainland Chinese origin and all goods of types which in the past were chiefly imported 
 into the United States from mainland China. 
 
 47 
 
Bulletins may be purchased from a Field Office or from the Super- 
 intendent of Documents, U. S. Government Printing Office, Washing- 
 ton 25, D. C, at an annual subscription rate, beginning each March 31, 
 of $6 ($1.50 additional for foreign mailing). Airmail service on the 
 supplementary bulletins is available, to domestic subscribers only, at an 
 additional cost of $4 a year. 
 
 Further information concerning export control requirements for 
 shipments to France may be obtained direct from the Bureau of 
 Foreign Commerce in Washington or from any of the Department's 
 Field Offices. Also obtainable from these sources is a booklet Sending 
 Gift Packages to Foreign Countries — Summary of United States 
 Export Regulations giving complete information on the various 
 regulations that affect the sending of gift parcels abroad. 
 
 FRENCH IMPORT DUTIES, OTHER LEVIES 
 
 Bases of Specific and Ad Valorem Duties 
 
 The French import tariff schedule carries few specific duties. They 
 are levied on the basis indicated in the tariff for items subject to 
 such duty. Weight is the basis in some instances. Gross weight is 
 defined as the total weight of the content and containers, inner and 
 outer; net weight, as the weight of the content without wrappings, 
 either inner or outer. In some cases a fixed tare is used to arrive at 
 dutiable net weight. 
 
 Virtually all French import duties are on an ad valorem basis. This 
 basis is the "normal" price of the merchandise plus costs of transporta- 
 tion and all other expenses connected with the sale and delivery of the 
 merchandise up to the point of its introduction into French customs 
 territory. This "normal" price is defined as the price which could, 
 reputedly, be obtained for the merchandise at the time and place of 
 its introduction into French customs territory, in the course of a sale 
 effected between an independent buyer and an independent seller. 
 Under these conditions the "normal" price can be determined on the 
 basis of the invoice price. (For a fuller discussion of the ways of 
 determining the value as the basis of ad valorem duty, see the section 
 "Entry.") 
 
 Application of the Tariff 3 
 
 The two-column tariff lists minimum duty rates and general rates ; 
 the latter are fixed at three times the minimum. Minimum rates apply 
 
 3 See also the section "Customs Procedures," page 64. 
 
 48 
 
to imports from countries (including the United States) with which 
 France has concluded reciprocal trade agreements or which have 
 signed the General Agreement on Tariffs and Trade. General rates are 
 levied on imports from other countries. In some cases, listed duties 
 are temporarily reduced or suspended on a number of commodities. 
 Imports from the oversea areas of the French Union enjoy varying 
 degrees and types of preferential treatment in French customs 
 territory. 
 
 Duties are payable in French francs, and the conversion rates used 
 are those announced by the customs office for the day of clearance. 
 
 Treatment of Gift Packages 
 
 Articles sent as gifts are, in general, subject to the same duties and 
 taxes as are commercial shipments. The only exceptions are (1) 
 packages of used clothing weighing not over 22 pounds sent as bona 
 fide gifts for relief purposes, and (2) small "family" gift packages of 
 a personal character sent by letter post, parcel post, or air. The 
 former are exempt from duty and taxes and the latter are dutiable 
 at a flat rate of 10 percent ad valorem plus the u»ual taxes, which 
 amount to approximately 24 percent. These family packages must 
 contain several dutiable articles of different kinds, must be valued 
 at not more than 10,000 francs (approximately $28), and may not 
 contain tobacco, matches, or other commodities subject to special 
 regulation in French territory. 
 
 Tobacco products may be sent to individuals in France, for per- 
 sonal use, up to 22 pounds per person, per year, subject to special 
 authorization from the French customs authorities and payment of 
 duty and taxes, as follows, in francs per net kilogram (2.2 pounds) : 
 Cigarettes and cigars, other than Havana cigars, 7,000; Havana 
 cigars, 18,000 ; and smoking tobacco, 5,000. Additional taxes amount 
 to approximately 24 percent of the c. i. f . (cost, insurance, and freight) 
 value. 
 
 French import duties and taxes must be paid by the consignee in 
 France. They may not be prepaid by the shipper. However, the 
 latter may reimburse the consignee by means of an international postal 
 money order obtained in any United States post office. Also, certain 
 freight forwarders will undertake the delivery of dutiable packages 
 in France and bill the sender with costs, plus a service charge. 
 
 Customs Surtaxes, Internal Taxes 
 
 A customs stamp tax of 3 percent is levied on the value of total 
 customs charges. Imported alcohol and products containing alcohol 
 
 49 
 
are subject to a specific compensation surtax levied at varying rates. 
 Sales and other internal taxes levied on domestic transactions ap- 
 ply also to imports. The most important sales tax, called the "value- 
 added" tax, is levied on imports and is assessed on their c. i. f . duty 
 and tax-paid value. There are four different rates of the value-added 
 tax — 10, 12, 19.50, and 27.5 percent — but the most generally applied 
 rate is 19.50 percent. The 27.5-percent rate applies to a number of 
 luxury products. Imports of a few items are exempt from the value- 
 added tax. Wines, cider, perry, hydromel, coffee, tea, and certain 
 meats and meat products are subject to fixed-rate specific taxes. 
 
 EXPORTERS' SHIPPING DOCUMENTS 
 
 Documents required of United States exporters on shipments of 
 surface or air cargo to France are the commercial invoice, bill of 
 lading (or air waybill), certificate of origin (surface cargo only), 
 sanitary and/or other special certificates, in some cases, and a shipper's 
 export declaration. 
 
 For documents required on shipments by mail, see the section 
 "Mail Shipments." 
 
 Consular invoices (ordinary commercial invoices that have been 
 legalized by a French diplomatic or consular authority) are not 
 required for imports from the United States. 
 
 Commercial Invoke 
 
 As a general rule, French customs authorities require a commercial 
 invoice for most merchandise shipments from the United States. 
 
 In some special cases exceptions are made to this rule. For instance, 
 no invoice is necessary for shipments of gifts, noncommercial imports 
 by travelers, shipments by letter post, shipments by parcel post or 
 air cargo valued at not over 10,000 francs, imports on consignment 
 which have been authorized by official notices to importers, and mer- 
 chandise dutiable on the basis of fixed or official valuations. 
 
 No special invoice form is required. It is advisable that it be 
 written in French and English. It should contain the following 
 minimum information : Name and address of shipper ; place and date 
 of origin of the shipment; name and address of consignee; number 
 and types of packages ; marks, numbers, contents, weight, and value 
 of each package; country of origin of the merchandise; and the 
 French import license number (the number is obtained by the shipper 
 from the French importer). A collective invoice may be used, in- 
 
 50 
 
stead of various particular invoices, for merchandise making part of 
 the same shipment and imported through the same customs office. 
 
 For the determination of dutiable value, customs officials may re- 
 quire additional documents — such as contracts and correspondence — 
 pertaining to the import transaction. 
 
 Bill of Lading (or Air Waybill) 
 
 Either direct or to order bills of lading are acceptable. 
 
 Certificate of Origin 
 
 Merchandise which, by reason of origin, is entitled to the benefit of 
 import duty rates lower than the general rates or to other favorable 
 treatment at importation must be accompanied by a certificate of 
 origin to insure this favorable customs treatment. Certificates of 
 origin are also necessary with merchandise which has undergone 
 processing or transformation in third countries. Air cargo does not 
 require a certificate of origin. Sanitary and other certificates re- 
 quired with special categories of merchandise may serve as certificates 
 of origin provided they fulfill all the requirements prescribed for the 
 latter (see the section "Sanitary and Other Special Certificates"). 
 
 No special form is required. The certificate of origin may consist 
 of an official declaration made before a magistrate at the place of 
 dispatch ; or a certificate issued by a customs official, chamber of com- 
 merce, or local authority (mayor, judge, police commissioner, notary, 
 etc.) at the place of dispatch; or a certificate issued by a diplomatic 
 or consular representative at the place of dispatch or the port of 
 embarkation. It must show the number and kinds of packages, their 
 marks and numbers, origin and value, gross and net weights, name of 
 the shipper and the carrier, ports of call and transshipments, and the 
 nature of any processing in third countries. 
 
 Shipments to France from the United States must be accompanied 
 by a certificate of origin. A sample of a document widely used as a 
 certificate of origin (and as a consular invoice also for countries other 
 than the United States) is given on the next page. 
 
 51 
 
CERTIFICAT D'ORIGINE ET FACTURE CONSULAIRE 
 Certificate of Origin and Consular Invoice 
 
 (Name and Address of Owner, Agent, Shipper, etc.) 
 les marchandises ci-apres designees, embarqu6es 
 the following mentioned goods shipped 
 
 Nous, soussignds . 
 The undersigned 
 d6clarons que 
 declare that 
 
 sur le S. S. " 
 
 on the S. S. " " 
 
 a la date du consignees a M 
 
 on the date of consigned to (Name and Address of Consignee) 
 
 sont d'origine ou de fabrication des Etats-Unis d'Ame>ique du Nord, et vendues 
 are of United States of North America origin or manufacture and sold 
 par des maisons etablies dans les Etats-Unis d'Amerique du Nord et que la vente 
 by firms established in the United States of North America and that the sale 
 a e'te' effectivement conclue dans le pays d'origine. 
 was effectively concluded in the country of origin. 
 Nous certifions en outre sincere et veritable la pr6sente facture. 
 We moreover certify that the present invoice is true and correct. 
 
 Nombre de 
 
 paquets ou 
 
 colis ou 
 
 caisses 
 
 Number of 
 
 Marques 
 Marks 
 
 Numeros 
 Numbers 
 
 Poids 
 Weight 
 
 Valeur 
 Value 
 
 Description 
 
 packages, 
 boxes, or 
 
 cases 
 
 Brut 
 Gross 
 
 Net 
 
 
 
 Total 
 
 
 
 
 
 
 
 
 Pr6te" serment devant moi, ce Fait a le 
 
 Sworn to before me Dated at on the . 
 
 jour 
 
 this day of 
 
 (Signature) 
 
 52 
 
Sanitary and Other Special Certificates 
 
 Sanitary and other special certificates are required with shipments 
 of specified categories of merchandise whether shipped by air cargo 
 or ocean freight. Details may be obtained from the European Branch, 
 Bureau of Foreign Commerce, U. S. Department of Commerce, Wash- 
 ington 25, D. C. 
 
 U. S. Shipper's Export Declaration 
 
 A shipper's export declaration (Commerce form 752 5-V) 4 must be 
 filed with the collector of customs at the port of exit for export ship- 
 ments by freight or express shipped under a bill of lading or requiring 
 a validated export license. 
 
 The declaration must be filed with the postmaster for all shipments 
 by regular mail or parcel post of articles for which a validated export 
 license is required, and for export shipments by mail or parcel post 
 valued at $25 or more when shipped from one business concern to 
 another. Mail or parcel-post shipments of catalogs, instruction books 
 (except technical data) , and other advertising matter, as well as maga- 
 zines, newspapers, or periodicals even when valued over $25, do not 
 require the declaration. 
 
 Three copies (original and two carbons) of the declaration should 
 be filed for shipments, other than by mail, of merchandise to France. 
 Only one copy is required for shipments by mail. If an export license 
 so specifies, or when clearing shipment under a project license, the 
 shipper must file a fourth copy. 
 
 For shipments subject to export controls (see the section "United 
 States Export Controls"), the export license number or numbers, or 
 the applicable general license or project license symbol, must be noted 
 on the declaration. 
 
 The original copy must be notarized for shipments to France by 
 vessel. If the declaration is prepared by an agent of the shipper, the 
 agent's authority to sign must be evidenced by a properly executed 
 power of attorney or by proper use of the power-of-attorney statement 
 printed on the declaration. 
 
 The forms may be purchased in blocks of 100 from the Superintend- 
 ent of Documents, U. S. Government Printing Office, Washington 25, 
 D. C, collectors of customs, and Department of Commerce Field Of- 
 fices. They may be privately printed provided they conform strictly 
 to the original form in size, wording, color, and quality (weight) of 
 paper stock, and arrangement, including the instructions on the re- 
 verse side and the Budget Bureau approval number. 
 
 4 Commerce form 7525— V Alternate may be used, if preferred, by shippers in a position 
 to do so (see Bureau of the Census circular letter FT 208, dated September 27, 1954). 
 
 53 
 
Additional information regarding the declaration may be obtainec 
 from the Foreign Trade Division, Bureau of the Census, U. S. Depart 
 ment of Commerce, Washington 25, D. C. 
 
 Destination Control Statement 
 
 The requirement for a destination control statement is a part of 
 the United States export control regulations (see the section "United 
 States Export Controls"), and applies to virtually all shipments made 
 of United States-origin commodities from the United States under 
 general or validated licenses. Any exportation (except for in-transit 
 shipments not requiring a validated license) that requires a shipper's 
 export declaration requires also a destination control statement. 
 
 Under the destination control statement procedure, United States 
 exporters and forwarding agents are legally obligated not to prepare 
 or file a shipper's export declaration with the collector of customs, 
 or prepare, procure, or issue, a bill of lading, air waybill, or com- 
 mercial invoice, without making sure that the original and all copies 
 of the declaration, bill of lading (or air waybill), and commercial 
 invoice carry whichever of the following three antidiversion notices 
 is appropriate to the type of shipment being made. 
 
 For general license shipments only — 
 
 United States law prohibits distribution of these commodities to the Soviet 
 bloc, communist China, North Korea, Macao, Hong Kong, or communist-controlled 
 areas of Viet-Nam and Laos, unless otherwise authorized by the United States. 
 
 For both validated and general license shipments, one or the other 
 of the following — 
 
 1. These commodities licensed by the United States for ultimate destination 
 (name of country). Diversion contrary to United States law prohibited. 
 
 2. These commodities licensed by the United States for ultimate destination in 
 (name of country) and for distribution or resale in (name of country or 
 countries). Diversion contrary to United States law prohibited. 
 
 Carriers must place the destination control statement on the original 
 and all copies of the bill of lading or the air waybill, or see that it is 
 placed thereon, whenever the corresponding authenticated shipper's 
 export declaration carries the statement. The exporter will be respon- 
 sible for assuring that this statement is carried on all copies of the 
 shipper's export declaration and the commercial invoice. 
 
 MAIL SHIPMENTS 
 
 Printed matter, samples of merchandise, and small packets may be 
 sent by mail provided they are prepared for mailing as prescribed by 
 United States postal authorities for the class of article involved. 
 Eight-ounce merchandise packages and combination packages are 
 not accepted in United States mails for France. 
 
 54 
 
Manufactured or unmanufactured platinum, gold, or silver, precious 
 stones, jewelry, etc., may not be sent by mail to France, except that 
 articles of precious metal will be accepted in registered letters if such 
 letters are directed to the addressee in care of the Bureau de la 
 Garantie, 14 rue Perree, Paris, and bear a green customs label (form 
 2976) showing that the article is to be submitted to the French customs 
 authorities for examination. The French postal authorities will as- 
 sume only the ordinary responsibility provided for in the international 
 postal regulations in case of loss. 
 
 Certain products are not accepted in United States mail for France 
 for reasons based on sanitary, quarantine, pure food, and other regula- 
 tions, defense measures, or the existence of monopolies in the country 
 of destination. Money and other instruments of payment, securities, 
 etc., are subject to special regulations. Information concerning specific 
 prohibitions and regulations may be obtained from local United 
 States post offices. 
 
 Parcel Post 
 
 A customs declaration tag (form 2966) and a dispatch note (form 
 2972) must be affixed to each parcel-post package, surface or air. A 
 parcel-post sticker (form 2922) must be affixed to each commercial 
 parcel-post package but may be omitted from gift packages. Air 
 parcel-post packages require, in addition, the blue "Par Avion/by 
 Air-Mail" label (form 2978) attached to the address side of the 
 
 Parcel-post packages, surface or air, weighing up to 44 pounds, 
 with a maximum length of Sy 2 feet and a maximum length and girth 
 combined of 6 feet, are accepted under United States postal regula- 
 tions for mailing to France. As an exemption to these dimensions, 
 circular packages, such as tires, coils of rope, wire or hose, are limited 
 to 64 inches measured around the entire girth of the package in the 
 direction of the diameter. 
 
 Packages may be insured but not registered. Insured packages must 
 be sealed ; sealing is optional for other packages. The special handling 
 service available for domestic parcel post may be had for parcel-post 
 shipments to France. Group shipments are not permitted. 
 
 Gift parcel-post packages should be marked on the outside "Gift 
 Parcel." Designation of the French Department (geographical sub- 
 division) will expedite delivery. Names of senders or addressees may 
 not be designated by initials. Packages may not be addressed to a 
 "care" in a country other than that in which the addressee is located. 
 
 See also the section "Samples and Advertising Matter." 
 
 55 
 
Regular Mail 
 
 Special-delivery service is provided for articles sent in the regular 
 mail to France. There must be affixed to the cover an "Expres" (spe- 
 cial delivery) label (form 2977) obtainable at United States post offices 
 or the cover must be marked boldly in red ink "Expres" directly below 
 but not on the stamps. There is no special-delivery service for parcel 
 post, but a special-handling service is available. 
 
 Gifts may be sent to France in letters, letter packages, or small 
 packets. 
 
 Letter mail and letter packages. — Dutiable articles may be sent to 
 France in letters or packages prepaid at the letter postage rate. Let- 
 ters and letter packages may not weigh more than 4 pounds 6 ounces 
 and may not measure more than 24 inches in length. 
 
 The green customs label (form 2976) must be attached to the ad- 
 dress side of each letter or letter package containing dutiable merchan- 
 dise; to prints, etc., which are dutiable; and to each small packet (see 
 section below) . If the sender does not care to indicate the contents on 
 the outside of the shipment, the upper detachable portion of form 2976 
 may be used on the outside and the paper form of customs declaration 
 ( form 2976- A) may be enclosed. Form 2976- A must be used as an en- 
 closure or an invoice must be enclosed with the merchandise when the 
 description of the contents is not shown on form 2976. The contents 
 of the package must be indicated in detail on the form. Notations of 
 a general character are not permitted. 
 
 Small packets. — Dutiable merchandise may be sent in small 
 packets to France, with the facility of letter mail but at lower postal 
 rates. Small packets may not weigh more than 2 pounds 3 ounces or 
 measure, in length, breadth, and thickness combined, more than 36 
 inches with the greatest length not more than 24 inches. Sent in the 
 form of a roll, the length (maximum permitted 32 inches) plus twice 
 the diameter is limited to 40 inches. Form 2976 must be attached. 
 
 Small packets may not contain any document having the character 
 of actual personal correspondence, banknotes, money, postage stamps, 
 valuables payable to the bearer, precious metals, stones, jewelry, or 
 other precious articles. They may not be sealed and must be endorsed 
 "petit paquet" (small packet). 
 
 Sample post. — Samples of no commercial value, not dutiable, and 
 weighing up to 18 ounces may be sent by sample post at special postage 
 rates. They must be endorsed "Samples of Merchandise" and be 
 packed in unsealed sacks, boxes, or wrappers. Samples consisting of 
 a single piece of wood, metal, etc., not customarily packed in com- 
 mercial usage, need not be packed on condition that the address and 
 the postage stamps be placed on a tag if necessary ; the address must 
 always be reproduced on the piece itself. 
 
 56 
 
Sample-post packages may not contain goods of salable value, goods 
 sent as gifts or in execution of an order, or pairs of articles. The sam- 
 ples must be put up in such a manner that they can be easily inspected. 
 Certain data may be affixed by hand or by mechanical process on the 
 outside or inside of packages and, in the latter case, on the sample it- 
 self or on a special sheet relative thereto. These data may include the 
 name, title, and profession, firm name, if any, and address of the sender 
 and the addressee ; date of mailing ; signature ; telephone number and 
 exchange ; telegraphic address and code ; current postal, check, or bank 
 account of the sender ; a trademark ; a brief indication concerning the 
 manufacturer and the jobber of the merchandise or concerning the per- 
 son to whom the sample is addressed ; order or entry numbers, prices, 
 and any other annotations representing price factors ; particulars rela- 
 tive to weight, measurement, and size or quantity to be disposed of ; and 
 such other information as is necessary to determine the origin and 
 character of the goods. 
 
 Special packing requirements apply to special types of merchandise, 
 such as glass, liquids, and oils. 
 
 See also the section "Samples and Advertising Matter." 
 
 Printed matter. — Printed matter, including books, newspapers and 
 periodicals, sheet music, calendars, catalogs, and matrices of material 
 similar to paper or cardboard, up to a weight limit of 6 pounds 9 
 ounces, generally, and 11 pounds for printed books sent singly, may be 
 sent to France at special postage rates if unsealed. Dutiable matter 
 must have a green customs label (form 2976) affixed to the address side 
 of the article, which must be endorsed "Printed Matter" or "Books" 
 as the case may be. 
 
 SAMPLES AND ADVERTISING MATTER 
 Samples 
 
 Samples having a commercial value are treated as commercial ship- 
 ments whereas samples of no commercial value enter free of duties and 
 taxes. Samples of commercial value are permitted temporary duty- 
 free admission under bond or deposit of customs duties and taxes, sub- 
 ject to reexportation within 6 months. The time limit may be extended 
 to 1 year. To benefit under this temporary-admission procedure, the 
 commercial traveler must present his "carte de legitimation" (creden- 
 tial card) and pay or have paid previously the tax to which commercial 
 travelers are subject in France. 
 
 Samples of fabrics are accorded free admission if of such small size 
 as to be obviously useless except as samples ; if of sufficient size to be 
 considered remnants ; or, if of full size or entirety, they are mutilated. 
 
 Samples of foodstuffs are subject to duty. 
 
 429535—58 5 ^7 
 
Samples of commercial value belonging to a traveler but not accom- 
 panying him, imported under the temporary duty-free admission pro- 
 cedure must be proved intended for the commercial traveler by means 
 of the credential card. 
 
 In the case of samples addressed to trade representatives, managers 
 of branch offices, mercantile agents, or commission merchants, the 
 consignees must prove their title to the samples by presenting their 
 licenses or their professional identity cards. 
 
 Samples of articles made of precious metals must be sent to the 
 Bureau de la Garantie to be assayed and marked. The assay tax is 
 reimbursed when the samples are reexported. 
 
 Samples are exempt, in general, from import and export trade con- 
 trols whether or not they have a commercial value and whether or not 
 they accompany commercial travelers. 
 
 If, however, the value of certain samples must be paid to foreign 
 shippers, the importer is required to execute a "declaration-autorisa- 
 tion d'importation" (import declaration- authorization), which may 
 be regularized after importation if it has not been produced officially 
 at the time of customs clearance. An import declaration-authorization 
 is a special document utilized for imports which do not require an 
 import license but which involve a financial settlement with a foreign 
 country. Their purpose is to authorize, not to control, the foreign 
 settlement. 
 
 Samples of merchandise may be dispatched to France by parcel 
 post as well as by sample post — unless the merchandise is subject to 
 import prohibition in France or prohibited by the United States 
 postal authorities in parcel-post mail. Such shipments are not re- 
 stricted to the limitations on weight and size which apply to sample 
 post but are accepted up to the greater weight and size limitations 
 established for parcel-post packages. For samples sent by parcel post, 
 the use on customs declarations of the word "samples" is not sufficient ; 
 they must be designated "samples of cotton," "samples of jewelry," 
 etc., as appropriate. Instead of "no value" in the appropriate column, 
 "no commercial value" or the value placed by the sender may be 
 written or stamped in, leaving the question of appraisal value to be 
 determined by the French customs authorities. 
 
 Advertising Matter 
 
 Periodicals that are more than two-thirds devoted to advertising, 
 industrial publications, and advertising matter are dutiable on entry 
 into France at the rates of duty applicable to printed matter or litho- 
 graphs, as the case may be. Individual copies addressed to subscribers 
 are exempt from import duty and are delivered direct to the 
 addressees. 
 
 58 
 
ENTRY, TRANSIT, TRANSSHIPMENT, WAREHOUSING 
 Entry 
 
 Summary declarations of merchandise are required of carriers of 
 merchandise imported by sea, land, or air. These declarations must 
 be submitted within 24 hours after entry for imports by sea and 
 immediately on arrival in customs territory for other imports. 
 Within 3 days, exclusive of Sundays and holidays, after arrival in 
 customs territory, importers or persons approved by the customs 
 authorities must declare the imported merchandise in detail and 
 assign it to a specific customs regime (consumption, transit, tempo- 
 rary admission, warehousing, etc.) . Exemption of merchandise from 
 duty and taxes does not relieve the importer from the declaration 
 requirement. Persons entitled to declare merchandise who are not 
 in possession of the necessary data may be authorized to examine the 
 merchandise and take samples. Meanwhile, they must deposit provi- 
 sional declarations. Import declarations must be accurate and com- 
 plete. Several packages bound together by any means may not be 
 declared as a unit. Import declarations are registered immediately 
 on deposit by the declarant and may not be subsequently modified. 
 Up to the time of registration they may be rectified as to weight, 
 number, measure, or value on condition that the same number of 
 packages fitted with the same marks and numbers as those originally 
 stated are shown. 
 
 The value to be declared at importation is the normal price of the 
 merchandise, i. e., the price which could allegedly be set for such 
 merchandise at a fixed time and place in a sale effected under condi- 
 tions of free competition between an independent buyer and an 
 independent seller. 
 
 When a sale has been effected under such conditions, the normal 
 price may be calculated on the basis of the invoice price. 
 
 The normal price of imported merchandise is determined on the 
 following bases : 
 
 1. The time to be taken into account is the date of registration of 
 the declaration at the customs office. 
 
 2. The merchandise is considered to be delivered to the buyer at the 
 place of introduction into customs territory. 
 
 3. The seller is considered to have borne, and included in the price, 
 the cost of transportation of the merchandise, as well as other expenses 
 connected with the sale and delivery of the merchandise at the place 
 of introduction into the customs territory. 
 
 4. Expenses connected with transportation effected within customs 
 territory as well as duties and taxes payable in that territory are 
 excluded from the price. 
 
 59 
 
A sale effected under conditions of free competition between an 
 independent buyer and an independent seller is a sale in which : 
 
 1. The price of the merchandise is the only actual payment by the 
 buyer. 
 
 2. The agreed price is not influenced by commercial, financial, or 
 other relations, contractual or not, which may exist apart from those 
 created by the sale itself, between the seller or a physical or legal 
 person associated in the seller's business and the buyer. 
 
 3. No part of the proceeds of subsequent sale or utilization of the 
 merchandise will accrue directly or indirectly to the seller or to any 
 other physical or legal person associated with the seller. 
 
 Two persons are considered as associated in business if one of them 
 possesses any interest whatsoever in the business of the other, or if 
 both possess any common interest, or if a third person possesses an 
 interest in the business of each of them, whether these interests be 
 direct or indirect. 
 
 Determination of the normal price shall take into consideration 
 the royalty paid for use of the patent, the registered design or model, 
 or the commercial trademark pertaining to the said merchandise, if 
 the merchandise to be valued was manufactured according to a pat- 
 ented procedure or was the subject of a registered design or model; 
 or if the merchandise bears a foreign manufacturing or commercial 
 trademark or is imported to be sold under such a trademark. 
 
 When the factors taken into account for determination of the nor- 
 mal price are expressed in a foreign currency, conversion is to be 
 made on the basis of the official exchange rate effective on the date 
 the declaration is registered. 
 
 Transit Shipment 
 
 Transit shipments include merchandise passing through France 
 for foreign destinations, merchandise directed under customs sur- 
 veillance to warehouses, merchandise directed under customs surveil- 
 lance to a customs office in the interior of France for declaration, 
 merchandise withdrawn from warehouses or declared and verified 
 at a French customs office and directed to a customs office on the 
 frontier for reexport, and merchandise shipped by land from one 
 warehouse to another. 
 
 "International" transit is effected by enterprises authorized by the 
 Government, usually railways and inland waterways and, in some 
 cases, airlines when shipments are effected entirely by air or by air 
 and rail. International transit is effected under the responsibility of 
 the authorized enterprise and under customs surveillance. Formali- 
 ties are reduced to a minimum. Packages are counted and sealed or 
 placed in sealed conveyances. A summary declaration verified by the 
 
 60 
 
customs authorities at the customs office where the merchandise en- 
 ters transit goes forward with the title of transit (French customs 
 form D 30 for transport by rail and form D 30 his for transport by 
 inland waterways) . Conveyances and warehouses used by enterprises 
 engaged in international transit are under constant customs 
 surveillance. 
 
 Merchandise in international transit through France is subject, 
 on arrival at the customs office of reexport, to customs inspection for 
 verification of seals and the number of packages. 
 
 , If the merchandise is declared for consumption, temporary ad- 
 mission, or warehousing, customs inspection is effected under the 
 usual conditions. Merchandise in transit declared for consumption 
 is subject to duties and taxes in effect on the date the detailed dec- 
 laration is registered, and requires an import license (form AC), an 
 import declaration-authorization, or an import certificate, according to 
 the type and origin of the commodity. 
 
 "Ordinary" transit (effected on the responsibility of the shipper) 
 is applicable to all modes of transportation. The merchandise is sub- 
 ject to detailed declaration and customs verification on arrival and 
 departure. The packages or the vehicles are sealed. Transportation 
 takes place under bond (French customs form D-15) . 
 
 Importation and reexportation of merchandise in transit are not, 
 in principle, subject to French exchange or foreign trade controls. 
 However, when the transit is linked in the financial realm with a pur- 
 chase by an establishment in France of merchandise in a foreign 
 country for reexport to a foreign country and this operation has 
 been the object of an import license, this license, together with an 
 exchange commitment (French form DE) for examination by the 
 Exchange Office, must be deposited at the customs office of entry. 
 Form DE must show that the merchandise is in transit, the "pays de 
 provenance" (country of last export), the manner of financial settle- 
 ment for the merchandise, and certain other information, particularly 
 with reference to the guaranty of repatriation of a sum at least equal 
 to that made available under the import license. 
 
 Transshipment 
 
 Special guaranties are required for merchandise transshipped in 
 France. French customs form D 5 must be executed for transshipments 
 of merchandise intended for foreign countries and form D 4 for trans- 
 shipments to another French port. Transshipment operations are sub- 
 ject to the general regulations with respect to declaration and verifica- 
 tion of goods. 
 
 Merchandise which at entry of the ship has been declared to remain 
 on board and which, in fact, has not been disembarked need not be 
 
 429535—58 6 61 
 
declared in detail or verified by the customs. It suffices that its effective 
 destination for a foreign country or for another French port shall be 
 proved by the ship's papers. If the merchandise appears on the ship's 
 manifest as being intended for the place of importation, reshipment to 
 a foreign country by the same ship imposes the obligation of fulfill- 
 ment of formalities and conditions prescribed for transshipments. 
 Foreign trade controls on transshipped merchandise are the same as 
 those for merchandise in transit. 
 
 Warehousing 
 
 The customs regime of "warehousing" is applied to merchandise the 
 definitive destination of which is deferred or unknown. Customs 
 duties and taxes are not levied on merchandise warehoused or with- 
 drawn from warehouses for reexport. Merchandise withdrawn from 
 warehouses for consumption is subject to the same duties, taxes, and 
 formalities as is similar merchandise imported direct. 
 
 Bonded warehouses (entrepot reel). — Customs bonded ware- 
 houses, under permanent customs surveillance, are granted as conces- 
 sions by the Government to communities, autonomous ports, or cham- 
 bers of commerce when these warehouses respond to duly established 
 general needs. The Government determines the conditions of opera- 
 tion, and the concessionaires (autonomous ports or chambers of com- 
 merce) levy warehousing taxes approved by the Government. Cus- 
 toms authorities may establish, as temporary customs bonded ware- 
 houses, localities intended to receive merchandise for fairs, expositions, 
 etc., subject to Government approval of construction and management. 
 These localities are also subject to customs surveillance. Customs 
 bonded warehouses are, in general, open to merchandise (1) presented 
 at direct importation, or following any regime of suspended duty, (2) 
 placed in consumption for permitted manipulation, or (3) to be at- 
 tributed to the discharge of temporary admission accounts. 
 
 Merchandise may remain 5 years in a customs bonded warehouse. 
 Manipulations which may be carried out with respect to products in 
 customs bonded warehouse and the conditions to which these manipula- 
 tions are subject are determined by the Government. 
 
 Special bonded warehouse (entrepot reel special). — Authoriza- 
 tion to open a special bonded warehouse is accorded by the Director 
 General of Customs for the following types of merchandise : (1) Mer- 
 chandise which exacts special installations, (2) merchandise the pres- 
 ence of which in a bonded warehouse presents a hazard, and (3) mer- 
 chandise which is susceptible of altering the quality of other products. 
 Government orders designate the products admissible in a special 
 bonded warehouse, usually petroleum, explosives, certain foods, etc. 
 Locations are furnished by the concessionaire and must be approved by 
 
 62 
 
the customs administration. At the expiration of 3 years, merchandise 
 must be reexported or (if importation is not prohibited) duty and 
 taxes must be paid. 
 
 Commercial bonded warehouse (entrepot fictif). — Government 
 orders indicate the products admissible into these warehouses and 
 where the warehouses may be established. Goods are warehoused un- 
 der bond to be reexported within 2 years or to be cleared for consump- 
 tion by payment of duty and taxes. 
 
 Free Zones and Ports 
 
 Free zones exist in the "pays de Gex" (Gex region) and "la Haute- 
 Savoie" (High Savoy) on the Swiss-French frontier. 
 
 French customs law provides for the setting apart from the customs 
 regime of a given area of every maritime or river port as a free 
 imaritime or river zone for permitted manipulation of imported 
 merchandise not yet declared for any customs regime. 
 
 In free zones, concessionaries may establish and exploit (under 
 conditions approved by the Government) warehouses, hangars, rail- 
 ways, etc., for the storage, transportation, and handling of mer- 
 chandise. Imported merchandise is exempt from import duties, taxes, 
 and surtaxes, as well as production, circulation, consumption, or other 
 taxes at entry into, during stay in, and at reexportation from free 
 zones. 
 
 Merchandise may enter customs territory from a free zone only 
 under conditions imposed on the entry of foreign imports. 
 
 ABANDONED AND REEXPORTED GOODS 
 
 Abandoned Goods 
 
 Merchandise accepted by the customs administration as abandoned 
 is not subject to duties and taxes. It is sold at public auction for the 
 benefit of the state. The customs administration reserves the right to 
 refuse to accept abandoned goods in cases where the taking over would 
 entail risk of undue costs or difficulties in relation to the real value of 
 the merchandise. In such cases, the owners must declare the mer- 
 chandise in detail under penalty of a fine and must pay the duties and 
 taxes applicable to the merchandise when placed in consumption. 
 
 Reexported Goods 
 
 Merchandise which has not been reexported at the expiration of the 
 permitted warehousing period is subject to import duty and taxes or to 
 sale at public auction 1 month after notification of the bonder. The 
 
 63 
 
owner of the merchandise may reclaim the proceeds of the sale less 
 duty and taxes (if the goods are declared for consumption) and ware- 
 housing and other expenses, within a period of 2 years. Prohibited 
 merchandise may be sold only for reexport. Reexports from ware- 
 houses are effected under bond if by sea and under the regime of 
 transit if by land. 
 
 When the shipment takes place by land under the procedure of 
 international transit, the shipper must pay duty and taxes on any 
 deficits which are shown. For reexports by air, the shipper must prove, 
 within a fixed time, by production of a customs certificate from the 
 country of destination, that the reexported merchandise has left French 
 customs territory. 
 
 Goods not yet cleared through the customs may be returned to the 
 shipper or otherwise reexported without payment of duty or taxes. 
 
 CUSTOMS PROCEDURES 
 
 Advance Rulings on Customs Classification 
 
 Products not listed in the French import tariff schedule are grouped 
 with the listed products to which they are most analogous by decisions 
 of the Director General of the French Customs. These decisions are 
 published officially and become legal thereby. 
 
 Application for advance decisions on the classification of particular 
 products for customs purposes may be made to the French Customs 
 Administration direct or through the chief of the customs bureau of 
 importation of the product concerned. Applications are prepared on 
 a special form, No. 63 (E 67), in triplicate, and should be accom- 
 panied by samples, plans, sketches, or catalogs indicating the trade or 
 commercial name of the product, its detailed composition, its state 
 and degree of preparation, its use and manner of using, country of 
 origin, value, weight, and the name and address of the destinee. 
 
 In many cases local customs chiefs may render decisions. However, 
 where any doubt or difficulty exists, the request for a decision is 
 transmitted to the Customs Administration direct if only the classifi- 
 cation of merchandise or the interpretation of a tariff position is 
 concerned and to the Customs Administration through the Director 
 General of Customs if litigation is in course or special circumstances 
 are involved. The French Customs Administration advises the appli- 
 cant direct of its decision, and the decision is brought to the attention 
 of the customs office concerned with the importation. 
 
 Transportation of samples to the Customs Administration is at the 
 expense of the applicant for the classification decision. The samples 
 are not returned. Those not destroyed by analysis or examination 
 
 64 
 
may be recovered within a month at the Office of the Director General 
 of Customs. Plans, blueprints, notices, photographs, etc., are pre- 
 served in the Administration's archives in support of the decision. 
 
 Penalties and Disputes 
 
 Fines of from 10,000 to 50,000 francs or, in some cases, 3 times the 
 amount of the duties and taxes involved are levied for attempts to 
 evade customs laws and regulations or to evade, in whole or in part, 
 the payment of duties or taxes. Goods may also be confiscated at the 
 discretion of the customs authorities if an intention to smuggle or 
 otherwise defraud is evident. 
 
 Antidumping Provision 
 
 The French Customs Code authorizes the establishment of compen- 
 sating duties on products, dutiable or not, which benefit in the country 
 of origin or of shipment by a direct or indirect export premium or 
 subsidy of any kind, origin, or manner of attribution. Compensating 
 duties may also be established on products originating in or shipped 
 from certain countries when the prices of these products at the French 
 frontier are 20 percent or more below the import prices which served 
 as the bases for applying the minimum tariff on the products. 
 This provision is not applicable when the reduced price of foreign 
 merchandise at the French frontier is in line with lower price levels 
 noted simultaneously in France and in the principal producing 
 countries. 
 
 No compensating duties authorized under the above powers are in 
 effect in France at present. 
 
 Appeals and Claims 
 
 In case of the contest of a decision relative to the classification of 
 merchandise, the dispute must be settled by le Comite Superieur du 
 Tarif des Douanes (Higher Tariff Committee), located in the Min- 
 istry charged with economic affairs. This Committee is authorized 
 also to make final decisions in cases of contests relative to the kind, 
 origin, or value of imported merchandise where the declarant is un- 
 willing to accept the appraisal of the customs service. Two experts, 
 one designated by the declarant and the other by the customs ad- 
 ministration, appear before the Committee. Recourse to this pro- 
 cedure may not be had when the law provides a particular procedure 
 for the determination of kind, origin, or value of merchandise. 
 
 65 
 
Refund of Duty 
 
 Mistakes of the consignee in declaring merchandise can be rectified 
 and duty refunded up to the time of verification and registration of 
 the customs declaration. Duties once paid are not refunded except in 
 cases of overpayment through error of the customs office. 
 
 Claims for the refund of duty overpaid through error of the cus- 
 toms office must be made within 2 years from the date of payment or 
 deposit of the merchandise in customs custody. Claims may be made 
 only by persons who have paid the duties or in whose name they have 
 been paid. The claims must be supported by customs receipts. No 
 interest is allowed on refunds. 
 
 FRENCH EXPORT CONTROLS 
 
 With minor exceptions, French exports require governmental ap- 
 proval, in part because of the foreign exchange aspect of export trans- 
 actions. This foreign exchange requirement is fulfilled when the 
 exporter executes a commitment (engagement de change) to repatriate 
 the foreign exchange proceeds resulting from the export transaction 
 within 1 month of collection. 
 
 As indicated previously, there are some exceptions to this require- 
 ment. French exporters are permitted to retain, in what are known 
 as EFAC accounts (see page 46) 10 percent of their export proceeds, 
 both dollar and nondollar, for the importation of raw materials and 
 equipment for their individual industries. Import licenses are re- 
 quired in France for such imports, but are granted automatically. 
 
 In addition, under the equipment and raw materials procedure 
 (see page 46) , some exporters are permitted to use for their individual 
 account an additional 5 percent of their export proceeds to purchase 
 equipment. Import licenses must be obtained for those imports also 
 but are likewise issued automatically. 
 
 The French Exchange Office administers export controls. It has the 
 legal authority to pass on each individual export and reexport trans- 
 action and to require a license in every case. In practice, this is not 
 done. Instead, export licenses are required only for certain listed 
 commodities, usually short-supply commodities and strategic mate- 
 rials. Notification of additions or subtractions from this official list 
 are published in the Journal Offlciel. For shipments requiring an ex- 
 port license, the license serves also for the exchange commitment, and 
 the single document suffices. f 
 
 Export licenses are issued by the Exchange Office, usually following 
 the submission of license applications to technical commissions in the 
 responsible Ministries. They are valid for 3 months. 
 
 66 
 
Prior approvals are also granted by the Exchange Office for ex- 
 ports under conditions and procedures similar to those operating for 
 imports. These prior approvals have no value for customs purposes. 
 An export license must still be obtained for each export operation 
 subject to license. 
 
 Exporters wishing to ship goods of current production for which, 
 without yet being in possession of orders, they have established ex- 
 port programs, and for which shipments must therefore be scheduled, 
 may apply to the technical commission of the responsible Ministry to 
 open an account for export operations involving a single commodity 
 for shipment to various countries. Actual exports of license-controlled 
 commodities are permitted only under duly issued licenses charged 
 against the open account. 
 
 Most export declaration-exchange commitments are exempt from 
 the visa of the Exchange Office but some require this visa. All, of a 
 value in excess of 50,000 francs, must be domiciled with an approved 
 bank, which is responsible to the Exchange Office for the use of the 
 exchange commitment. 
 
 Submission of export license applications or exchange commitments 
 is not required for shipments from France to French possessions and 
 Territories, except for the French coast of Somali. 
 
 Although export licenses are not usually required for reexports 
 of foreign merchandise which has been imported into France under 
 a regime of suspended duty (warehousing, transshipment, transit, 
 customs custody, etc.), a transit authorization certificate issued by 
 the Exchange Office must now be presented at the French customs 
 exit point for reexport to Soviet bloc destinations of specified strategic 
 commodities originating in certain foreign countries. 
 
 The transit authorization certificate is not required for reexports of 
 goods which have been introduced into French customs territory under 
 an import license or which have been conveyed across French customs 
 territory without unloading during transportation under customs 
 surveillance. 
 
 UNITED STATES IMPORT CONTROLS 
 
 Information on United States import duties is obtainable from the 
 Commissioner of Customs, U. S. Department of the Treasury, 
 Washington 25, D. C, or from local collectors of customs. 
 
 Absolute import quota restrictions on commercial products are 
 limited, for the most part, to certain farm products for which officially 
 supported prices in the United States are provided by law. Informa- 
 tion on import quotas on controlled dairy products, and on permits 
 for imports of oats, rye, barley, and wheat for planting purposes, may 
 be obtained from the Import Division, Foreign Agricultural Service, 
 
 67 
 
U. S. Department of Agriculture, Washington 25, D. C. Information 
 regarding import quotas on sugar is furnished by the Sugar Division, 
 Commodity Stabilization Service, U. S. Department of Agriculture. 
 Information on other commodities subject to import quotas is available 
 from the Division of Entry, Value and Penalties, Bureau of Customs, 
 U. S. Department of the Treasury. 5 
 
 For imports of arms, ammunition, and implements of war, an 
 import license must be obtained from the Office of Munitions Control, 
 U. S. Department of State, Washington 25, D. C. 
 
 PROMOTION OF EXPORTS TO DOLLAR AREA 
 
 In 1950, at the instigation of the French Ministry of Finance and 
 Economic Affairs, an organization of private businessmen known as 
 the Franc-Dollar Committee was created with the primary objective 
 of stimulating exports to the dollar area and assisting groups and 
 individual companies which seek to enter the dollar market. The Com- 
 mittee is also actively sponsored by the Conseil National du Patronat 
 Francais (which corresponds roughly to the United States National 
 Association of Manufacturers) and the chambers of commerce of 
 Paris, Lyon, and Marseille, and other centers. The Committee 
 distributes information concerning potentialities of the United States 
 and Canadian markets and undertakes surveys of various industries. 
 
 The Franc-Dollar Committee consists of 50 members chosen from 
 the membership of the sponsoring organizations and 25 of these (heads 
 of companies with long experience in exporting to the United States) 
 form the "direction" committee. The Committee has a representative 
 in Washington, whose office is located in the French Embassy. The 
 French Government covers 50 percent of the expenses of the 
 Washington office. 
 
 For the past 3 years the Franc-Dollar Committee has also been very 
 helpful to the United States trade missions to France. It has actively 
 participated in Paris and other large French cities in organizing — 
 together with local chambers of commerce — meetings and consulta- 
 tions between French industrialists and members of United States 
 trade teams. Franc-Dollar representatives have contributed to the 
 better understanding of United States commercial policies. 
 
 5 For other controls of the U. S. Department of the Treasury, see footnote 2, page 47. 
 
 68 
 
CHAPTER IV 
 
 Marking and Labeling 
 
 Certain foreign products imported and/or distributed in France 
 are required by a number of French laws to bear various types of 
 marking and labeling. The laws in many cases are of long standing 
 and all are rigidly enforced. Chiefly, they are directed against fraud 
 concerning origin. These laws fall into two main categories: (1) 
 Those which require an indication of origin on specified products in 
 all cases; and (2) those which require or may require, under certain 
 conditions, a "corrective" indication of origin whether or not the 
 particular product concerned already is required by law to show the 
 country of origin. 
 
 Special import and export restrictions based not only on marking 
 legislation but also on pure food, public health, quarantine, and other 
 laws, apply notably to animals, animal products, live plants, fresh 
 fruits, foodstuffs, pharmaceuticals, etc. 
 
 Some of the products for which special marking is required, and the 
 legal bases of the requirements, are discussed below. Further infor- 
 mation concerning marking requirements for specific commodities may 
 be obtained from the European Division, Bureau of Foreign Com- 
 merce, U. S. Department of Commerce, Washington 25, D. C. 
 
 On external containers of goods shipped abroad, Ameri- 
 can exporters are urged to mark 
 
 United States of America 
 
 Senate Concurrent Resolution No. 40, adopted July 30, 1953, 
 suggests that such marking will help to publicize American-made 
 goods overseas. 
 
 69 
 
NATURE OF COUNTRY-OF-ORIGIN MARK 
 
 The indication of origin must be in manifestly apparent, indelible 
 Latin characters. It must consist simply of the name of the country 
 of origin, exclusive of the names of Provinces or subdivisions, such as 
 individual States of the United States. Territories geographically 
 separated from the countries to which they belong may be designated 
 by their own names — such as Alaska, Puerto Eico, or Hawaii. 
 
 Marking of origin under the law of 1932 (see below) may be either 
 in the language of the country of origin or in French. The law orig- 
 inally required that the name of the country of origin be in full, with- 
 out abbreviation, the additional words "Made in ," "Imported 
 
 from ," etc., being permitted but not required. Since 1938, 
 
 the use of "U. S. A.," "Made in U. S. A.," "Printed in U. S. A." are 
 acceptable as forms of marking. This permitted use of abbreviations 
 under the 1932 law does not affect marking requirements under other 
 laws or the requirements for corrective marking. (See section "Cor- 
 rective Indication of Origin.") 
 
 ORIGIN MARK ON SPECIFIED PRODUCTS 
 
 The marking requirements that affect the widest range of products 
 in the first of the two main categories are provided for in the law of 
 April 20, 1932. The other principal law is that of July 11, 1906 (am- 
 plified by laws of June 28, 1933, and August 30, 1930), requiring spe- 
 cial marking on preserved vegetables, preserved fish, dried prunes, and 
 walnuts. Still other laws require marking of wines, honey, milk prod- 
 ucts, margarine, and other commodities. 
 
 The French mark-of-origin law of April 20, 1932, authorizes the 
 Government to issue decrees requiring an indication of the country 
 of origin on imported foreign products, such products to be specified 
 in the decrees. 
 
 The 1932 law prohibits the entry, warehousing, circulation, sale, 
 placing on sale, or holding for commercial purposes of foreign prod- 
 ucts not marked as required by the law and decrees issued in applica- 
 tion of the law. Commodities intended for reexport are generally 
 exempt from the requirements, if neither the products nor their pack- 
 ings bear any indication which might create confusion as to their true 
 origin. The law is applicable in Algeria, the French Oversea Depart- 
 ments, and other French oversea areas, with exceptions which may be 
 granted by the French Government upon request of the interested 
 extrametropolitan areas. Products of French oversea areas imported 
 into France are not subject to the 1932 marking requirements unless 
 they have not been produced (grown or manufactured) in the oversea 
 areas. 
 
 70 
 
Numerous decrees covering a wide range of commodities have been 
 issued under the 1932 marking law. These decrees usually specify 
 the required manner of application and location of the mark on the 
 commodity. Frequently a minimum height of letters is prescribed 
 and, in many instances, both the products and the containers are re- 
 quired to be marked. For articles too small for marking, decrees 
 frequently specify that only the wrappers, boxes, or labels require 
 marking. Marking of origin under the law of 1932 and other laws 
 prescribing marking of specified products, whether or not they bear 
 an indication considered as false or misleading, does not take the 
 place of "corrective" marking in cases where the latter is required. 
 However, usually when the "corrective" is required and an indication 
 of origin is also required under another law, the "corrective" alone 
 may fulfill both requirements. In some cases, however, both will be 
 necessary. An indication of origin may be required to be applied 
 on the particular product in a specified place and manner under the 
 law of 1932 or other law, and, at the same time, the "corrective" 
 indication may be required to be applied elsewhere on the same 
 product, label, or container. 
 
 The marking provisions of the law of April 20, 1932, although 
 still incorporated in article 40 of the French customs code, and of 
 legislation under the law have not been applied in practice since 
 World War II. 
 
 Certain Foods and Beverages 
 
 Under special laws and regulations, principally a law of June 11, 
 1906 (amplified by laws of June 28, 1913, and August 30, 1930), 
 all preserved vegetables, preserved fish, dried prunes, nuts, and wal- 
 nuts must be marked specially to show the country of origin. Other 
 laws affect similarly wines, honey, milk products, and margarine. 
 
 The name of the country of origin must be inscribed on each con- 
 tainer of preserved fish, vegetables, prunes, nuts, and walnuts by 
 stamping in relief or by diesinking, in very apparent Latin char- 
 acters at least 4 millimeters high, in the middle of the lid (top) or 
 on the bottom, whichever bears no other inscription, and the same 
 indication must be shown on the outer shipping containers. On 
 inner and outer containers (boxes other than metallic, barrels, sacks, 
 glass containers, and cardboard packages) not susceptible of the ap- 
 plication of this type of stamping, the indication of origin may be 
 applied in such a manner that the mark cannot be removed without 
 damage to the container. It must be embossed or sunken on either 
 the top or the bottom on metal cans, no other impression being on the 
 surface selected for marking. 
 
 71 
 
Requirements for wording the indication of origin are the same 
 as under the 1932 law, except that the name of the country of origin 
 must appear in full without abbreviation. 
 
 "Preserved fish" means fish preserved by any process (fish in brine, 
 simple salted, marinated, "au naturel," etc.) and preparations with 
 a fish base (pastes, etc.), but not fish eggs (caviar, roe, etc.), crus- 
 taceans (shrimp, lobster, crayfish, crabs, etc.), and mollusks (oysters, 
 etc.). "Preserved vegetables" (including tomato extract and tomato 
 puree) include those preserved "au naturel" or in their juices to the 
 exclusion of dried vegetables or those pickled in salt or in brine, in 
 oil or vinegar, sauerkraut, etc. 
 
 Foreign Margarines 
 
 Foreign margarines may not be imported into France unless they 
 conform to the requirements of French legislation and to the condition 
 that the name of the country of origin shall be inscribed on the con- 
 tainers and packings in very apparent characters (law of April 16, 
 1897, modified by law of February 28, 1931). 
 
 The envelopes of cubes or cakes of margarine of foreign manufacture 
 must bear the inscription "importe" with the indication of the country 
 of origin and, in a compass at least 10 millimeters high, the name and 
 address of the importer or of a sole wholesale agent or of a general 
 agent established in France (decree of December 30, 1931). French 
 legislation requires also that the envelope of each cube or cake must 
 have on at least 3 sides, in plain, legible characters, at least 10 milli- 
 meters high and 2 millimeters wide, the words "margarine" or "oleo- 
 margarine." The word "margarine" or "oleomargarine" may be ac- 
 companied by a trademark, but it may not be a mark used for butter or 
 other milk products. Other lettering must not be over 3 millimeters 
 in height. 
 
 Milk Products 
 
 Milk products (butter, cream, cheese, whole, skim, powdered and 
 other concentrated milks, lactated meal or flours for infants, and ice 
 cream) may be imported into France only when the name of the 
 country of origin is inscribed on the packings in very apparent char- 
 acters. The marking on cheese should be placed on the naked mold. 
 
 Wines 
 
 A law of February 1, 1899, prohibits importation, warehousing, 
 transit, and circulation of all foreign wines not bearing on their con- 
 
 72 
 
tainers an indelible mark indicating the country of origin. The pro- 
 hibition does not apply to wines which are shipped from one foreign 
 country to a destination in another foreign country in international 
 transit and which do not break bulk in France. Neither does it affect 
 operations of a noncommercial character. Indication of the country 
 of origin must be burned or carved in an indelible manner on the cases 
 and the kegs containing the foreign wine. Indications painted in oil 
 are also admissible. 
 
 A law of January 1, 1930, prescribes that wines imported from for- 
 eign countries may not circulate for sale, be placed on sale, or be sold 
 unless an indication of the country of origin and the degree of alcoholic 
 content are clearly shown on the containers, invoices, etc. 
 
 Indication of the country of origin is not necessary for wines im- 
 ported in bottles but the containers must be fitted with labels bearing 
 inscriptions sufficiently precise as to the origin of the wine. The in- 
 dication of alcoholic content is required only at the moment when the 
 wines are released for consumption. Wines in bottles bearing recog- 
 nized foreign appellations of origin are exempted from any other 
 indication. 
 
 The law of January 1, 1930, applies only to wines declared for con- 
 sumption. 
 
 CORRECTIVE INDICATION OF ORIGIN 
 
 Two principal French laws exist under which a "corrective" indica- 
 tion of origin is or may be required on the products themselves and on 
 their labels, containers, and other packing materials. These laws are 
 the customs law of January 11, 1892 (article 39 of the French customs 
 code) , and a law of March 26, 1930, for the prevention of false indica- 
 tions of the origin of merchandise. Both apply in Algeria and the 
 French Oversea Territories. 
 
 The law of January 11, 1892 (article 39 of the French customs code) , 
 prohibits the importation, warehousing, transit, and circulation in 
 France of all foreign products, natural or manufactured, which (1; 
 bear either on the goods or on the packing, boxes or cases, bales, 
 wrappings, bands or labels, etc., a trademark, name, sign, or any 
 indication whatever of such a nature as to lead to the belief that the 
 products were manufactured in France or that they are of French 
 origin; or (2) were produced in a locality of the same name as a 
 French locality, all of which do not bear, along with that name, trade- 
 mark, etc., the name of the country of origin and the word "importe" 
 in manifestly apparent characters. 
 
 The law of March 26, 1930, for the prevention of false indications of 
 the origin of merchandise prohibits the application or the use with 
 knowledge, on natural or manufactured foreign products held or 
 transported for sale, placed on sale, or sold in France, or on packing 
 
 73 
 
materials, boxes or cases, bales, wrappings, bands, labels, etc., of such 
 goods, of a trademark, a name, a sign, or any indication whatever of a 
 nature to lead to the belief that the products were manufactured in 
 France or that they are of French origin, or that they are of a different 
 origin than their true origin, whether French or foreign. 
 
 Marks which may be construed as misleading include the following : 
 Names or pictures of French cities, places, monuments, or personages ; 
 the French national colors, emblems, coat-of -arms ; and the name, 
 initials, trademark, sign, design, etc., of, or used by, a firm or merchant 
 established in France, even if only a branch or sales organization of a 
 foreign firm. 
 
 It is prohibited to use marks which incorrectly imply that a foreign 
 product is of French origin or that any product is of an origin different 
 from its true origin, whether French or foreign, through addition, 
 obliteration, or any alteration of the text originally appearing on the 
 product, through advertisements, booklets, circulars, catalogs, or 
 posters, through the presentation of a false invoice or certificate of 
 origin, through verbal affirmation, or by any other means. 
 
 The law of 1892 applies only to foreign products and to importation, 
 warehousing, transit, and circulation in France, and the 1930 law 
 applies to French and foreign products and prohibits holding, trans- 
 porting for sale, placing on sale, and sale in France of products with 
 false or misleading marks. This makes possible the prosecution of 
 offenders after importation has been accomplished. 
 
 In the practical application of article 39, and the law of March 26, 
 1930, products subject to the prohibitions established by these meas- 
 ures may be imported, warehoused, and circulated in France despite 
 the prohibitions, provided they are properly marked in the required 
 manner with a corrective indication of origin. The corrective indica- 
 tion of origin must carry the idea of importation, of foreign manu- 
 facture or production, and may consist of such inscriptions as "Im- 
 porte de ," "Fabrique en ," "Originaire de ," 
 
 followed by the name of the country of origin. Expressions such as 
 "Fabrication Anglaise" or "Produit Canadien" are also permissible. 
 On the other hand, the single word "Importe" and "Produit importe" 
 are unacceptable, as is the name of a foreign city without the name of 
 the country in which it is situated. 
 
 The corrective, to be acceptable, must fulfill the following 
 conditions : 
 
 It must be in the French language. However the English expres- 
 sion "Made in ," followed by the name of the country of 
 
 origin in the English language, is permitted. 
 
 It must not contain any abbreviation except when lack of space for 
 the application of the mark necessitates the contraction of "Fabrique 
 
 74 
 
en " into "Fab ," as, for instance, for watches or 
 
 sockets of small incandescent lights; the abbreviations "U. S. A.," or 
 "E. U. A.," etc., are also permissible. 
 
 The corrective must be in manifestly apparent and indelible char- 
 acters. Although the characters used in the corrective need not be as 
 large as those of the inscription for which the corrective is intended, 
 the characters must be of such size that both may be equally visible. 
 The corrective may not be applied to movable related parts easily 
 detachable. 
 
 It must be placed beside or following the misleading mark and form 
 an integral part of it. However, on articles intended to be incorpo- 
 rated with articles manufactured in France (clock or watch dials, 
 woven labels for tailors, advertisement boarding, etc.), the corrective 
 may be so placed that it will not be apparent after mounting; on 
 articles of small dimensions (penknives, small vases, tool handles, 
 pencils, etc.) the corrective may be applied at some other, but likewise 
 visible, place than in juxtaposition with the misleading mark. 
 
 It must be placed on the merchandise itself, if the latter bears an 
 indication requiring a corrective (and on the packing if the mislead- 
 ing indications appear thereon), and must be reproduced as many 
 times as corrections are made. For instance, pen nibs bearing a French 
 trademark may not be imported if the corrective appears only on 
 the boxes. 
 
 Misleading indications of origin of a regional nature, such as "cham- 
 pagne," "cognac," and "Roquefort," may not, under the law of March 
 26, 1930, be held or transported for sale, placed on sale, or sold in 
 France even with a corrective. 
 
 The following special conditions are prescribed for the application 
 of corrective marking: 
 
 Accessories and Labels 
 
 Accessories. — On articles intended to be incorporated with articles 
 manufactured in France, the corrective may be placed so as not to be 
 apparent after mounting. Such articles include dials for clocks, 
 watches, and meters, etc. (For imported whole watches, a corrective 
 on the dial and the case suffice even if the misleading indication is 
 reproduced on other parts of the watch.) 
 See also the section "Exemptions From Corrective Marking." 
 Woven labels for tailors and clothing houses. — The corrective 
 may be placed on the portion of the ribbon between two labels, i. e., 
 the portion cut when applying labels on garments. 
 
 75 
 
Advertising Posters 
 
 Advertising posters and placards made up in the names of French 
 establishments must bear a corrective but it may be placed on the back 
 in a manner so as to be invisible after the placard is set up; or the 
 corrective may be expressed in terms specifying the origin of the 
 placard alone, in a manner which will not lead to confusion in deter- 
 mining the nationality of the French establishment setting up the 
 placard — e. g., an enameled plate imported from Switzerland bearing 
 the inscription "Chocolat Menier" may be fitted with the ordinary 
 corrective "Importe de Suisse" on the back of the plate or on the 
 right side, with the particular corrective "Plaque emaillee de fabrica- 
 tion Suisse." 
 
 Automobiles 
 
 When automobiles of foreign manufacture are imported fitted with 
 marks utilized by French firms, the corrective must be placed close 
 beside the principal mark in indelible and apparent characters. This 
 requirement applies to new automobiles imported into France by 
 their owners even though intended for personal use. However, it 
 does not apply to automobiles imported temporarily, duty free, 
 unless the importer fails to reexport the vehicle within the fixed 
 period, in which case the corrective requirement is strictly applied. 
 
 Fashion Magazines, Books, Post Cards 
 
 Fashion magazines. — Fashion magazines published in France and 
 printed abroad may not be imported without the inscription "Imprime 
 
 en " on the first page in boldface type at least 4 millimeters in 
 
 height. The inscription must appear on a nonillustrated part and must 
 be disengaged and isolated from all other printed text in a manner 
 to set it off plainly ; fashion magazines published and printed in for- 
 eign (non-French) countries are subject to the requirement of the 
 
 corrective "Edite en ," in the same conditions as above, if their 
 
 presentation has the effect of giving them the aspect of a French pro- 
 duction. 
 
 Books, periodicals, and booklets in French. — The use of the 
 French language in a book, periodical, or booklet constitutes, under 
 French regulations, an indication of a kind to lead to the belief that 
 the work is of French origin. Such books offered for sale in France 
 are considered by the buyers to be of French origin. Therefore, con- 
 trary to the general rules followed for application of article 39 of 
 
 76 
 
the customs code, a distinction is made as to whether imports of works 
 of this kind are for commercial operations of resale or of general 
 distribution, or if they are imported for a personal or a special re- 
 stricted use, such as the information of members of an enterprise or a 
 private circle (technical booklet) . 
 
 The country of origin is required on publications for resale or gen- 
 eral distribution; publications for personal or restricted use do not 
 require a corrective marking. 
 
 For works in the French language, the corrective may consist simply 
 of the name and address of the foreign printer with a mention of the 
 country in which the printing establishment is located. It should be 
 at the end of the publication on a page containing the last text mak- 
 ing really an integral part of it and, therefore, not easily detachable 
 without injury to the publication. 
 
 A French decree of June 21, 1943, on copyrighting, requires printers, 
 publishers, and principal copyrighters of imported works who place 
 on public sale or distribute these works in France to indicate thereon 
 whether the works are of French or foreign origin, the name and 
 address of the printer and of the producer, and the month and year 
 of production or publication. (See also chapter V, page 85.) 
 
 Books in the French language published in France and printed 
 in foreign countries, therefore, may be imported into France, pro- 
 vided the name of the publisher, or of the principal French copy- 
 righter, and the foreign printer appear on the cover, the back, or the 
 guard page. There must be no ambiguity in the indication of origin. 
 For instance, "X Brussels-Paris" would not fulfill the require- 
 ment. 
 
 The foregoing marking requirements for books, periodicals, and 
 booklets apply likewise to picture books and albums for coloring. 
 
 Post cards. — Post cards representing views of cities, sites, etc., may 
 be marked with the required corrective on the correspondence side, 
 but not in the space reserved for the stamp. 
 
 Merchandise in Transit 
 
 Merchandise in international transit from foreign country to for- 
 eign country bearing misleading marks may be admitted with the 
 corrective worded either in the same language as the misleading marks 
 or in the language of the country of destination. 
 
 77 
 
EXEMPTIONS FROM CORRECTIVE MARKING 
 
 In addition to articles in use, the following goods are exempt from 
 the requirement of corrective marking : 
 
 Simple accessories and elements of manufacture. — Imports 
 which constitute simple accessories or elements of manufacture des- 
 tined to be incorporated with articles of French manufacture and 
 bearing the mark or name of the French manufacturer do not require 
 a corrective, provided the articles in question are addressed direct 
 from the country of origin to the French manufacturer who is to use 
 them in his products, e. g., champagne stoppers, mechanical stoppers, 
 buttons, and packings imported empty. Such articles as containers for 
 lipstick, rouge, or powder which have a value greater than that of the 
 product they are to contain must be inscribed with a corrective if they 
 bear the names of French houses. This corrective must be so worded 
 as to prevent any confusion concerning the origin of the content, e. g., 
 
 "Emballage importe de ," "Tube fabrique en ," "Etui 
 
 fabrique en ," etc. 
 
 Positive exposed films. — No corrective is required for marks of 
 manufacturers of sensitized films — "Kodak," "Agfa," etc. — generally 
 appearing in various spaces left free by the picture along the length 
 of the film, as these marks refer to the film manufacturers and not 
 to the impressions. 
 
 Articles bearing marks of ownership. — Articles imported with 
 marks of ownership (not to be confused with trademarks or manu- 
 facturers' marks) placed thereon by request of individuals, societies, or 
 administrations ordering the articles for their own use and not for 
 commercial purposes do not require a corrective if they are addressed 
 direct from abroad to the user-owners in France. The corrective is 
 required, however, when articles — such as ashtrays, glasses, and de- 
 canters — bearing the names of manufacturers of various products 
 are to be distributed as advertising. 
 
 ARTICLES WITH TRADEMARK OR HALLMARK 
 
 Any product bearing illegally a trademark, a commercial mark, 
 or a trade name is subject to seizure, at importation, in any part of 
 the French Union in which this mark or commercial name has the 
 right to legal protection. 
 
 Articles of gold, silver, or platinum may be imported into France 
 only when they are of the standard required by law for articles of 
 French manufacture intended for domestic sale. Therefore, such 
 imported articles even in a semimanufactured state must be sent, 
 following customs clearance, under seal and bond to the Bureau de la 
 Garantie to be assayed and stamped. Upon payment of an assay fee, 
 the articles are turned over to the importer. 
 
 78 
 
CHAPTER V 
 
 Investing in France 
 
 Owing to the relatively high cost, as well as relatively small scope, 
 of bank financing and the traditional preference of French investors 
 for tangible capital, the private capital market has been rather limited 
 and the share of public financing fairly important. However, in 
 recent years the proportion of investments financed by public funds 
 has been gradually decreasing (from about 30 percent during the past 
 several years to 24.5 percent in 1955). The remaining funds for 
 the country's economic development needs have been derived from 
 self -financing, security issues, and other sources. 
 
 The total book value of United States investment in France as of 
 1956 (the latest available year) is estimated by the Department of 
 Commerce at nearly $426 million — $230 million in manufacturing, 
 $136 million in petroleum production, $6 million in mining and smelt- 
 ing, $5 million in public utilities, $19 million in trade, and $30 million 
 in other sectors. The greater part of this capital represented re- 
 invested earnings, which totaled some $255 million in the period 
 1946-56. New direct private United States investment in France 
 in the same period amounted to $77 million. 
 
 GOVERNMENT POLICY ON INVESTMENT 
 
 The French Government encourages the investment in France of 
 private foreign capital through its policy with respect to the remit- 
 tance of earnings and repatriation of capital. However, the would-be 
 investor will find that getting the authority to invest in France is a 
 much more difficult procedure now than in the past. 
 
 Prior to World War II, the organization in France by foreigners 
 of a commercial concern of virtually any type was a comparatively 
 simple procedure and, with few exceptions, no special authorization 
 was required to do business. Americans could exercise the same com- 
 mercial rights as French citizens upon compliance with a fairly small 
 number of regulations involving no great difficulty. The primary re- 
 
 79 
 
sponsibilit.y of both foreign and domestic concerns was to inscribe 
 the name of their business in the Register of Commerce and to furnish 
 certain data regarding the type of business and its proposed activities. 
 
 Authorizations Needed by Investors 
 
 Since 1939, a number of very important changes have been made 
 in the laws and regulations applicable to the creation of new enter- 
 prises by both French citizens and foreigners. The formalities are 
 now so complex that the services of competent legal counsel are 
 necessary. 
 
 None of the information supplied in this handbook is intended to 
 serve in lieu of legal counsel. Such advice may be obtained from 
 attorneys in the United States who specialize in foreign law. 
 
 A list of attorneys practicing in France may be purchased for $2 
 from the Bureau of Foreign Commerce, XL S. Department of 
 Commerce, Washington 25, D. C, or from the Department's Field 
 Offices. 
 
 It is difficult for foreigners to obtain the necessary authorization to 
 engage in certain types of business in France, and in no case is it 
 possible to open a new business there without the submission of docu- 
 ments and without approval and authorization from the Government. 
 Some of these formalities take a long time — from several months to 
 as much as a year. 
 
 Two kinds of authorizations must be obtained : The authorization 
 through the Exchange Office (Office des Changes) for any nonresident 
 person or firm to invest funds in France in any business; and the 
 commercial card (carte de commercant) granted by the local authori- 
 ties on the recommendation of several organizations. Certain types 
 of enterprises must have additional authorization. 
 
 Authorization through the Exchange Office. — For a discussion 
 of this authorization, see particularly the section "Entry and Re- 
 patriation of Capital." 
 
 Commercial card (carte de commercant). — Article I of a law of 
 November 12, 1938, supplemented by a law of October 8, 1940, pro- 
 hibits the establishment in France of any kind of business by a for- 
 eigner unless he or she has applied for and obtained a "commercial 
 card." 
 
 According to a decree of November 26, 1949, the commercial card is 
 issued by the prefect of the appropriate French Department upon 
 favorable decision by the Ministry of Industry and Commerce. It is 
 issued only to foreigners residing in France and already in possession 
 of a sojourn card (carte de sejour), described in chapter IX, page 103. 
 
 80 
 
Possession of a commercial card is an absolutely essential prerequisite 
 to the establishment of a business in France by a foreigner. 
 
 (For employees of an already established firm, application for a 
 commercial card must be filed by each foreign partner of partnership 
 organizations; each foreign partner of limited partnerships; the 
 foreign manager of limited-liability companies ; the president of the 
 board of directors of corporations ; the foreign manager of a branch 
 office of a corporation which is established in a foreign country; the 
 manager of a foreign firm established in a foreign country which 
 appoints a French citizen as manager of a branch office, except for 
 insurance companies; and the foreign representative or agent of a 
 firm located abroad having no branch office in Paris. ) 
 
 Interested parties may apply at the administrative district authori- 
 ties (prefecture) in the French Department where the business is to 
 be conducted. Persons still abroad who intend to enter France for the 
 purpose of establishing a business may submit their applications to any 
 French consulate. 
 
 Applicants are required to furnish proof that they have been issued 
 a French sojourn card ; if from the United States, that they have never 
 been sentenced by a court in the United States 1 ; they have never been 
 bankrupt, or dishonorably discharged from Government service in 
 the United States (letters from reputable banking houses which have 
 known of the applicant's business standing for a number of years, as 
 well as personal affidavits notarized by the American Embassy's 
 Notarial Section, have been accepted) ; and that they have never been 
 bankrupt in France. 
 
 Importance of Residence Factor 
 
 French law regarding the creation of commercial enterprises usu- 
 ally makes a distinction between residents and nonresidents rather 
 than between foreigners and French citizens. If a foreigner is domi- 
 ciled in France and has become a resident in the French legal sense, 
 his application for authority to establish a business is considered in 
 virtually the same manner as if he were a French citizen domiciled in 
 France. Conversely, if a French citizen who has been resident abroad 
 for a considerable period should desire to create a French enterprise, 
 he would be considered as a nonresident in respect to the establishment 
 of the business. The question of "residence" is partially determined 
 by the establishment of a domicile in France. Evidence that the 
 person concerned can be considered as a resident may be based on a 
 number of factors, such as the obtaining of a sojourn card from the 
 
 1 It is understood that some jurisdictions in the United States will furnish this certifi- 
 cation ; French authorities have been accepting in some Instances a letter from the Ameri- 
 can Embassy's Passport Section stating that the applicant is an American citizen and the 
 bearer of a valid United States passport. 
 
 81 
 
Prefecture of Police, the leasing of an apartment or house, or the 
 renting of business premises, showing that the person intends to 
 remain in France. 
 
 The whole question is determined by what is called "animus ma- 
 nendi," that is to say, the will and intent in the mind of the person 
 to stay in France. In practice, within a few months after a foreigner 
 comes to France he may consider himself a resident after taking the 
 aforementioned steps. It is then up to the French authorities, or, 
 as a final resort, the French courts, to decide whether or not he 
 actually is a resident in connection with any particular authorization 
 requested as a resident of France. 
 
 If the foreigner becomes classed as a resident, his business would 
 not be regarded as a foreign enterprise. However, he must obtain a 
 permit from the Exchange Office to invest in France the foreign 
 capital that may be necessary for the establishment of the business 
 and he must obtain a businessman's card. A foreigner who has 
 become a resident may obtain a license from the Exchange Office to 
 convert and transmit to his native country normal and reasonable 
 profits which he may receive from a business created by him in France. 
 
 A resident, or a person considered domiciled in France, is subject 
 to French income and business taxes. 
 
 Tariff and Trade Concessions 
 
 It has been the traditional policy of the French Government not 
 to grant tariff, trade, or other concessions as inducements to invest in 
 France. In general, no exceptions to this rule have been made. 
 
 ENTRY AND REPATRIATION OF CAPITAL 
 Screening Procedure and Criteria 
 
 The Exchange Office and the Ministry of Finance regulate foreign 
 investment in France and all operations involving assets in France in 
 which nonresident foreigners have an interest. As a general rule, 
 nonresident foreigners may not acquire business or real property in 
 France without the prior authorization of the Exchange Office. In 
 some cases, however, exchange control regulations permit the banks 
 to carry out certain investment operations under well-defined condi- 
 tions without reference to the Exchange Office, e. g., certain "capital 
 account" operations. 
 
 Applications to invest foreign capital or to create a French con- 
 cern to engage in an industrial activity are not always considered by 
 the Exchange Office alone, but may be considered also by the Ministry 
 
 82 
 
of Industry and Commerce and other interested Ministries; each 
 application is judged individually. No fixed criteria are used in 
 judging applications, but in general the Exchange Office favors in- 
 vestments that will result in a net gain for France in foreign ex- 
 change. Favorable consideration, therefore, is more likely to be 
 given to : 
 
 1. Investments involving an initial outlay of capital for the pur- 
 chase in France of equipment, real estate, and machinery which will 
 outweigh any future requirements of foreign exchange for payment, 
 in the country of origin, of dividends, interest, and taxes ; and 
 
 2. Investments which may result in an increase in exports or a de- 
 crease in France's dependence on imports. 
 
 Applications that meet these conditions must also be examined by 
 the appropriate Department of the Ministry of Industry and Com- 
 merce, which considers the overall effect of the investment on the 
 French economy, particular attention being given to the matter of 
 competition with existing firms in the industry. In general, the 
 establishment of new firms in industries where output of existing 
 firms entirely covers French requirements is not favored. 
 
 The Exchange Office usually acts on the advice of the Ministries. 
 
 If the application involves the investment of 20 million francs or 
 more, or the creation of an extremely large enterprise, it is decided 
 by the Ministry of Finance upon the advice of the Committee on In- 
 vestments (Comite d'Investissement) , which is comprised of repre- 
 sentatives of the Exchange Office, the Ministry of Industry and Com- 
 merce, the Ministry of Economic Affairs, the Ministry of Foreign 
 Affairs, and any other agencies that might have a special interest in 
 the application. 
 
 Exchange Controls 
 
 Operations involving assets in France owned by nonresident for- 
 eigners are subject to the control of the Exchange Office. Currently, 
 two different systems are applied to the repatriation of private foreign 
 capital invested in France. 
 
 To encourage foreign investments, the French Government has au- 
 thorized holders of investments (in hard currencies) made after Au- 
 gust 31, 1949, to transfer freely the proceeds of liquidated capital 
 assets, provided they complied with specific administrative procedures 
 when the investment was made, as well as when liquidation was re- 
 quested. 
 
 For capital investments not falling within the scope of the fore- 
 going conversion guaranty, by virtue of either the financing of such 
 investment or the period in which it was made, a special "capital ac- 
 count" system has been created to facilitate the management and use 
 
 83 
 
of such foreign- owned capital assets as are now not directly transfer- 
 able. "Capital accounts" opened in France by nonresidents may be 
 credited or debited with the franc proceeds resulting from operations 
 involving specific categories of foreign-owned capital assets, e. g., 
 French securities, real property, or real property rights. Within cer- 
 tain limits, they may be used also to defray living expenses in France. 
 
 Investments made prior to August 31, 1949, can be repatriated indi- 
 rectly. According to the terms of Avis No. 573, of July 11, 1954, franc 
 funds growing out of such investments can be transferred, within 
 France, from the capital account of a resident of the United States to 
 any capital account owned by a person residing in the dollar area. 
 For the purposes of Avis No. 573, the following are considered as part 
 of the dollar area: The United States, with Alaska, Hawaii, the 
 Panama Canal Zone, Puerto Ilico, the Virgin Islands, Samoa, and cer- 
 tain Pacific Islands (Carolinas, Marianas, Marshalls, and Guam) ; 
 Canada; the Philippines; Colombia; Costa Eica; Cuba; Dominican 
 Eepublic; Guatemala; Haiti; Honduras; Nicaragua; Panama; El 
 Salvador; and Venezuela. There is a regular market for capital- 
 account francs. 
 
 According to French exchange control regulations (Avis No. 482 
 dated December 5, 1950), authorization of the Exchange Office may be 
 requested for the conversion into foreign exchange of normal and cur- 
 rent payments to nonresidents and the transfer of such foreign ex- 
 change abroad. As defined in the exchange control regulations, 
 normal and current payments include the following in particular: 
 Payments resulting under commodity trade, interest and dividends, 
 income from profit-sharing certificates (parts de benefice) of corpo- 
 rations or partnerships, urban or rural rents, and net operating in- 
 comes of business concerns, as well as any other periodical return on 
 an investment. 
 
 For royalties on American-owned patents leased in France, the Ex- 
 change Office permits transfers of percentages agreed on by the con- 
 tracting parties when the original patent agreement had been approved 
 by the Exchange Office (see the section "Patent Licensing") . 
 
 Industrial Investment Guaranties 
 
 The United States and France have concluded an agreement under 
 which private American investors may apply to the International Co- 
 operation Administration, U. S. Department of State, for : 
 
 1. A guaranty which would assure the conversion into dollars of 
 francs received from their investments in France. 
 
 2. And/or a guaranty under which the United States Government 
 undertakes to compensate American investors should their capital in 
 France be expropriated or confiscated. 
 
 84 
 
Patent Licensing 
 
 The United States does not have a patent licensing agreement with 
 France. Patent arrangements between American and French firms 
 must be submitted for approval to the French Exchange Office, Min- 
 istry of Finance. The Exchange Office considers each patent licensing 
 agreement on its own merits. 
 
 PROTECTION OF INDUSTRIAL PROPERTY RIGHTS 
 
 Under the provisions of the French law of June 23, 1857, as amended, 
 no one can claim the exclusive property in a mark of trade or of com- 
 merce unless it has been registered. The first user of a trademark will 
 be entitled to its registration and exclusive use. 
 
 The provisions of the trademark law are applicable to products of 
 agriculture as well as of industry and commerce. Foreign trademarks 
 are protected in France. In a few cases they should be registered in 
 the home country of the applicant. The registration of a mark will 
 be in force for 15 years ; however, renewals may be obtained indefinitely 
 for like periods. 
 
 A law of March 11, 1957, protects an author during his entire lifetime 
 against pirating of a work published in France. This right belongs 
 to the heirs of the author for 50 years after the latter's death. This 
 time limit was increased to 56 years and 152 days by the law of Feb- 
 ruary 13, 1919, for works published before December 31, 1920, which 
 had not become public property at the time of the promulgation of the 
 said law. No deposit, declaration, or tax payment is necessary in 
 order that the persons concerned may enjoy such rights. 
 
 A law of March 11, 1957, extended to works published abroad the 
 protections granted to works published in France; that decree law 
 assures to foreigners the same protection as that granted to them by 
 their own national laws. 
 
 Both the United States and France have signed and satisfied the 
 Geneva Universal Convention for authors' rights of September 6, 
 1952 (Convention Universelle sur le Droit d'Auteur). 
 
 85 
 
CHAPTER VI 
 
 Selecting the Form of 
 Business Organization 
 
 The investor who is planning to establish a business in France is 
 faced with the problem of selecting an appropriate form of organiza- 
 tion from among the several provided for under French law. Some 
 of these are similar to the American forms; others differ radically. 
 The form that would be best for his purpose would depend largely on 
 the nature of his prospective enterprise, and his decision should be 
 made on the advice of competent legal counsel. 
 
 The various forms of organizations in France are as follows: 
 
 1. Enterprises of persons : 
 
 (a) Entreprise individuelle (individual enterprise). 
 
 (b) Societe en nom collectif (partnership). 
 
 (c) Societe en commandite simple (limited partnership). 
 
 2. Enterprises of capital : 
 
 (a) Societe en commandite par actions (limited partnership with 
 shares) . 
 
 (b) Societe anonyme (corporation) . 
 
 (c) Societe a capital variable (cooperative). 
 
 3. Societe a responsabilite limitee (limited-liability company) . 
 
 4. Association en participation (joint venture). 
 
 Individuals or corporations establishing businesses in France must 
 have their names inscribed in the Register of Commerce. The registra- 
 tion process follows the completion of certain legal formalities, the im- 
 portance of which is emphasized in Chapter V, Investing in France. 
 
 ESTABLISHMENT OF A LOCAL ENTITY 
 Individual Enterprise 
 
 As in the United States, a person may, subject to various formalities 
 and authorizations, create or pm chase a business without incorporat- 
 ing. The owner of an individual enterprise has sole responsibility 
 
 87 
 
for the operations in which he engages and, in the case of debts, not 
 only his business assets but his personal goods and chattels, as well, 
 may be attached. 
 
 Partnership 
 
 The French partnership is a form of commercial organization 
 that corresponds somewhat to the American partnership in that each 
 member of the firm is liable for the totality of its debts and to the full 
 extent of his personal assets. The denomination of the partnership 
 must contain at least the name of one of the partners and, if only one 
 name is used, it must be followed by "and company" (et compagnie). 
 This organization, however, differs from an American partnership by 
 reason of the fact that French laws give this form what is called 
 "legal personality" as distinguished from "physical personality." It 
 is generally held, therefore, that a partnership is an artifical being 
 and can sue and be sued. 
 
 Since the establishment of legislation for the creation of French 
 limited-liability companies in 1925, the popularity of the partnership 
 as a form of business organization has declined and it is now seldom 
 used in France. 
 
 Limited Partnership 
 
 This type of organization corresponds to the American limited 
 partnership. It is composed of some partners whose liability is 
 limited and of others whose liability is unlimited. The limited part- 
 ners are not liable beyond the amount they have contributed to the 
 partnership and they have no right to interfere in the management of 
 the business. 
 
 Limited Partnership With Shares 
 
 This type of organization is similar to the French limited partner- 
 ship (societe en commandite simple) except that, inasmuch as the 
 capital is divided into shares for the investor, it is similar in that 
 respect to a French corporation. The liability of the shareholders 
 may be unlimited in some of the cases and limited in others. The 
 names of the limited-liability shareholders cannot be included in the 
 name of the company. 
 
 Corporation 
 
 The French corporation, known as "societe anonyme," is very 
 similar to an American corporation. It is an artificial being whose 
 
 88 
 
personality is entirely distinct from that of its members, and death 
 or bankruptcy of one of its members does not affect its existence. 
 The members of a corporation are liable only up to the share of their 
 subscriptions or interests. The corporation must be created for a 
 definite period of time which, in practice, is usually 99 years. This 
 type of organization is generally adopted by both French and foreign 
 enterprises desiring to operate in France as domestic concerns. 
 
 The law of September 18, 1940, which was made more specific by 
 legislation in 1943, holds the president of the board of directors of 
 the corporation liable in case of bankruptcy. This law also states 
 that a corporation is to be directed by a board of at least 3 and not 
 more than 12 members and that no person may hold office as president 
 of more than 2 corporations. A corporation must have a minimum 
 of 7 shareholders. 
 
 Cooperative 
 
 Cooperative entities sometimes use a form of organization called 
 "company with variable capital." However, it is not common and is 
 of little general interest. The main characteristic of this type of 
 organization is that, although it has a corporate form, the procedure 
 for increasing or decreasing its capital is comparatively simple, 
 subject to certain fixed limitations. 
 
 Limited-Liability Company 
 
 The liability of the shareholders in a limited-liability company is 
 limited to the nominal value of the shares of each holder. This form 
 of organization cannot issue shares to the public and the associates 
 cannot freely sell or assign their interests in the organization. This 
 type of structure may be formed by two or more persons except that, 
 if there are only two persons, certain legal problems may be encoun- 
 tered if they are husband and wife. 
 
 Joint Venture 
 
 This type of French commercial organization, called "association 
 en participation," is formed for the purpose of carrying out a par- 
 ticular transaction or other objective, and no notice of its formation 
 need be given. The persons concerned usually draw up a written 
 agreement for the purposes of avoiding ambiguity and determining 
 the proportion in division of any profits. 
 
 89 
 
OPERATION AS BRANCH OF U. S. FIRM 
 
 In addition to a choice from among the aforementioned forms of 
 organization, Americans also have the alternative of operating as a 
 branch of a United States corporation whose object is the transaction 
 of business in or with France. The establishment of a branch involves 
 compliance with a number of legal formalities. 
 
 The pros and cons of operating in France as a branch, rather than 
 under some form of local organization, are complex and depend as a 
 rule on the type of business to be undertaken. It may be more advan- 
 tageous from the taxation standpoint for an American corporation to 
 operate in France through a French societe anonyme than through a 
 branch. However, expert legal counsel should be obtained before 
 making a final choice, a point which has been stressed both in this 
 chapter and in chapter V. 
 
 90 
 
CHAPTER VII 
 
 Taxation 
 
 The tax system of France is very complex and subject to frequent 
 changes. Consequently, no simplified synopsis could be relied on 
 for determining the amount of taxes for which a particular individual 
 or firm is liable. The following brief summary is given merely as 
 an indication of the types of taxes payable in France. Some of these 
 taxes, like the corporation registration tax, are comparable with pay- 
 ments which in the United States are regarded as fees. 
 
 In France, as in the United States, there are (1) taxes payable by 
 an enterprise as such — for example, the corporation income tax and 
 the wage tax; (2) taxes payable by an enterprise in its capacity as 
 a collection agent for the Government — for example, when the cor- 
 poration withholds the proportional income tax from the dividends 
 it distributes to its stockholders; and (3) taxes payable by an 
 individual direct, as the personal income tax. 
 
 DIRECT BUSINESS TAXES 
 
 Corporation Tax 
 
 Upon its organization, the corporation pays a registration tax 
 (or fee) based on the amount of its capital. The rate is 1.6 percent 
 of the capital, except that on the real property portion of its capital 
 an additional 0.5 percent is levied. On a new stock increase of its 
 capital, the rate is also 1.6 percent, but on an increase of capital from 
 accumulated reserves the tax is 7.2 percent. 
 
 License Tax (Patente) 
 
 The practice of industrial, commercial, and noncommercial activities 
 in France (medical doctors, architects, etc.) is subject to an annual 
 license tax, the so-called "patente" tax (having nothing to do with 
 
 91 
 
"patent" as this term is used in the United States). The tax is due 
 by the mere fact that a business office is located in France. It includes : 
 
 1. A flat tax, varying according to the size of the municipality in 
 which the business or profession is practiced and according to a 
 classification of these activities ; and 
 
 2. A proportional tax based on the rental value of the premises and 
 installations used in the business or profession. 
 
 Wage and Apprenticeship Taxes 
 
 The corporation, like other employers, pays a wage tax equal to 5 
 percent of the wages, salaries, and allowances paid to employees, and 
 an apprenticeship tax of 0.40 percent. 
 
 Social security contributions and other nonwage labor costs addi- 
 tional to the wage and apprenticeship taxes are discussed in chapter 
 VIII, page 99. 
 
 income Tax on Business Profits 
 
 Corporation profits. — Corporations, as well as certain other forms 
 of business organizations which for tax purposes elect to be treated 
 as corporations, pay a tax on net profits which, beginning with the 
 income earned in 1955, is calculated at the rate of 45.60 percent. 
 
 Noncorporation profits. — Income from business profits other than 
 corporation profits is subject to the personal income tax. This tax is 
 discussed in the section entitled "Taxes on Personal Income." 
 
 Tax on Dividends, Interest, Bonuses 
 
 This tax is paid by the corporation in its capacity as a collection 
 agent for the Government. It is withheld and paid by corporations 
 liable to the tax on industrial and commercial profits. The normal 
 rate is 18 percent of the dividends paid to shareholders, interest paid 
 to bondholders, and bonuses paid to the members of the board of 
 directors. The proportional income tax under which the above rate 
 is applied to the withholding tax was increased by 10 percent under 
 a law enacted in June 1956 on incomes from dividends and other 
 intangibles, and on other incomes exceeding 440,000 francs a year. 
 
 According to article 15 of the Franco- American Treaty, January 1, 
 1945, such tax is calculated for an American company doing business 
 in France on three- fourths of the profits actually derived from the 
 commercial transactions of its French branch. 
 
 92 
 
TURNOVER AND OTHER INDIRECT TAXES 
 
 This category of taxes (taxes sur le cliiffre d'affairs) includes a 
 variety of indirect taxes of which the three most important are the 
 value-added tax, the services tax, and the local tax. These taxes are 
 also payable, where appropriate, on transactions involving imports 
 in addition to customs duties. 
 
 Value-added tax. — This tax (taxe sur la valeur ajoutee) is essen- 
 tially a tax on the value added in the course of production of a com- 
 modity. However, not only manufacturers, but also the wholesale 
 distributors, as well as chain stores in some cases, pay this tax. The 
 normal rate is 19.5 percent, but under certain conditions a reduced 
 rate of 12 percent or 10 percent is applied. Taxed at the rate of 
 27.5 percent are a number of luxury products. 
 
 The tax is calculated on the sales price (including the tax, making 
 it a tax on the tax) charged by the manufacturer or distributor to 
 his customer, but in paying the tax he can deduct the amounts already 
 paid in on the added-value or services tax, in the previous stage of 
 production, on the material used in his product. The basic principle 
 of this tax is that it is paid only once on any given article. When the 
 product is the result of several operations executed by different firms, 
 each stage in the chain of production is subject to the tax, but only 
 on the value added in any given stage. 
 
 Services tax. — This tax (taxe sur les prestations de services) is 
 levied on a great many services, including services furnished by bar- 
 bers, advertising, and others. The rate is 15.5 percent of the charges 
 for these services. 
 
 Local tax. — A local tax (taxe locale) is generally assessed on all 
 sales not subject to the value-added tax or the services tax. The 
 rates vary from 2.2 percent to 2.75 percent except in a few cases such 
 as exhibitions, hotels, etc., on which the rate is 8.5 percent. 
 
 Miscellaneous taxes. — France has numerous other indirect taxes 
 levied on specific products, as well as stamp taxes on documents. 
 Some of these specific taxes are special-purpose levies, as for example 
 the 0.75-percent levy on textiles (assessed on the same basis as the 
 value-added tax) for the encouragement of textile fiber production. 
 
 TAXES ON PERSONAL INCOME 
 
 Personal income tax in France consists of a flat-rate proportional 
 tax and a progressive surtax. 
 
 429535—58 8 93 
 
Proportional Tax 
 
 The proportional tax (taxe proportionnelle) is generally assessed 
 on various categories of income earned by individuals: Keal 
 estate rents, industrial and commercial profits, agricultural profits, 
 and noncommercial profits (on personal property). Wages and 
 salaries are currently exempted from the proportional tax, in lieu of 
 which a payroll tax of 5 percent is paid by the employer. 
 
 The rate of the proportional tax has been 18 percent but under new 
 legislation enacted in June 1956 the rate is increased to 19.8 percent. 
 When the taxable income is from United States sources, it will be 
 included in the income subject to the proportional tax only if the 
 taxation on such income is incumbent on France, depending on the 
 terms of the Franco-American double-taxation agreement. This 
 applies also to income derived from American securities, debts, and 
 trusts. 
 
 Graduated Tax 
 
 In principle, the graduated surtax (surtaxe progressive) is levied 
 on the total income of individuals who are residents of France accord- 
 ing to the definition given in article 4 of the General Tax Code. 
 According to this article, the following persons are considered "resi- 
 dents": (1) Persons disposing in France of a dwelling as proprietors, 
 usufructuaries, or tenants (in the latter case, the tenancy must be 
 established by a single contract or successive contracts for an un- 
 interrupted period of 1 year at least) ; and (2) persons who do not 
 dispose of a dwelling in France, but who, nevertheless, have their 
 principal place of abode in France. 
 
 However, under article 164 of the General Tax Code, the surtax will 
 be assessed differently, depending on whether the interested persons 
 are considered as having their "domicile" or only their "residence" in 
 France. Foreigners "having the center of their interests" in French 
 territory, or having habitually resided there, i. e., effectively for more 
 than 5 years, will be considered as domiciled in France. 
 
 Foreigners who are held to be domiciled in France, in accordance 
 with the preceding provisions, are liable to the graduated surtax on 
 their total income, whatever may be its nature and origin. However, 
 no tax will be levied on that portion of their income of foreign origin 
 on which the taxpayers can prove that they have paid a personal income 
 tax to their home country. As a consequence, the surtax is not due on 
 income received in the United States which has already been taxed by 
 the United States Government, provided that the recipient of such 
 income is a United States national. On the other hand, a person 
 
 94 
 
whose domicile is not in France, but who maintains there one or several 
 residences, pays a tax calculated on the basis of an income equal to 
 five times the amount of the rental of such residence or residences. 
 However, if the income thus estimated is less than his total income 
 of French origin, it is the latter which will be taken into consideration 
 for the assessment of the tax. 
 
 The surtax is levied on income in excess of 220,000 francs a year. 
 Until the legislation enacted in June 1956, the percentage rates on 
 income were as follows : 
 
 Income (thou- 
 sand francs) 
 
 Percentage From To 
 
 10 I 220 350 
 
 15 350 600 
 
 20 600 900 
 
 30 900 1,500 
 
 40 1,500 3,000 
 
 50 3,000 6,000 
 
 60 on all incomes over 6,000. 
 
 For single persons not heads of families or having dependents the 
 last two rates itemized above (50 percent and 60 percent) are increased 
 to 55 percent and 70 percent, respectively. 
 
 Under the legislation enacted in June 1956 this tax, beginning with 
 the rates applicable to income over 600,000 francs, is increased by 
 10 percent. 
 
 In calculating the amount due under the progressive surtax, the 
 income of the whole family is combined. In applying the above surtax 
 rates (plus 10 percent on income in excess of 600,000 francs), however, 
 allowance is made for the family status of the taxpayer by dividing this 
 income in accordance with a schedule of units for calculating the 
 amount of tax due. The amount of tax so obtained on this reduced 
 income is then multiplied by the number used for dividing his income. 
 By this method the income is taxed at lower rates than if it were 
 taxed as one unit. For example, a single person with no dependents 
 cannot divide his income for tax purposes. But if he has a dependent, 
 he is entitled to do so by two. A married person with 2 children is 
 entitled to divide his income for surtax purposes by 3. He would thus 
 compute his income of, say, 1,230,000 francs as follows : 
 
 1,230,000 
 
 =410,000 francs 
 
 3 
 
 Francs 
 
 On first 220,000 francs... no tax 
 
 Between 220,000 and 350,000 francs (130,000 x 10%) 13,000 
 
 Between 350,000 and 410,000 francs (60,000 x 15%)... 9, 000 
 
 Total per unit of Income. 22,000 
 
 Total on all 3 units of income (22,000 x 3).. - 66, 000 
 
 95 
 
TAX AGREEMENT WITH THE UNITED STATES 
 
 An American exercising a liberal profession in France becomes sub- 
 ject to the proportional tax on income received from such professional 
 work only if he has established a fixed office in France. 
 
 A Treaty for the Avoidance of Double Taxation between the United 
 States and France has been in effect since January 1, 1945. In gen- 
 eral, under the provisions of this treaty Americans who are residing 
 in France are subject to the French proportional tax on income from 
 French sources, but income from United States sources is tax exempt. 
 However, on their income from third-country sources (dividends, 
 interest, and trust income) American residents of France are liable 
 to the 19.8-percent (under the old law, 18-percent) proportional tax 
 without benefit of family allowances. 
 
 96 
 
CHAPTER VIII 
 
 Labor Conditions 
 
 In general, the manpower available in France is adequate to meet 
 the needs of the French economy for skilled and unskilled workers. 
 However, in recent years extensive expansion of production has caused 
 occasional shortages of skilled labor in a few industrial sectors. In 
 contrast, certain industrial branches, such as the textile and leather, 
 have had some manpower surpluses. 
 
 The traditional immobility of the French labor force constitutes 
 the main obstacle to a rational use of the manpower availabilities. 
 This situation is aggravated by the housing shortage and therefore 
 could only be partially overcome by an efficient organization of re- 
 orientation and training centers and by an incentive wage policy. 
 On the whole, the number of unemployed in France has remained 
 comparatively small throughout the past decade. 
 
 WAGES AND HOURS 
 
 Wages have been the focal point of labor unrest during much of 
 the postwar period. Collective agreements may be concluded on 
 an industry basis or, particularly in recent years, on an establishment 
 basis, and they are customarily signed jointly by all or at least some 
 of the major unions. The Government, as the largest single employer 
 in the country, is an active participant in many of these negotiations ; 
 nationalized industries and semipublic corporations alone give em- 
 ployment to approximately 15 percent of France's wage and salary 
 
 Wage-National Income Relationship 
 
 There is much variation from industry to industry between wages 
 and total earnings because of differences in hours worked and in the 
 special allowances and supplements aid. Statistics published by the 
 
 1 Parts of this chapter are based on material prepared by the Bureau of Labor Statistics, 
 U. S. Department of Labor. 
 
 97 
 
Ministry of Labor and Social Security show a steady rise in wages — 
 14.7 percent from 1952 to 1955, 9.3 percent in 1955, and 6.8 percent in 
 1956. By 1956, the purchasing power of wages for most employed 
 groups compared favorably with prewar. 
 
 National income figures released in 1956 provide evidence of the 
 improvement in workers' conditions during recent years. Since 1952, 
 the total wage bill increased by 20 percent, while national income rose 
 18 percent. The share of wages and salaries in the national income 
 amounted to 59.2 percent in 1955. Economic planners recognize the 
 importance of increasing this share and raising consumption levels. 
 
 The Minimum Wage 
 
 The "interoccupational guaranteed wage," introduced in 1950, is 
 the legal minimum applicable to all adult nonagricultural workers in 
 the Paris area ; since April 6, 1956, this minimum had been 126 francs 
 (about US$0.30) per hour. A scale of differentials applied to the 
 rate at Paris determines the lower minimum rates applicable in the 
 10 wage zones elsewhere in the country. A scale of differentials also 
 determines the rates applicable to workers under 18 years of age. 
 
 The legislation provides for an automatic upward adjustment of 
 the legal minimum should the index of consumer prices in Paris rise 
 by 5 percent. 
 
 In July 1957, the Paris consumer price index rose by 5 percent, and 
 the Government authorized an increase of the minimum wage rate. 
 Shortly afterward, the Government approved a new consumer price 
 index, which is intended to govern future adjustments in the minimum 
 wage. 
 
 Hours 
 
 The standard 40-hour week is in effect and applies to employment 
 in all public and private industrial and commercial establishments. 
 In general, industrial workers are employed on the average between 
 45 and 46 hours a week. A 3-week paid vacation is also required by 
 law. 
 
 PRODUCTIVITY 
 
 Estimates of output per man-hour in industry indicates a fairly 
 steady and substantial rise during recent years. However, progress 
 in various branches of industry has been uneven. It has been 
 very good in the coal mines, railway transport, automobile industry, 
 and mechanical and electrical industries. On the other hand, it has 
 been slowed by the existence of many small producing units, in- 
 
 98 
 
adequate specialization, obsolescent industrial equipment, and labor 
 immobility and, to some extent, by the aging of the labor force. 
 
 To meet some of these problems the Government initiated two 
 modernization and equipment plans. Much has been done to promote 
 and improve output through technical assistance extended by the 
 United States and by the exchange of technicians. 
 
 SOCIAL LEGISLATION 
 Health and Safety 
 
 The law requires that all industrial enterprises set up preventive 
 medical services staffed by practitioners holding certificates in indus- 
 trial medicine. These officers are responsible for maintaining stand- 
 ards relating to health and hygiene within plants and for giving 
 periodic physical examinations to the employees. 
 
 Problems relating to safety within industrial establishments have 
 been of special concern. The installation of specified types of danger- 
 ous machinery is prohibited unless the machinery is protected in such 
 way as to assure the safety of workers. According to law, health 
 and safety committees, with employee representation, must be insti- 
 tuted in industrial plants employing 50 or more persons. These com- 
 mittees are responsible for investigating all accidents or occupational 
 illnesses resulting in fatalities or permanent disabilities and for as- 
 suring compliance with safety regulations. 
 
 Socio/ Security and insurance 
 
 The coverage of the French social security system is among the most 
 extensive in the world. The general social security system — excluding 
 special regimes for miners, seamen, and other groups — covers 8.4 
 million employed workers ; including family members also entitled to 
 benefits, the total is close to 17 million. Workers participate in the 
 administration of the system, which functions with a considerable 
 degree of autonomy under the overall control of the Ministry of Labor 
 and Social Security. 
 
 Assessments levied on employers and employees finance the program ; 
 there is no state participation. Employer nonwage labor costs, includ- 
 ing contributions for social security, amount to an equivalent of 42.98 
 percent of the payroll. Total nonwage labor costs comprise payments 
 for social security insurance (8.98 percent of the payroll), family al- 
 lowances (15.05 percent) , workmen's accident compensation (2.68 per- 
 cent), wage tax (5 percent), apprenticeship tax (0.40 percent), trans- 
 portation bonus (1.96 percent), and paid vacation and holidays (8.91 
 percent) . 
 
 99 
 
LABOR UNIONS 
 
 Trade union membership is estimated at between 2 and 3 million 
 workers, or somewhat less than one-fourth of France's wage and salary 
 earners. Even in comparatively well organized sectors like metal- 
 lurgy, union members are in the minority. However, in spite of the 
 fact that the bulk of French labor is unorganized, the potential 
 strength of unions extends far beyond the paid membership. 
 
 All of the major labor confederations are similar in structure. The 
 local union, representing workers in a single industry and usually 
 organized on an area rather than plant basis, forms the basic unit. 
 Each local is affiliated with other local unions in the same industry to 
 form a national industry federation, which in turn is affiliated at the 
 confederal level with other national industry federations. In addition 
 to this vertical setup, there is a horizontal organization under which 
 locals representing workers of all types in a given locality are affiliated 
 in area and departmental federations. 
 
 There are three major labor confederations. The first to be organ- 
 ized was the General Confederation of Labor (Confederation Generale 
 du Travail — CGT), founded in 1895. CGT is the strongest union 
 from the point of view of size of membership. Its leadership is com- 
 munist dominated, but a significant proportion of its members are not 
 communists although they associate themselves with CGT causes for 
 a variety of other reasons. 
 
 The General Confederation of Labor-Worker's Force (Confedera- 
 tion Generale du Travail-Force-Ouvriere — CGT-FO) was formed 
 in 1947 by minorities who split with CGT. The French Confederation 
 of Christian Workers (Confederation Francaise des Travailleurs 
 Chretiens — CFTC) was organized in 1919 by Catholic groups. 
 
 Another free trade union, also influential in labor affairs but repre- 
 senting a comparatively small and specialized group of workers, is the 
 General Confederation of Technicians and Supervisory Employees 
 (Confederation Generale des Cadres — CGC) . 
 
 EMPLOYMENT OF ALIEN WORKERS 
 
 No single law defines the number of aliens a firm may employ, but 
 many decrees limit the percentage of aliens employed in a given indus- 
 try. Approval for the employment or discharge of personnel must 
 be obtained from the Ministry of Labor. 
 
 No specific legislation requires French employees to be paid the 
 same scale as aliens. 
 
 American firms usually fill most of their labor needs locally. Ca- 
 pable bilingual stenographers are difficult to find, but clerks, typists, 
 
 100 
 
bookkeepers, telephone operators, and office boys are readily available 
 in most French cities. It is difficult to give an appraisal of wage rates 
 because of the postwar inflationary spiral. 
 
 To satisfy the more complex demands for administration and book- 
 keeping required by the French Government, American offices in Paris 
 maintain slightly more personnel than would be required to run similar 
 offices in the United States. 
 
 WORKER'S CARD 
 
 A foreigner wishing to exercise a salaried or wage-earning occu- 
 pation in France must have a worker's card (carte de travail) in 
 addition to his sojourn card (for the latter, see chapter IX, page 103) . 
 
 Applications for a worker's card must be presented either to the 
 Bureau de Main d'Oeuvre (Labor Bureau) nearest to the residence 
 of the foreigner, or to the Direction Departementale du Travail et de 
 la Main d'Oeuvre (Departmental Work and Labor Office), which is 
 usually located in the chief town of the Department. For the De- 
 partment of the Seine, applications should be filed at 391 rue de 
 Vaugirard, Paris 15eme. Applications may also be filed abroad at 
 the French consulates. 
 
 In the case of a foreign workman who enters France in accordance 
 with a contract of introduction of foreign labor duly certified by the 
 Ministry of Labor, the only document which has to be presented 
 with the application for a worker's card is the copy of such contract. 
 The foreigner must, however, also present his sojourn card. 
 
 A foreigner already residing in France who for various reasons 
 has never previously asked for a worker's card must furnish a stamped, 
 self-addressed envelope; a certificate of domicile legalized by the 
 mayor or the commissaire de police; and a promise of employment 
 written by the employer whose signature should be legalized by the 
 mayor or the commissaire de police. The latter document must state 
 precisely the nature of the employment promised to the foreign 
 workman, the salary to be paid, and other remuneration (advantages 
 in kind, lodgings, etc. ) . 
 
 If the foreign workman has followed professional or occupational 
 courses, either in France or abroad, or has been an apprentice, he is 
 advised to furnish all documentary evidence — for example, school 
 certificates, apprenticeship certificates, and certificates of professional 
 standing. The sojourn card also must be furnished. 
 
 Except for a type of privileged working card which is rarely is- 
 sued, it is precisely stipulated that a foreign workman can exercise 
 only the occupation which is indicated on his worker's card, and 
 exclusively in the Department for which said card is delivered. Con- 
 
 101 
 
sequently, any change of Department must be covered by a prelimi- 
 nary application filed with the Direction Departementale du Travail 
 et de la Main d'Oeuvre, which will only exceptionally authorize such 
 a move. A special worker's card authorizing the temporary employ- 
 ment of foreign technicians is also available upon application to the 
 Labor Bureau. 
 
 102 
 
CHAPTER IX 
 
 Business Travel and 
 Living Conditions 
 
 Foreign and French currencies, banknotes, and coins may be im- 
 ported into France without limitation. Exchange of foreign cur- 
 rencies must be effected through approved banks or agencies designated 
 by these banks for the convenience of travelers (hotels, stores, railroad 
 stations, customs offices, etc.) . 
 
 Foreign currencies may not be taken out of the country by travelers 
 in excess of the amount brought in (less the amount exchanged for 
 francs during the traveler's stay in France) . In no case may more 
 than 20,000 French francs be exported. 
 
 REQUISITES FOR PERSONAL ENTRY, STAY 
 
 American citizens visiting France for a period of less than 3 months 
 are admitted on presentation of a valid passport, and are not required 
 to obtain a French visa. 
 
 Visa 
 
 For stays exceeding 3 months, a regular visa is necessary. It is 
 advisable that the visa application be made at any French consulate 
 at least 2 months before departure, because visa applications are for- 
 warded to Paris for approval. A regular visa entitles the applicant 
 to travel in France for a period of more than 3 months provided he 
 obtains a sojourn card. 
 
 Sojourn Card 
 
 To obtain a sojourn card (carte de sejour), the foreigner must go, 
 within 8 days from the date of his arrival, to the Service des 
 Etrangers at the Prefecture de Police if he resides in the Seine De- 
 
 103 
 
partment. If he resides in some other Department, he goes to the 
 commissariat de police of the place where he resides, or, if his place 
 of residence has no commissariat, to the mairie (town hall). 
 
 It is recommended that the sojourn card be carried at all times. 
 The card must always be produced at the request of proper authorities 
 (police, gendarmerie, etc.) . The holder of a sojourn card may circu- 
 late freely on the entire French metropolitan territory, unless a con- 
 trary notation appears on such document. 
 
 REGULATIONS COVERING GOODS ENTRY 
 
 Some goods are entered entirely exempt from import duties and 
 taxes, while others are permitted duty- and tax-free entry for a lim- 
 ited period, after which they must be removed from the country or be 
 subject to duties and taxes. 
 
 Articles other than those admitted absolutely or temporarily in 
 exemption of duty and taxes may be imported free of charges under 
 customs bond guaranteeing payment of import duty and taxes if the 
 goods are not reexported. Permits for entry under bond may be ob- 
 tained in advance from tourist associations in the traveler's country 
 of residence which are affiliated with French tourist associations ap- 
 proved by the French Government, such as the Automobile Club and 
 the Touring Club of France. Or they may be obtained from customs 
 officials at the French port of importation. 
 
 Included among the articles which may be entered under bond are 
 such items as nonportable radios, typewriters, refrigerators, washing 
 machines, and silverware. Excluded are consumable supplies, such 
 as articles of food and tobacco. 
 
 Personal effects and baggage imported in exemption of duties and 
 taxes, absolutely or temporarily, are exempt from import and exchange 
 control formalities. This exemption may be extended, in the discre- 
 tion of customs officials, to certain articles which, while excluded from 
 the benefits of duty- and tax-free entry, are for the personal use of the 
 traveler or are to be considered souvenirs of travel. It may not be 
 extended to household appliances, such as refrigerators or washing 
 machines, or to motorcycles, scooters, and similar vehicles. 
 
 Travelers' Baggage and Effects 
 
 Baggage and effects of travelers entering France must be declared 
 to the French customs authorities and are subject to customs exami- 
 nation. 
 
 Provided that they have been regularly declared, the following arti- 
 cles are entirely exempt from duty and taxes at importation : 
 
 1. Kemnants of provisions for the journey. 
 
 104 
 
2. Tobacco in quantities which vary with the country of origin, as 
 follows: (a) Travelers from non-European countries (except Algeria, 
 Tunisia, and Morocco) : 1,000 cigarettes or 250 cigars or 2,000 grams 
 of tobacco; and (b) travelers from European countries, Corsica, Al- 
 geria, Tunisia, and Morocco : 200 cigarettes or 50 cigars or 400 grams 
 of tobacco. 
 
 Duty and tax exemptions for tobacco apply regardless of the na- 
 tionality of the traveler, but are restricted to individuals over 18 years 
 of age and to quantities carried on the person or in hand baggage. 
 Women may benefit by the exemptions only with respect to cigarettes. 
 
 3. Matches in small quantities ( 100 per person) . 
 
 4. Playing cards, two decks (in the case of foreign travelers), 
 opened and apparently in use. 
 
 Travelers from the United States may import temporarily the 
 following articles without payment of import duty and taxes : 
 
 1. Clothing and linens in the course of use, comprising the personal 
 effects of the traveler. This exception extends to articles, worn or not, 
 which appear to be new, provided there is no apparent customs 
 irregularity. 
 
 2. Personal jewelry conforming to the social position and person of 
 the owner. 
 
 3. The following listed articles, if they are in current use, and ac- 
 company the traveler, and the importation is evidently in good faith : 
 
 Usual small portable articles (flatirons, electrical medical appliances, 
 toilet articles, steamer rugs, etc.), field glasses, baby carriage, small 
 camping articles and tent. 
 
 Portable dictaphone, magnetophone, etc., with ribbon, wire, or rec- 
 ords, and 2 rolls of ribbon or wire, or 10 records. 
 
 Cameras, 2 of different types or makes with 12 plates or 10 rolls 
 of film each which must be entered with and correspond to the 
 individual cameras. 
 
 One each of the following : Small motion-picture cameras with 10 
 rolls of film; portable radio; phonograph with 20 records; portable 
 musical instrument; portable typewriter; bicycle (without motor); 
 an outfit of sports articles (skis, 2 tennis racquets, 2 hunting guns and 
 50 rounds of ammunition, etc.) ; bottle of wine and quart bottle of 
 liquor. 
 
 Personal Effects of Foreign Students 
 
 School outfits of foreign students going to France or residing there 
 are exempt from import duty and taxes even though the articles are 
 new, provided they appear to be in accord with the status of the 
 student. Only linens and made-up clothing are included in this 
 exemption. The importation may take place within a month from 
 
 105 
 
the date of the student's registration, and the entire outfit should be 
 imported simultaneously. There must be presented to the customs 
 authorities in support of the request for duty-free admission : 
 
 1. A certificate of student status, issued by the director of the educa- 
 tional establishment where the student is registered. 
 
 2. An inventory of the articles, with separate listing of those articles 
 not benefiting by the exemption. These imports are exempt from 
 foreign trade and exchange controls. 
 
 Household Effects 
 
 Household effects of foreigners intending to settle in France, or of 
 French people returning to live in France, are exempt from import 
 duty and taxes if the effects are in the course of use or are manifestly 
 intended for the use of the importer or his family and are presented 
 as a complete ensemble. Eegulations require that the removal of the 
 goods and the change of residence from the exporting country take 
 place at the same time. A detailed, signed inventory of the goods is 
 required and, if the value is greater than 50,000 francs (about $119), 
 a certificate of change of residence issued by a municipal official at the 
 place of departure, attesting that the goods listed in the inventory 
 have been the property for at least 6 months of the person importing 
 them into France. This certificate must bear the visa of a French 
 consular official and a French consular-fee stamp. 
 
 As an exception to the regulation, the benefit of exemption from 
 duty and taxes is extended to household effects imported after change 
 of residence, in part or as a complete ensemble, under special condi- 
 tions. This special treatment is accorded to : 
 
 1. Miscellaneous articles constituting an ensemble distinct from the 
 entire ensemble of household effects when the importer proves that the 
 surplus has been disposed of before his departure for France ; a certifi- 
 cate from the local authorities at the importer's previous place of 
 domicile listing the goods disposed of before departure and bearing 
 a French consular visa is acceptable proof. 
 
 2. Household effects when the change of residence has preceded the 
 breakup of the household. 
 
 3. Household effects unaccompanied by a certificate of residence or 
 by an incomplete certificate, provided the importer gives the customs 
 acceptable guaranties that he will submit the required certificate with- 
 in a reasonable time or pay the duty and taxes to which the goods 
 would ordinarily be subject. 
 
 The duty and tax exemptions for household effects do not apply 
 to furnishings of stores, schools, or offices ; to stocks of raw materials 
 or of manufactured or semimanufactured products ; to motor vehicles, 
 
 106 
 
motorcycles, airplanes, pleasure craft; or to horses or harness. They 
 do extend to bicycles, hunting arms, refrigerators, sewing machines, 
 typewriters, and calculating machines, household pets (dogs, cats), 
 and to household provisions and fuel (exclusive of monopoly products, 
 wines, alcohols, and spirits) within the limitation of quantities corre- 
 sponding to normal family stores. The exemption right is limited 
 to a single apparatus for television and radio apparatus, phonographs, 
 and motion-picture apparatus for home use. 
 
 Import licenses are not required for used household effects, whether 
 subject to duty and taxes or admitted free, except for automotive 
 vehicles. These vehicles, imported on account of removal of residence, 
 do require an import license unless they have been owned by the im- 
 porter for at least a year (see also the section "Tourists' Automotive 
 Vehicles"). 
 
 Tools (including sewing machines) and instruments of the liberal 
 and mechanical arts imported by workers going to France to pursue 
 their occupations, permanently or temporarily, are exempt from duty 
 and taxes, even though they do not accompany a complete ensemble of 
 household effects, provided there is no question of the importer's pro- 
 fession and his intention of pursuing this profession in France. 
 
 Tourists 9 Automotive Vehicles 
 
 A tourist may take an automobile, motorcycle, aircraft, or pleasure 
 boat into France temporarily under customs bond, under a triptyque, 
 or under a "carnet de passages" free of duty and taxes and without an 
 import license if the vehicle is taken out of the country within a period 
 of 1 year, with the possibility of one extension (see also this section, 
 page 108, regarding 3-month entry) . 
 
 Cars and motorcycles entered under bond may, within the specified 
 period, recross the frontier without formality other than notations of 
 exit and reentry on Customs Form A-l. 
 
 The triptyque bears the agreement of the foreign touring organiza- 
 tion which issues it, guaranteeing payment of duties should the car 
 not be reexported within the specified time. It bears a full description 
 of the vehicle and is good only for use in France. When the vehicle 
 is withdrawn from France the triptyque must be canceled. 
 
 The "carnet de passages" similarly guarantees payment of duty and 
 carries a description but covers a vehicle touring internationally 
 (through more than one country) . 
 
 The triptyque and the "carnet de passages" are issued by members 
 of two international touring organizations — the Alliance Internation- 
 ale de Tourisme (A. I. T.) and the Association Internationale des 
 
 107 
 
Automobile Clubs Reconnus (A. I. A. C. R.) . The American Automo- 
 bile Association and the Keystone Automobile Club and its affiliates 
 are members of both of these touring organizations and are able to 
 issue triptyques and carnets for all countries, including France, that 
 honor these documents. 
 
 As a special concession, tourists' cars and motorcycles may be taken 
 into France for a period not to exceed 3 months free of duty and taxes 
 and without carnet, triptyque, or deposit of bond. A fee of 2,000 
 francs (approximately $6) is charged for the necessary permit. For- 
 malities for entrance are concluded at the French customs office on 
 arrival of the car or motorcycle. 
 
 Cars imported by tourists and not exported are subject to a duty of 
 30 percent of their c. i. f. value plus sales taxes of approximately 24 
 percent of the same value. They are subject also to import licenses, 
 which must be obtained from the Exchange Office, 8 rue de la Tour 
 des Dames, Paris 9, France. 
 
 Pets 
 
 Animals, such as dogs and cats, accompanying travelers may gen- 
 erally be imported free of duty without documents. However, on 
 November 12, 1957, the entry into France of all carnivorous animals 
 was prohibited until further notice because of numerous cases of 
 rabies. 
 
 The traveler should bear in mind that upon return of the animal to 
 the United States, our public health regulations must be complied with. 
 The requirement is either : ( 1 ) A sworn statement that the animal was 
 physically inspected within 10 days prior to departure for the United 
 States and found free of demonstrable diseases involving emaciation, 
 lesions of the skin, nervous system disturbances, jaundice, or diarrhea ; 
 or (2) examination by the quarantine officer of the United States port 
 of entry, with possible exclusion if evidence of the diseases mentioned 
 are found. 
 
 In addition, for a dog, the owner must show an official sworn state- 
 ment that the animal was immunized with an approved rabies vaccine 
 not more than 6 months prior to entry ; otherwise, the animal will be so 
 immunized at the United States port of entry prior to release from 
 quarantine. If the animal was inoculated before leaving the United 
 States, it may reenter within the 6-month period without further 
 immunization. 
 
 Souvenirs Acquired in Transit 
 
 Travelers from the United States who visit several countries and 
 travel in transit through France or sojourn there before returning to 
 
 108 
 
the United States benefit by wide tolerances in connection with 
 souvenirs acquired in travel. The articles must be carried in their 
 personal baggage and must not be of such nature as to indicate pos- 
 sible customs irregularities. 
 
 LIVING CONDITIONS AND COSTS 
 
 The cost figures given in this section should not be used as bases for 
 close planning. It is difficult to give an accurate appraisal of living 
 costs in France because of the inflationary conditions that have ex- 
 isted during much of the postwar period. Living costs have been 
 rising and indications are that this trend may continue despite the 
 Government's efforts to restrict it by price freezes and other measures. 
 
 Housing and House Furnishings 
 
 A housing shortage exists in most French cities. Unfurnished 
 houses or apartments, particularly in Paris, are difficult to obtain and 
 generally expensive. Furnished houses in Paris and suburbs range 
 from $150 to $300 a month. Prices of small furnished studio apart- 
 ments, which are difficult to find, start at about $100; one-bedroom 
 apartments run from $100 to $200 ; and larger apartments of two to 
 three bedrooms range up to $300. Rent usually does not include 
 utilities, hot water, etc., which may add from $30 to $100 or more to 
 monthly costs. Garbage disposal is not always provided for by the 
 building, and garbage removal involves an additional charge. 
 
 Most apartments and houses have inadequate facilities for heating, 
 which is usually by coal. Central heating does not begin until the 
 middle of October or the first of November, regardless of the weather, 
 and is turned off by the end of March or the middle of April. The' 
 French like much cooler houses than do most Americans, and use 
 much less coal. Therefore, many Americans supplement the heating 
 with portable electric heaters, although care must be exercised as 
 many French homes are wired for only a small amount of current and 
 cannot utilize large appliances. 
 
 The principal electric current is 110- volt, alternating, 50 cycles 
 instead of 60 as in the United States. American fuses do not work 
 in France. All sockets and plugs are of the European bayonet type, 
 but adapter plugs may be obtained in the United States or France at 
 small cost. Most American electrical appliances are made for 60- 
 cycle current and must be adapted for use in France — a process which 
 may be expensive and difficult. Electric current for lighting and 
 other domestic uses costs up to $0.06 per kilowatt-hour. 
 
 429535—58 9 1 09 
 
It is not uncommon for houses and apartments to lack running hot 
 water. Americans often install electric or gas water heaters at their 
 own expense. These are obtainable locally, although the heaters and 
 the installation are expensive. 
 
 Telephone service is available throughout France, but is hampered 
 by a lack of materials and equipment. Telephones are especially 
 difficult to obtain in the Paris area. 
 
 Although furnished quarters are the rule, especially in the Paris 
 area, they may occasionally be sparsely furnished, and nearly all 
 would be improved by the addition of radios, lamps, bookcases, and 
 other such sundry items. New household furnishings on the French 
 market are higher priced than in the United States. Paris is noted for 
 beautiful period furniture, elegant carpets, and fancy curtain mate- 
 rial. However, no one should go to France expecting to purchase 
 such items at bargain prices. Prices for antiques compare with those 
 on the New York market. 
 
 Hotels and Restaurants 
 
 Hotels are fairly plentiful throughout France, but many are not up 
 to American standards. Paris has a number of first-class hotels, 
 numerous second-class hotels, and suitable rooms to let. 
 
 Paris hotel rates as of August 1957 for a single room with bath and 
 without meals ranged from $11 per day for first-class hotels to $4.50 
 per day for rather modest ones. 
 
 Hotel rates in other large French cities are approximately the 
 same as for Paris, except on the Riviera, where luxury hotels charge 
 higher prices in season. 
 
 Many boarding houses offer first-class rooms at reasonable rates, 
 and usually provide meals if desired. Accommodations vary con- 
 siderably, but prices are within the means of most visitors and tempo- 
 rary residents. 
 
 Food 
 
 Food prices in France are generally higher than in the United 
 States. Fresh meats, fish, fruits, and vegetables, similar to those 
 found in the United States, are obtainable, but may be quite scarce 
 and expensive in off seasons. Pasteurized milk is available, although 
 boiling it in the summer is recommended. Eggs are fairly plentiful. 
 The quality of fresh foods is generally good, but varies according to 
 type of shop or market. There are no supermarkets, and bread is 
 usually bought at the baker's, meat at the butcher's, butter at one 
 shop, vegetables at another, etc. French canned goods are rather 
 limited both in quality and assortment. 
 
 no 
 
The following were typical retail prices for selected foodstuffs in the 
 Paris area in August 1957: 
 
 Price 
 
 Bread loaf.. $0.23 
 
 Eggs, fresh dozen.. .77 
 
 Milk, fresh quart. . .11 
 
 Butter pound.. .77 
 
 Beefsteak . do 90-1.62 
 
 Leg of lamb... do 1.30 
 
 Rib roast do .52-.86 
 
 Potatoes do .05 
 
 Carrots do .16 
 
 Lettuce do .10 
 
 Apples do .38 
 
 Lemons. do .21 
 
 Bananas do .19 
 
 Clothing 
 
 Clothing requirements for France do not differ greatly from those 
 in the United States, except for summer apparel, which is worn mostly 
 along the Riviera, where a California-type climate prevails from 
 April through October. In other parts of France woolen suits often 
 may be worn all year round without discomfort. Topcoats and over- 
 coats are an essential part of a man's wardrobe for the fall and winter 
 months even in the south of France. Most women wear furs in winter 
 and long-sleeved dresses or suits because of the general lack of adequate 
 heating. 
 
 Readymade clothing is available for men and women; the major 
 items are usually below American standards and not suitable for 
 American taste, tailoring, or size. However, great strides are being 
 made in this field. Readymade men's suits may be found at prices 
 ranging from $75 to $125 and women's dresses and suits from $35 to 
 $85. Tailormade men's clothing is available at prices similar to those 
 in the United States. Jewelry and accessories, as well as cosmetics, 
 are of good quality and in plentiful supply. Nylon hose are consid- 
 erably more expensive than in the United States. Good shoes are 
 generally expensive and often do not fit the American foot. 
 
 In Paris particularly, where winters are relatively cold, emphasis 
 should be placed on warm clothing, such as woolen dresses, sweaters, 
 and shirts for everyday wear. Eain clothes and rubbers or galoshes 
 are worn in all seasons. Summers are relatively cool, and there is little 
 need for cotton dresses. Children's clothing is expensive in France, 
 and it is advisable to outfit the entire family as far as possible in the 
 United States. 
 
 Dry cleaning, pressing, and laundry services are available in all 
 sections of France at prices much higher than those paid in most cities 
 in the United States. 
 
 Ill 
 
Other Supplies and Services 
 
 Although nearly all supplies in the way of toiletries and cosmetics 
 can be obtained in Paris, those who prefer specific non-French brands 
 or special home medicines are advised to take them along or arrange 
 to have such supplies sent. However, postal regulations prohibit 
 shipment of bottled liquids through mail channels. 
 
 Dry cleaning, pressing, and laundry services and shoe repair shops 
 are available, but prices are quite high. Nylon shirts, blouses, etc., 
 which may be washed easily and worn without ironing are a help to 
 the budget. Clothes of a delicate color or material that require fre- 
 quent cleaning are highly impractical for ordinary wear. Bendix 
 laundromats are available in some places in Paris, and charge about 
 70 cents per machine load of clothing. 
 
 The cost of operating an automobile is relatively high in France, 
 owing to the high price of gasoline, spare parts, and special auto taxes. 
 
 French cigarettes sell at the following prices: The most popular 
 brand "Gauloise," at 95 francs (about US$0.23) per package of 20; 
 "Rallye," 120 francs; "Caporal," 130 francs; and "Balto," 140 francs. 
 American cigarettes are available and on sale in France at the retail 
 price of 180-190 francs for a package of regular size and 190-200 
 francs for the long size. 
 
 The average monthly salary of a combination household maid and 
 cook in 1957 was approximately $60 to $70 per month. In addition, 
 social security charges amount to $7 or $8 per month. Some part-time 
 help can be obtained for 40 or 50 cents an hour. Servants are usually 
 paid on a monthly live-in basis and receive their lodging and meals, 
 plus wine, in addition to salary. Servants are entitled to paid vacation 
 periods during which they receive a food allowance. 
 
 HEALTH CONDITIONS, MEDICAL SERVICES 
 
 No special precautionary measures need be taken with respect to 
 health conditions. Standards of medical care are usually acceptable 
 to most Americans. It is advisable to be immunized against typhoid, 
 smallpox, and tetanus. 
 
 Physicians and specialists are located in most French cities and it 
 is not uncommon for doctors to speak English. Medical fees compare 
 favorably with American rates. 
 
 All cities have state hospitals, but standards vary considerably. 
 Private clinics, most of them surgical, are comparable with small 
 American hospitals. In Paris, there is an American hospital, with a 
 staff of English-speaking doctors and nurses, some of whom are 
 Americans. This hospital has a high standard of medicine and mod- 
 ern methods of diagnosis and treatment. 
 
 112 
 
Dental care is above average and there are a considerable number 
 of American-trained French dentists. Several American dentists, 
 established in Paris, have the latest equipment. 
 
 While most pharmaceuticals, medicines, and drugs are available, 
 some are difficult to find. Visitors may wish to take along certain 
 drugstore items. 
 
 Prescriptions for eyeglasses are readily filled at reasonable prices. 
 Oculists and opticians are located in all large cities. 
 
 CHURCHES AND SCHOOLS, RECREATION 
 
 Virtually every faith has a church in Paris. There are two promi- 
 nent American Protestant churches, the American Pro-Cathedral 
 (Episcopalian) and the American Church in Paris (an interdenomi- 
 national Protestant organization), as well as St. Joseph, a Catholic 
 church staffed by American priests. The two Protestant churches 
 are headed by American pastors, and members of the congregations 
 are mostly American citizens. Both have affiliated social, religious, 
 and welfare organizations, such as Sunday Schools, Scout troops, etc. 
 In certain of the parishes where English-speaking foreigners ordi- 
 narily reside, French priests who speak English are available. 
 
 Under the French educational system, much more intensive train- 
 ing is given to pupils at the elementary and secondary levels than 
 in the United States. 
 
 In Paris, most Americans send their children either to the Ameri- 
 can school or to one of the numerous private French schools rather 
 than to the public schools. The American school is run on a non- 
 profit basis by members of the American colony and offers an American 
 curriculum which follows American methods from kindergarten 
 through high school. Its staff includes an American principal and 
 several full-time American teachers. Its school year corresponds 
 generally to the French school year — from the first of October through 
 June. Tuition fees, payable by trimester, range according to the 
 grade, from $90 to $145. The normal enrollment of the school is about 
 250, with a small percentage of children of nationalities other than 
 American. No American colleges are operated in France. 
 
 Some American families employ nurses or governesses until their 
 children are sufficiently advanced in the French language to attend 
 French schools. Nurses and governesses are not difficult to find and 
 salaries are not excessively high. 
 
 Many young Americans go to France to take all or a part of their 
 university or graduate work at one of the numerous and famous 
 French universities. Many of these institutions offer special courses 
 for foreign students. 
 
 113 
 
France is one of the world's most famous tourist meccas. As a 
 center of European culture, it offers the visitor a tremendous pan- 
 orama of art, music, drama, dance, and architecture. Many fascinat- 
 ing places of historical or cultural interest are to be found both in 
 Paris and in the Provinces. 
 
 France abounds in seashore resorts from Deauville on the Channel 
 coast to Biarritz on the Atlantic and the famous Riviera with Nice 
 and Cannes on the Mediterranean Sea. In general, seaside facilities 
 are plentiful. In addition, there are several spas for thermal baths 
 and a number of well-known winter sports areas. 
 
 Tennis, golf, and horseback riding facilities are available through- 
 out France, usually through membership in private clubs which is 
 not difficult to obtain. Horseracing is popular, with many tracks in 
 Paris and throughout France. The season lasts about 10 months 
 in Paris and is somewhat shorter at various resorts. Amusements 
 found in large American cities are available in Paris, including motion 
 pictures, the opera, concerts, ballet, and nightclubs. Many Ameri- 
 cans are members of the Racing Club in Paris, which has facilities for 
 virtually all sports. Amusements in cities outside of Paris are more 
 limited, although motion pictures and sport facilities are available. 
 
 The American Library in Paris is well equipped. The facilities of 
 the reference library are available to everyone, and those of the lend- 
 ing library to subscribing members. All the latest American peri- 
 odicals and books may be purchased in local stores. 
 
 MEANS OF TRANSPORT, COMMUNICATIONS 
 
 In all large French cities, streetcars and buses offer good trans- 
 portation at generally modest fares. Paris has, in addition to buses, 
 an excellent subway system. Taxis are available at moderate rates 
 in all cities. 
 
 Cars are available for hire on a self-drive basis at daily rates of $6 
 up, depending on the size and horsepower of the car. Additional fees 
 are charged per mile and deposits ranging from $200 up are required. 
 
 The French railway system offers good service to all parts of France 
 and other European capitals. Dining cars and sleeper service are 
 available on most trains, at rates similar to those in the United States. 
 
 Air services are available to the "United States, as well as to the 
 principal cities of France and Europe. 
 
 Domestic and international telephone, telegraph, and cable com- 
 munications are good. Postal service is efficient, charges being com- 
 parable with those in the United States. 
 
 114 
 
Statistical Appendix 
 
 The data in this statistical summary were compiled from official 
 French trade statistics published by the Direction Generale des 
 Douanes et Droits Indirects in Tableau General du Commerce Ex~ 
 terieur and in Statistique Mensuelle du Commerce Exterieur, and by 
 the Organization for European Economic Cooperation in its Statistical 
 Bulletins, Series IV, France. Data for 1956 are preliminary. 
 
 The statistical area comprises continental France, Corsica and other 
 French coastal islands, the Free Zones of Gex and Haute-Savoie, 
 Monaco, and, beginning April 1, 1948, the Saar. 
 
 The trade statistics represent "special" trade. "Special" imports are 
 the combined total of imports for direct domestic consumption and im- 
 ports customs cleared from bonded warehouses or free zones. "Spe- 
 cial" exports are exports of the produce and manufactures of France, 
 plus exports of imported merchandise placed at the free disposal of 
 importers after payment of duty, if any. 
 
 Exports are credited to the country of last known destination and 
 imports to the country of origin, except imports of silver and gold, 
 which are credited to the country of consignment. Figures relating to 
 trade with the United States include Alaska, but exclude the Hawaiian 
 Islands and Puerto Eico. These territories are part of the official , 
 United States customs area. 
 
 Trade data include ships' stores and bunkers supplied to foreign 
 ships; merchandise imported under the United Nations Eelief and 
 Eehabilitation Administration and the American economic aid pro- 
 grams ; parcel post ; imports into and reexports from bonded petro- 
 leum refineries ; salt for the fishing fleet delivered direct from foreign 
 ports; imports of French colonial rum provisionally released under 
 bond and subsequently reexported ; beginning 1946, foreign goods im- 
 ported for supplementary treatment or repair and subsequently re- 
 exported ; un worked gold and gold alloys imported on a temporary- 
 admission basis or reexported following temporary admission ; partly 
 worked gold ; and, beginning 1955, coin of silver and of base metal. 
 
 1 Tables I through V were prepared by the International Economic Analysis Division, 
 Bureau of Foreign Commerce. Tables VI and VII were prepared by the European Division 
 on the basis of preliminary figures. 
 
 115 
 
The trade totals exclude marine products exported direct from the 
 French fishing grounds; reparations and restitutions; imports of 
 military equipment under grants ; goods exported for supplementary 
 treatment or repair abroad and subsequently reimported ; and, in the 
 years 1936-38, foreign goods imported for supplementary treatment or 
 repair and subsequently reexported. 
 
 Values are based on declarations. Exports are valued f . o. b., includ- 
 ing export duties, but excluding excise or other internal taxes. Im- 
 ports are valued c. i. f., including Government subsidies on essential 
 commodities since 1947. 
 
 Net quantities are reported except for commodities imported from 
 or exported to French Oversea Territories, for which gross weights are 
 given. 
 
 The French quantity units used in the tables and their United States 
 equivalents are: Metric ton equals 2,204.6 pounds; kilogram equals 
 2.2046 pounds ; and hectoliter equals 26.4178 gallons. 
 
 Table 1. — Value of French Foreign Trade, 1936-38 and 1946-56 
 
 
 Year 
 
 Value in millions of 
 francs 
 
 Conversion 
 
 rates (U. S. 
 
 dollars per 
 
 franc) 
 
 Value in thousands of 
 dollars 
 
 
 Imports 
 
 Exports 
 
 Imports 
 
 Exports 
 
 1936 
 
 25, 414 
 
 42, 391 
 
 46, 064 
 
 264, 737 
 
 397, 135 
 
 672, 673 
 
 926, 326 
 
 1, 073, 158 
 
 1, 615, 253 
 
 1, 591, 270 
 
 1, 457, 874 
 
 1, 522, 099 
 
 1, 674, 314 
 
 1, 976, 229 
 
 15, 492 
 
 23, 939 
 
 30, 590 
 
 101, 388 
 
 223, 321 
 
 434, 047 
 
 783, 906 
 
 1, 077, 785 
 
 1, 484, 268 
 
 1, 416, 131 
 
 1, 406, 353 
 
 1, 509, 501 
 
 1, 735, 659 
 
 1, 622, 569 
 
 0. 081141 
 . 039780 
 .028600 
 .008396 
 .008396 
 
 0) 
 
 ( 2 ) 
 
 . 002857 
 . 002857 
 .002857 
 . 002857 
 . 002857 
 . 002857 
 .002857 
 
 1, 553, 843 
 1, 686, 310 
 1, 317, 436 
 
 2, 222, 732 
 3, 334, 345 
 
 3, 448, 300 
 
 3, 277, 990 
 3, 066, 012 
 4, 614, 778 
 
 4, 546, 258 
 4, 165, 146 
 4, 348, 637 
 
 4, 783, 515 
 
 5, 646, 086 
 
 947, 184 
 
 1937 
 
 952, 281 
 
 1938 
 
 874, 877 
 
 1946 
 
 851, 254 
 
 1947 
 
 1, 875, 003 
 
 1948 
 
 1, 997, 500 
 
 1949 
 
 2, 714, 510 
 
 1950 
 
 3, 079, 232 
 
 1951 
 
 4, 240, 554 
 
 1952... 
 
 4, 045, 886 
 
 1953 
 
 4, 017, 951 
 
 1954 
 
 4, 312, 644 
 
 1955 
 
 4, 958, 778 
 
 1956 
 
 4, 635, 680 
 
 
 
 i Foreign trade transactions in the year 1948 were carried out at widely varying conversion rates. Dollar 
 values are those furnished by the International Monetary Fund. 
 
 2 January-September, $0.003704; October imports, $0.003509; November-December imports and October- 
 December exports, $0.002857. 
 
 116 
 
Table II. — Trade With Foreign Countries and French Oversea Territories, by Principa 
 Commodity Groups, 1954-56 
 
 [In thousands of dollars] 
 
 Commodity 
 
 Imports, total 
 
 Fruits and vegetables 
 
 Coffee, cocoa, tea, and spices 
 
 Cereals, flour-mill products, and cereal 
 
 preparations 
 
 Oilseeds and oleaginous fruits 
 
 Wine and other beverages 
 
 Coal and other solid fuels 
 
 Crude petroleum and products 
 
 Chemicals and chemical products.. 
 
 Textiles and manufactures 
 
 Iron and steel and semimanufactures 
 
 Nonferrous metals and semimanufactures. 
 Nonelectrical machinery and equipment.. 
 
 Transport equipment 
 
 Other merchandise 
 
 Exports, total 
 
 Cereals, flour-mill products, and cereal 
 
 preparations 
 
 Sugar and sugar preparations 
 
 Wine and other beverages 
 
 Coal and other solid fuels 
 
 Crude petroleum and products 
 
 Chemicals and chemical products 
 
 Wood and manufactures 
 
 Pulp, paper, and paper products 
 
 Textiles and manufactures 
 
 Iron and steel and semimanufactures 
 
 Metal manufactures 
 
 Nonelectrical machinery and equipment- 
 Electrical machinery and equipment 
 
 Automobiles, tractors, and cycles 
 
 Other merchandise 
 
 3, 173, 800 
 
 23, 400 
 
 41, 400 
 5,700 
 249, 400 
 530, 000 
 154, 000 
 617, 100 
 
 67, 100 
 153, 100 
 261, 400 
 
 83, 700 
 799, 500 
 
 100, 900 
 21, 100 
 110,000 
 110,300 
 129, 400 
 237, 100 
 70, 300 
 49, 400 
 705, 100 
 461, 100 
 47, 400 
 152, 900 
 60, 300 
 113, 400 
 382, 000 
 
 Oversea 
 Terri- 
 tories 
 
 82, 800 
 
 113, 100 
 
 204, 000 
 
 4,300 
 
 2,000 
 
 12, 800 
 
 48, 000 
 
 1,700 
 
 61, 700 
 
 600 
 
 300 
 
 1, 561, 900 
 
 44, 300 
 81, 400 
 41, 400 
 6,300 
 78, 300 
 
 121, 400 
 33, 700 
 39, 700 
 
 265, 700 
 80, 300 
 78, 900 
 94, 900 
 66, 900 
 
 136, 300 
 
 392, 400 
 
 3, 597, 800 
 
 560, 800 
 184, 800 
 578, 000 
 129, 100 
 238, 800 
 314, 300 
 121, 400 
 930, 100 
 
 3, 363, 100 
 
 182, 600 
 
 42, 600 
 124, 000 
 175, 700 
 111, 400 
 261. 700 
 105, 400 
 
 62, 900 
 978, 000 
 674, 300 
 
 64, 000 
 188, 600 
 
 78, 000 
 139, 100 
 174, 800 
 
 Oversea 
 Terri- 
 tories 
 
 1, 185, 700 
 
 85, 700 
 90, 600 
 245,100 
 4,000 
 1,400 
 14, 000 
 48, 000 
 10, 000 
 70, 600 
 800 
 
 287, 200 
 
 1, 595, 700 
 
 36, 000 
 79, 400 
 35, 100 
 5,700 
 87, 100 
 
 131, 400 
 40, 300 
 42, 900 
 
 237, 100 
 93, 400 
 82, 900 
 90, 600 
 70, 600 
 
 151, 400 
 
 411, 800 
 
 165, 100 
 44, 300 
 8,900 
 376, 800 
 612, 300 
 218, 000 
 614, 000 
 183, 700 
 269, 400 
 390, 000 
 112, 000 
 1, 154, 000 
 
 103, 100 
 36, 000 
 
 144, 600 
 116,000 
 
 94, 300 
 260, 600 
 
 78, 000 
 
 60, 300 
 954, 200 
 675, 400 
 
 60, 300 
 179, 100 
 
 69, 100 
 
 145, 700 
 168, 600 
 
 Oversea 
 Terri- 
 tories 
 
 1, 319, 900 
 
 251, 100 
 147, 400 
 
 89, 400 
 118,900 
 224, 600 
 3,100 
 800 
 15, 700 
 46, 900 
 12, 900 
 
 329, 400 
 
 1, 490, 400 
 
 41, 400 
 4,300 
 94, 900 
 
 137, 700 
 26, 600 
 42, 000 
 
 237, 700 
 85,700 
 72,300 
 85, 100 
 65, 700 
 
 130, 000 
 
 351, 600 
 
 117 
 
Table III.— Trade With Principal Countries, 7954-56 
 
 [Thousands of dollars] 
 
 Country of origin or destination 
 
 Total 
 
 United States 
 
 Algeria . 
 
 Argentina 
 
 Australia 
 
 Belgium-Luxembourg 
 
 Brazil 
 
 Cambodia 
 
 Laos 
 
 Viet-Nam 
 
 Egypt 
 
 Morocco i 
 
 French West Africa 
 
 Germany, Federal Republic of. 
 
 Iraq 
 
 Italy 
 
 Kuwait 
 
 Madagascar 
 
 Malaya and Singapore 2 ... 
 
 Netherlands 
 
 Saudi Arabia 
 
 Spain 
 
 Sweden 
 
 Switzerland 
 
 Tunisia 
 
 United Kingdom 
 
 U. S. S. R 
 
 Other countries... 
 
 5,732 
 J, 422 
 
 Imports 
 
 4, 783, 515 
 
 458, 449 
 379, 755 
 
 37, 001 
 174, 197 
 262, 193 
 
 67, 437 
 
 31, 744 
 
 38, 555 
 174, 543 
 
 225, 020 
 440, 052 
 
 226, 434 
 105, 160 
 155, 238 
 
 44, 481 
 98, 484 
 95, 290 
 68, 051 
 216, 623 
 49, 152 
 1, 080, 942 
 
 680, 366 
 380, 787 
 
 76, 893 
 180, 122 
 307, 036 
 
 60, 188 
 
 [ 14,431 
 
 20 
 
 i 35,681 
 
 34,030 
 236, 454 
 268, 035 
 668, 037 
 209, 338 
 142, 090 
 176, 485 
 
 61, 968 
 
 65, 082 
 155, 418 
 
 64,414 
 
 35, 295 
 126, 385 
 126, 659 
 
 70, 511 
 309, 522 
 
 65, 377 
 1, 195, 462 
 
 Exports 
 
 4, 312, 644 
 
 154, 438 
 493, 161 
 44, 001 
 22, 802 
 
 221, 960 
 241,317 
 352, 351 
 
 3,814 
 164, 369 
 
 1,620 
 75, 605 
 10, 751 
 105, 432 
 
 4,523 
 
 120, 083 
 241, 194 
 30, 944 
 946, 097 
 
 208, 224 
 594, 393 
 64, 917 
 34, 373 
 339, 983 
 73,008 
 
 124, 651 
 
 64, 154 
 220, 303 
 239, 374 
 505, 526 
 
 11, 299 
 
 190, 116 
 
 1,6 
 
 70,8 
 
 11, 085 
 
 146, 058 
 
 5,268 
 
 88, 747 
 
 91, 253 
 247, 282 
 138, 070 
 358, 305 
 
 36, 175 
 
 223, 517 
 616, 689 
 31, 367 
 21, 153 
 356, 571 
 32, 918 
 9,522 
 3,194 
 53, 226 
 24,733 
 203, 670 
 214, 292 
 474, 882 
 14,628 
 186, 548 
 1,828 
 68, 791 
 14,294 
 131, 245 
 9,485 
 71,888 
 71, 414 
 314, 084 
 125, 334 
 277, 743 
 39, 258 
 1, 043, 406 
 
 118 
 
Table IV. — Imports of Principal Commodities, 1954-56 
 
 Commodity 
 
 Quantity (metric tons, except 
 as indicated) 
 
 Value (thousands of do lars) 
 
 Imports, total- 
 
 Meat and products.. 
 Vegetables, fresh 
 
 Fruits, other, and nuts, edible, fresh or 
 
 dried.... 
 
 Coffee beans 
 
 Wheat .1,000 metric tons.. 
 
 Corn 
 
 Peanuts 
 
 Oilseeds and oleaginous fruits, other 
 
 Peanut oil 
 
 Vegetable oils, other 
 
 Sugar, raw... 
 
 Cocoa beans 
 
 Wines 1,000 metric tons.. 
 
 Tobacco, unmanufactured 
 
 Coal 1,000 metric tons.. 
 
 Coke and other solid mineral fuels—do 
 
 Petroleum, crude do 
 
 Petroleum products do 
 
 Chemicals, inorganic 
 
 Chemicals, organic 
 
 Rubber, natural, and similar gums 
 
 Hides and skins, raw, other 
 
 Wood, unmanufactured, squared, and 
 sawn 1,000 metric tons.. 
 
 Cellulose pulp 
 
 Wool and hair 
 
 Cotton, raw, waste, linters, and carded or 
 combed 
 
 Jute and other vegetable fibers, except cot- 
 ton, flax, and ramie 
 
 Iron and steel ingots, billets, and equiva- 
 lent primary forms 
 
 Iron and steel joists, girders, angles, 
 shapes, sections, bars, and concrete rein- 
 forcement rounds 
 
 Iron and steel universals, plates, and 
 sheets, uncoated 
 
 Iron and steel hoop and strip 
 
 Iron and steel plates and sheets, coated. .. 
 
 Iron and steel, other.. 
 
 Copper, unworked 
 
 Boilers, motors, pumps compressors, and 
 parts 
 
 Textile machinery, parts, and accessories, 
 except sewing machines 
 
 Machinery for working metals and other 
 hard materials, handtools, and parts 
 
 Electrical machinery, apparatus, and 
 parts _ 
 
 Passenger automobiles, cycles, and other 
 road motor vehicles and parts 
 
 Seagoing vessels number.. 
 
 Aircraft parts and accessories 
 
 Gold and alloys of gold net kilograms.. 
 
 Other merchandise 
 
 35, 237 
 441, 064 
 481, 016 
 277, 180 
 
 270, 453 
 
 168, 683 
 
 254 
 
 331, 623 
 
 320, 860 
 
 426, 920 
 
 82, 274 
 
 98, 276 
 
 333, 457 
 
 50,966 
 
 1,552 
 
 44, 607 
 
 8,005 
 
 4,106 
 
 23, 607 
 
 1,066 
 
 118, 237 
 
 61, 088 
 
 150, 434 
 
 58, 472 
 
 13, 759 
 
 764 
 692, 840 
 165, 214 
 
 340, 482 
 
 127, 989 
 
 153, 970 
 
 43, 454 
 
 86, 105 
 78, 017 
 19, 633 
 155, 879 
 139, 610 
 
 16, 329 
 
 14, 128 
 
 23, 583 
 
 18, 092 
 
 17,883 
 
 80 
 
 48, 245 
 403, 022 
 537, 352 
 271, 620 
 
 232 
 
 292, 946 
 
 365, 327 
 
 484, 606 
 
 82, 781 
 
 98, 931 
 
 314, 721 
 
 43, 699 
 
 1,875 
 
 38, 900 
 
 8,570 
 
 5,298 
 
 24, 814 
 
 1,097 
 795, 610 
 176, 544 
 
 295, 597 
 
 150, 379 
 
 247, 324 
 
 89, 732 
 
 180, 108 
 108, 746 
 30, 669 
 216, 842 
 173, 669 
 
 21, 234 
 
 15, 715 
 
 29, 599 
 
 21, 587 
 
 24, 912 
 
 62 
 
 1,051 
 
 45, 733 
 488, 321 
 423, 235 
 266, 042 
 
 413, 484 
 348, 793 
 442, 207 
 81, 274 
 90, 772 
 343, 836 
 51, 446 
 1,434 
 34, 691 
 14, 037 
 5,276 
 24, 986 
 1,413 
 145, 105 
 101, 761 
 195, 256 
 67, 488 
 26, 107 
 
 1,372 
 
 814, 330 
 203, 040 
 
 319, 710 
 
 156, 541 
 
 227, 385 
 
 130, 117 
 
 259, 595 
 130, 834 
 41, 255 
 216, 069 
 181, 072 
 
 22, 400 
 
 (0 
 
 28,642 
 
 27,071 
 
 26. 958 
 106 
 800 
 
 71, 156 
 
 4, 348, 637 
 
 61, 152 
 55, 812 
 
 59, 448 
 
 223, 958 
 35, 045 
 25, 213 
 82, 725 
 71, 800 
 42, 031 
 32, 148 
 61, 612 
 64,658 
 
 195, 938 
 49, 160 
 
 156, 965 
 75, 286 
 
 503, 889 
 43, 768 
 23, 842 
 41, 694 
 71, 938 
 47, 740 
 11, 737 
 
 49, 114 
 79, 250 
 281, 130 
 
 281, 358 
 
 28, 780 
 
 12, 038 
 
 5,251 
 
 14, 023 
 9,285 
 4,801 
 18, 664 
 96, 040 
 
 46, 813 
 
 55, 971 
 
 55, 271 
 
 24, 362 
 18, 911 
 19, 977 
 133, 294 
 
 4, 783, 515 
 
 62, 436 
 53, 596 
 
 74, 165 
 185, 067 
 31,417 
 24,926 
 86, 223 
 74, 512 
 42, 338 
 35, 645 
 54,031 
 38, 088 
 233, 670 
 40, 591 
 161, 522 
 
 72, 726 
 92, 868 
 263, 332 
 
 243, 012 
 
 34, 051 
 
 23, 608 
 
 11, 435 
 
 27, 184 
 13, 492 
 7,529 
 30, 132 
 159, 456 
 
 52, 594 
 
 31, 853 
 
 64, 742 
 
 32, 595 
 28, 033 
 30, 913 
 44, 533 
 1, 227, 055 
 
 36, 031 
 86, 719 
 75, 011 
 70, 422 
 
 92, 686 
 170, 396 
 143, 668 
 35, 185 
 94, 038 
 69, 168 
 41, 274 
 41,963 
 56, 833 
 31, 489 
 210, 329 
 37, 222 
 258, 507 
 104, 189 
 570, 116 
 55, 715 
 34, 919 
 55, 131 
 128, 573 
 53, 818 
 19, 807 
 
 95, 589 
 289, 719 
 
 231, 349 
 
 33, 766 
 
 23, 710 
 
 18, 021 
 
 40, 847 
 16, 941 
 10, 516 
 34, 302 
 171, 065 
 
 61, 810 
 
 C 1 ) " 
 
 65, 385 
 
 74, 086 
 
 36, 337 
 7,309 
 20, 490 
 93, 084 
 1, 653, 363 
 
 1 Data not comparable. 
 
 119 
 
Table V. — Exports of Principal Commodities, 1954-56 
 
 Commodity 
 
 Quantity (metric tons, except 
 as indicated) 
 
 Value (thousands of dollars) 
 
 Exports, total.. 
 
 Fruits and nuts, edible, fresh or dried 
 
 Wheat 1,000 metric tons.. 
 
 Wheat flour 
 
 Sugar, beet and cane 
 
 Wines 
 
 D istilled liquors 
 
 Iron ore 1,000 metric tons.. 
 
 Coal do 
 
 Gas oils 1,000 hectoliters.. 
 
 Gasoline, except aviation do 
 
 Chemicals, inorganic 
 
 Chemicals, organic 
 
 Pharmaceutical products 
 
 Fertilizers 1,000 metric tons._ 
 
 Rubber tires and tubes for vehicles and 
 
 aircraft.. 
 
 Hides and skins, tanned; leather 
 
 Wood, unmanufactured, squared, or 
 
 sawn 1,000 metric tons.. 
 
 Paper and paperboard 
 
 Books and other printed matter 
 
 Wool and hair 
 
 Yarn of wool, hair and horsehair 
 
 Wool and hair fabrics J 
 
 Cotton fabrics 1 
 
 Synthetic fiber fabrics ! 
 
 Glass and manufactures.. 
 
 Iron and steel ingots, billets, bars, and 
 
 equivalent primary forms 
 
 1,000 metric tons.. 
 Iron and steel joists, girders, angles, 
 
 shapes, sections, bars, and concrete 
 
 reinforcement rounds-1,000 metric tons.. 
 Iron and steel universals and plates, 3 mm . 
 
 and over 1,000 metric tons.. 
 
 Iron and steel universals, plates, and 
 
 sheets, uncoated, other 
 
 1,000 metric tons.. 
 Tinplate and tinned sheets 
 
 1,000 metric tons... 
 Iron and steel plates and sheets, coated, 
 
 other 1,000 metric tons.. 
 
 Iron and steel wire and wire rods 
 
 1,000 metric tons.. 
 Steel tubes and fittings, welded or drawn 
 
 1,000 metric tons.. 
 Iron pipes and fittings, cast 
 
 1,000 metric tons.. 
 
 Iron and steel, other do 
 
 Boilers, motors, pumps, compressors, and 
 
 parts 
 
 Machinery for working metals and other 
 
 hard materials, handtools, and parts 
 
 Conveying, hoisting, excavating, road 
 
 construction, and mining machinery 
 
 Electric generators, alternators, motors, 
 
 converters, transformers, and switch- 
 gear 
 
 Electrical machinery, apparatus, and 
 
 parts, other 
 
 Railway transportation equipment 
 
 Passenger cars number. . 
 
 Trucks do 
 
 Chassis, parts, and components 
 
 Parcel post 
 
 Gold and alloys net kilograms.. 
 
 Other merchandise 
 
 89, 901 
 1,228 
 340, 240 
 563, 965 
 201, 613 
 64,412 
 11, 484 
 7,493 
 14,912 
 20, 013 
 576, 924 
 31, 129 
 
 16, 659 
 1,663 
 
 40, 173 
 10, 093 
 
 1,691 
 113, 116 
 25, 261 
 46, 077 
 
 17, 665 
 4,768 
 
 53, 428 
 13, 558 
 119, 955 
 
 1,370 
 
 317 
 
 214 
 
 558 
 
 43, 424 
 13, 148 
 26, 126 
 
 15, 374 
 
 56, 940 
 67, 360 
 100, 898 
 
 26, 713 
 23, 607 
 
 27, 870 
 108, 277 
 
 488, 113 
 755, 887 
 208, 030 
 56, 813 
 
 14. 144 
 12, 533 
 19, 369 
 
 17. 145 
 645, 234 
 
 50, 082 
 15, 121 
 1,548 
 
 2,526 
 135, 206 
 31, 007 
 55, 867 
 22, 176 
 4,923 
 42, 445 
 12, 889 
 153, 597 
 
 361 
 
 299 
 1,107 
 
 50, 454 
 
 14, 505 
 
 34, 844 
 
 17, 493 
 
 54, 121 
 
 84, 158 
 136, 535 
 27, 189 
 25, 273 
 30, 443 
 37, 280 
 
 74, 354 
 883 
 392, 168 
 688, 097 
 285, 642 
 20, 414 
 14, 397 
 69, 222 
 18, 994 
 16, 369 
 612, 229 
 49, 845 
 15, 522 
 1,806 
 
 31,1 
 
 11,8 
 
 387 
 
 316 
 
 228 
 849 
 
 27, 142 
 
 11, 759 
 
 33, 662 
 
 15, 979 
 
 65, 482 
 86, 669 
 151, 143 
 
 4, 312, 644 
 
 23, 333 
 
 78, 060 
 40,311 
 92, 024 
 65, 262 
 53, 743 
 43, 755 
 103, 785 
 40, 020 
 68, 212 
 49, 171 
 36, 760 
 52, 098 
 
 33, 109 
 
 115,677 
 77, 949 
 35, 422 
 
 149, 270 
 
 122, 014 
 32, 860 
 
 56, 356 
 
 27, 720 
 
 28, 880 
 
 34, 807 
 
 54, 010 
 
 24,963 
 57, 190 
 
 55, 690 
 
 27, 271 
 
 97,6 
 39,7 
 107,6 
 
 1, 611, 129 
 
 4, 958, 778 
 
 31, 448 
 141,377 
 42,411 
 110, 810 
 70, 389 
 52, 947 
 53, 171 
 165, 595 
 52, 214 
 64, 770 
 59, 408 
 47, 444 
 55, 011 
 
 39, 297 
 46, 315 
 
 118, 930 
 88, 959 
 34, 789 
 
 114, 996 
 54, 072 
 
 191, 520 
 44, 825 
 
 75, 100 
 43, 582 
 31, 259 
 48, 151 
 
 33, 953 
 101, 223 
 
 66, 275 
 29, 135 
 
 33, 457 
 
 114,925 
 
 48, 344 
 138, 532 
 
 44, 769 
 37, 424 
 
 157, 075 
 
 45, 200 
 1, 827, 643 
 
 1 Excludes pile and special fabrics. 
 
 120 
 
Table VI. — Principal Commodity Imports From the United States, 1955-56 
 
 [Quantity in metric tons; value in thousand dollars] 
 
 Commodity 
 
 Quantity 
 
 Quantity 
 
 Total.. 
 
 Milk, butter, cheese, eggs, honey 
 
 Fruits 
 
 Cereals (wheat, com, etc.) 
 
 Oilseeds, oleaginous fruit, fodder, etc.. 
 
 Fats, oils, waxes 
 
 Tobacco 
 
 Sulfur.. 
 
 Solid fuels 
 
 Crude oil 
 
 Inorganic chemical products 
 
 Organic chemical products 
 
 Tanning extracts and dyes, varnishes, paints, etc 
 
 Essential oils for perfume 
 
 Miscellaneous chemical products 
 
 Plastic materials and plastic products 
 
 Rubber and rubber products 
 
 Skins and furs 
 
 Wood, squared or sawn 
 
 Materials for the manufacture of paper 
 
 Papers, cartons, and paper products 
 
 Raw cotton 
 
 Secondhand goods, rags, cotton waste 
 
 Works in stone, plastic, cement 
 
 Pearls, gems, precious metals and articles thereof 
 
 Iron and steel 
 
 Copper 
 
 Tools; cutlery and place settings in base metals 
 
 Boilers, machines, apparatus and devices, electrical and 
 
 mechanical 
 
 Aircraft, parts, and equipment 
 
 Automobiles, cycles, etc 
 
 Optical goods, scientific apparatus, medical and surgical 
 
 equipment 
 
 Works of art, collectors' items 
 
 All other 
 
 2, 037, 313 
 
 360 
 
 17, 326 
 
 53, 788 
 
 108, 645 
 
 3,865 
 
 4,901 
 
 162, 458 
 
 750, 681 
 
 61,115 
 
 51, 160 
 
 9,962 
 
 1,623 
 
 541 
 
 n. s. s. 
 
 9,444 
 
 13, 374 
 
 166 
 
 15, 753 
 
 26, 462 
 
 22, 934 
 
 85, 533 
 
 4,648 
 
 156 
 
 284 
 
 247, 872 
 
 53, 738 
 
 n. s. s. 
 
 482, 303 
 
 3,420 
 3,957 
 
 14, 245 
 1,145 
 9,302 
 6,898 
 
 12, 841 
 1,793 
 
 12, 656 
 
 10, 652 
 1,191 
 1,506 
 n. s. s. 
 7,121 
 
 10, 053 
 5,425 
 2,445 
 5,228 
 4,413 
 
 64, 062 
 
 1,987 
 
 505 
 
 530 
 
 15, 120 
 
 50, 357 
 n. s. s. 
 
 93, 272 
 37, 527 
 18, 903 
 
 8, 757, 779 
 
 4,278 
 
 17, 545 
 
 1, 057, 656 
 
 n. s. s. 
 n. s. s. 
 56, 354 
 16, 035 
 
 1,630 
 355 
 14, 775 
 14, 468 
 22, 273 
 193 
 n. s. s. 
 23, 317 
 14, 973 
 86, 601 
 
 6,811 
 
 37, 955 
 593 
 
 15, 881 
 
 477 
 
 2,611 
 4,653 
 83, 648 
 17, 976 
 863 
 7,241 
 5,474 
 101, 931 
 14, 312 
 14, 042 
 11, 403 
 2,569 
 1,273 
 6,619 
 14, 925 
 16, 171 
 4,988 
 2,525 
 4,669 
 3,188 
 54, 184 
 3,181 
 1,456 
 960 
 31, 803 
 53, 175 
 2,233 
 
 118, 883 
 16, 501 
 21, 193 
 
 n. s. s. Not shown separately. 
 
 121 
 
Table VII. — Principal Commodity Exports To the United States, 1955-56 
 
 [Quantity In metric tons; value in thousand dollars] 
 
 Commodity 
 
 Quantity Value 
 
 Quantity 
 
 Total.. 
 
 Milk, butter, cheese, eggs, etc 
 
 Fruits - 
 
 Sugar and confectionery 
 
 Prepared foodstuffs; vegetables, fruits, etc.. 
 Wine- 
 
 Brandy, whiskey, gin 
 
 Liqueurs - 
 
 Organic chemical products 
 
 Fertilizers — 
 
 Essential oils for perfume 
 
 Printed material, books, etc 
 
 Wool and other animal hair — 
 
 Woven fabrics of wool and other animal hair 
 
 Yarns of wool and other animal hair.. 
 
 Cotton (raw), fabrics, and yarn 
 
 Carpets, tapestries, velvets, tulles, lace, etc 
 
 Knitted and crocheted goods... 
 
 Clothing and clothing accessories 
 
 Glass and glassware 
 
 Pearls, gems, precious metals and articles thereof 
 
 Iron and steel - 
 
 Automobiles, cycles, etc 
 
 Optical, scientific, medical, surgical, etc., apparatus.. 
 
 Musical instruments 
 
 Toys, games and sports equipment 
 
 Works of art and collectors' items 
 
 All other 
 
 1,547 
 2,659 
 1,478 
 9,548 
 1,887 
 4,291 
 4,239 
 1,265 
 1,241 
 
 12, 420 
 1,625 
 3,556 
 4,382 
 8,537 
 
 21, 952 
 6,874 
 1,959 
 2,224 
 2,560 
 5,510 
 
 79,241 
 
 681, 908 
 
 935 
 
 2,325 
 62, 943 
 
 4,572 
 n. s. s. 
 n. s. s. 
 n. s. s. 
 
 1,830 
 57, 333 
 722 
 410 
 n. s. s. 
 n. s. s. 
 n. s. s. 
 
 1,218 
 
 22, 469 
 
 345, 479 
 7,912 
 
 1,644 
 2,766 
 1,511 
 2,608 
 
 1,434 
 10,086 
 1,811 
 4,698 
 5,096 
 1,708 
 1,435 
 11, 593 
 1,655 
 4,000 
 5,260 
 7,923 
 47, 173 
 10,292 
 3,764 
 2,724 
 2,621 
 5,793 
 63,984 
 
 n. s. s. Not shown separately. 
 
 U. S. GOVERNMENT PRINTING OFFICE: 1988 
 
 122 
 
U. S. Department of Commerce Field Offices 
 
 Information on all phases of world trade — from comprehensive 
 economic and business data to details on export and import regula- 
 tions — is quickly and directly available to businessmen in their own 
 localities through the 33 Field Offices of the U. S. Department of 
 Commerce. 
 
 Conveniently located in business centers of the United States, 
 the Field Offices are staffed with foreign trade specialists who keep 
 constantly abreast of developments in the United States and abroad. 
 Aided by the current information and publications sent to them regu- 
 larly from Washington, they are well equipped to serve world traders 
 in their communities. 
 
 Supplementing these Field Offices is a coast-to-coast network of 
 some 800 cooperative offices — local chambers of commerce and other 
 business organizations — which have been furnished with Department 
 of Commerce publications, reference material, and other information 
 for use by businessmen. 
 
 The addresses of the Department's Field Offices follow: 
 
 Albuquerque, N. Mex., Room 321, Post Office Bldg. 
 
 Atlanta 3, Ga., 604 Volunteer Bldg.. 66 Luckie St., NW. 
 
 Boston 9, Mass., 1416 U. S. Post Office and Courthouse Bldg. 
 
 Buffalo 3, N. Y„ 117 Ellicott St. 
 
 Charleston 4, S. C, Area 2, Sergeant Jasper Bldg., West End Broad St. 
 
 Cheyenne, Wyo., 307 Federal Office Bldg. 
 
 Chicago 6, 111., 226 W. Jackson Blvd. 
 
 Cincinnati 2, Ohio, 442 U. S. Post Office and Courthouse. 
 
 Cleveland 14, Ohio, 1100 Chester Ave. 
 
 Dallas 1, Tex., Room 3-104, Merchandise Mart, 500 E. Ervay St. 
 
 Denver 2, Colo., 142 New Customhouse. 
 
 Detroit 26, Mich., 438 Federal Bldg. 
 
 Greensboro, N. C, Room 407, U. S. Post Office Bldg. 
 
 Houston 2, Tex., 624 First National Bank Bldg. 
 
 Jacksonville 1, Fla., 425 Federal Bldg. 
 
 Kansas City 6, Mo., Federal Office Bldg. 
 
 Los Angeles 15, Calif., 1031 S. Broadway. 
 
 Memphis 3, Tenn., 212 Falls Bldg. 
 
 Miami 32, Fla., 300 NE. First Ave. 
 
 Minneapolis 1, Minn., 319 Metropolitan Bldg. 
 
 New Orleans 12, La., 333 St. Charles Ave. 
 
 New York 17, N. Y., 110 E. 45th St. 
 
 Philadelphia 7, Pa., 1015 Chestnut St. 
 
 Phoenix, Ariz., 137 N. Second Ave. 
 
 Pittsburgh 22, Pa., 107 Sixth St. 
 
 Portland 4, Oreg., 217 Old U. S. Courthouse. 
 
 Reno, Nev., 1479 Wells Ave. 
 
 Richmond 19, Va., Room 409, Post Office Bldg. 
 
 St. Louis 1, Mo., 910 New Federal Bldg. 
 
 Salt Lake City 1, Utah, 222 SW. Temple St. 
 
 San Francisco 11, Calif., Room 419 Customhouse. 
 
 Savannah, Ga., 235 U. S. Courthouse and Post Office Bldg. 
 
 Seattle 4, Wash., 909 First Ave. 
 
 For local telephone numbers consult U. S. Government section of phone book. 
 
Illlllll 
 
 PENN STATE UNIVERSITY LIBRARIES 
 
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