So you want to get into the import export game in France? Excellent idea! France is known for its delicious food and wine, cutting-edge fashion, and innovative technology products – all things that sell incredibly well abroad.
An import export business connects foreign producers with French buyers or takes popular French goods to eager consumers in other countries. With the right strategy, this can be an extremely lucrative industry to enter.
In this comprehensive guide, I’ll walk you step-by-step through exactly how to start sourcing profitable products, connecting with overseas suppliers and buyers, navigating French customs regulations, shipping your goods, and managing the financial side of running your own import export company.
Let’s get started!
Step 1: Research Potential Markets and Products
Importing and exporting combines understanding consumer demand with global supply chains. Before making any big decisions, thoroughly research:
- Trending and niche markets – What’s selling well domestically and internationally right now? What gaps need filling?
- Competitor analysis – Who are the big and small players in your chosen imports sector right now and what can you learn from them?
- Relevant regulations and restrictions – Different products have different import and export rules in every country. Make sure you fully understand any legal requirements.
- Production hotspots – Where are the main producer countries and manufacturing hubs for your selected products located? Understanding geographic logistics is key.
Spend time talking to established importers/exporters, visiting trade shows, and browsing industry reports. This homework lays the foundation for every other business decision.
Here are some major French import and export categories to help kickstart your research:
- Fashion and luxury goods – Paris sets global fashion and beauty trends. Consider importing raw materials for production or exporting finished luxury apparel, makeup, perfumes etc.
- Food and wine – French cuisine and wine is iconic. Look into gourmet imports or exporting popular products overseas.
- Aerospace and automotive parts – France has massive aerospace and automotive engineering industries hungry for components.
- Advanced machinery and electronics – Industrial and high tech products are a major import and export.
Once you’ve identified potential winning products, drill down into the details – suppliers, production schedules, shipping routes, storage considerations, target buyer demographics etc.
Step 2: Choose Your Business Structure
Like any business, you need to choose the right structure for your import export company in France. This impacts taxes, paperwork, and financing. The main options are:
- Sole Proprietorship
- Simplest, least expensive structure
- No corporate tax: earnings passed directly to your personal income
- You take unlimited personal financial liability
- LLC and Corporation Structures – SARL, SAS etc.
- More complex and expensive to set up
- Business is taxed separately from personal income
- Liability is limited to business assets, not personal assets
- Getting Legal Support – Consider hiring an English-speaking lawyer or legal advisor to guide your exact business formation process. Navigating French bureaucracy can be complex.
Think carefully about which model best fits your commercial objectives and risk profile. Also factor in any regulatory requirements for certain export products – some may need specific business credentials.
I’d recommend starting out as sole proprietor then transitioning to a more advanced structure like an SARL once operations are up and running profitably.
Step 3: Handle Logistics and Documentation
Now for the tough part – the actual import and export mechanics! This includes:
- Registering as a official trader
- Securing warehousing and transport
- Navigating customs declarations, taxes, and import/export codes
- Managing shipping, insurance, and compliance paperwork
It can be intensely complex – especially for first-timers. Again, consider hiring consultants, freight forwarders, and customs brokers to offload logistics management, while you focus on building supplier and buyer networks.
Some key areas to research beforehand:
Registering Your Business
- Obtain an Economic Operator Registration and Identification (EORI) number – this identifies and classifies your business
- Research if you need additional freight forwarder and customs broker registrations
- Apply for required export licenses if dealing with controlled goods
France-EU Customs Rules
- Understand import and Export Declarations (IOD/EXD)
- Calculate Value-Added Tax (VAT) and customs duties
- Learn customs procedure codes to facilitate border checks
- Know rules of origin certifications and other compliance documentation
Shipping Options
- Decide on sea freight, air freight etc based on product type, budgets, time sensitivity
- Obtain accurate shipping quotes from multiple providers
- Negotiate long-term contracts with shippers as operations grow
There are lots of nitty gritty details here which is why I suggest hiring logistics professionals – at least initially. Focus on maintaining oversight of the entire supply chain flow.
Step 4: Source Reliable Overseas Suppliers
For any importer, overseas suppliers are your business lifeblood. Build a global network of manufacturers, vendors and middlemen supplying your niche French imports at the right price and quality.
Tips for sourcing excellent suppliers:
- Check production capabilities match your specifications
- Request multiple product samples before committing
- Ask for references from existing Western clients
- Negotiate price based on order volumes
- Ensure communication systems are robust
- Use payment terms like letters of credit to manage risk
The goal is having suppliers you can trust absolutely to deliver the right goods at the agreed time without any nasty surprises! This reduces sleepless nights.
Once you’ve found potential suppliers, run small test orders first and inspect quality rigorously when shipments arrive at your France warehouse.
Be prepared to eliminate non-performers ruthlessly until you have a core group of long term partners. This is normal – don’t get too attached to any single supplier at the start.
Step 5: Woo French Buyers
Great importing is only half the equation. You also need to line up retailers or commercial buyers in France interested in your imported products.
Think supermarkets, specialty boutiques, ecommerce platforms, wholesalers, dealers etc.
Useful sales tactics include:
- Offering exclusive import rights or territories
- Promising reliable long-term availability
- Highlighting unique and trending foreign goods
- Advertising in relevant French industry press
- Attending domestic trade shows to showcase products
- Building personal relationships with French buyers
- Providing generous credit terms and bulk discounts
Avoid overpromising on delivery quantities or timelines in the early days. Better to under promise then slowly overdeliver. Reputation is critical in this business.
Be prepared to do extensive sales, marketing and relationship building within France to become an established importer people trust.
Step 6: Handle Finances Smartly
With lengthy shipping times and complicated logistics, importing and exporting has major cash flow challenges. Some key financial aspects to master:
Managing Currency Risk
- Choose USD or Euros for supplier payments to limit volatility
- Use forwards contracts or options to hedge currency exposure
- Account for exchange rate fluctuations in selling prices
Accessing Finance
- Explore bank loans or government grants for new importers/exporters
- Take advantage of supplier credit periods before paying
- Only place new orders once existing shipment is paid off
- Build up reserves to survive unexpected problems or non payment
Controlling Margins
- Ensure selling prices generates hefty margin above import costs
- Offer maximum payment periods to French buyers to ease cash pressure
- Keep tight control on warehousing, shipping, and admin overheads
There are always surprises in the world of global trade. Careful financial planning reduces panic if things go wrong.
Bring in an experienced accounting firm to setup robust systems and processes from day one too.
Final Thoughts
That wraps up this comprehensive beginner’s guide on exactly how to launch your own import export company in the lucrative French market.
As you can see this is no easy feat! Significant research, regulatory compliance, global logistics management and financial resilience is required for success.
However, France also represents an incredible import export opportunity given its consumer base, supply chain infrastructure and central position in Europe.
I hope mapping out the end-to-end process for identifying hot selling products, finding great suppliers, transporting goods, and selling to French buyers demystifies getting started.
The world of imports and exports can be intimidating but also hugely profitable if handled correctly. Why not dip your toes in the water? Bonne chance!
