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France

France profile

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Current business situation



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Visiting this country

Security & health, Visas, Travel tips & facts

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Country overview

Country facts, Economic climate, Political climate, Trade relations & statistics

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Useful websites and resources 

Government, business & trade, News & media, Travel & tourism

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Doing business

Business opportunities, Business etiquette, Tariffs & regulations, Documentation, Taxation, Business travel                

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Contact details

Austrade offices, Australian Embassy


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Contact details

Austrade offices

The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

See map below for Austrade office locations for this country. Please note that the markers are a guide only. A full list of Austrade offices (in alphabetical order of country) is also available.

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

Australian Embassy

Australian Embassy in France
4 Rue Jean Rey
75724 Paris Cedex 15
Tel: +33 1 4059 3300
Fax: +33 1 4059 3310

Website: www.france.embassy.gov.au/index_en.html

Business hours:
9.00am–5.00pm, Monday to Friday

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Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to France. This is regularly updated, and should be checked before planning travel.

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Country overview

Country facts

Capital city: Paris
Surface area: 552,000 sq km
Population: 61.4 million (2006)
Official language(s): French
Government: Parliamentary democracy
Head of State: President H.E. Mr Nicolas Sarkozy
Head of Government: Prime Minister Mr Francois Fillon
Australian exports to France: A$1,368 million
Australian imports from France: A$3,901 million
France's principal export destinations: Germany, Spain, Italy
France's principal import sources: Germany, Italy, Belgium
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Key economic indicators and statistics for 2006:

GDP - US$2,252.2 billion
GDP per capita - US$36,708
Real GDP growth - 2 per cent
Inflation rate - 1.9 per cent

 

The French economy is exceptionally diversified and attractive economy thanks not only to its geographical location and the size of its domestic market, but also because it boasts significant assets in the area of education, and research and development. 


Due to some important structural reforms that have taken place in the 1990s the government continues towards privatisation, decentralisation and deregulation that has contributed to an economic expansion in recent years.


France is the second largest market in the European Union (EU), behind Germany. The eruption of rioting in many parts of France poses the most serious challenge to the government.

The current government has lowered income taxes and introduced measures to boost employment. The government is focusing on the problems of the high cost of labour and labour market inflexibility resulting from the 35-hour workweek and restrictions on lay-offs. The government is also pushing for pension reforms and simplification of administrative procedures. The tax burden remains one of the highest in Europe.


Copyright © 2005 The Economist

Political climate

France is a parliamentary democracy with an elected President who nominates the Prime Minister, presides over the Council of Ministers, proclaims laws, and guarantees the independence of the judiciary.


The current centre right government face a tense social climate as it embarks on social and industrial reforms including an overhaul of the health care system, and further privatisation of state-owned enterprises.

Trade relations and statistics

France is a powerful member of the European Union (EU) and has strong ties with its EU partners. Its size, location and robust economy contribute to its position as a leader in western Europe. France also plays a significant role in Africa, through its former colonies, by providing extensive aid programs, fostering commercial activities and military agreements, and by virtue of its historic, cultural presence in the region.


(Source: World Trade Atlas)

Major Australian exports to France (2006-07):

  • Coal - A$482 million
  • Iron ore - A$207 million 
  • Medical instruments - A$77 million 
  • Medicaments (incl. veterinary)- A$73 million

Major Australian imports from France (2006-07):

  • Medicaments (including veterinary) - A$549 million
  • Aircraft and parts - A$311 million
  • Passenger motor vehicles - A$251 million
  • Perfumery & cosmetics - A$195

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

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Doing business

Business opportunities

Austrade's business development specialists have prepared a select range of market profiles with potential business opportunities and to assist in your exporting investigations. Please see the list of industries at the end of this profile that you may be interested in.

In conjunction with the market profiles, the Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
 

Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
 

For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.

Business etiquette

Business hours in France:

  • Offices are generally open from 9.00am–6.00pm with a one-hour lunch break.
  • Banks operate from 9.30am–5.30pm, Monday to Friday and some are open 9.30am–4.30pm, Saturdays.
  • Shops are open from 10.00am–7.00pm, Monday to Saturday. Most shops outside of Paris will close for lunch.

Business practices:

  • The most important characteristics of French business behaviour are its emphasis on courtesy, and a certain formality.
  • French companies are interested in long-term partnerships. Therefore, once business partnerships are established they need to be maintained with regular visits to France that will ensure continued collaboration.
  • Although many business people in France speak English, a considerable advantage can be gained if one can communicate in French during business dealings
  • Ensure that the person you are dealing with is a confident English speaker or have a translator on hand. The French are formal in their business dealings and generally are not receptive to a hard-sell approach
  • Titles (Dr, Professor, etc.) should be used both in correspondence and in face-to-face meetings – business contacts are not normally addressed on a first name basis.
  • A handshake and a greeting are customary when meeting contacts, or entering and leaving a meeting.
  • Contracts should be coherent, thorough, and where possible, brief.
  • Do not schedule business meetings in August (summer vacation) or workdays adjacent to public holidays.
  • Respecting appointment schedules is important, along with prompt correspondence whether by mail or fax
  • Not surprisingly, in a country renowned for its fashion industry, style of dress is very important in the business world. For men, office and corporate wear is formal consisting of suit and tie. Alternatively, fashionable semi-conservative wear is considered appropriate for women.
  • Times are often referred to using the 24-hour clock, eg. 6.00pm is 18.00 hours.
  • Lunch is an integral part of the day and business discussions during a meal are common.

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and regulations

France is a member of the European Union and gives preference to associate members of the Union, developing countries and European Free Trade Association (EFTA) members. If you are looking to sell your products in France, you should be aware of the following:

  • EU Directives must be met in addition to all local and national regulations in France.
  • Common Customs Tariff (CCT) is applicable to goods from non-EU countries, including Australia.
  • Most duties are ad valorem (per cent), based on the GATT Valuation Code – approximate cost, insurance and freight (CIF) value.
  • There are no special requirements for the Bill of Lading, and ‘To Order’ bills are acceptable.
  • A packing list is compulsory if the shipment contains more than one package and if the contents of each package are not shown on the commercial invoice.
  • In all circumstances a packing list facilitates clearance and all discounts must be clearly shown.
  • Digital signatures are now recognised as a legal instrument for most commercial transactions.

Customs authority contact details:


Directeur General des Douanes et Droits Indirects
Ministère du budget
Bureau E/1, 23 Bis, Rue de l’Université
F-75700 Paris
Tel: +33 1 5504 6520
Fax: +33 1 5504 6557


Customs Info Centre (Infos Douane Service) can be reached from 8.30am to 6.00pm, Mondays to Fridays on 0 820 02 44 44 or email: ids@douane.finances.gouv.fr

Documentation

All commercial and shipping documents must be in the French language.

Commercial invoice

There is no prescribed form, and three copies are required. The invoice must be certified and signed by the exporter and contain:

  • The names and addresses of the buyer and seller
  • A full description of the merchandise
  • Quantity
  • Terms of sale
  • Unit price and total value - including all costs up to CIF (Incoterms 1990). For example: loading, transportation, insurance, packaging, commission

Care should be taken in completing the commercial invoice. Under valuation attracts heavy fines; over valuation attracts excess duty. There is no provision for payment by importers if shipment is rejected due to errors.


All copies should bear the following declaration:  'Nous certifions que les marchandises faisant l'objet de cette fourniture sont de fabrication ...........(origin), et que la valeur sous-mentionee est juste et conforme a nos ecritures' (‘We certify that the goods that are the object of this request are made in … and that the value mentioned here below is correct and corresponds to our terms and conditions’).

Bill of lading

Normal commercial practice. To Order shipments are permitted.

Certificate of origin

Certificates of origin are required for:

  • Goods processed in countries enjoying preferential tariff treatment over the original country of origin. 
  • A wide range of textile articles, natural mineral waters, wool carpets and wines prepared with aromatic substances.

Special certificates

Livestock, animal products, plants and plant products must be accompanied by health certificates issued by the approved authority in the country of origin.

Plants and shrubs (excluding seeds) require trilingual phytosanitary certificates issued by the approved authority in the country of origin and approval from the French Department of Agriculture.

Fresh fruit requires quality and phytosanitary certificates declaring them to be free of San Jose scale.

Fodder plant seed requires a certificate of purity.

A certificate of age may be required for spirituous beverages.

Iron and steel products and carded woollen fabrics are subject to the issue of a technical visa prior to importation.

Taxation

France has a double taxation agreement with Australia. Tax rules favour corporate investment, regional development and international expansion and included accelerated depreciation, exemptions and carry-forward losses.

Corporate income tax is payable if a company has an office (branch or subsidiary) in France. However, territoriality of profits depends on the contract between the parent and the branch or subsidiary. Profits realised in France are taxable, and all costs and expenses incurred by the company for its operations in France are deductible. This includes:

  • Depreciation of property
  • Plant and equipment
  • Amortisation of specific intangible assets such as software, patents and R&D expenditure (except goodwill)

Subsidies received are generally taxable at normal rates, but taxes of investment subsidies may be reduced in some cases, notably in the year of the development grant (‘prime à l'aménagement du territoire’), or spread over several years.

Most subsidies are not subject to the Goods and Services Tax (TVA). A Liaison Office is not subject to corporate income tax or TVA, but is liable for some local taxes and wage-based levies.


TVA applies to activities regarding the supply of goods or services including importation and is paid by the consumer. Businesses are only charged with collecting the tax on sales, and deduct the tax they have paid on purchases and investments from the amount collected. Rates are set by individual European Union (EU) members and differ from country to country.


Banking, financial and insurance transactions, teaching and some real-estate rentals are the main services exempted from TVA. The standard rate on the sale of goods and services is 19.6 per cent, but lower rates can apply. For example:

  • Food, building renovations - 5.5 per cent
  • Some agricultural products and medicines - 5.5 per cent or 2.5 per cent
  • Books, hotels, public transport, newspapers and magazines - 5.5 per cent or 2.1 per cent

Local authorities impose a business tax (‘taxe professionnelle’) on companies and branches. Rates vary significantly from place to place and legislation sets a minimum and maximum for the tax, taking into account the relative profitability of the business. However, there are temporary exemptions that are offered to encourage businesses. ‘Taxe professionnelle’ is not payable in full until the third year of operation or, in priority areas, until the sixth year. Other exemptions apply.


Other local taxes include property tax (‘taxe foncière’), charged to owners of land and buildings, and housing tax (‘taxe d'habitation’), charged to occupants of non-professional premises who may be either owners or tenants. They are assessed on the basis of the rental value of the property. Reductions in taxes and social charges exist for companies investing in depressed regions attempting to buy ailing firms.


Companies wishing to set up an office in France are strongly advised to take fiscal and legal advice from Austrade Paris before embarking on such a project.

 

In 2004, the French government introduced an attractive tax regime for foreign executives assigned to France. For executives assigned to France by a foreign company, bonuses directly relating to their assignment in France are exempt from income tax.


Additionally, the French Government has also established a special incentive status for Young Innovative Companies. Innovative companies are exempt from tax and social contribution for eight years. According to the Finance Act, 2004, a company must meet certain conditions to qualify as an 'innovative new company'.

Business travel

Public transport in Paris is fast, safe and relatively inexpensive. Morning peak hour is from 8.00am–10.00am, in the evening it’s from 5.00pm–7.30pm and transport can be uncomfortably crowded at these times. Métro lines are colour-coded and numbered and cover central Paris. Some useful tips:

  • The same tickets are valid for the metro and the bus.
  • A single ticket costs €1.40, however, if you are planning to use the metro on multiple occasions then it is best to buy a ‘carnet’ of 10 for €10.70.
  • A ‘carte orange’ allows unlimited travel on public transport within stated zones. A weekly two zones (Paris) ticket costs €15.70, a monthly €51.50 and you need a photo.
  • The regional express trains (RER) travels between Paris and the Ile-de-France, eg. Versailles and the airports. Zone 3 begins as soon as you leave central Paris.

The Paris Public Transport website (RATP) has a map of the Paris metro, a route finder and other information on getting around.

Taxis

From Roissy Charles De Gaulle (CDG) airport (North) to the centre of Paris can take between 45 minutes to one hour depending on traffic. Roissy CDG is 23 kilometres from Paris. Taxis charge extra for luggage and often take only three people. Cost is approximately €45-€60 (again, depending on traffic).

From Orly airport (South) to Paris centre can take 20-60 minutes depending on traffic. Orly is 14 kilometres from Paris. Cost is approximately €25-€35 (depending on traffic).

Contact details of taxi companies:

Trains

The French state railway (SNCF) covers almost all of France and operates the very fast trains (TGV) on major routes. Trains are punctual.

The Eurostar leaves from Gare du Nord leaves for London six times a day with a travelling time of two and a half hours.

The Thalys high-speed train from Gare du Nord leaves for Brussels 20 times a day with a travelling time of one hour and 17 minutes.

When travelling by train in France, remember to validate (‘composter’) your ticket in one of the slim orange boxes at the front of the platform before you board the train. You risk a fine if the ticket isn’t validated.

The regional express trains (RER) services Paris and its outer regions (the Métro caters to Paris city only).

Airport access by train and bus

Air France buses leave every 12 minutes from both terminals at Roissy CGD (5.45am-11.30pm). One service stops at Porte Maillot and Charles de Gaulle Etoile (Arc de Triomphe), the other at Montparnasse and Gare de Lyon.  Cost is €10 one-way. Buy tickets on the bus.

The Roissybus leaves every 15 minutes (5.45am-11.00pm) from the airport to rue Scribe (just near the American Express building in l’Opéra). Buy tickets on the bus.

Air France buses leave every 12 minutes from Orly (5.45am-11.00pm) to Invalides and Gare Montparnasse. Buy tickets on the bus.

The Orlybus leaves every 25 minutes for Denfert-Rochereau where it connects with the RER B and the Paris metro. Buy tickets on the bus. The RER B line runs from Roissy CDG to central Paris (Gare du Nord, Châtelet, St-Michel) and is accessed directly from Terminal 2 Charles de Gaulles Airport or via a free shuttle bus from Terminal 1.

The RER B line also runs to Orly connecting with the Orlyval, an automatic train, at Antony. The Orlyval runs every 10 minutes.

The RER C line connects with a shuttle bus that goes to Orly.

The SNCF will pick up and deliver luggage to your end destination (Tel: 08 03 84 58 45).

Information on flight arrivals and departures at Roissy Charles de Gaulle is available in French and English, Tel: 01 48 62 22 80. Aéroports de Paris has information on:

  • Airlines
  • Flight schedules
  • Parking access
  • Freight
  • Airlines
  • Facilities at Roissy Charles De Gaulle and Orly airports

Car hire

Major rental car companies operate throughout France including Avis, Hertz, and Europcar. France has a dense road network allowing quick and easy access to all parts of the country. However, there are tolls on most motorways that can make up for an expensive trip.

French drivers drive on the right hand side of the road, meaning that you give way to any vehicle joining the traffic from the right. On-the-spot fines (for speeding, traffic infringements, not carrying the appropriate documents) may be imposed on visitors.


All major hire car companies have offices at the airports. Rates are usually cheaper if you book them in Australia. Limousine services also operate from both airports.

Companies include:

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Visiting this country

Security and health

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to France. This is regularly updated, and should be checked before planning travel.

Following the bombings in London in July 2005, the French Government heightened security measures across a range of public venues including airports, train stations, local public transport systems, government ministries, popular tourist sites and foreign embassies and consulates across the country. The French police are also conducting random identity checks, particularly at border crossings. Personal identification (eg. passport) must be carried at all times in France. Some simple safety tips include:

  • Avoid walking around alone late at night – especially in out of the way places.
  • Don’t carry all your valuables with you.
  • Don’t leave your money or credit cards lying around on a table, on a bar or in a hire car.
  • Keep your bags within sight.
  • Beware of pick-pockets and bag thieves on crowded trains or buses, and in heavy tourist areas, especially in central Paris and the other big cities.

Health

The tap water in France is safe to drink and no special vaccinations are required. In case of an emergency:

  • Dial 15 for medical assistance
  • Dial 18 in case of fire
  • Dial 17 for the police office closest to your location

The American Hospital of Paris has an emergency department and English-speaking staff. Doctors consultation fees must be paid immediately after the visit and are typically in the range of €30-70. Chemists are identified by a green neon cross and a serpent sign – pharmacists are trained and can legally sell medicine that would require a prescription in other countries. The Pharmacie des Champs is open 24-hours and has English-speaking staff.


Contact details:


American Hospital of Paris
63, Boulevard Victor Hugo
922000 Neuilly-sun-Seine
Tel: 01 47 77 70 15

Pharmacie des Champs
84, ave des Champs-Elysées
75008 Paris
Tel: 01 45 62 02 41

Visas

Australian passport holders, travelling on holiday or business for stays of up to 90 days, do not require a visa. The 90 days begins from the date of crossing the Schengen frontier.

Travel tips and facts

Tipping is not as widespread in France as in other countries. A 12 to 15 per cent service charge is added to all restaurant and café bills. Even so, waiters do appreciate a small tip in appreciation of their service. As a guide, leave €2-€3 after a meal, or €10-20 in expensive restaurants if service has been very good.


Smoking is still widely accepted in France. It is banned in many places (on public transport, some restaurants, bars and cafes) but you’ll find that people regularly disregard the rules. 


A range of hotel accommodation is available throughout France with prices reflecting hotel standards and location. Expect daily tariffs in Paris of around €110 for a good three-star hotel, €160 for a four-star hotel. Descriptions and information on individual hotels is available from The Paris Tourist Office, Time Out and Paris Avenue.


Restaurants usually serve lunch from midday to 2.00pm and dinner from 7.30pm to 10.30pm, and in Paris most locals dine after 8.00pm. Brasseries usually keep later hours, until midnight or 1.00am. Most restaurants offer set menus (‘formule’ or ‘prix fixe’) comprising three courses and the prices are generally much lower than ordering à la carte. Snacks and sandwiches are available throughout the day in cafes.


Prestigious restaurants can be booked out months in advance so make a booking as soon as you can. It’s often easier to get in at lunch time and cheaper, too. For most other restaurants it’s always a good idea to book in advance, a day or even an hour. The welcome is often better if you have a booking.  Be punctual or you might find your table has been reallocated.


Food guides include Michelin, Gault Millau guide, Time Out and The Zagat guide.

For further travel information please visit Lonely Planet.

Time

France is eight hours behind Australian Eastern Standard Time.

To find out the current time in Paris, view the World Clock.

Dialling codes

France's country code is 33.

For calls to France from Australia dial: 0011 + 33 + area code + telephone number

For calls from France to Australia dial: 00 + 61 + area code + telephone number

For further information (eg. area codes) please visit the White Pages - international dialling codes.

Electricity

France’s power supply is 220 volts, 50Hz. The round two-pin plugs are the most common.

Weather

France has a varied, temperate climate. From November to March the weather is cool. In comparison to the north, winters are mild in the south but the winds can be quite powerful. Most city-dwellers take holidays either in July or August, the hottest months, so beaches in the south are usually packed at this time of year.


For weather details in France, please visit the World Meteorological Organization.

Currency

Oanda currency converter

France is part of the common European currency, and in January 2002 converted from the French Franc (F) to the Euro (€). The Euro is the official currency for all transactions. One Euro is made up of 100 cents. Euro notes are common to all Euro zone countries (Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain), while the coins are customised with the national symbol on one face. Both Euro notes and coins can be used in any Euro zone country.

Public holidays

January 1 - New Year’s Day
May 1 - Labour Day
May 8 - Victory Day 1945
July 14 - Bastille Day
August 15 - Assumption
November 1 - All Saint's Day
November 11 - Armistice 1918
December 25/26 - Christmas

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Useful websites and resources

Government, business and trade

Afnor - www.afnor.fr
Ateac - www.ateac.com/cadre.htm
Axinnov - www.axinnov.com
Buro-Club - www.buro-club.com/les_services_buro_club.htm
Dun and Bradstreet - www.dbfrance.com
European Union Customs - www.europa.eu.int/comm/taxation_customs/customs/customs.htm
French Economy, Finance and Industry Ministry - www.minefi.gouv.fr
French Foreign Trade Ministry - www.commerce-exterieur.gouv.fr
The Internationalist - www.internationalist.com/SERVICE/BANKS/France.html
Invest In France - www.investinfrance.org
Servcorp - www.servcorp.com.au
Verif - www.verif.fr/home.html

News and media

International English language newspapers and magazines are available from newsstands, ‘kiosk à journaux’, at major airports, railways stations, and on the Champs Elysées as well as at WH Smith bookshop, 248 Rue de Rivoli, 1st, or the Drugstore, 133, ave des Champs Elysées, 8th, which is open until 2.00am. For local news, you will find a large range of French national newspapers including:

Major cable and satellite stations, including CNN and BBC, are available in most hotels. The French news channel is LCI. Agence France Presse has local and international news.

Travel and tourism

City of Paris - www.mairie-paris.fr
Eurostar - www.eurostar.com
France.com - www.france.com
France.Net - www.france.net.au
France Random - www.france-random.com
Paris Avenue - www.parisavenue.com
Paris Tourist Office - www.paris-touristoffice.com
Paris Public Transport - www.ratp.fr
State Tourist Office - www.paris-touristoffice.com
Thalys - www.thalys.com
Time Out (Paris) - www.timeout.com/paris
Zagat Guide  - www.zagat.com

Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.


(Last updated: 19 Aug 2008)

Export Snapshot

'France: baguettes, berets and boardshorts'
This 'postcard' by Austrade's Chief Economist, Tim Harcourt, features a short article and key statistics.

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Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the ANCP website.

     

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Austrade makes no warranty, express or implied as to the fitness for a particular purpose, or assumes any legal liability for the accuracy or usefulness of any information contained in this document. Any consequential loss or damage suffered as a result of reliance on this information is the sole responsibility of the user.