Thanks to its software SOFIchain and specific applications requested by la SOVENA, CONEX has been able to resolve the problem of the regulation of a customs tax created in 1669 by J-B Colbert. This tax, still in use today, covers the exportation of goods from Metropolitan France towards the French West Indies and French Guiana
La SOVENA, French West Indies-Guiana division of PROVERA – the CORA group’s central buying office-, has four main roles. They must centralise store* orders, organise transport, either maritime or air, to the islands, take delivery on arrival and finally transport the merchandise to their distributors.
Not less than 10 000 containers are transported to the French West Indies and French Guiana every year, producing between 1 700 and 2 000 customs declarations every month. 50% of this merchandise is processed through the port of Rouen platform, the rest transiting, via local carriers, through the ports of Montoire (Nantes), Le Havre and Dunkerque. La SOVENA takes delivery of its merchandise at Pointe à Pitre, Fort de France and Cayenne and takes care of customs clearance formalities: a unique way of operating in this field. La SOVENA plays the complex role of market operator: “We place direct orders for each product referenced by the central buying office, paying the amount due and then immediately calculating the re-sale price to our distributors, keeping in mind additional costs such as transport and taxes”, explains François-Xavier Sourice, SOVENA’s transit and customs manager. “Whereas Europe prides itself on its borderless, single market, France maintains a customs system with its overseas territories which dates from Colbert, ‘octrois de mer’ ** (dock dues), continues François-Xavier Sourice
Dock dues : a real puzzle
These products, transported by container, at a managed or ambient temperature, in bulk or packaged, must frequently be regrouped; in this way, hundreds of different products in small quantities can be found in the same container. Each one of these products has its own tariff position linked to a customs nomenclature; added to this is the tariff grouping allowed by customs! “A real puzzle”, adds François-Xavier Sourice. “We knew about the excellent reputation of CONEX and needed an interlocutor capable of providing a tool that could be effective immediately, but above all, be adapted to our specific needs.”
The triple role of CONEX
With the recognition of the customs authorities – through the interface DDS, from the entry of a single document, CONEX determines the amount of customs duties applied to each product, sends the information on to Customs and to la SOVENA to enable the latter to calculate its tariffs. Once the customs clearance operation in finished, CONEX transfers the final information directly to the SOVENA accounting department, which has at its disposal a period of time for payment of these “dock dues”, thanks to the duty deferment formula offered by French Customs. “Saving us both time and money,” confirms François-Xavier Sourice.
After one year’s experiment, the faultless techniques of CONEX proved themselves and SOVENA has offloaded its relations with the very particular French Customs to the customs software specialist. “It’s a specialised job that we couldn’t master alone and today we are satisfied with the added value provided by our partner”, continues François-Xavier Sourice. The role of trainer – it was necessary to train the SOVENA managers in the French West Indies and French Guiana, who came to Metropolitan France especially. They needed not only to appropriate the software tool for themselves, but also feel secure about using it, so that in turn they could train their colleagues in the French overseas territories.
“CONEX fulfilled this task perfectly, and in a very short time. Two of our collaborators have also been trained in the new DELTA system,” explains François-Xavier Sourice.
Daily information – thanks to the eDou@ne portal of CONEX’s subsidiary, ED Editions, SOVENA receives in-depth, up-to-date information adapted to its needs concerning changes in customs nomenclature, tariffs and regulations. It is needless to say that this kind of information is vital for SOVENA. “With this regular, reliable and high-quality information we have been able to lower our cost prices and become recognised as a serious partner by the customs administration,” adds François-Xavier Sourice
In conclusion…
Customs practices were not SOVENA’s core activity and the search for an efficient outsourced tool was not enough to solve this problem. “At CONEX, we found teams capable of understanding our language and providing flexible and professional solutions to our requests,” concludes François-Xavier Sourice, adding, “Until now, CONEX has fulfilled its role perfectly.”
*Stores – Cora, Match and Ecomax in Guadeloupe and Martinique; Propradis and Suprali, wholesale distributors in Martinique; Match in Guiana, St Martin and St Barthélémy.
**’Octrois de mer’ -The Regional Council of the French West Indies and French Guiana determines the rate of customs tax to be charged on each product imported from Metropolitan France (close to 80% of the territories’ consumption) and collect the amount due.
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