Trading Shea Butter Internationally in France: Legal Compliance and Government Policy

Global and international context

Table of Contents
Section 1..........................................................................................................................................3
Legal compliance for product (shea butter).................................................................................3
Government policy of France regarding international expansion...............................................4
International expansion in France as a Joint venture...................................................................5
Section 2..........................................................................................................................................6
References........................................................................................................................................8

SECTION 1
The present study is based on the critical evaluation for trading shea butter internationally in
France, by considering their county laws and regulations. The study will focus on product
compliance, government policy and requirements for expanding as a joint venture for
karitenature business.
Legal compliance for the product (shea butter)
International expansion in France, the company is required to comply with the county law and
regulations for business. For trading in organic shea butter, the company has to comply with the
following requirements:
The company can only do exporting of their shea butter to the European cosmetics market when
they consider compliance with the legal requirements posed for the natural ingredients for
cosmetics, these are inclusive ofviable European cosmetics legislation which comprise specified
criteria for the substantiation of claims meant for finished products, well-organized corporate as
well as company documentation for supplying buyers, Registration, Evaluation and
Authorisation of Chemicals (REACH), from which exemption of unmodified shea butter is there,
and Classification, Labelling and Packaging of chemicals (CLP)(Klaschka, 2016).
Other requirements are:
 The maximum level in fats and oils for erucic acid: A maximum level in fats and oils for
erucic acid has been fixed by the European legislation; it states that the level must not
surpass 5% of the fatty acids in the composition of fats. Erucic acid should not be
contained in the unadulterated shea butter.

 Contaminants in food: Maximum levels of contaminants in food have been set out by the
European Union, inclusive of ingredients like vegetable fats. In relation with the
maximum levels for polycyclic aromatic hydrocarbons (PAHs) present in food items, the
update has been made in regulatory aspects that provide implications for shea butter
generated from smoked kernels used in edible items (Trehan et al., 2019).
 Additives, flavourings and enzymes present in food: The EU has established a list of
legal requirements and flavourings for their use in food items that are meant for human
consumption which are inclusive of vegetable fats, especially reliable to food
manufacturers. Considering applicable legislation can help the business in better
understanding of requirement (Kočevar Glavač and Lunder, 2018).
If the product satisfies with the above-stated requirements, then the karitenature business will be
able to trade in France.
The government policy of France regarding international expansion
It can be stated there is no presence of specified legal concept related to the joint venture as per
the French law. There is no applicability of specific legal structures to JVs. Therefore, the
entitled rules are totally based on the legal framework selected by the parties to establish and
operate the joint venture (Priestley, 2018). In terms of contractual JVs, the applicability of
general contract laws will be there. In relation to the corporate joint venture, the applicable rules,
generally, originate from the Commercial Code and French Civil Code and are based on the
corporate type selected for the joint venture. Due to the higher extent of flexibility present in the
provisions of government applied to SASs, corporate JVs are generally built-in as SASs. As a
general rule, therefore, there are no corporate law limitations in France on a foreign enterprise