2005/262/EC: Commission Decision of 20 April 2004 on the aid implemented by France in favour of the Coopérative d'exportation du livre français (CELF) (notified under document number C(2004) 1361)Text with EEA relevance.

Article 1

The aid to the Coopérative d'exportation du livre français (CELF) for processing small orders of French-language books, implemented by France between 1980 and 2001, is aid that is caught by Article 87(1) of the EC Treaty. Since France failed to notify the aid to the Commission before implementing it, the aid was granted unlawfully. It is, however, compatible with the common market under Article 87(3)(d) of the Treaty.

Article 2

This Decision is addressed to the French Republic.

Table showing the trend of aid granted since 1980, in euro

ANNEX ISupplementary provisions

ANNEX I Table showing the trend of aid granted since 1980, in euro 1980 91 470 1981 91 470 1982 205 510 1983 164 640 1984 137 200 1985 141 780 1986 248 490 1987 214 950 1988 213 430 1989 259 160 1990 304 900 1991 373 500 1992 422 280 1993 382 650 1994 304 900 1995 304 900 1996 304 900 1997 243 920 1998 182 940 1999 121 960 2000 60 980 2001 38 110 2002 0

Decline in the compensation for CELF's expenses

ANNEX IISupplementary provisions

ANNEX II Decline in the compensation for CELF's expenses Information supplied by the French authorities Year Amount of aid (euro) Total charges Percentage covered 1994 304 900 683 788 44,59 % 1995 304 900 697 177 43,73 % 1996 304 900 624 206 48,85 % 1997 243 920 680 023 35,87 % 1998 182 940 664 783 22,63 % 1999 121 960 635 577 19,19 % 2000 60 980 572 670 10,65 % 2001 38 110 509 048 7,49 % 2002 0 0 0

Processing orders

ANNEX IIISupplementary provisions

ANNEX III Processing orders Information extracted from SIDE's comments New customer (a) Dispatch to the buyer of a file containing: — the general conditions of sale (e-mail, fax or mail) — request to open an account (e-mail, fax or mail) (b) After receipt of the request to open an account, check on the customer's solvency at Coface (c) If there is no problem, an account is opened for the customer (d) If there is a problem, the customer can only be served ‘pro forma’, (i.e. after payment of an estimate) Customer holds an account (a) Identification of the customer (in particular from his account number) Inputting of the item ordered (searching among 640 000 titles, including books, audio cassettes, audio CDs and CD-ROMs) Inputting: once the item has been identified, the quantity, order date and customer reference are keyed in, and the inputting validated — If other order lines have to be inputted, the operation is repeated — The method of dispatching orders can be altered to suit the customer's wishes (b) If the work ordered is not in the database — The item is inputted manually: the title, name of author, ISBN, publisher and supplier are given (c) Each order for a book automatically generates a ‘supplier’ order (d) Special software automatically transmits orders to suppliers who have the right equipment and are, hence, listed (e) Order forms are then printed automatically and sent by fax, mail or messenger to the suppliers concerned

Breakdown of CELF's cost-accounting items — 1994

ANNEX IVSupplementary provisions

ANNEX IV Breakdown of CELF's cost-accounting items — 1994 based on information supplied by the French authorities Figures (Francs and euro)   FRF EUR Cost of purchasing books 2 068 293 315 309 — Purchase 2 026 011 308 863 — Transport and messengers 42 282 6 446 Staff costs 1 670 963 254 737 — Reception (of works), direct labour 217 641 33 179 — Packaging, direct labour 53 409 8 142 —    Sales department, direct labour — Area 1 149 770 22 832 — Area 2 157 627 24 030 — Area 3 49 390 7 529 — Wages and salaries, General Services 1 022 285 155 846 — Wages and salaries, Marketing 20 841 3 177 Overheads 518 926 79 110 — Packaging consumed 14 770 2 252 — Administrative supplies 183 784 28 018 — Freight out 148 056 22 571 — Commission on sales 36 540 5 570 — Telephone, telex 29 103 4 437 — Collection charges 26 294 4 008 — Loan repayment insurance 20 929 3 191 — Depreciation of tangible fixed assets 20 609 3 142 — Other 38 841 5 921 Individual, indirect fixed charges 188 524 28 740 — Trade tax 14 064 2 144 — Charges to provisions 51 890 7 911 — External services 66 828 10 188 — Exceptional charges 46 733 7 124 — Other 9 009 1 373 Total cost 4 446 706 677 896 Exchange rate: EUR 1 = FRF 6,55957 Comments and explanations 1. Purchasing and transport (including messengers) costs . The cost was calculated taking into account the total cost of these activities allocated according to the number of books, i.e. FFR 38 795 874 (EUR 5 914 393). This amount is divided by the number of books to obtain the unit cost per book. The total number of books sold by CELF in 1994 was 467 673, so the unit cost per book is FFR 82,95 (EUR 12,65). To determine what was the purchasing and transport cost to be allocated to small orders, the unit cost per book is multiplied by the number of ‘small orders’ books, giving a total of FFR 2 068 293 (EUR 315 309). 2. Staff costs . A coefficient of 3 (based on the number of books) was applied to this item, as the reception of small orders gives rise to difficulties peculiar to this category. The reception of works from large publishers or distributors is computerised using the EAN code, which makes recognition of the work by optical scanning possible. Conversely, works published by small publishers often do not contain a bar code, which means that manual recognition is necessary. Large publishers delivered to Parisian customers for a contribution to the transport costs fixed by the trade association, which is FFR 0,75/kg, whereas the price paid messengers is FFR 6,5/kg for the packages used for works from small distributors. As invoices to foreign booksellers are flat-rate, that source of supply means a reduction in margins. Giving small orders a coefficient of 3 thus makes it possible to include an appropriate charge for their processing in the cost accounting. 3. Packaging . The direct labour is taken into account on the basis of the number of books. 4. Sales department . The cost of direct labour was calculated by applying a coefficient of 3, since small orders involve more onerous processing as regards sales administration. The differences of treatment make it possible to include the appropriate charge for their processing in the cost accounting. Additional explanations on coding the order . If there are difficulties with coding orders, further work is needed. The work has to be carried out irrespective of the amount of the order. In addition, research is required before an order can be inputted: ISBN, publishers' catalogues, various data bases, check on the availability (or not) of the work, check on the match between order and publisher. Difficulties associated with the quality of the order form, in particular in identifying the order, will give rise to extra costs. Such difficulties often occur in the case of small orders. Large bookshops, which have a considerable turnover with CELF, are generally large-scale firms that use high-performance tools to enable them to rationalise their management, and in particular to transmit standardised orders, i.e. ones containing clear identification features. Among CELF's customers are numerous small bookshops, whose activity does not always allow modern international business resources to be used. Thus orders coming from this type of establishment are sometimes difficult to decipher and only include some of the information necessary for meeting the order, which means extra work and, hence, extra cost. 5. Wages and salaries, general services (management, IT, switchboard, accounting, marketing, cleaning). The costs are allocated according to the number of books, except for accounting where the criterion is the number of invoices. 6. Overheads (packaging consumed, freight out and depreciation of tangible fixed assets) . Costs are calculated on the basis of number of books. 7. Overheads (administrative supplies) . Costs are calculated on the basis of the number of invoices. 8. Overheads (commission on sales and loan repayment insurance) . Costs are calculated on the basis of turnover. 9. Overheads (telephone, telex and collection charges) . A coefficient of 2,5 is applied, since telephone costs vary in accordance with many factors, in particular customer replies and publisher searches. These costs concern several operations, including reception of the order form from the bookseller, coding the order, inputting the order and accounting, whose purpose is to record all the flows relating to the operations described. 10. Trade tax and charges to provisions . Costs are calculated on the basis of turnover. External services (e.g. rents, travel and promotion costs, etc.) and exceptional charges. Costs are calculated on the basis of the number of books.