New EU customs system
14 Mar 2024 10:00 Economy
The EU's new Import Control System (ICS2) for safety and security is entering the next phase and will be applied to maritime cargo imports as of June. All shipments from third countries will be affected. Starting on June 3, carriers are required to implement the more stringent standards of ICS2, with a final deadline of December 4, 2024. Freight forwarders who want to declare their own shipments can migrate starting on 4.12.2024.
"We advise companies to prepare well in advance. More precise and comprehensive data will be required. Participants must also comply with a complex process (declaration, status confirmations and queries from customs), which is demanding both in terms of IT implementation and also integration into in-house IT systems. The customs follow-up procedures must also be adhered to in order to avoid error messages and the related disruptions in logistics processes," explains DAKOSY authorized officer Dirk Gladiator.
The accuracy of the information required in ICS2 declarations for individual consignments has been considerably increased. In future, the following data must be provided: the complete address of the consignor of origin and the final consignee, the commodity code in the form of a six-digit HS code as well as the EORI (successor to the customs number at EU level) of the consignee. Gladiator points out: "Shipowners and freight forwarders should cooperate closely and work together to satisfy the significantly heightened information requirements. As a rule, the carrier will declare the goods on the basis of the information from the booking or the shipping instructions. The detailed information at goods item level is generally provided by the freight forwarders."
Multiple Filing protects from market competition
Cooperation between carriers and freight forwarders on the ICS2 declaration is made easier by a new form of expanded declaration - the Multiple Filing. The carrier transmits only the basic information to the new EU system, the Shared Trader Interface (STI). The freight forwarder then sends the additional information separately. The data is merged in the STI to create a total overview. Gladiator anticipates that the "multiple filing rate" will be quite high. The principle of shared information transmission protects freight forwarders from their competitors by ensuring that they do not have to disclose sensitive customer data.
Effects on the logistics process
Gladiator's experience with the introduction of ICS2 in air cargo has highlighted one important point: "It is essential that carriers and forwarders look at the entire import process and not just focus on the changes caused by ICS2. In order to be able to complete customs follow-up procedures, for example import or NCTS declarations, the information must be available at goods item level. Only then will the referencing to ICS2 be successfully completed. Otherwise, automatic cancelations and delays in the process occur."
DAKOSY is already prepared for the impending introduction phase for carriers. "A new ICS2 dashboard with the option of uploading documents in response to customs queries completes our services. Resilient interfaces via Edifact and XML are in place and the new procedure is fully mapped in our customs software ZODIAK GE. We are ready to support freight forwarders and carriers with the new EU customs system, from analysis, training and testing through to the go-live launch," confirms Gladiator.
DAKOSY Datenkommunikationssystem AG
As one of the leading software companies for logistics, DAKOSY has been offering digital solutions for international freight forwarding and customs clearance as well as supply chain management for over 40 years. In addition, DAKOSY operates the Port Community System (PCS) for the Port of Hamburg and the Cargo Community System (FAIR@Link) for Frankfurt and Hamburg Airports. All companies and authorities involved in import and export processes can use these digital platforms to handle their transport processes quickly and with maximum automation.
Starting on June 3, carriers are required to implement the more stringent standards of ICS2, with a final deadline of December 4, 2024.
