Home » Customs & Trade » New EU Customs requirements scheduled to take effect Jan 1

PHILIPPINE exporters should brace themselves for the new cargo declaration requirement for implementation by the European Union (EU) Customs effective January 1, 2011.

Non-compliance to the ruling will delay cargo shipments to the EU.

The EU Import Control System (ICS) requires a certain number of data elements to be sent to the EU Customs office of first entry before the merchandise enters the territory and in most cases, even before leaving the country of export. Upon receipt of the Entry Summary Declaration (ENS) message, the customs office of first entry performs the security-related risks analysis.

Under the ICS, shippers sending goods to EU will have to provide EU Customs advance information 24 hours prior to loading for seafreight and four hours prior to arrival to its first destination for airfreight.

The rules also provide that the advance information should be transmitted electronically to EU Customs accredited value-added service providers.

The declarant should be accredited or registered with the EU Customs before it can lodge its cargo declaration.

EU Customs will allow shippers without accreditation to continue trading with EU businesses as long as their partner-businesses within the region are accredited.

Philippine exporters should therefore secure authorization from their carrier for their seafreight shipments and from their EU-accredited freight forwarders for their airfreight shipments to use the service providers' Economic Operator Registration Identification (EORI) in declaring information to EU Customs.

The EORI is the single identification number issued by EU Customs to firms and supply chain operators that comply with its requirements.

EU Customs approval to the lodged declaration is required before cargo is loaded onto the vessel. Any cargo loaded prior to the approval will be deemed tainted and may be subject to further examination or outright rejection when the vessel or aircraft reaches its first port of destination within the 27-member nation EU.

In preparation for the new ruling, Bureau of Customs-accredited value-added service provider (VASP) InterCommerce Network Services (INS) has forged an agreement with CONEX, an accredited VASP of EU Customs. The partnership allows Philippine exporters to the EU to lodge their advance information through INS and onto CONEX and eventually to the EU Customs.

The fee for using CONEX services related to the lodging of the ENS is $25 and $40 for an amended ENS. Fees between INS and CONEX, meanwhile, are still being discussed.

Data from the Philippine Bureau of Export Trade Promotions showed that export sales to the EU are expected to grow in single digit this year, a reversal from the 7.3% decline in export sales last year. Among the country’s biggest exports to the EU are handicrafts, semiconductors and electronics.

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