Phase 2 of EU customs system to have critical impact on airfreight

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Phase 2 of EU customs system to have critical impact on airfreight
IATA regional manager for Operations, Safety and Security (Cargo) Asia-Pacific David Wee during the recent Philippines Air Cargo Day organized by IATA, Philippine Multimodal Transport and Logistics Association and PortCalls.
  • The second phase of the European Union’s (EU) new customs pre-arrival security and safety program, Import Control System 2 (ICS2), will critically impact operations of airlines and freight forwarders transporting goods to and from the EU
  • ICS2 is a system created to collect data on all goods entering the EU prior to their arrival
  • ICS2 Release 2 starts on March 1, 2023 and will include airlines and freight forwarders
  • IATA said it is important for airlines and freight forwarders to prepare for the new system as there are sanctions to non-compliance

The second phase of the European Union’s (EU) new customs pre-arrival security and safety program, Import Control System 2 (ICS2), will critically impact operations of airlines and freight forwarders transporting goods to and from the EU, according to an executive of the International Air Transport Association (IATA).

ICS2 is a new system created to collect data about all goods entering the EU prior to their arrival. Economic operators will have to declare safety and security data to ICS2, through the entry summary declaration (ENS).

ICS2 is a large-scale initiative to enhance customs oversight of the movement of goods prior to their arrival at the EU external borders (air, maritime, land and inland waterways). ICS2 enables customs authorities to identify high-risk consignments that necessitate early intervention, while facilitating legitimate trade into the customs territory of the EU, Norway, and Switzerland.

The system is being implemented in three releases. The first release on March 15, 2021 covered postal operators and express carriers. The second release will go live on March 1, 2023 for airlines and freight forwarding and logistics providers, and the third release will be on March 1, 2024 covering maritime, rail, and road carriers, as well as businesses receiving goods in the EU (e.g. importers, consignees).

READ: EU seeks advance air cargo declaration from March 2023

“For anyone that is shipping cargo to EU or transiting any cargo to EU, it’s going to impact your operations critically,” IATA regional manager for Operations, Safety and Security (Cargo) Asia-Pacific David Wee said during the recent Philippines Air Cargo Day organized by IATA, Philippine Multimodal Transport and Logistics Association and PortCalls.

Wee said it is important for airlines and freight forwarders to prepare for the new system by adapting to the new procedures, upgrading IT systems for exchange of information with customs; taking steps to ensure high-quality, precise data is provided; and providing support and training to staff.

Non-compliance to the system will result to sanctions on carriers, including financial penalties; cargo will be stopped at the border; no customs clearance of goods; unnecessary interventions; and rejection of poor-quality declarations.

According to the European Commission (EC), in addition to air carriers’ ENS filing responsibilities under the multiple filing regime of Release 2, freight forwarders, express couriers, and postal operators will also be legally responsible for providing data. They either have to share it with the air carriers, who will then complete the ENS filing requirements, or submit the data directly to ICS2. Postal operators and express couriers, who have previously been declaring partial information regarding inbound shipments (under ICS2 Phase 1), will now also be required to coordinate with their air carrier to submit all required data.

Those in the air transport sector who are currently filing advance cargo information into Import Control System (ICS) will have to gradually start filing this data into ICS2 during the operational roll-out of Release 2.

To help prepare for the introduction of ICS2 Release 2, the EC earlier said it will make available a conformance testing environment from July 2022 until February 2023, to be able to verify the economic operator’s ability to access and exchange messages with customs authorities through the intended ICS2 trader interface. This conformance testing is mandatory for all economic operators concerned.

Economic operators responsible for filing ENS data to ICS2 should also determine whether they have an existing Economic Operators Registration and Identification number. If not, they should contact the EU customs authority of their choice to get this number and to receive support in preparing for ICS2 Release 2. They should also evaluate their trade operations for the handling of imports into the EU and contact their selected customs authority to connect and take part in the upcoming Release 2 conformance testing.

The EC is leading the operational delivery of ICS2 in close collaboration with customs authorities in Member States, Norway and Switzerland and industry stakeholders.

Wee, meanwhile, noted that aside from the EU, other countries are also coming out with similar initiatives, such as Canada’s Preload Air Cargo Targeting, the US’ Air Cargo Advance Screening, the UK’s Pre-Departure Information for Cargo Targeting, and United Arab Emirates National Advance Information Center.

Wee said IATA has been coordinating with government agencies to ensure that implementation of the procedures and standards will be aligned with global standards so it’s easier for the industry to follow and implement. The association is also engaging and communicating with the industry, providing updates and manuals for easier compliance to new regulations. – Roumina Pablo