The European ICS2 security system ensures better customer protection
Hamburg, 05/16/2022 – The European ICS security system for risk assessment/crisis prevention is entering its second phase. This will become concrete for air freight shipments from third countries entering the EU from March 2023.
“The ICS2 next stage procedure will bring improvements for participants, especially with regard to the protection of competition,” underlines Simon Lembke, director of customs and shipping applications at Dakosy.
The Hamburg software provider Dakosy is prepared with new processes and interfaces. Following the 9/11 terrorist attacks, the ICS procedure was introduced for the declaration of goods prior to entry into the EU for risk assessment/crisis prevention purposes. With ICS2, the EU is centralizing carrier declarations with an advance cargo information system: from March 2023 for airlines and from March 2024 for shipping companies.
Lembke summarizes the most significant changes: “In the future, declarations will be sent directly to the new EU system, the Shared Trader Interface (STI), and will have to be provided before the goods are loaded. In comparison, previously the entry declaration had to be submitted electronically no later than four hours before arrival at the customs authority where the goods first crossed the EU border.
Logistics service providers need to disclose less data
Another important change, he adds, is the possibility for shipping companies or airlines to only have to submit basic information to the EU’s Advance Cargo Information System, and additional information would be reported directly to the ICS system by freight forwarders or logistics providers, e.g. Example. This principle, called “multiple filing”, offers competitive protection to operators.
“Freight forwarders and logistics providers no longer need to disclose the names of their customers and their associated critical data to shipping companies or airlines during the process,” says Lembke.
Prepare for the transition well in advance
Dakosy recommends that participants in the ICS process prepare in time for the change. It should be ensured that sufficiently precise data can be provided. A standardized format called Entry Summary Declaration (ENS) has been defined for i ICS2, which does not allow any deviations. The required data accuracy is also becoming more stringent, for example in the case of the HS code. Previously, either the description of the goods or at least four digits of the HS code had to be provided for the entry summary declaration; in the future, the six digits of the HS code must be transmitted.
“For our customers, including many large airlines and shipping companies, we are already working with this format. So for them, on the whole, everything remains as is, and we are taking care of the new reporting path and, if necessary, adapting the interfaces, however, we recommend checking well in advance to find out to what extent business processes need to be updated and employees need to be trained,” says Lembke.