With ICS2, the EU is creating a new import control system to better protect both citizens and the internal market from security threats and dangers. Among other things, the system is a reaction to the fact that customs are constantly faced with new threats on the one hand and a steadily increasing number of consignments on the other. We clarify the most important questions about ICS2.
WHY A NEW IMPORT CONTROL SYSTEM?
The EU is a global player in world trade in the truest sense of the word, with EU countries accounting for around 16% of total global imports and exports. This means that goods and merchandise worth several trillion euros are exported from the EU every year, and vice versa.
The customs authorities are responsible for ensuring that no security threats or dangers to EU citizens and the EU internal market arise from the high level of trade. However, meaningful defense against the various threats (from explosives in air freight, chemical substances, counterfeit medicines, weapons, etc.) is only possible if customs measures take effect at the most appropriate point in the supply chain.
In this context, advance freight information and risk analyses are among the basic principles intended to facilitate the work of customs – in order to ensure better protection at the external borders. The EU’s Import Control System 2 (ICS2) forms the framework for these facilitations.
The objective of the ICS2 ultimately comprises more efficient and effective measures for EU customs safety and security. The customs authorities should be able to take targeted and appropriate measures, especially in crisis situations.
At the same time, the information system is intended to help facilitate cross-border release for legitimate trade. For this reason, the ICS2 also supports the exchange of information between economic operators and the EU customs authorities.
WHAT EXACTLY IS THE ICS2?
The new import control system is intended as a broad-based information system that will support various processes. These include
- the submission of the Entry Summary Declaration (ENS) with the pre-carriage information to customs,
- the security and risk analysis by customs,
- the receipt of goods on various transport routes and
- the description of the goods for the customs authorities and, if necessary, an inspection of the goods by the customs authorities.
The ICS2 thus comprises three of the five stages of the EU customs system – namely the submission of the ENS, the notification of arrival and type of means of transport and the presentation of the goods. The system is no longer relevant for the temporary storage of goods and the assignment of goods to a customs procedure.
ICS2 is by no means an import system and is therefore not intended for processing customs declarations.
THE ENTRY SUMMARY DECLARATION (ENS)
The Entry Summary Declaration or entry summary declaration is primarily about people informing the customs authorities when they want to import goods into the customs territory of the EU. There is a prescribed form and a specified deadline for this.
The deadlines differ depending on the chosen mode of transport and are, for example, for container freight in maritime transport, the ENS must be submitted no later than 24 hours before loading at the port of departure, while for road transport, one hour before arrival at the customs office of entry in the EU customs territory is sufficient. There are also exceptions for a number of goods for which an ENS does not have to be submitted.
The ENS must contain all the information that the customs authorities require for a risk analysis for the purpose of protection and security. On the basis of this information, the authorities decide whether additional measures may need to be taken, such as checks on arrival.
WHAT IS “PLACI”?
PLACI is a specific form in which data is provided in the ENS declaration. It applies to courier services and certain postal operators for all goods they transport in or through the EU. It involves a minimum set (7+1) of ENS data, the so-called pre-arrival freight information.
The PLACI requirements were introduced in phase 1 for the transport of general air freight (valid since March 1, 2023). The relevant data must be submitted before the goods are loaded onto the aircraft so that the EU customs authorities can carry out a risk assessment.
The PLACI registration procedure works as follows:
- Economic operators from third countries provide complete and accurate information prior to transportation, i.e. before the goods are loaded. This is the basis for ensuring that business activities in the connected supply chain are not interrupted.
- The economic operators in the EU, i.e. at the destination of the goods, must forward the PLACI information to the ICS2.
- The ICS2 then carries out an analysis to support the customs risk.
THE NECESSARY PLACI INFORMATION
The complete PLACI information includes:
- Name and address of the sender
- Name and address of the recipient
- Number of packages
- Total gross weight
- Brief description of the freight and
- Number of the transport document
WHO IS AFFECTED BY ICS2?
The new import system and the new requirements for the Entry Summary Declaration will directly affect a number of players, from courier services to freight forwarders. The EU has developed a transition strategy for the introduction, which will take place in three phases. Each of these phases relates to different economic operators and modes of transport.
The first two have already been completed, and ICS2 will be fully applicable from March 1, 2024, when the final phase begins. Through the gradual introduction, the EU has also successively expanded the scope of application with regard to the modes of transport. With phase 3, the scope will finally be extended to sea routes, roads and rail.
In detail, the ICS2 transition strategy was as follows:
Phase 1:
- Courier service provider
- European-based providers of postal services
- Providers of postal services from third countries that ship to Europe
Phase 2:
- Operators of postal services
- Courier and air freight services
- Freight forwarders
Phase 3:
- Operators who transport goods by sea and inland waterways as well as by road and rail
While it was still sufficient in the first phase to submit the pre-freight information prior to dispatch and using a minimum data set of ENS data, the requirements have also increased with the subsequent phases. From March 1, 2024, operators must therefore submit the complete ENS data set for the various services and transport routes with the entry declaration.
The requirements of ICS2 also affect – indirectly – manufacturers, exporters and individuals who ship goods from outside the EU to the EU or through the EU. This is because they are required to forward the necessary information to the operators directly affected.
WHAT DO THE ICS2 COMMITMENTS MEAN IN CONCRETE TERMS?
The requirements of the ICS2 mean that the economic operators subject to the reporting obligation are legally responsible for the accuracy, completeness and timely provision of the required ENS information. The following data is therefore of particular importance in the ENS.
The HS commodity code
The HS commodity code is required for goods of a commercial nature, both for the B2B and B2C sectors. The basis for this number is the Combined Nomenclature (CN), which is used to classify goods correctly in accordance with the requirements of the Common Customs Tariff and the EU’s foreign trade statistics.
For customs declarations in the EU, the subheadings of the HS commodity code are used to provide information on the duty rate and for the classification of goods for statistical purposes. The six-digit HS commodity code is sufficient for the ENS.
APPROPRIATE PRODUCT DESCRIPTIONS
To make it easier for customs authorities to identify incoming goods, the goods descriptions for the ENS should be formulated as simply and precisely as possible. For this reason, a guideline with permissible and impermissible terms for the description of goods was issued during the first phase of the ICS2 introduction.
However, this is not legally binding, but serves as a guide. The customs regulations, on the other hand, are binding and should therefore always be consulted. This applies all the more because the guide does not provide a complete list of permissible and impermissible formulations. Rather, it is dynamic and grows through cases from daily practice.
In the appendix, the guidelines provide a list of examples. These include the term “appliances” as inadmissible, while “refrigerator”, “stove”, “microwave oven” or “coffee machine” would be permissible.
An edition in German, English and French can be downloaded from the EU explanations on Phase 1 of the Import Control System 2.
The EORI number
In addition to the goods, the ENS also identifies the parties involved, in particular the recipients based in the EU. The party identification for customs clearance in the EU is carried out via the EORI number (Economic Operators’ Registration and Identification Number).
Parties that have already been assigned such an EORI number must make it available to the declarant. If an EORI number is not yet available, it can be requested free of charge from the General Customs Directorate – Dresden office – Master Data Management.
Information about seller and buyer
The ENS must also contain information on the seller and buyer if the goods are destined for the EU. Information on the owner of the goods may be sufficient if the shipment was not made as part of a commercial transaction.
WHY IS COMPLETE ENS DATA SO IMPORTANT?
If the data is incomplete or incorrect, the EU customs authorities may intervene. Possible consequences are as follows:
- Rejecting an ENS application if it contains incomplete data.
- Issuing risk-reducing reprimands before the goods are loaded or arrive. This prompts the declarant to provide or correct missing or incorrect data.
Risk-reducing referrals always lead to delays in the processing of the ENS – and therefore also in the arrival of the consignments and the entry procedure. This is because the response to the referrals and the provision of the necessary information must take place before the risk assessment begins.
A carefully prepared ENS application is therefore essential to ensure a speedy process.
Note: It is important that applicants ensure that all necessary information is available in advance of an ENS application. This applies in particular if this data is to be included in a single complete ENS submission.
Otherwise, there is the alternative possibility that different actors along the supply chain submit several partial declarations. Nevertheless, it must be ensured that all necessary information can be provided.
Measures following the customs-specific risk assessment carried out
| Assessment completed (AC)
|
No risk was identified during the analysis or a potential risk was eliminated. |
| Request for information (RfI) | A risk assessment is not possible based on the available data, therefore the economic operator must provide additional information for the ICS2. |
| Request for inspection of high-risk freight and postal items (RfS) | The ICS2 requires additional evidence in order to carry out the risk analysis. The shipment should not be loaded onto an aircraft until a check has been carried out.
|
| Do Not Load (DNL) | If the PLACI data provided matches certain information or threat scenarios that could pose an immediate threat to aviation security, a loading ban is issued. |
WHAT PREPARATIONS ARE NECESSARY FOR THE INTRODUCTION OF ICS2?
The transmission of ENS data to the ICS2 requires some (technical) precautions. It is up to the economic operators whether they complete the ENS declaration and the connection to the ICS2 via an internal IT system or hand over this task to an external IT service provider.
The following steps are necessary with regard to the technical preparations:
- The transmitting party must ensure that it has an EORI number (see above). If the sender is also the recipient, an EORI number is sufficient. If an IT service provider is to send the ENS data, both parties (economic operators and IT companies) each need an EORI number.
- A plan must be submitted to the competent national customs administration for carrying out conformity self-checks and starting the ICS2 processes.
- The IT system for data transmission must be adapted to the current common functional and technical system specifications for ICS2. These are CFSS and CTSS.
- The sender of the ENS data must also obtain the necessary digital certificates to confirm their identity. The certification authority responsible for this can be found in the trusted list directory.
- Finally, the mandatory conformity self-checks must be carried out. This ensures that the IT system is ready for communication with ICS2 and for the associated processes.
The procedures and test specifications are stored on the EU platform CIRCABC. On request, the National Service Desk will provide the login details for a connection to the Shared Trader Portal. The appropriate roles and test scenarios must be selected on this portal, which are then used to carry out the compliance test.
Image sources:
Image 1: Adobe Stock © Mirko Vitali
Image 2: Adobe Stock © Vladyslav
Image 3: Adobe Stock © Mariakray
Image 4: Adobe Stock © Joel Wüstehube
