Introduction to ICS2 ENS

The Import Control System 2 (ICS2) Entry Summary Declaration (ENS) is a new EU Customs security and safety program designed to enhance the security of the global supply chain and modernize Customs processes. Implemented to replace the current ICS 1 regulation, ICS2 ENS requires electronic submission of detailed goods information prior to their arrival in the EU. This regulation impacts all parties involved in shipping goods to or via the EU by ocean and inland waterways.

Implementation Timeline

The implementation of ICS2 ENS is phased. Ocean house bill filing will commence on December 4, 2024, affecting Non-Vessel Operating Common Carriers (NVOCCs) and Freight Forwarders issuing their own House Bill of Lading (HBL). Starting June 2024, ocean carriers and vessel operators moving cargoes destined for, or transiting the EU, Switzerland, Norway, and Northern Ireland will need to comply with new entry regulations. Economic Operators (EOs) or Shippers must declare safety and security data to ICS2 ENS through the Entry Summary Declaration (ENS).

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Key Differences from ICS1

One significant change is that Freight Forwarders must now file at the HBL level, declaring the real Shipper and Consignee’s names. Previously, EU ENS was only an ocean carrier level filing requirement. The new filing includes mandatory information about the goods being transported, which must be electronically submitted to the ICS2 ENS system as a complete Entry Summary Declaration (ENS).

Entry Summary Declaration (ENS) Requirements

Compliance with ICS2 ENS regulations necessitates accurate and timely submission of the following information:

– Detailed commercial descriptions of each item in the shipment.

– Harmonized System (HS) 6-digit commodity codes for every item.

– Detailed information about all parties involved, including the seller, buyer, actual shipper, and consignee.

– Shipment information such as routes, dates, ocean carrier, vessel information, container, and seal numbers.

– EORI numbers for all parties involved. The EORI number is a unique identifier required for businesses and individuals trading with the EU.

Importance of Accurate Filing

Accurate and timely filing of the ENS is crucial for compliance. Errors or delays in submission can lead to significant disruptions in the supply chain, including delays in customs clearance and potential financial penalties. Ensuring that all information is correct and submitted on time helps avoid these issues and maintains the smooth flow of goods.

Responsibility for Filing ICS2 ENS

Freight forwarders and NVOCCs are responsible for making the filing. All HBL data must be submitted no less than 24 hours before cargo loading on a vessel at the origin. This responsibility ensures that the detailed information is available for customs authorities to perform their risk assessments and security checks.

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Preparation for ICS2 ENS

Freight Forwarders and NVOCCs should familiarize themselves with the requirements, update IT systems, and ensure staff and agents are trained. They must also ensure their customers are prepared to comply, including securing and distributing EORI numbers to the responsible parties. Preparation also involves reviewing current processes and making necessary adjustments to align with the new regulations.

Training and Resources

Various training programs and resources are available to help businesses prepare for ICS2 ENS. Customs authorities and trade associations often provide guidance documents, online tutorials, and webinars. Utilizing these resources can help ensure that all stakeholders are well-informed and ready to comply with the new requirements.

Risks of Non-Compliance

Non-compliance with ICS2 ENS regulations can result in goods being stopped and delayed at EU Customs borders. Customs authorities will not clear goods with inadequate declarations, which may be rejected or subjected to intervention, with possible sanctions imposed for non-compliance. The consequences of non-compliance can be severe, affecting not only the timely delivery of goods but also the overall reputation of the businesses involved.

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Conclusion

The introduction of ICS2 ENS represents a significant step forward in enhancing the security and efficiency of the EU’s customs processes. By ensuring compliance with the new regulations, businesses can help maintain a secure and efficient global supply chain. Proper preparation, accurate filing, and utilizing available resources are essential for a smooth transition to ICS2 ENS.