February 23, 2023

What is ICS2? - European Union Import Customs System

Currently, cross border shipments by sea going vessel or aircraft that are destined into the EU from 3rd countries are already required to submit an ICS declaration, which is submitted prior to departure from the 3rd country to the country of first point arrival into the European Union.

The EU have been phasing in the new ICS2 system which aligns with WCO’s PLACI (Pre Loading Advance Cargo Information) data requirements, and replaces the current ICS system. Apart from the requirement to submit additional data, one major key change is that the submission is through a single window, meaning that an operator would not be required to hold multiple access licenses for each EU country that they have goods destined to.

Read our full Client Advisory with all you need to know here

ICS2 System - Key points

Implementation for General Air freight will be phased in  from the 1st March 2023
Compliance for road, rail and sea transport will commence from 1st March 2024 
Responsibility or obligation to file will fall on the operator of the active means of transport crossing the border, meaning:

• Driver accompanied road vehicle – the transport company
• Unaccompanied trailer or other load unit loaded onto a ferry – the ferry operator
• Air or Ocean carrier

The entry summary declaration may be lodged instead by one of the following;

• The freight forwarder, importer or consignee or anybody else on whose behalf the carrier acts; or
• Any person who is able to present the goods or who can present to the customs office of entry into the EU

The obligation to file is only waived in any of the following scenarios:

• The goods being carried will only pass through the territorial waters or airspace of EU territory; or
• where duly justified by the type of goods or traffic; or
• as outlined within international agreements.

ICS2 Implementation Timeline

RELEASE 1 – 15TH MARCH 2021
o    Air Express – Pre-loading only
o    Postal Air – Pre-loading only

RELEASE 2 – 1ST MARCH 2023
o    General Air Freight
o    Air Express – Full
o    Postal by Air – Full

Deployment will be phased in as follows:

From 1st March 2023 – Carriers to file at Master Airwaybill level only
From 1st July 2023 – Freight Forwarders and Logistics Providers will be required to file the House Airwaybill at the lowest level.
End of October 2023 – EU authorities will commence enforcement

RELEASE 3 – 1ST MARCH 2024
o    Ocean Freight
o    Road Freight
o    Rail Freight

New data requirements

• Supply chain parties – carrier, consignor, consignee (with EORI numbers), and any other supply chain entities
• Details of the goods – HS code(s), description, weight, packages, dg information
• Location information – acceptance, loading, unloading, delivery point, routing details
• Means of Transport crossing the border – type, identity, departure and arrival date and time, transport charges
• Supporting documents

Non Compliance

Where filings are either not filed correctly or filed with inaccurate or false information, then the relevant EU authorities will take action against the carrier

• Financial penalties
• Sanctions against the carrier
• Cargo stopped at the border or do not load order issued
• Clearance out of customs charge will not be granted
• Goods subjected to additional checks, such as physical examinations, document scrutiny