EUROPEAN UNION’S IMPLEMENTATION OF ENTRY SUMMARY DECLARATION (ENS): A GUIDE FOR CARRIERS

Published: 6 March 2024

The European Union (EU) has been progressively tightening its regulations governing cargo movements into its territory, particularly in the context of safety and security. These regulations fall under the Safety and Security Amendment (SASA) and the Union Cargo Code (UCC). For carriers and operators involved in goods transportation to the EU, understanding and complying with these regulations is essential. This article provides an update of the ongoing Import Control System (ICS) and SASA regulations, their evolution and what they entail for businesses with the upcoming new release.

Understanding the ICS2 and SASA Regulations

The most recent ICS2 (Import Control System 2) framework, part of the broader SASA regulations, has introduced significant changes in the way cargo movements are managed into the European Union. The key objective of these regulations is to enhance safety and security while facilitating the flow of legitimate trade across EU borders. The ICS2 program is a crucial component in establishing an integrated EU approach to reinforce custom risk management under a common risk management framework.

To comprehend the ICS2 and SASA regulations, it is essential to consider their phased implementation. Here is a breakdown of the key milestones:

• SASA Introduction (1 Jan 2011): The EU introduced the Safety and Security Amendment, heralding a single filing approach where carriers are responsible for submitting the Entry Summary Declaration (ENS) to national Customs Authorities.
• Release 1 (15 March 2021): Applicable to all postal and express consignments with minimum ENS requirements, known as Pre-loading Advance Cargo Information (PLACI).
• Release 2 (1 March 2023): Applicable to goods in air traffic, requiring a complete ENS dataset for all goods transported by air.
• Release 3 (1 March 2024): Applicable to goods in maritime and inland waterways, road, and rail traffic, mandating a complete ENS dataset for all goods in these sectors.

Key Changes in ICS3

Release 3 of the ICS regulations introduces significant alterations. Notably, it mandates risk assessment at both pre-loading and pre-arrival stages for maritime goods. Maritime shipowners and carriers may be required to provide additional data, including:

• Economic operator registration and identification (EORI) of the consignee for EU shipments
• Full address details of the consignee, including postal code and subdivision code
• Harmonized system code (6-digit)
• House Bill of lading (B/L)
• Place of acceptance.

As a carrier, it is crucial to understand your role, especially in the maritime sector under vessel sharing or contracting agreements. When issuing a bill of lading or air waybill for goods entering the EU customs territory, the persons responsible for filing the ENS must be familiar with the prescribed format.

Also, as part of a carrier to ensure business continuity process, carriers may take a comprehensive approach and proactively address how a company’s electronic data processing techniques are. The data handled by the carriers may be subjected to security and safety-related customs controls. A thorough evaluation of data processing practices can essentially help to identify potential vulnerabilities and ensure data remains secure and compliant with the new regulations.

As these regulations evolve, carriers should be prepared to update their IT systems, including Application Programming Interfaces (APIs), to align with the forthcoming ICS3 requirements. Keeping your IT infrastructure up to date is crucial for seamless data transmission and compliance with the ever-changing customs and security mandates.

Another critical aspect is to determine the extent to which your company’s processes will need to change. This includes not only the technical aspects but also the operational and logistical in business components. Planning for these changes will allow for a smooth transition and minimise disruptions to cargo and vessel operations.

Furthermore, having sufficient workforce plays a pivotal role in adapting to the new landscape of Entry Summary Declaration (ENS) data requirements and any accompanying process modifications. Therefore, it is crucial to invest in staff training and equip them with the necessary knowledge and skills to navigate the updated procedures effectively.

The landscape of international trade is constantly changing, and the complexity of compliance requirements can be daunting. For this reason, it is highly advisable to consult legal experts who specialise in customs and trade law to stay informed and updated while ensuring compliance.

Summary

The ICS2 and SASA regulations under the EU’s Safety and Security Amendment represent a significant shift in cargo management and customs procedures. To continue trading with the EU smoothly and stay in compliance with these regulations, carriers and operators must stay informed, adapt their processes, and invest in necessary updates. Staying ahead of these changes is key to facilitating the flow of legitimate trade across EU borders while addressing safety and security concerns.

The Club will continue to monitor the progress of such new amendments and provide an update when the time comes.

Members requiring any further guidance are advised to contact the Britannia Loss Prevention Department.

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