ICS2: Are you ready for the new requirements?

Did you know that cargo movements into the EU will be further impacted by the ICS2 for maritime regulation that is scheduled to go into effect on 3 June 2024?

Release 3 will see the phased implementation for maritime, road, and rail and will affect all operators carrying goods by sea, road, and rail. Industry watchers are keeping a close eye on the implementation planning and guidance, especially on the maritime requirements which can have complex routings and will have a substantial impact on business processes.

The deployment window will begin on 3 June 2024 and run to October 2024 for maritime carriers and April 2025 for maritime house-level filers. With road and rail following from April 2025 until September 2025, the focus right now is on maritime traffic.

Still, everyone should take note of the changes coming along, especially as carriers and house-level filers need to ensure they apply for the deployment window by 17 May 2024, otherwise will be expected to submit the full ENS data on 3 June.

Across all modes of transport, filers need to complete an Entry Summary Declaration (ENS) dataset prior to arrival when moving goods into the EU to allow the EU to complete risk analysis for safety and security purposes.

To fulfil ICS2 ENS data filing obligations, many businesses will need to revisit the capabilities of their internal systems, and processes, and train employees on the new requirements.

The experience with Release 2 for air has shown that this can have a significant impact on operations, especially with additional mandatory data elements such as HS code, postal codes, and capturing EU EORI numbers for goods destined to businesses in the EU.

The maritime release also adds an extra layer with requirements to disclose buyer and seller data for goods destined for the EU. This means it may be necessary for multiple parties submitting data to complete the ENS declaration which could be subjected to a new Request for Information process where Customs may challenge the quality of data to enable them to complete their risk analysis.

What are the challenges for cargo operations?

ICS2 requires not only connectivity to government agencies and filing within specified timeframes, but also calls for tight communication between parties. Some key challenges include:

• Visibility & Control – Since what a carrier files is dependent on the forwarder filing; visibility, control, and information-sharing can be challenging
• New Data Elements – Determining, managing, and collecting the data elements required for ICS2 compliance is complex and time-consuming
• Process Challenges – From managing real-time data to complicated subsequent filings, technology is needed to better optimise processes

Descartes has you covered for ICS2

As a long-standing innovator in technology for the air cargo industry, Descartes is at the leading edge of ICS2 compliance. Our solutions are built based upon consultative efforts between carriers, forwarders, and customs agencies to ensure compliance requirements are exceeded.

By choosing an IT service provider such as Descartes you simplify your ICS2 migration by benefiting from existing connectivity and the conformance testing undertaken by the IT service provider that you would otherwise need to implement yourselves.

Descartes technology streamlines data sharing to enable multi-party collaboration, reduces the risk of submission errors and delays, improves filing efficiency and productivity, enhances customer service with real-time shipment and clearance statuses, and responds to exceptions with robust reporting and alerts.

Descartes technology is also extensible. Our solutions are modeled with a standard and scalable architecture to support similar advanced security filing initiatives worldwide.

Watch our on-demand web seminar

Due to the high level of interest in the ICS2 regulation, Descartes is pleased to host an on-demand web seminar,“ICS2: Maritime Requirements Are Coming Soon!”. The web seminar features a general informative and technical overview of the regulation and details how leading forwarders and carriers are enabling compliance.

This session, featuring Martin Meacock, vice president, product management from Descartes and Jan Markill, account executive from Descartes, covers the ICS2 regulation in depth and how the new maritime requirements may impact you. Topics include:

• Data Flow Process – How the flow of data will work throughout the supply chain
• Your Questions Answered – Ask questions about ICS2 during an interactive Q&A
• Enabling Compliance – How to leverage technology to remain in compliance

Watch the on-demand web seminar

This sponsored article was written by Descartes Systems Group