Shippers in the U.S. aren’t the only ones who have to contend with upcoming changes to customs compliance.
The European Union (EU) is enforcing stricter customs regulations as part of its Import Control System 2 (ISC2) program, with entry summary declarations (ENS) set to be mandatory for “house level” filers including importers and freight forwarders as of Tuesday.
As of the April 1 date, the customs process will now also apply to road and rail transport modes, on top of the previous requirements for goods moving via ocean, air and inland waterway. Road and rail companies must be compliant with the filing requirements by Sept. 1. This obligation also affects postal and express carriers transporting goods using these modes of transport, according to the European Commission.
ENS declarations contain advance cargo information about shipments entering the E.U., effectively enabling customs workers to conduct a risk analysis of imports for security and safety purposes.
These declarations include product-level details with six-digit Harmonized System (HS) codes, commercial descriptions of the goods, E.U.-registered Economic Operators Registration and Identification (EORI) numbers and complete details of the seller, buyer and consignee of the cargo.
Container cargo coming in via ocean carrier must be lodged 24 hours before the containers start loading begins at the non-E.U. port. The timelines are more relaxed for other transportation modes, with the importer needing to declare before takeoff of flights lasting fewer than four hours, and at least four hours before arrival on flights longer than four hours. All cargo via road traffic must be declared at least an hour before arrival.
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To comply with the ICS2 requirements, affected businesses will be required to make sure they collect “accurate and complete” data from their clients, update their IT systems and operational processes, provide adequate training to their staff, and successfully complete a self-conformance test before connecting to ICS2. The test will verify their ability to access and exchange messages with customs authorities.
Although the newest deadline impacts rail and road transport, container shipping giants are taking steps to ensure customers better align with E.U. requirements.
According to customer advisories from Maersk and Hapag-Lloyd, the Gemini Cooperation partners rolled out a “no load” policy to ensure importers submit the necessary ENS declaration data before cargo is moved.
Hapag-Lloyd calls its version the “No Movement Reference Number (MRN)/No Load” policy. Shipments without a valid MRN from an ENS filing cannot enter the E.U., the carrier said. Containers lacking an ENS declaration and MRN won’t be loaded at origin.
Similarly, Maersk introduced a “No Manifest No Load” policy.
“In case of a ENS declaration missing for a container, the container will not be loaded and will be shifted to the next available vessel,” Maersk said in its advisory. “We request you to provide a complete shipping instructions with all the above details included at least 48 hours prior vessel arrival at [the] compliance load port.”
Hapag-Lloyd identified three common errors that cause issues and delays at customs, all resulting from reporting inaccurate information.
Missing or incorrect EORI numbers can cause customs rejections, with the carrier recommendation users to verify the numbers’ accuracy via the E.U.’s online validation tool.
Non-standard phone numbers with symbols or letters cause processing errors, while non-compliant cargo descriptions or HS codes can delay customs clearance.
The ICS2 safety system has been in slow development since it was first introduced for air cargo back in March 2023, before expanding it to maritime and inland waterway transport by June 2024. The customs program will be fully phased to replace ICS1 by Sept. 1.
As the EU deploys the declaration, the European Commission still debating on whether it will scrap its own duty exemption for parcels valued at less than 150 euros ($162.30). The commission has sought to bolster E.U. e-commerce sales competition while targeting companies selling unsafe and counterfeit products.
The E.U.’s customs entry shift comes as the U.S. is expected to make more decisions on the future of its own duty-free de minimis exemption. In the four days after ending the trade provision for low-value shipments, the Trump administration walked back the move due to an overload of packages stopped at U.S. Customs and Border Protection (CBP).
It is widely expected that the de minimis provision will be either reformed or eliminated altogether once the administration comes up with a longer-term plan on handling the cargo in the wake of any changes.