The European Union (EU) is making a significant leap forward in modernizing its customs processes with the full implementation of the Import Control System 2 (ICS2). This centralized, state-of-the-art system promises to revolutionize how goods entering the EU are assessed for risks while simplifying the customs experience for carriers and businesses alike.
Here’s everything you need to know about ICS2, its phased rollout, and how it impacts carriers, businesses, and the broader trade ecosystem.
What is ICS2?
ICS2 is the EU’s next-generation customs system designed to assess the risks associated with goods entering its borders. It replaces the previous Import Control System (ICS) with a centralized repository, allowing economic operators to submit their entry summary declarations (ENS) through a unified platform called the Shared Trader Interface (STI).
The system simplifies cross-border trade by ensuring that all data submitted is shared with Member States’ customs authorities through a single point of entry. This eliminates the need for businesses to navigate different national customs IT systems.
The Three Phases of ICS2 Implementation
To ensure a smooth transition, the European Commission has rolled out ICS2 in three stages:
- Phase 1 (March 15, 2021): Focused on postal and express air mail shipments.
- Phase 2 (March 1, 2023): Expanded to include all air traffic, including postal and express mail.
- Phase 3 (June 3, 2024): Covers the remaining modes of transport—road, rail, sea, and inland waterways.
Carriers joining ICS2 have flexibility in their timelines, with final deadlines for full integration set for late 2025.
How Does ICS2 Benefit Carriers and Businesses?
- Simplified Customs Processes:
The new system streamlines ENS submissions, requiring businesses to connect to one system instead of adapting to multiple national platforms. - Enhanced Security:
ICS2 improves the EU’s ability to assess risks, ensuring secure and compliant shipments while detecting and addressing threats like smuggling and fraud. - Collaborative Data Filing:
The system allows for “multiple filing,” enabling waybill fillers and carriers to share responsibility for submitting ENS data, reducing pressure on a single party. - Cost and Time Efficiency:
Faster customs clearance reduces delays, penalties, and administrative costs, creating smoother trade flows.
How to Prepare for ICS2
Carriers need to decide whether to develop their own systems for ENS submission or rely on third-party software providers. A self-conformance test is required to ensure compatibility with the STI.
Businesses must also verify that partners provide necessary ENS data on time, as incomplete declarations can lead to delays or compliance issues.
A Game-Changer for EU Trade
ICS2 is more than just a technical upgrade; it is a step towards digital transformation in EU customs. By creating a secure, efficient, and streamlined system, the EU is fostering trade confidence and supporting economic growth. With greater efficiency, improved compliance, and cost savings for carriers and traders, ICS2 represents the future of customs in a globalized world.
