ICS2: Are you ready for the new requirements?

Source: The Loadstar
Date: 22nd January 2024

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 before 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

NEOLink cooperated with our order processing system. He did not replace it or force solutions. Logfret did it better than other companies on the market – it adapted its system to ours. Logfret didn’t come to us saying, “We have this solution, and you either use it or we won’t cooperate.

Procurement Director

Pumps Manufacturer

We made a huge improvement in global visibility with a global platform—anyone can log into NEOLink and look at a shipment anytime, anywhere in the world. We wanted a freight forwarder with a good technology platform, which could handle the complexities of our business and we found NEOLink!

A global leader in performance materials and specialty chemicals

My suppliers have less or zero experience with international logistics. Thus, not able to create proper documentation which leads to tremendous delay. Thanks to Logfret who provide training to all suppliers and work with us to build up a consolidation hub to reduce transportation costs significantly.

One of the world’s leading designers, manufacturers and distributors of ride control products