What You Need to Know About the EU's New Import Control System

Every time you turn around, it seems there's a new regulatory requirement. Governments around the world are updating customs codes, modernizing and introducing technology processes, and changing classifications—all in the name of streamlining revenue collection and enforcing supply chain security.

The European Union (EU) has been and continues to be very active in promulgating legislation to support its drive to create a single Customs union for its 27 member states. The latest in a long line of supply chain security legislation is the introduction of the Import Control System (ICS), which requires the provision of advanced shipment information to Customs authorities.

Similar to the U.S. 10+2 supply chain security initiative, ICS aims to communicate critical shipment data to Customs before the shipment reaches the EU, and thereby enable their ability to assess any risks it may pose. Effective January 1, 2011, ICS places the burden of supplying advanced shipment information squarely on the shoulders of carriers, not industry. However, importers and exporters aren't completely off the hook; they must provide accurate information on a timely basis to their carriers or goods could be held up indefinitely by Customs authorities.

Import Control System Background
ICS is included in European Parliament and Council Regulation (EC) No. 648/2005, the safety and security amendment to the Customs Code, and Commission Implementation Regulation No 1875/2006. Originally, ICS was to be introduced across the EU on July 1, 2009; however, it was recognized that this date was not achievable for a number of EU member states. The Commission and member states then agreed to a final transition deadline of January 1, 2011. As of this date, it will be mandatory for carriers to electronically provide EU Customs authorities with advance information on shipments that are either in transit through the EU or destined for a member state. Therefore any shipment that enters the EU is subject to ICS regulatory security checks and profiling.

A number of member states have gone live with their ICS systems; the remaining member states are working toward the deadline with separate dates for "go live" testing. In the United Kingdom, for example, the intention is to implement ICS Testing on November 2, 2010. The testing is to be completed by carriers or carrier-approved partners to assess their processes and systems interfaces prior to the "go live" date.

Although related, ICS is different from the Authorized Economic Operator (AEO) supply chain security program promulgated by the same EU regulations. AEO is an accreditation regime aimed at improving global security by attempting to certify the cross-border actions of businesses and their trading partners. Whereas AEO is a certification program, ICS is a transactional program requiring data for EU Customs filings on each and every shipment, much like the 10+2 program in the United States, which requires the advance filing of 12 data elements (10 from the Importer of Record and 2 from the carrier) prior to goods being loaded on a carrier at the point of origin. The intention of ICS and 10+2 is the same - securing the supply chain by evaluating shipments prior to arrival.

ICS Requirements
The prearrival information needs to be provided to Customs authorities in a specified electronic format at the first point of entry into the European Union (EU). The electronic declaration is known as an Entry Summary Declaration (ENS), which includes:

● Details that identify the cargo such as unique consignment reference, container numbers, seal numbers, goods description, shipping marks and commodity codes.
● Traders involved in the movement such as the consignor, consignee, carrier, person filing or lodging the ENS.
● Identification of consignee and AEO status.
● Specific route into, across and out of the EU, as applicable to the transaction.

The ENS declaration is required for ALL shipments, including those en route via the EU to a destination outside of the EU.

Legislation requires that the electronic ENS be lodged before the arrival of cargo in the EU. The time limit for the submission of the ENS is detailed in Article 184a of implementing regulation EC No 2454/1993 as amended by EC No 1875/2006 and is directly related to the mode of transport. Those time line requirements are as follows:

As stated earlier, the carrier, as the operator of the active means of transport on which cargo is brought into the customs territory of the EU, is responsible for ensuring that an ENS is filed within the stipulated time limits, completely and accurately.