Article • 13.12.2022
ICS2 is coming
Air cargo will start using the new security process on March 1, 2023
Every year, several trillion euros worth of goods are imported into the EU, representing around 15 percent of the global goods trade. For more than 10 years now, these imports have needed to be declared via the ICS procedure for risk assessment/hazard prevention prior to their entry into the EU. The ICS1 system currently being used does not provide dedicated risk analysis. Neither does it connect all modes of transport. Therefore, that system will now be completely replaced by the new ICS2 procedure.
The introduction of ICS2 comes in three stages
- On March 1, 2021, courier and express services began using the procedure.
- Beginning on March 1, 2023, air freight will be added.
- As of March 1, 2024, sea, road and rail transport will follow.
"For the air freight industry, the introduction is approaching quickly. However, those requirements can easily be transferred to sea freight, as no significant changes are to be expected," says Dirk Gladiator, authorized officer of Dakosy.
One EU entrance door instead of 27 national doors
The big new change with ICS2 is the central reporting point. In future, all relevant data and messages will be sent directly to the EU system. For this purpose, the EU Commission has developed a common participant interface, the Shared Trader Interface (STI). Until now, those required to report - i.e., airlines and shipping companies as transporters of the goods - had to submit their reports directly to the respective EU country concerned, for example in Germany to the customs IT procedure ATLAS. "Working with the multiple interfaces of the national customs systems throughout the EU involved a great deal of effort due to the large number of interfaces. In the future, there will be only one entry door instead of 27 national doors. This uniform path is a considerable simplification and improvement with regard to the IT process," explains Gladiator.
In the future, there will be only one entry door instead of 27 national doors. This uniform path is a considerable simplification and improvement with regard to the IT process."
The pre-customs check
The registration process itself will involve two steps. A new notification, the so-called Pre-Loading, has been added. This is in addition to the established Pre-Arrival, with which the airline transmits the MAWB data record at least four hours before the shipment arrives in the EU. This will be followed by a "Pre-Loading" analysis, which means that carriers have to expect referrals before the goods are even loaded. The EU recommends waiting for the "Assessment Complete" status - i.e. release for loading - before loading the shipment on board an aircraft.
Stavroula Mitsa Ostoike, Project Manager ICS2 at Lufthansa Cargo, clarifies the impact: "We will only accept shipments with an ‘Assessment Complete’ status. Otherwise, we will hold the shipment back and take all measures prescribed by the EU authorities." On LinkedIn, she details Lufthansa Cargo's approach in a short video.
The earlier the Pre-Loading is submitted, the greater the practical benefit for the forwarder or shipper in the country of departure. A customs Pre-Check is possible before the shipment even leaves the warehouse or yard.
"For us, it has the advantage that it gives us a longer time frame for answering queries before the shipments are even dispatched and assembled," relates Fabian Heilmann from Kühne + Nagel in Frankfurt am Main. The earlier clarification brings the certainty that the freight will not be held up at the airport because of open customs questions, or that consolidated cargo shipments will be blocked from loading because of a single disputed item.
New requirements for the application
For air freight, forwarders or loaders must provide this additional data:
- the commodity code in the form of a six-digit HS code
- the complete address of the original sender
- the complete address of the end recipient
- the six-digit HS code in the ICS2 message
- where applicable, the EORI (successor to the customs number at EU level) of the consignee
Optional: „Multiple Filing“ by more than one declarant
At the same time as "Pre-Loading," the feature "Multiple Filing" is also being introduced. This technical term refers to a new option which enables not only the airline or shipping company to transmit the first data record, but also gives that ability to freight forwarders and loaders. Kühne + Nagel purposely chose this option for several reasons, as Heilmann explains: "We will use the multiple-filing scenario to be operationally flexible while at the same time delivering high-quality data to the authorities. In addition, it is our goal to ensure that sensitive customer and shipment data is shared with as few parties along the supply chain as possible."
Demand for higher-quality data
A standard electronic format called Entry Summary Declaration (ENS) has been defined for reporting data, and this format does not allow for any deviations. Accordingly, the required accuracy of data needs to increase. "In the future, if information does not match the format or is missing, for example a missing postal code, this could result in a shipment being held up," Gladiator says of the consequences. It is therefore worth paying close attention to this point and providing data in accordance with the new requirements.
Transitional period
The new ICS2 procedure will take effect for air freight on March 1, 2023. The changeover period for participation in Multiple Filing lasts until October 2, 2023. "However, freight forwarders and shippers should be in a position to make the required data available electronically as early as March 1, 2023," Gladiator emphasizes. He expects that the first airlines will start using the ICS2 process as soon as possible, and they will require the corresponding data from their customers as well. Lufthansa Cargo has already confirmed that it will use the new reporting system from the first day, i.e. March 1, 2023.
Partner for technical connections
DAKOSY has many years of experience with the ICS procedure. In addition to the interface option, the module is also integrated into its ZODIAK customs software. Until now the software service provider has transmitted the "Pre-Arrival" for airlines and shipping companies who are required to report. "For them, we will take care of the new reporting path and, if necessary, make sure that the interfaces are adapted," confirms Gladiator. Existing interfaces from ICS1 can also continue to be used, needing only a small amount of modification. Forwarders, logistics companies and loaders can also participate in multiple filing via ZODIAK, including the electronic exchange of referrals, notifications and arrival notifications. For data transmission, users can choose between the dialog application, EDI connection or hybrid solution.
