By interlink | 21/05/2024
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The EU’s Import Control System Has a Strong Impact on Vietnamese Businesses.
From June 3, 2024, businesses operating in the logistics, express delivery, sea, air, rail, and related sectors exporting goods from Vietnam to the EU will be required to declare data before goods arrive into the European Customs Union’s ICS2 system.
According to information from the General Department of Customs, starting from June 3, 2024, all businesses operating in the logistics, express delivery, and sea, air, rail, and road transport sectors related to goods exported from Vietnam to the European Union (EU) will have to declare data before goods arrive into the EU’s Import Control System (ICS2).
Vietnamese businesses need to be fully aware of this regulation to avoid serious consequences. Failure to comply may result in shipments being detained at the EU border. Goods may not be cleared by EU customs, or even incomplete or rejected declarations could lead to embargoes due to violations of EU regulations.
The new regulations on the EU’s ICS2 Import Control System are expected to have a significant impact on Vietnamese export businesses.
According to information from the General Department of Customs, the EU prioritizes the security and safety of its citizens and markets. EU-27 goods trade currently accounts for approximately 15% of total annual global trade.
The EU is actively implementing its Customs security and safety program with the deployment of the ICS2 system. This system systematically collects and manages goods information before arrival to further strengthen security controls at border crossings.
The Information Collection Scheme via the ICS2 Import Control System plays a crucial role in strengthening EU customs risk management, as part of the Common Risk Management Framework (CRMF).
The ICS2 system is responsible for collecting data on all goods before they reach EU borders. Businesses are required to declare secure and confidential data on this system, through the Summary Import Declaration (ENS).
Stages of the ICS2 System
The submission of these declarations will be applied unevenly to all businesses depending on the type of service provided in the international transport of goods. The ICS2 system will be implemented in three distinct phases to enhance customs security and risk management more effectively:
- Phase 1: Starting March 15, 2021, for businesses operating in the express delivery, postal, and postal services sectors outside the EU.
- Phase 2: Starting March 1, 2023, expanding application to all three groups from Phase 1, along with freight forwarders, logistics companies, and air transport businesses.
- Phase 3: Expected to start June 3, 2024, will include all groups from the previous two phases plus sea, rail, and road transport businesses, as well as importers within the EU.
The ICS2 system allows for the collection of cargo information before arrival at EU borders and risk analysis. This helps identify security threats early, enabling EU customs authorities to intervene more promptly in the supply chain. It strengthens the protection of EU citizens and markets against terrorist threats, and allows them to identify high-risk shipments early so that appropriate intervention measures can be taken.
27 countries of the European Union
Notes on Declaration Procedures
Businesses exporting to the EU must declare and are legally responsible for the accuracy, completeness, and timeliness of the information on the Import Summary Declaration. Below are some specific requirements that businesses need to note when making the declaration:
- First: The HS code (6 digits) of the goods must be declared to describe their commercial nature. This applies to transactions between businesses and between businesses and customers.
- Second: The registration number and EORI identifier of the consignee in the EU must be declared. This is important information, similar to the business code, and must be provided to the party declaring the Import Summary Declaration. This registration number and identifier can be verified on the EU Commission website (europa.eu) to ensure the accuracy of the information.
- Third: Declare information about the Seller and Buyer, or the owner of the goods in cases where the shipment is not related to a commercial transaction. This must include information about the final destination of the goods within the European Union.
- Fourth: Provide a complete and accurate description of the goods in easily understandable language so that customs authorities can easily identify the nature and type of goods.
Businesses can submit import data to EU customs authorities as a single complete declaration if they have sufficient information. If information is provided by multiple parties in the supply chain, businesses may submit multiple ENS data submissions.
However, EU customs authorities have the right to reject an ENS declaration if they find incomplete information or if risk mitigation measures are required before the goods are loaded onto the vessel or before arrival. In such cases, the declarant must provide complete and accurate data as requested by the customs authorities.
Source: Investment Newspaper
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