News #59 - EU’s import control system impacts on Vietnam’s export

03.05.2024

Starting June 3rd, 2024, logistics companies, express delivery services, and transportation companies involved in sea, air, and rail freight related to exports from Vietnam to the EU must declare data in the EU Customs Union's ICS2 system before the goods arrive.

If Vietnamese enterprises are unaware of these regulations, they could face severe consequences such as containers and shipments being stopped at the EU border; goods not being cleared by EU Customs; or declarations being incomplete, rejected, or banned for non-compliance with EU regulations.

The new EU ICS2 regulations will significantly impact Vietnam’s export businesses.

The EU considers ensuring top priority for the overall security and safety of its citizens and markets

Annually, the trade turnover of the EU-27 accounts for about 15% of global goods trade.

The EU has been working to implement a security and safety program for customs that acts before goods arrive, strengthened by a large-scale goods information collection system - the ICS2 Import Control System.

This ICS2 system is a significant contribution to enhancing integrated customs risk management within the EU's Customs Risk Management Framework (CRMF).

The ICS2 system will collect data on all goods before they reach the EU border. Enterprises must declare safe and secure data on the ICS2 system using the Entry Summary Declaration (ENS).

The obligation to submit such declarations will not be the same for all businesses, depending on the type of service provided during international goods transportation and will be implemented in three phases of ICS2 operation.

Phase 1 began on March 15th, 2021, applying to three types of businesses operating in express delivery, postal, and postal agencies from outside the EU;

Phase 2 started on March 1st, 2023, applying to five categories, including the three from phase 1, and adding logistics companies and airlines.

Phase 3 starts on June 3rd, 2024, applying to all remaining categories including the five from phases 1 and 2, adding businesses involved in sea, rail, and road transport, along with importers in the EU.

Pre-arrival goods information and risk analysis will allow early identification of security threats and help customs intervene at the most appropriate time in the supply chain.

Thus, more effectively safeguarding the safety and security of EU Customs, enhancing protection for EU citizens and the domestic market against terrorist threats; enabling EU Customs to identify high-risk shipments earlier and intervene at the most appropriate time in the supply chain.

Exporters to the EU are responsible for the legal accuracy, completeness, and timeliness of the information declared on the import summary declaration. Therefore, businesses need to be aware of certain information requirements on the declaration, specifically:

Firstly, declare the HS code (6 digits) of goods that have a commercial nature (Business-to-Business and Business-to-Customer transactions).

Secondly, declare the EORI registration and identification number (similar to a business code) of the recipient in the EU. Parties need to provide the Registration and Identification number to the person declaring the import summary declaration. Registration and Identification numbers can be verified on the EU Commission's website (europa.eu) to ensure the information is accurate.

Thirdly, declare information about the Seller and Buyer (or owner of the goods in cases not involving commercial transactions) of the goods and their final destination in the European Union.

Fourthly, there must be a full and understandable description of the goods so that customs can accurately identify the goods.

Data submission can be in the form of a complete declaration if the submitting party has all the necessary data, or ENS data may be submitted multiple times if more than one part of the ENS data is submitted by different parties in the supply chain.

EU Customs may refuse an ENS declaration if information is missing or risk mitigation measures are required before loading the goods onto the ship or before the goods arrive, requiring the declarant to provide the necessary data, for example, in cases of inaccurate data.

Source: https://baodautu.vn/he-thong-kiem-soat-hang-hoa-nhap-khau-vao-eu-tac-dong-manh-toi-doanh-nghiep-viet-d214109.html

Other articles

Contact Us

Booking ALS expert's advice