ICS2 Release 3: A Quick Guide for Freight Forwarders
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Freya Jane
- Director of Customer's Success
The 3rd release of Import Control System 2 (ICS2) went live on June 3, 2024. Its application is changing the environment for maritime freight forwarders.
ICS2 Release 3 is now on its way to target maritime freight forwarders acting as house-level filers. They must act quickly to comply with the system’s requirements for more comprehensive and timely data submission.
House-level filing is critical to protecting the business interests of freight forwarders who act as contractual carriers and provide multimodal transportation solutions.
Sea freight forwarders must take proactive measures to safeguard their operations by becoming house-level filers, keeping control over house-level data, and avoiding relying on shipping lines for house-level filings.
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Best practices for freight forwarders
Maritime and inland waterways house-level filers can follow these practices to prepare for the ICS2 Release 3 update going to be live on 4 December.
Understand new data requirements
All sea freight shipments into or through Norway, the EU, and Switzerland must comply with the strict data filing requirements introduced by ICS2. Freight forwarders are required to electronically submit thorough Entry Summary Declarations that include all relevant details about the cargo they are shipping. This includes:
Accurate goods descriptions
Harmonised Commodity Codes (HS Codes) of goods.
Detailed seller and buyer information for goods destined for the EU.
EORI numbers for both consignees and consignors.
Freight forwarders may face severe repercussions if data is submitted that is erroneous or incomplete.
Register as house level filer
Freight forwarders should strongly consider registering for house-level filing to maintain control over house-level data.
From December 4, 2024, to April 1, 2025, freight forwarders who have opted to serve as maritime house filers may begin submitting ENS declarations to ICS2.
To prepare and begin within the timeframe, the European Commission requires Economic Operators to request a deployment window from their National Customs Authority. The deadline for the freight forwarders to apply for the deployment window is November 1, 2024.
Failure to request a deployment window may cause operational disruptions, as you will be required to begin filing ENS data on December 4, 2024. To guarantee that your systems are prepared for the transition and to secure your deployment window, it is best to get in touch with your National Customs Authority well in advance.
Technical integrations
House-level maritime freight forwarders need to integrate technically with the ICS2 system to ensure compliance with the filing requirements. Freight forwarders can do it either by:
Third-party IT services providers (ITSPs): A certified ITSP to deal with the technicalities of data submission.
In-house system: Seasoned freight forwarders can establish their own integration with the Shared Trader Interface (STI).
Communication challenges and data management internally
Freight forwarders make sure to have clear internal data management, collection, validation, and submission processes. They also need to set in place internal communication challenges to guarantee the accuracy of data being collected from consignees and shippers.
As the responsibility for the accuracy of data is not well defined, freight forwarders should proactively develop programs to ensure data quality. It will help forwarders prepare better for the upcoming 4 December update for house-level filers to save themselves from penalties and rejections.
Negotiating Pre-loading Advance Cargo Information (PLACI) Agreements
It is imperative for freight forwarders to negotiate formal agreements with shipping lines regarding Pre-loading Advance Cargo Information (PLACI) when there are unclear regulations governing data submissions.
These agreements will assist in preventing needless delays or penalties. At the moment, freight forwarders are at risk because shipping lines might not be giving these agreements a priority. They have to take the lead in getting agreements that will safeguard their business.
Wrapping up
ICS2 Release 3 represents a significant shift in the maritime freight forwarding landscape. To guarantee smooth compliance, house-level filers—especially freight forwarders—must adjust to the new data requirements and technological integrations. Proactive measures are essential to prevent fines and disruptions to operations. These include comprehending the data requirements, registering as a house-level filer, and putting in place strong internal procedures.
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