ICS2 is here

ICS2 is here – are you complying?

Brexit has brought with it numerous changes that we’ve all had to get used to. Some for the better, others – well, the jury’s still out. But, regardless of your feelings for the ‘new normal’, it’s here to stay, as well as ICS2 (Import Control System 2).

Over the coming months and years, we’re going to face new regulations and will have to adopt new working practices. Today, we’re going to look at ICS2 and IOSS.

What is ICS2?

On 15th March 2021, ICS2 (Import Control System 2) was launched.

It’s known as the new EU customs pre-arrival security and safety programme. The idea behind it is to make air freight safer and more efficient while making customs processes faster and smoother for goods shipped cross-border.

This first phase concentrates on postal and express consignments going to (or through) the EU by air. The second release is scheduled for March 2023 and will extend to cover general air cargo. The third, in 2024, will include maritime, rail and road.

What does ICS2 mean for you?

As with all new regulations, the main impact for you is the data and paperwork you must produce.

It is your responsibility to provide complete and accurate shipper and receiver details on the waybill. This is in addition to the detailed line item data needed on the commercial/Pro Forma invoice, which is submitted electronically.

Why do you need to do this?

Well, as an advanced cargo information system, ICS2 collects data about all goods entering the EU before they arrive. That means Economic Operators must declare safety and security data to ICS2 through an Entry Summary Declaration.

It affects the handling, shipping, and transporting of cargo, express or postal consignments.

Failure to provide accurate information means your consignment can’t be sent – it’s as simple as that.

That means you’ll need to make sure you can provide the required high quality and precise data and that your staff are all up to date with the new requirements.

Is there anything else I need to know?

As it happens, yes. There’s been an update regarding VAT.

It has been confirmed that, with effect from 1st July 2021, the EU is introducing VAT on all shipments regardless of their value. From this date, all shipments into the EU will be subject to formal clearance declarations, so it’s more important than ever to make sure you provide complete and accurate data for all your shipments.

What is the Import One-Stop Shop (IOSS)?

We’re glad you asked.

Because of the VAT changes we just mentioned, IOSS has been introduced. It is a new and optional VAT collection model. It affects the declaration, payment, and collection of VAT for B2C shipments under €150.

Using IOSS, VAT is collected by your business at the time of purchase. This makes life a lot easier for buyers because it means they are only charged VAT when they buy goods, so there won’t be any unexpected charges when the goods are delivered.
It’s worth noting that the options currently available for VAT payments for both B2B and B2C shipments will continue. The IOSS is an extra option for B2C shipments only.

We are living in a state of flux right now. New rules and regulations are likely to spring up from time to time, so it’s crucial you know what’s happening. Partnering with a carrier that had its ear firmly to the ground is essential to make sure your business continues to run smoothly.

The team at Smart Directions is waiting for your call. Phone on 01442 507 240 for advice peace of mind that your consignments are compliant with the new EU regulations.

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