Trending Now

U.S. Tariffs Prompt Economic Slowdown

New Articles

Embracing ICS2-ENS: Navigating the Future of Global Trade with Precision and Insight

global trade ICS2-ENS
Global Logistics, Global Trade Daily, News

Embracing ICS2-ENS: Navigating the Future of Global Trade with Precision and Insight

Leave a comment

SEATTLE, WA, November 4, 2024 – As President of Trade Tech, I’ve seen how regulatory advancements like the European Union’s Import Control System 2 (ICS2-ENS) reshape global trade. ICS2-ENS isn’t just a new compliance requirement; it’s a foundational shift towards a more secure and efficient supply chain. 

Read also: Logistics Trade Bodies Urge Action on New EU Import Rules

ICS2-ENS brings Europe, the largest trading market in the world, in line with the other major importing markets such as the USA, Canada, Mexico, and Japan with an identical regulatory process and data configuration. The alignment of these regulatory processes for international trade creates an effective process and data standard for both global as well as local importers and global traders. So, the question now becomes: “How do importers and global traders take advantage of this regulated data flow?” 

Here’s why ICS2-ENS matters, how strict data rules ensure accuracy and operational fluidity, and how Trade Tech can help you stay ahead.

The Significance of ICS2-ENS

ICS2-ENS represents a game-changing transformation in how we manage international cargo, drastically altering the landscape of global trade. By mandating that all Bill of Lading information be submitted to EU Customs 24 hours before cargo is loaded, ICS2-ENS enhances visibility, accuracy, and standardization across the supply chain. This advance notice enables more precise tracking and better decision-making, ultimately leading to greater efficiency and reduced delays. For businesses engaged in global trade, embracing ICS2-ENS is crucial for maintaining a competitive edge and ensuring compliance with the evolving landscape of customs regulations.

Ignoring ICS2-ENS can lead to severe consequences, including hefty fines for data inaccuracies and potential disruptions in cargo flow. The system’s rigorous data accuracy requirements and its alignment with international standards underscore the need for businesses to adapt proactively. Implementing robust compliance measures and leveraging advanced technologies will not only help avoid financial penalties but also streamline operations and enhance overall supply chain performance. In a world where timely and accurate information is key, taking ICS2-ENS seriously is essential for safeguarding your business’s future in global trade.

Visibility in the Supply Chain

ICS2-ENS turns the concept of visibility from a buzzword into a practical tool. By requiring detailed shipment data in advance, it provides a comprehensive view of cargo from loading to discharge. This early notice improves tracking and offers stakeholders actionable insights into their cargo’s journey, ultimately facilitating better decision-making and enhancing operational efficiency.

The Imperative of Data Accuracy and Completeness

Visibility alone isn’t enough; accurate and complete data is crucial. While penalties for non-compliance have not been finalized for ICS2-ENS, similar regulatory requirements impose strict penalties—up to $5,000 per shipment—for data inaccuracies or omissions. This regulatory pressure underscores the need for precise data submission. Errors or incomplete information can lead to severe fines and compliance issues, making data integrity a cornerstone of smooth supply chain operations.

The Role of Data Standardization

ICS2-ENS’s focus on data standardization is another critical aspect. It mandates a uniform data submission format to a single EU Customs authority, ensuring consistency across all industry participants—carriers, NVOCCs, forwarders, terminals, and brokers. This standardization simplifies compliance, reduces errors, and improves operational efficiency. ICS2-ENS also aligns closely with the World Customs Organization Data Protocol, suggesting potential for further global harmonization in trade regulations.

Customs Clearance and Managing Congestion

ICS2-ENS also addresses Customs clearance timing, allowing pre-arrival clearance and better congestion management at ports. To support this, service providers need to send shipment data to Customs brokers via electronic methods immediately after vessel departure. Real-time data transfer enables brokers to prepare for prompt customs clearance, reducing delays and enhancing overall efficiency.

The Future: Automated Customs Clearance

Looking ahead, automated Customs clearance is on the horizon. With technological advancements, Customs clearance could soon be automated based on pre-classified SKUs and commercial invoices. This automation promises to streamline processes, minimize manual intervention, and further accelerate global trade efficiency.

How Trade Tech Can Help Prepare for the December 2024 Deadline

At Trade Tech, we provide global support and local expertise to guide businesses through ICS2-ENS compliance. Our extensive network delivers timely, region-specific assistance, while our AWS-hosted cloud system integrates sales, operations, accounting, and security. With built-in accuracy checks and real-time sailing schedule tracking, our platform simplifies filings and reduces administrative tasks. We handle a variety of security filings, including ICS2-ENS, AMS, ACI, and e-Manifest, managing multiple submissions simultaneously to ease compliance and keep cargo moving.

Conclusion

ICS2-ENS is more than just a regulatory change—it is a major step towards a more transparent, accurate, and efficient global supply chain. By enforcing strict data requirements and aligning with international standards, ICS2-ENS addresses key industry challenges and sets the stage for future advancements in Customs processes. Trade Tech is here to guide the industry through this transition, offering expertise, advanced technology, and comprehensive support. As the December 2024 deadline approaches, we’re ready to help our customers adapt seamlessly and maintain their competitive edge in an evolving regulatory landscape.

 

global trade
Global Logistics, Global Trade Daily, Imports/Exports, International Trade, News

Logistics Trade Bodies Urge Action on New EU Import Rules

Leave a comment

Global and European trade associations representing shippers, forwarders, and vessel operators have issued an urgent alert for businesses involved in goods movement into or via the European Union, Norway, Switzerland, or Northern Ireland by sea, road, or rail. These businesses must prepare for the new Import Control System (ICS2), which will begin its phased introduction from June this year.

Read also: 3 Strategies for Importing Goods From the U.S. to Europe

The World Shipping Council, the International Federation of Freight Forwarders, the Global Shippers Forum, the European Community Association of Ship Brokers and Agents, the European Community Shipowners’ Associations, the European Associations for Forwarding, Transport, Logistics and Customs Services, the European Shippers Council, and the International Road Transport Union have highlighted the significance of the new controls and their impact on goods movement within the European Customs Territory.

The ICS2 is an enhanced safety and security regime established by EU Customs authorities, requiring detailed information about imported goods before loading or arrival at the EU border. Initially applied to air cargo in 2023, the requirements will extend to sea transport from June 2024 and to road and rail imports in 2025. The extensive new data requirements include 6-digit HS codes for each item, an ‘acceptable description,’ and detailed buyer and seller information.

The trade bodies emphasize the importance of awareness and understanding of how ICS2 will affect different entities in the supply chain at various stages. They urge businesses to start preparing now and to consult the European Commission’s website for detailed information.

Non-compliance with ICS2 requirements will result in delays, disruptions to exports and imports, and potentially fines and penalties for those responsible for submitting the necessary Safety and Security data.

The joint call to action by the eight trade bodies underscores the need for cooperative working among all parties involved in shipments to maintain smooth goods movement.

canned food
Archives, EU Trade, Global Trade Daily

The EU Canned Food Market Picks Up the Momentum

Leave a comment

IndexBox has just published a new report: ‘EU – Canned Food – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

After two years of decline, the EU canned food market increased by 3.6% to $7.7B in 2019. Over the period under review, consumption, however, continues to indicate a mild downturn. The most prominent rate of growth was recorded in 2016 when the market value increased by 7.7% against the previous year. The level of consumption peaked at $8.9B in 2007; however, from 2008 to 2019, consumption remained at a lower figure.

Consumption by Country

The countries with the highest volumes of canned food consumption in 2019 were Germany (445K tonnes), France (380K tonnes) and the UK (357K tonnes), together accounting for 50% of total consumption. These countries were followed by Spain, Ireland, Italy and the Netherlands, which together accounted for a further 31%.

From 2007 to 2019, the most notable rate of growth in terms of canned food consumption, amongst the leading consuming countries, was attained by Ireland, while canned food consumption for the other leaders experienced more modest paces of growth.

In value terms, the largest canned food markets in the European Union were Germany ($1.5B), France ($1.3B) and Ireland ($1.2B), with a combined 52% share of the total market.

In 2019, the highest levels of canned food per capita consumption was registered in Ireland (40 kg per person), followed by the Netherlands (9.33 kg per person), France (5.78 kg per person) and Germany (5.43 kg per person), while the world average per capita consumption of canned food was estimated at 4.65 kg per person.

Market Forecast 2019-2030

Driven by rising demand for canned food in the European Union, the market is expected to start an upward consumption trend over the next decade. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +0.2% for the period from 2019 to 2030, which is projected to bring the market volume to 2.4M tonnes by the end of 2030.

Production in the EU

After two years of decline, production of canned food increased by 2.9% to 3M tonnes in 2019. In general, production continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2016 when the production volume increased by 15% year-to-year. As a result, production reached the peak volume of 3M tonnes; afterwards, it flattened through to 2019.

In value terms, canned food production stood at $11.2B in 2019 estimated in export prices. Overall, production saw a relatively flat trend pattern. The pace of growth was the most pronounced in 2016 when the production volume increased by 12% year-to-year. The level of production peaked in 2019 and is expected to retain growth in years to come.

Production by Country

The countries with the highest volumes of canned food production in 2019 were France (510K tonnes), Germany (462K tonnes) and Spain (382K tonnes), together comprising 46% of total production. These countries were followed by the Netherlands, Ireland, the UK, Poland and Italy, which together accounted for a further 41%.

From 2007 to 2019, the most notable rate of growth in terms of canned food production, amongst the leading producing countries, was attained by Ireland, while canned food production for the other leaders experienced more modest paces of growth.

Exports in the EU

In 2019, exports of canned food in the European Union expanded to 1.6M tonnes, with an increase of 3.5% on the previous year’s figure. Total exports indicated a temperate expansion from 2007 to 2019: its volume increased at an average annual rate of +4.8% over the last twelve-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, exports increased by +59.8% against 2010 indices. The pace of growth was the most pronounced in 2008 when exports increased by 16% y-o-y. The volume of export peaked in 2019 and is likely to see gradual growth in the near future.

In value terms, canned food exports rose to $9.1B (IndexBox estimates) in 2019. Overall, exports posted a buoyant increase. The pace of growth was the most pronounced in 2008 with an increase of 28% year-to-year. Over the period under review, exports hit record highs in 2019 and are likely to continue growth in the immediate term.

Exports by Country

The biggest shipments were from the Netherlands (313K tonnes), France (228K tonnes), Spain (221K tonnes), Germany (165K tonnes), Ireland (150K tonnes) and Poland (137K tonnes), together amounting to 76% of total export. Italy (58K tonnes), Denmark (48K tonnes), Belgium (46K tonnes), the UK (36K tonnes) and Austria (28K tonnes) took a minor share of total exports.

From 2007 to 2019, the most notable rate of growth in terms of shipments, amongst the main exporting countries, was attained by Spain, while exports for the other leaders experienced more modest paces of growth.

In value terms, the Netherlands ($3.2B) remains the largest canned food supplier in the European Union, comprising 35% of total exports. The second position in the ranking was occupied by France ($1.3B), with a 15% share of total exports. It was followed by Ireland, with a 11% share.

From 2007 to 2019, the average annual growth rate of value in the Netherlands stood at +15.4%. In the other countries, the average annual rates were as follows: France (+7.9% per year) and Ireland (+2.4% per year).

Export Prices by Country

The canned food export price in the European Union stood at $5,724 per tonne in 2019, remaining stable against the previous year. Over the last twelve years, it increased at an average annual rate of +3.1%. The pace of growth appeared the most rapid in 2008 when the export price increased by 10% against the previous year. Over the period under review, export prices attained the maximum in 2019 and is expected to retain growth in the immediate term.

Prices varied noticeably by the country of origin; the country with the highest price was the Netherlands ($10,124 per tonne), while Spain ($2,617 per tonne) was amongst the lowest.

From 2007 to 2019, the most notable rate of growth in terms of prices was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

Imports in the EU

In 2019, approx. 1M tonnes of canned food were imported in the European Union; increasing by 6.2% in 2018. The total import volume increased at an average annual rate of +3.1% over the period from 2007 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, imports attained the peak figure in 2019 and are expected to retain growth in years to come.

In value terms, canned food imports reached $3.5B (IndexBox estimates) in 2019. The total import value increased at an average annual rate of +3.7% over the period from 2007 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years.

Imports by Country

The UK (151K tonnes), Germany (149K tonnes), the Netherlands (122K tonnes), France (98K tonnes), Italy (75K tonnes) and Belgium (75K tonnes) represented roughly 66% of total imports of canned food in 2019. The following importers – Spain (44K tonnes), Ireland (43K tonnes), Sweden (42K tonnes), Poland (39K tonnes), Austria (26K tonnes) and the Czech Republic (23K tonnes) – together made up 22% of total imports.

From 2007 to 2019, the biggest increases were in Germany, while purchases for the other leaders experienced more modest paces of growth.

In value terms, the largest canned food importing markets in the European Union were Germany ($602M), the UK ($529M) and the Netherlands ($432M), with a combined 44% share of total imports.

Germany recorded the highest growth rate of the value of imports, among the main importing countries over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2019, the canned food import price in the European Union amounted to $3,500 per tonne, which is down by -3.9% against the previous year. Overall, the import price, however, showed a relatively flat trend pattern. The pace of growth appeared the most rapid in 2008 when the import price increased by 7.1% year-to-year. The level of import peaked at $3,673 per tonne in 2014; however, from 2015 to 2019, import prices remained at a lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was Austria ($4,650 per tonne), while Belgium ($2,162 per tonne) was amongst the lowest.

From 2007 to 2019, the most notable rate of growth in terms of prices was attained by France, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform