Businesses must fully understand the new EU import control regulations

VCN - According to the European Union (EU) regulations, from June 2024, all businesses related to goods exported from Vietnam to the EU must declare data before the goods arrive in the Import Control System (ICS2). If Vietnamese businesses are not aware of these regulations, they may face serious consequences.
Phase 3, all businesses exporting goods into the EU must participate in declarations on the ICS2 system. Source: European Commission website.
Phase 3, all businesses exporting goods into the EU must participate in declarations on the ICS2 system. Source: European Commission website.

EU's early risk identification measures

The EU has been implementing a security and safety program applied by the Customs authorities before the arrival of goods, reinforced by a large-scale goods information collection system - ICS2. The information receipt program through this ICS2 system is one of the important contributions to enhancing integrated customs risk management within the framework of the EU's Common Risk Management Framework (CRMF). The ICS2 system revises the current processes in terms of IT, legal, management, and risk control of the Customs authorities and related trade activities.

Accordingly, the ICS2 system will collect data on all goods before they arrive at the EU border allowing for the early identification of security threats and enabling Customs to intervene at the most appropriate time in the supply chain. Thus, it more effectively protects the safety and security of EU Customs, enhances the protection of EU citizens and the domestic market from terrorist threats.

Additionally, the system also allows EU Customs to identify high-risk shipments earlier and intervene at the most appropriate time in the supply chain; supports appropriate customs measures in crisis response situations; facilitates clearance for legitimate cross-border trade; and modernizes the exchange of information between businesses and EU Customs.

Therefore, businesses will have to declare safe and secure data on the ICS2 system, through 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 is implemented in three operational phases of the ICS2 system. Specifically:

Phase 1 began on March 15, 2021, applying to three business entities operating in the fields of Express Delivery, Postal, and Postal Authorities from outside the EU.

Phase 2 began on March 1, 2023, applying to five entities including three from phase 1 and additionally courier companies, logistics, and air transport businesses.

Phase 3 begins on June 3, 2024, applying to all remaining entities including five from phases 1 and 2, additionally incorporating businesses involved in sea, rail, and road transport along with importers in the EU.

Severe consequences if businesses show non-compliance

To adapt to EU regulations and to meet the obligations of submitting ENS data, businesses need to upgrade their IT systems, business processes, and train personnel. Moreover, businesses are required to perform self-testing for compliance before beginning the declaration processes in the system.

From June 3, 2024, onwards, all logistics businesses, express delivery, courier, and businesses involved in sea, air, rail, and road transport related to goods exported from Vietnam to the EU must declare data before the goods arrive in the ICS2 system. If Vietnamese businesses are not aware of these regulations, they might face serious consequences such as: containers and shipments being stopped at the EU border; goods not being allowed clearance by EU Customs. Declarations that are incomplete or rejected may even be banned for not complying with EU regulations.

Additionally, businesses are legally responsible for the accuracy, completeness, and timeliness of the information declared on the ENS. Therefore, businesses need to pay attention to the information requirements on the declaration, such as: declaring the HS code (6 digits); the registration and identification number EORI (similar to the business number) of the recipient in the EU (Registration and identification can be verified on the European Commission website (europa.eu) to ensure the information is accurate). Businesses must also declare information about the Seller and Buyer and must have a Full Description of the goods in an easily understandable and sufficiently accurate language so that the Customs authority can identify the goods.

Moreover, businesses also need to be aware of the deadline for submitting ENS for sea, air, rail, and inland waterway transport. The submission of data can be in the form of a complete declaration if the data submitter has all the necessary data, or ENS data can be submitted multiple times in case more than one part of the ENS data is submitted by different parties in the supply chain.

According to regulations, EU Customs may reject an ENS declaration in case of missing information or if risk mitigation interventions are necessary in the stage before loading onto the ship or before the goods arrive, requiring the declarant to provide the necessary data, for instance in cases of inaccurate data. Therefore, businesses must decide whether to develop their own IT systems internally or use the services of an IT service provider to send ENS data to the ICS2 system. Particularly, businesses need to agree early with other parties involved in the supply chain on how to submit the ENS data.

Whether this can be done depends on whether the parties in the supply chain agree to provide the necessary commercial documentation information to the transport company. If "Yes," the transport company sends all requested information to ICS2 in the form of a complete ENS. If "No," the transport company's clients must either send a part of the related ENS information to ICS2 themselves or arrange for a third party in the supply chain to send the information.

By Hong Cuong /Tran Minh

Related News

New trends in digital transformation for businesses

New trends in digital transformation for businesses

VCN - Given the rapid and substantial changes in technology, finding suitable solutions and keeping up with trends is a critical issue for businesses.
Open credit flow to support import and export

Open credit flow to support import and export

VCN - Weak demand, reduced orders, pressure from trade defense... thereby leading to a series of financial difficulties for import-export businesses. Therefore, the credit flow to support import and export needs to "flow" properly and meet the needs of businesses.
"The key" to promote growth for businesses

"The key" to promote growth for businesses

VCN - An unlocking growth driver is an urgent requirement from the Government to help businesses and the economy quickly recover. But unlocking the driving forces must be accompanied by drastic reforms in institutions and the business environment to create conditions and increase confidence for businesses to step forward.
“Hopeful stars" for businesses on the new journey

“Hopeful stars" for businesses on the new journey

VCN - Major export markets are undergoing significant changes, posing challenges for the business community. Many "hopeful stars" have been chosen by businesses with the desire to create a new breakthrough in business and reach new heights.

Latest News

Agricultural, forestry and fishery product exports continue to "scoring points"

Agricultural, forestry and fishery product exports continue to "scoring points"

VCN - In the first four months of 2024, the country's total export turnover of agricultural, forestry and fishery products is estimated to reach more than US$19 billion, an increase of 23.7 percent compared to the same period last year. Most key agricultural and forestry export products increased higher than the same period last year as well as the export value to all markets increased.
Build and protect the rice value chain against market fluctuations

Build and protect the rice value chain against market fluctuations

VCN - Due to recent risks and challenges,business performancehave been badly hurt andmany chain links have been under threats ..., the rice industry needs to enhance the role of ministries, branches, localities, and farmers and businesses in building and protecting the rice value chain against market fluctuations.
VN

VN's Steel industry ranks 12th in world crude steel production

This accomplishment not only highlights the industry’s rapid growth in production output but also signifies its increasing independence and diversification of product types.
Chu Lai Port installs specialised crane system

Chu Lai Port installs specialised crane system

Chu Lai International Port belonging to Trường Hải International Logistics Limited Liability Company (THILOGI) has installed a new specialised crane system that costs more than VNĐ400 billion (US$15.7 million).

More News

The processing and manufacturing industry increased by 6.3% in 4 months

The processing and manufacturing industry increased by 6.3% in 4 months

VCN - Continue the recovery momentum from the end of 2023, industrial production in April and the first 4 months of 2024 continues to show a positive trend. Of which, the processing and manufacturing industry increased by 6.3%.
Corporate profits enter recovery cycle

Corporate profits enter recovery cycle

VCN - The recently released Q1 2024 business results update by SSI Securities Corporation shows that corporate profits may have overcome the most challenging period and entered a phase of recovery and more stable growth.
Focusing on the "readiness" factor waiting for foreign investors in the high-tech field

Focusing on the "readiness" factor waiting for foreign investors in the high-tech field

VCN - According to a representative of the Ministry of Planning and Investment (MPI), investment by foreign corporations and businesses depends on many factors, but it is necessary to focus on factors related to Vietnam's readiness.
Exploiting the potential of Dong Nai

Exploiting the potential of Dong Nai's largest seaport

VCN - Phuoc An Port - the largest seaport in Dong Nai is expected to come into operation in July 2024, which will contribute to a significant increase in the amount of goods arriving at Dong Nai seaport. In order to meet the needs of import and export and create favorable conditions for businesses, customs management units in the area also need to change their model.
Hanoi calls for investments in six urban areas projects

Hanoi calls for investments in six urban areas projects

Hanoi is calling for investment in six urban areas projects in Dong Anh district worth a total of 34 trillion VND (1.3 billion USD).
The food industry aims to green packaging

The food industry aims to green packaging

VCN - Greening food packaging is not only a trend but also a strategic transformation of businesses to meet environmental requirements. Therefore, businesses need to focus on using environmentally friendly packaging materials that are easy to recycle while ensuring product quality.
"The key" to growth motivation for enterprises

"The key" to growth motivation for enterprises

VCN - Unlocking growth motivations is an urgent requirement from the Government to help enterprises and the economy quickly recover. But unlocking the driving motivations must be accompanied by drastic reforms in institutions and the business environment to create conditions and increase confidence for enterprises to step forward.
Exports of four localities achieve tens of billions of USD

Exports of four localities achieve tens of billions of USD

VCN - By the end of April, there are four localities and cities reaching an export turnover of US$10 billion or more, according to the statistics of General Department of Vietnam Customs.
Rapid greening of the logistics sector to avoid being "eliminated"

Rapid greening of the logistics sector to avoid being "eliminated"

VCN - In the current context, if criteria for greening the logistics sector are not quickly and immediately implemented, businesses will face significant difficulties in the future and gradually be "eliminated" from domestic and global business, trade, and import-export activities.
Read More

Your care

Latest Most read
Agricultural, forestry and fishery product exports continue to "scoring points"

Agricultural, forestry and fishery product exports continue to "scoring points"

In the first four months of 2024, the country's total export turnover of agricultural, forestry and fishery products is estimated to reach more than US$19 billion, an increase of 23.7 percent
Build and protect the rice value chain against market fluctuations

Build and protect the rice value chain against market fluctuations

VCN - From a business perspective, Mr. Dinh Minh Tam, Director of Co May Co., Ltd. (Dong Thap) said that in the first months of the year, the company's main export markets all grew well.
VN

VN's Steel industry ranks 12th in world crude steel production

This accomplishment not only highlights the industry’s rapid growth in production output but also signifies its increasing independence and diversification of product types.
Chu Lai Port installs specialised crane system

Chu Lai Port installs specialised crane system

Chu Lai International Port belonging to Trường Hải International Logistics Limited Liability Company (THILOGI) has installed a new specialised crane system that costs more than VNĐ400 billion (US$15.7 million).
The processing and manufacturing industry increased by 6.3% in 4 months

The processing and manufacturing industry increased by 6.3% in 4 months

Continue the recovery momentum from the end of 2023, industrial production in April and the first 4 months of 2024 continues to show a positive trend.
Mobile Version