EU moving towards paperless customs system from June; Indian exporters must prepare to comply
EU norms as the European Union is moving towards a paperless customs process from June 3 this year. The development assumes significance for domestic exporters as the European Union (EU) accounts for about 17 per cent of India's total merchandise exports. In 2022-23, India exported goods worth USD 75 billion to EU as against the country's total exports of USD 451 billion in that financial year.
The EU has proposed to implement the second phase of its Import Control System (ICS) from June 3 this year. ICSD 1 was applicable to the air mail and express deliveries from March 15, 2021, and then it was extended to air cargo from March last year.
The 'ICS2' will now be extended to cover all type of imports using ships, trains, trucks also on June 3, 2024.
First two phases covered 15 per cent imports into the EU, third and final phase cover balance 85 per cent of the imports by value.
According to a European Commission release, economic operators carrying goods by sea, inland waterways, road and rail will have to submit a complete Entry Summary Declaration (ENS) dataset to ICS2.
The new system will apply to all goods, including physical goods like manufactured products, raw materials, agricultural products, and even live animals.
It will also apply to letters, parcels, and express deliveries.
The new system enables the EU to move towards a paperless and risk-based import compliance. It eliminates the need for paper declarations for most goods and simplifies the customs clearance process based on risk assessment.
