Understanding the growth of customs and border restrictions is essential for both large businesses and small and medium enterprises (SMEs) as they navigate the complexities of modern global trade.
The EU's Import Control System 2 (ICS2) is a particularly interesting recent advancement in the pre-arrival customs security scheme. As a trade specialist focused on the streamlining of customs procedures, I consider the advancements presented by ICS2 both exciting and challenging.
ICS2 is being implemented in phases throughout 2021 and 2025, and it is transforming the process by which goods enter the EU, Northern Ireland, Norway and Switzerland. What implications does the latest ICS2 release present for traders, especially those in e-commerce or engaged in postal consignments?
You can read more about ICS2 and other changes to imports for UK traders in our guide on importing in 2025, which you can find here.
Efficiency and security
ICS2 mandates a more efficient and secure methodology for the collection, processing and analysis of import-related data by customs agencies. Traders must be prepared and flexible to ensure compliance while maximising the efficiency of goods flow.
The main objective of ICS2 is to make sure customs officials receive Entry Summary (ENS) declarations before the arrival of goods at EU borders. This enables them to assess potential security threats and resolve concerns before goods enter the single market.
Speaking from experience with customs clearance processes, initiative-taking strategies like this can significantly reduce delays and improve the efficiency of trade operations. For businesses where just-in-time delivery is essential, system improvements that allow quick decision-making are vital. It’s ultimately a crucial improvement, especially as the volume and complexity of international trade steadily continues to grow.
Three phases
ICS2 is being implemented in three phases, Release 3 began deployment from June 2024 and is set to continue until September 2025. This phase will predominantly impact maritime, inland waterway, road and rail carriers, in addition to e-commerce and postal shipments.
This update represents both a challenge and an opportunity from a business standpoint. Organisations involved in e-commerce, logistics, and transportation—particularly those facilitating the movement of goods to or within the EU—must align their systems to adhere to ICS2's data requirements. This means there’s a need for modernised IT systems, improved business processes and personnel development.
Both small businesses and larger logistics providers will need to implement considerable changes; but this could also mean more efficient customs clearance and quicker delivery times, benefiting both consumers and sellers.
Advantages
Although the phased implementation of ICS2 may appear intimidating, especially for enterprises managing complex supply chains, it offers numerous advantages—enhanced security, streamlined customs processes and superior risk management.
Organisations that proactively prepare, set up their systems and upskill employees for these changes will be strategically positioned to thrive in the changing global trade environment.
I await and observe the evolution of the system and its potential beneficial effects on global trade. For traders, transitioning to ICS2 may initially appear daunting. But with a suitable approach and the right preparations, it presents an opportunity to optimise procedures and improve operational efficiency.
