The rumour mill has recently been doing overtime on the implementation status of ICS (Import Control System) and ECS (Export Control System) phase 2, the European Union's pre-arrival and pre-departure security data capture systems. These cornerstones of the EU's Customs modernisation programme, which are designed to protect the safety and security of the region, are due to come into force on 1 July. However, it has become clear that neither all of the EU's Customs administrations nor the trade will be ready by then, yet the trade is obliged to perform safety and security risk assessments from 1 July and they need the assistance of Customs to do so.
As a result, the European Commission has proposed transitional measures, to be voted on by the Member States at the end of February. Currently, these measures would create an extended period until 1 January 2011 before full implementation of the legislation. Until this date, there would in effect be a situation where two systems operate concurrently, as while lodgement of entry and exit summary declarations is not mandatory, current procedures remain available.
For ICS, it should be noted that although the transition legislation would remove the legal obligation on the trader to supply an ENS (entry summary declaration) it does not mean that they cannot submit one if the Member State is ready. Nor does it mean that Member States will not be undertaking safety and security risk assessments (as per their legal requirement) from July this year. It is the current intention of the UK to implement ICS on 9 May 2010, providing traders with the option to use HMRC's system for over seven months before it becomes mandatory.
In relation to ECS, the situation is even more confusing due to parts of the system already being in place. The Combined Declaration containing safety and security data elements is still legally required as of 1 July; it is only the EXS (pure exit summary declaration) that is currently under discussion as part of transition legislation. In essence this means that there will be little real change, as the combined declaration including safety and security data (approximately 4 items) is expected to be used in 99+% of export declarations. In the UK, phases 1B and 2 will be implemented on 1 July this year. If a decision is taken at the European level to create a transitional period for EXS, HMRC could turn off the CHIEF Transaction for it during this period.
SITPRO continues to support the adoption of effective transitional measures. Unfortunately, with only 5 months to go until implementation of ECS phase 2 and ICS is legally required across the European Union, both the trade and Member States remain uncertain about their respective positions and hopes are pinned on legislation being agreed and finalised by the end of February.
Return to SITPRO News: Issue 67, Winter 2008/2009
