EU to clamp down on errant shippers

June 30 is D-day for compliance with the EU Import Control System (EU ICS) for Advanced Cargo Declarations introduced in January this year. The 6-month grace period – allowed while the system bedded down – ends this month and shippers will have to shape up or suffer the consequences. The regulation, which applies throughout the EU and Norway and Switzerland, requires that entry summary (ENS) declarations be submitted by ocean carriers 24 hours in advance of a vessel’s departure or on other modes within a specified period prior to the flight or vehicle’s arrival at the airport or port of first landing. The ruling is intended as another measure to increase the security of the global supply chain. The general consensus among carriers on the SA route is that the majority of shippers have adjusted to the new order and are complying – but there will always be the noncompliant few who will now have to adapt. Carriers receive three message types from EU Customs, says DAL Agency general manager Malte Kersten. The first is a green light which means all documentation is up to speed and cargo can be loaded. The second calls for inspection at the first port of call while the third message is the “do not load” instruction which flags suspicious cargo. “They call it the 24-hour rule because they want us to give the information 24 hours before we start loading operations so that they have enough time for the risk evaluation,” says Kersten. “Customs has 24 hours to do risk analysis based on the information we supply, which is derived from the shipper. They want to ensure legitimate trade which is why they call for information on how the customer pays for his freight, for example – if he has credit with the shipping line it’s likely to be a long-standing relationship whereas if he pays cash he could be dodgy.” According to Kersten there is no harmonised penalty system – penalties will be applied differently in different jurisdictions. Maritime Carrier Shipping’s Marc Frauendorf says the advance manifest system has worked well on the US route with few exceptions. “But the EU trade is very different and a much bigger market.” But that said, he agrees that most shippers have come to the party so far. In the case of a “do not load” instruction, Frauendorf points out that this has serious implications for the lines in terms of deadfreight. It’s an issue that will need to be addressed and some have suggested deadfreight penalties where carriers are severely compromised. Mitsui OSK Line general manager marketing, Iain McIntosh, however feels that the ‘do not load’ instruction is likely to happen only in exceptional cases. “We haven’t had a single ‘no load’ since the ruling was introduced and we’re pretty comfortable with the compliance. “It is a bit of a challenge for some shippers, but a lot are used to doing it for the US route – and I can see it extending across all trades eventually.” The bottom line, in his view, is that it’s designed for the right reasons and isn’t an issue for honest traders. “Most customers we deal with are legitimate – particularly on the Europe route which is a mature trade.” A sentiment with which Kersten agrees. “Most of the cargo we carry is fruit or automotive products so ‘do not load’ will be the exception,” he said.