The European Union (EU) is transitioning to a paperless customs process from June 3, 2024, affecting Indian exporters who need to comply with the new Import Control System (ICS2). The EU, constituting 17% of India's total merchandise exports, plans to extend ICS2 to cover all imports by ships, trains, and trucks. This phase represents the final step, encompassing 85% of the EU's imports by value. The ICS2 requires economic operators to electronically submit a complete Entry Summary Declaration dataset for goods transported by sea, inland waterways, road, and rail. The paperless system aims to streamline import compliance, eliminating most physical paperwork and simplifying customs clearance based on risk assessment.
The risk-based import compliance focuses on checking potentially risky goods, facilitating faster clearance for safe shipments. Indian exporters must prepare for the new system, providing accurate and complete commodity information before goods arrive in the EU. Late submissions could lead to delays and penalties. Carriers bear responsibility for filing the Entry Summary Declaration and may face penalties for non-compliance, emphasizing the importance of data accuracy from exporters. Gearing up for ICS2 involves registration, training, and potential software upgrades. Adapting to the new system presents an opportunity for Indian exporters to enhance efficiency and strengthen their position in the EU market. The EU-India two-way trade, valued at USD 136 billion, underscores the significance of this development.
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