Does your shipment break EU shipping regulations? Here’s how to avoid it

Customs rejections, shipment delays, and unhappy customers – these are the nightmares no international shipper wants to face. If you’re hoping to break into the global market, then shipping to the European Union (EU) might be on your radar.

As such, you would be navigating a web of new EU shipping rules, making compliance crucial to avoid the above pitfalls and ensure your goods reach their destinations smoothly. 

A pivotal element of these EU shipping regulations is the Import Control System 2 (ICS2), a crucial initiative designed to enhance security and streamline the flow of legitimate trade into and through the EU. 

Read on to discover what you need to do to ensure compliance and find out how a reliable international logistics expert like DHL Express can help you achieve shipping success.

Shipping within Europe customs: The Import Control System 2

The primary objective of Import Control System 2 is to enhance risk analysis capabilities. It requires businesses that import or export goods to submit comprehensive safety and security data electronically via an Entry Summary Declaration (ENS) via ICS2. This proactive approach aims to identify high-risk consignments more effectively and intervene at the most appropriate point in the supply chain while facilitating trade flows.

Consequently, it is essential to submit your ICS2 declaration before the goods arrive in the destination EU country and ensure that the information provided is accurate. These efforts can help you avoid customs delays, fines, and potential rejection at checkpoints, keeping your operations running smoothly. 

How to ship to Europe under ICS2

To ensure compliance when shipping to the EU under the Import Control System 2 regulations, follow these steps¹:

1. Obtain or verify your EORI number: You must have an Economic Operators Registration and Identification (EORI) number issued by an EU Member State to submit your ENS. If you’re already actively shipping to Europe, verify your existing number.
2. Develop IT and business processes: Adapt your internal IT systems and business procedures to meet ICS2 data filing requirements, including successfully completing mandatory self-conformance tests.
3. Gather necessary documents: Compile all essential international shipping documents, such as the commercial invoice, packing list, and bill of lading. Ensure accuracy and completeness for your shipment to Europe.
4. Complete and submit ENS via ICS2: Lodge a complete Entry Summary Declaration for all goods. This declaration requires detailed information, including HS codes, quantity, weight, goods descriptions, shipper and consignee information, and the country of origin.

Common non-compliance scenarios and how to avoid them

Non-compliance with EU shipping regulations can carry significant costs for your business, but you can effectively reduce the risk by understanding and proactively addressing common pitfalls:

1. Inaccurate valuation of goods

A frequent non-compliance scenario in international trade involves the undervaluation of goods. This occurs when the declared value of items being shipped is intentionally or unintentionally understated. Such actions can lead to the underpayment of taxes and duties, which is considered tax evasion. 

Tax evasion may result in severe penalties, including hefty fines and the seizure of your goods. Additionally, an inaccurately declared value can distort duty and tax calculations, potentially causing your shipments to be held up in customs clearance processes, leading to frustrating customs delays.

Furthermore, repeated instances of inaccurate valuation may also lead to the shipper being blacklisted by customs authorities, resulting in heightened scrutiny or even outright rejection of future shipments.

How to avoid non-compliance when shipping to the EU:

• Accurate declaration: Always declare the true and accurate value of your goods on all international shipping documents.
• Collaborate with partners: Work closely with your international logistics provider to ensure all values are correctly represented and understood.
• Understand regulations: Familiarize yourself with the regulations surrounding customs declarations to avoid unintentional errors.

2. Shipping counterfeit products

Counterfeit products are imitation goods that infringe on intellectual property rights like trademarks and copyrights. Businesses that import or export such goods may be subject to significant fines and penalties. 

Additionally, these illicit goods are often undervalued, exacerbating the penalties due to associated tax evasion. Such actions severely damage your business's reputation and can lead to legal complications.

How to avoid non-compliance when shipping to the EU:

• Conduct due diligence: Thoroughly investigate your product sources and conduct stringent checks to verify the authenticity of all items you intend to ship.
• Respect IP (Intelectual Property) rights: Ensure that all products comply with intellectual property laws, safeguarding trademarks and copyrights.

3. Incorrect goods descriptions

Goods descriptions are used to determine the appropriate tariff classification for each shipment. As such, providing an incorrect description of the goods being shipped directly impacts the duty and tax calculation. This can result in customs authorities holding up the shipment or even rejecting it altogether, delaying your shipment and incurring costs.

How to avoid non-compliance when shipping to the EU:

• Detailed information: Provide comprehensive and precise details about your goods, including type, quantity, weight, and any other unique characteristics. Ensure the description is specific enough to allow for accurate tariff classification.
• Avoid vague terms: Refrain from using general or ambiguous descriptions that might leave customs authorities uncertain about your shipment's contents.

Accurate and correct goods description is key. Consistent inaccuracies in goods descriptions can lead to the shipper being blacklisted, subjecting their future shipments to increased inspections or outright refusal.

4. Wrong shipper and receiver information

Submitting inaccurate shipper and receiver information can lead to non-compliance issues and create significant problems for your businesses. For example, using fake names or providing incomplete details can cause customs clearance delays, impact denied party screening processes, and compromise import security screening by authorities. 

Ultimately, this can result in the shipment being held up or rejected at the border, incurring additional costs and damaging your business's reputation for reliability in international shipping.

How to avoid non-compliance when shipping to the EU:

• Provide accurate details: Always furnish precise and current True Shipper and Receiver (TSR) information, including full names, addresses, and contact details.
• Maintain consistency: Ensure all information is presented in a consistent format across all international shipping documents.
• Prompt updates: Immediately update any changes to shipper or receiver details to prevent discrepancies and ensure smooth communication with customs.

Ensure compliance with DHL Express

Ensuring compliance when shipping to the EU is not merely a legal obligation – it is a fundamental pillar for safeguarding your business's reputation and ensuring long-term success. However, staying on top of evolving EU shipping regulations while managing your daily business operations can be a significant undertaking. 

Therefore, partnering with an experienced international logistics provider like DHL Express can make this endeavor much more manageable. At DHL Express, we are adept at helping businesses like yours navigate the complex regulations involved in shipping from Indonesia to the EU, the United Kingdom (UK), and beyond. 

With our deep expertise and comprehensive support, you can leverage our guidance to mitigate non-compliance risks and simplify the entire customs clearance process. Moreover, our worldwide express network and advanced tracking capabilities ensure your shipments move efficiently and safely, providing peace of mind.

Stay on top of things when you ship with DHL Express. Open a business account with us today to leverage our proven expertise and achieve seamless global trade.