ICS1 was applicable to air mail and express deliveries from March 15, 2021, and then was extended to air cargo in March last year. ICS2 will now be extended to cover all kinds of imports using ships, trains and trucks.

The first two phases covered 15 per cent imports into the EU, while the third and final phase cover the rest of the imports by value.

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Economic operators carrying goods by sea, inland waterways, road and rail will have to submit a complete entry summary declaration (ENS) dataset to ICS2, an European Commission release said.

The new system will apply to all goods, including physical goods like manufactured products, raw materials, agricultural products, and even live animals. It will also apply to letters, parcels and express deliveries.

Data provided to ICS2 should align with information on commercial invoices, bills of lading and other accompanying documents.

As per the new system, the data upload to ICS2 should happen before the goods arrive in the EU, often through the carrier's system, and late submissions can lead to delays and potential penalties.

The development is significant for Indian exporters as the EU accounts for about 17 per cent of India's total merchandise exports.

Fibre2Fashion News Desk (DS)