Pilot Partners for Digitization

The digital release process in the German seaports has reached the next level. During the pilot phase with shipping companies Hapag-Lloyd, MSC and CMA CGM as well as the logistics service provider Kühne+Nagel, the project was made ready for the market launch while also adding new modules. The nationwide solution is being jointly developed under the name German Ports by the IT service providers Dakosy AG in Hamburg, and dbh Logistics IT AG in Bremen.

The partners participating in the pilot phase are all motivated by a common interest. They want to implement a standardized, digitalized release process for containers imported into the German seaports of Hamburg, Bremerhaven, Bremen and Wilhelmshaven. Authorized officers Dirk Gladiator at DAKOSY and Holger Hübner at dbh summarize the feedback received during the test run: “The pilot participants enjoy the benefits of a high degree of automation, increased security and a digital release process that runs in real time.”

Pilot user Michael Schröder at Hapag-Lloyd explains the practical significance of the project: “The import release process has always involved a great deal of manual work for shipping companies and forwarders due to the exchange of e-mails and PDF documents. The German Ports platform is an important step towards digitalizing and streamlining the process, and we have been involved in its development from the very start. We strongly welcome the multi-site cooperation between DAKOSY and dbh, which ensures a uniform solution for the German seaports.”

Integration of alternate return depots

To reduce the numerous email exchanges in the existing process, DAKOSY and dbh are currently integrating new functions into German Ports. One of these is the option to select a different depot for the return of empty containers in the course of the release process. Fabian Gäbel from Kühne+Nagel describes this feature, which is very important for freight forwarders: “Even during the pilot phase, the option of executing releases while specifying an alternate return depot proved to be an indispensable component for our system integration. In order to further reduce unnecessary e-mail communications in the future, we very much welcome the fact that this latest step has been taken and that the empty container depot exchange function has been integrated into the German Ports platform. It’s another important step towards the continuous expansion of our digital ecosystem.” The new feature “alternate return depot” will be available through German Ports via an EDI interface as well as in the web application.

Inclusion of declaration of assignment

Another new function is the digital declaration of assignment. To clarify: the declaration of assignment enables the release by the authorized representative (consignee) named in the B/L to a third party. “Currently, this is transmitted by e-mail or by fax. Using German Ports, we can digitalize and standardize this process. With between 25 and 30 percent of these transactions involving a declaration of assignment, we see great potential for this function,” concludes Gladiator. Current feedback from the industry shows Gladiator and Hübner that the functional extensions ‘alternate return depot’ and ‘declaration of assignment’ are attracting a great deal of interest from freight forwarders.

Container and vessel information for multiple locations

In addition to the release process, DAKOSY and dbh will provide multi-site container and vessel information for the most important German North Sea ports. “Both functions are expected to be operational in the second half of this year,” Hübner predicts. The container information service will centrally display the current loading and delivery data as well as the most important status information about the progress of the corresponding customs processes. This means that it is no longer necessary to switch between different portals for each separate port of transhipment. In the Vessel Information module, current call and departure data can be retrieved centrally via a single platform for Bremerhaven, Hamburg and Wilhelmshaven.

Precise, Comprehensive Data in Air Freight

On March 1st the EU customs safety and security system, ICS2, was launched for the air freight industry. In a transition period that has been extended through June 30, 2023, airlines have more time to adjust to the new procedures. “Air freight forwarders should use this period to ensure that they can provide the airlines with the additional data required,” advises DAKOSY authorized officer Dirk Gladiator. This includes the commodity code as well as the complete addresses of both the original sender and the final recipient.

With ICS2, the EU is introducing a unified and centralized procedure for dedicated risk analysis for goods from third countries, which begins even before the goods are loaded in the country of export. “The introduction of ICS2 in air cargo is a milestone. For the first time, we have a customs procedure with only one central European entry door instead of 27 national doors,” says Gladiator, assessing its significance. In the long run, the EU Directorate General for Taxation and Customs Union (TAXUD) plans that the vast majority of customs processes will be bundled via the specially-created Shared Trader Interface (STI).

In addition to the STI central reporting point, there are other innovations that will be implemented with the ICS2 customs system. In future, the declaration process will have two stages. Up to now, the Pre-Arrival notification (latest submission four hours before arrival of the aircraft) has already been in effect. A further notification has been added, the so-called Pre-Loading, which must be submitted as early as possible, in any case before loading begins. This information can be submitted by the airline or – what is new – also directly by the freight forwarder. The latter is called Multiple Filing. “Due to the extension of the deadline for airlines until June 30, 2023, the time window for Multiple Filing has been pushed back. For freight forwarders who want to participate, this is an important update. Conversions can occur between July 1 and Oct. 2, 2023, based on current information,” Gladiator explains.

In any case, the participating service providers must deliver more comprehensive data that meets a very high standard. Gladiator draws attention to this: “It is high time for freight forwarders to verify whether they can provide ICS2-compliant data. When an airline participates in the new procedure, the freight forwarder using that airline must also be able to provide the information required for Multiple Filing. Otherwise, the goods will not be loaded.

Transition period extended: freight forwarders should use window of opportunity to conduct review

Overview of required data reliability
For air freight, forwarders or loaders must provide the following additional data compared to the current ICS procedure:
* the complete address of the original sender,
* the complete address of the final consignee,
* the commodity code in the form of a six-digit HS code,
* EORI (the successor of the customs number at EU level) of the consignee.

It is important to note that the information must be properly structured, for example, a postal code must be entered with five digits. Otherwise, the data will not be recognized and this may lead to disruptions in the process. The EORI of the consignee is not technically a mandatory ICS2 specification. However, if the specification is available (the consignee is located in the EU), then the specification should be made. This is also underlined by the fact that the EORI is mandatory for the immediate follow-up procedure (Temporary Storage) in many EU member states and is therefore already required by the airlines.

Even if this part of data submission is more complex than before, the process as a whole is simplified and also made safer and more reliable for all involved, says Gladiator. He motivates participants to pass on the information as early as possible: “The sooner the airline has the data, the sooner possible errors can be identified and corrected, if necessary.”

 

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