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eFTI Regulation Requires Teamwork

Posted on by David Priestman

The eFTI Regulation came into effect on August 2024, aiming to digitise and legally regulate the exchange of data for EU transport. Now is not the time for authorities and companies to act alone. Standardised open source solutions are the key to Europe’s eFTI future, writes Andreas Nettsträter (pictured, below), CEO of the Open Logistics Foundation, and co-author Raoul Wintjes, Head of International Road Freight Transport/Digitalisation at the German Freight Forwarding and Logistics Association (DSLV)

Freight transport in Europe is (still) a world of paper. This is because the exchange of data has hardly changed in recent decades: Transport information is primarily recorded and checked in paper form. In Germany, control tasks are shared between the Federal Office for Logistics and Mobility (BALM), the state police, and the customs authorities. A framework for the digital exchange of freight transport documents within and between the 27 member states has not yet been established.

In July 2020, the European Parliament and the Council of the EU adopted the so-called eFTI Regulation (EU) 2020/1056 on electronic freight transport information. The acronym eFTI stands for Electronic Freight Transport Information. The eFTI (enforcement) regulation came into effect on 21 August 2024.

The regulation creates the much-needed legal framework for the digital transmission of in-formation on the transport of goods by road, rail, air, and inland waterway within the EU, between economic operators and enforcement authorities. In short, eFTI brings legal certainty in the digital public space because each of the 27 EU countries can require different transport documents and proofs of transport. eFTI aims to digitise and standardise the chaos of documentation in cross-border transport within the EU.

Save euros

eFTI will bring significant benefits to both public authorities and logistics companies. According to estimates by the EU Commission, eFTI could save up to 27 billion euros in administrative costs in the transport sector alone over the next 20 years. Logistics companies will notice these savings, for example, during inspections of freight transport by the relevant authorities in the EU member states.

eFTI Regulation
Andreas Nettsträter , Open Logistics Foundation

Exchanging, checking, and verifying paper documents is extremely time-consuming in day-to-day business: checking a foreign truck, for example, can take 45 minutes or more. In the future, when all relevant transport data is available at the click of a mouse, inspections will only take a few minutes. The eFTI will also speed up the work of the police and fire brigade: if a lorry breaks down, for example, they will be able to retrieve all the data on the vehicle and its load digitally and immediately take the right measures.

Data exchange via eFTI platforms

This all sounds promising, but its effectiveness depends on a harmonised and trustworthy information and communication technology environment. Only then can transport data be exchanged securely and smoothly between authorities and logistics companies. Driven by the eFTI Enforcement Regulation, the EU member states are already working at full speed on the technical implementation. The focus here is on the architecture for data exchange.

In principle, companies should operate so-called ‘eFTI platforms’ in the future. These will store information relevant to the authorities. The authorities themselves will develop ‘eFTI gates’ that provide them access to the platforms. Each company’s platform will be connected to a specific gate through which communication with different authorities will take place. The transport information remains on the platform and may only be accessed by the authorities in clearly defined cases.

No company should pay extra

The new technical arrangements for eFTI certainly represent an intervention in the existing practices of logistics companies. Many of them – especially the larger ones – already have a functioning software architecture for transport documents. Why should they now implement a new solution that would require them to invest in significant internal (IT) resources or purchase from external software providers?

Quite simply, eFTI should be for everyone – large and small companies alike. Alongside the international companies, there are many small and medium-sized enterprises among freight forwarders and logistics service providers. Implementation of eFTI must therefore be practi-cable for all companies in the logistics sector, regardless of their starting position. Nobody should pay more!

Co-design via open source – the example of eCMR

Companies of all sizes now have an important opportunity to shape the future eFTI process and implement it early. Not alone, but together. The affirmed aim is to jointly create compati-ble systems at European level. A current blueprint for such an approach is the electronic consignment note (eCMR) for international cross-border road freight. Through an Open Logistics Foundation project, 20 companies and organisations are working on an open source solution for the digital consignment note. What is unique about this project is that market players – large corporations as well as small and medium-sized enterprises (SMEs) – and IT service providers from the logistics sector are working together. Free open source components allow companies of all sizes to participate = no one is excluded.

eFTI gives eCMR a massive tailwind

Digitising the eCMR makes it easier for logistics service providers to meet the requirements of the new eFTI Regulation. However, it is important to clarify that the eFTI Regulation does not cover the digitalisation of private transport documents such as the eCMR. But it does give a significant boost to the introduction of the digital consignment note, thanks to the creation of new data standards and reduction in complexity of the technical solutions to be developed.

Open source collaboration instead of siloed European efforts

The best and most standardised way of doing this is to use open source. An example of collaboration in action is the large-scale research project ‘Silicon Economy’ of the German Federal Ministry for Digital and Transport (BMDV), led by the Fraunhofer Institute for Material Flow and Logistics (IML), a strategic partner of the Open Logistics Foundation. The development work is already laying the foundations for an open source solution: Specifically, an exemplary implementation of an eFTI platform using the eCMR as an example. The digital con-signment note is used to automatically provide data for the eFTI interface.

This German open source approach is no longer a one-country approach effort. In the eFTI4EU research project, nine EU countries have now joined forces to promote a common architecture – and to publish it as open source software. Not only the companies, but also the authorities of the member states, must work together. This will speed up implementation times considerably.
There is no need for 27 individual solutions. The basic components, for example, the imple-mentation of an eFTI data model and an eFTI gate, can be standardised using open source. Interfaces are needed so that any company can connect to the eFTI gates, and open source is an important lever to ensure that eFTI really takes off. One thing is certain: eFTI is a pre-requisite for the further digitalisation of the industry and should not be stopped!

UK-EU Deal Boosts Cross Channel Freight

Posted on by Peter MacLeod

The Port of Dover has welcomed the UK-EU deal announced today, which represents a significant and positive step forward in resetting and strengthening the vital cross-Channel economic relationship. As the UK’s primary gateway for trade with the European Union – handling approximately one third of all UK-EU goods trade – Dover is uniquely placed to see the tangible benefits that reduced border frictions will bring.

“We particularly welcome commitments to simplifying trading and travel arrangements and removing barriers such as Sanitary and Phytosanitary (SPS) checks on animal and plant products, which we hope to see implemented as quickly as possible,” said a Port spokesperson.

Short Straits

“This deal directly reflects the priorities discussed at our recent Short Straits Summit, where leaders across maritime, logistics, infrastructure, government, and business called for frictionless trade, regulatory cooperation, and a shared commitment to innovation and decarbonisation. An improvement in border processes will not only restore confidence for businesses and investors but also drive economic growth and supply chain resilience, and we are pleased to see these objectives recognised in today’s agreement.

“Looking ahead, we are committed to working with the UK Government, French Government and European Commission to implement this deal effectively and maximise shared prosperity either side of the Channel. Today’s announcement marks a fresh chapter in UK-EU collaboration, and the Port of Dover stands ready to deliver the full potential of this renewed partnership for the benefit of communities, businesses, and economies on both sides of the Channel.”

Pride of Burgundy arrives at Dover

As the UK’s busiest international ferry port and a vital gateway for the movement of people and trade, Dover handles £144 billion of trade per year, 33% of UK trade in goods with the EU and welcomes over 11 million passengers.

Supply Chain Agility

Matt Gregory, Senior Vice President of Voice & Mobility at Infios, told us: “With border checks easing on UK food exports to the EU, local food growers and manufacturers will be celebrating this opportunity for smoother sales with Europe.

“To be able to meet this potential increased demand, supply chain agility will be critical, especially in the food industry. Perishable items such as meat, dairy, fruit and vegetables require strict temperature and humidity control from the moment they leave the farm to the moment they reach the consumer. This need for consistency adds a layer of complexity to logistics.

“Technology will be critical to ensure the global supply chain can adapt to these changes. Tools such as predictive analytics can help anticipate supply issues before they occur, while real-time inventory tracking allows businesses to stay ahead of shortages and avoid overstocking.

“Warehouse Management Systems can also provide retailers with a clear view of what’s in stock, where it is and when it needs replenishing, helping prevent both waste and missed sales. When integrated with Transportation Management Systems, delivery routes can be optimized, arrival schedules communicated in advance and order cycles better aligned with consumer demand.

“When factoring in temperature sensitive products, IoT-enabled monitoring systems are invaluable in tracking temperature, humidity and vehicle location in real time. This not only ensures consistent environmental conditions but also provides immediate alerts when deviations occur, allowing teams to respond before products are compromised.”

Import Control System 2 Extends to Rail and Road

Posted on by David Priestman

The European Union’s Import Control System 2 (ICS2) aims to enhance the safety and security of goods entering the EU by introducing a standardised, pre-arrival customs process for all transportation modes, including road and rail, in addition to the existing air, maritime and inland waterway requirements. By mandating the submission of accurate and complete Entry Summary Declaration (ENS) data prior to arrival, the ICS2 enables customs authorities to better assess the risks associated with incoming goods, thereby improving the EU’s ability to prevent and combat customs offenses, and ultimately ensuring a safer and more secure trade environment.

From 1 April 2025, road and rail carriers will need to provide data on goods sent to or through the EU prior to their arrival, through a complete ENS. This obligation also concerns postal and express carriers who transport goods using these modes of transport as well as other parties, such as logistics providers. In certain circumstances, final consignees established in the EU will also have to submit ENS data in the ICS2.

Economic operators who are not ready by this date need to contact the National Service Desk of the EU Member State (National Customs Authority) where they have registered and obtained their EORI number to request a deployment window by 1 March 2025, at the latest. Deployment windows are granted only upon request.

To comply with the ICS2 requirements, affected businesses will be required to make sure they collect accurate and complete data from their clients, update their IT systems and operational processes, and provide adequate training to their staff. Economic operators will also need to successfully complete a self-conformance test before connecting to the ICS2, to verify their ability to access and exchange messages with customs authorities. Goods might be stopped at EU borders and might not be cleared by customs authorities if traders do not meet the ICS2 requirements on time.

ICS2 in detail

The ICS2 has been developed through close collaboration between the European Commission, Member States’ customs authorities and businesses. Starting from 1 September 2025, the ICS1 will phase out. The ICS2 will fully replace the ICS1 with an entirely new business process in accordance with the Union Customs Code. The European Commission organises monthly webinars (in English) where economic operators can ask questions about the operational and technical aspects of the ICS2. The next webinar is scheduled for 5 February 2025.

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Logistics Sector Calls for Action on new EU Import Declarations

 

App May Prevent Supply Chain Delays from EU Biometric System

Posted on by David Priestman
As the EU prepares to implement its new biometric Entry/Exit System (EES) on November 10, 2024, logistics experts are voicing concerns about potential delays at border crossings. The EES, which will require all non-EU citizens to register their biometric data, could significantly impact the movement of goods, especially for UK haulage operations.

The Need for a Pre-Registration Solution

To mitigate these potential delays, industry leaders are advocating for the development of a mobile app or web-based platform that would allow travelers, including freight drivers, to pre-register their biometric data before reaching the border. Such a tool could streamline border processing, reducing congestion and ensuring that goods continue to move efficiently through the supply chain.

Potential Features of the Proposed App

The proposed app would likely enable users to securely upload their biometric information, receive confirmation of successful registration, and access real-time updates on border wait times. This pre-registration system could be crucial in avoiding the significant delays anticipated with the manual collection of biometric data at border points.

Urgency from the Logistics Sector

With the EES deadline approaching, logistics stakeholders are urging EU authorities to prioritize the development of this app. The industry, already grappling with ongoing supply chain challenges, fears that without such a solution, the new biometric requirements could exacerbate delays, particularly during the high-demand holiday season.

As November draws near, the logistics sector is closely watching for the adoption of innovative solutions like the proposed app to ensure the smooth flow of goods across UK-EU borders. The success of this initiative could be key to preventing widespread disruptions in supply chain operations caused by the new biometric entry system.

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Logistics Sector Calls for Action on new EU Import Declarations

Posted on by Keith McKinley

Global and European trade associations representing commercial transport have issued an urgent alert to all businesses involved in the movement of goods into or via the EU, Norway, Switzerland or Northern Ireland, by sea, road or rail. The new Import Control System (ICS2) will start to be introduced from June this year.

The World Shipping Council, the International Federation of Freight Forwarders, the Global Shippers Forum, the European Community Association of Ship Brokers and Agents, the European Community Shipowners’ Associations, the European Associations for Forwarding, Transport, Logistics and Customs Services, the European Shippers Council and the International Road Transport Union have together stressed the importance of the new controls and their impact on the movement of goods into or via the European Customs Territory by sea, road and rail.

Awareness of the implementation of the new requirements is key, says the group, as is understanding how ICS2 will affect various entities in the supply chain at different times and in distinct ways.

ICS2 is an enhanced safety and security regime introduced jointly by customs authorities in the EU that requires specific details of imported goods to be provided before loading or before arrival at the EU border.

The requirements were introduced for air cargo in 2023 and will be extended to sea transport from June 2024 and for imports arriving by road or rail in 2025. The extensive new data requirements include six-digit HS codes for each item in a consignment, an “acceptable description” and detailed buyer and seller information.

The trade bodies, each representing different parties in the supply chain, have urged businesses involved in moving goods into the EU to begin their preparations for the extension of ICS2 now and to seek further information on how they will be affected. The European Commission’s website is the best place to start.

Failure to comply with ICS2 requirements will result in delays and disruptions to imports into the EU, and, potentially, in accordance with Member State practice, fines and penalties for persons liable for submitting the safety and security data to ICS2.

Cooperative efforts between the different parties involved in such shipments is crucial to keep goods moving, as symbolised by the joint call to action by the eight trade bodies.

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Changes in Transportation of Goods to EU

 

Changes in Transportation of Goods to EU

Posted on by David Priestman

The European Union’s new customs pre-arrival safety and security system – Import Control System 2 (ICS2) – will introduce a new process for entry of goods by maritime and inland waterways, road and rail in the EU as of 3 June 2024. This is the third phase or release of the implementation of the new system that will extend safety and security data reporting requirements to all modes of transport. Similar requirements for air transportation of goods were enacted earlier this year.

With this third release, maritime and inland waterways, road and rail carriers will also need to provide data on goods sent to or through the EU prior to their arrival, through a complete Entry Summary Declaration (ENS). This obligation also concerns postal and express carriers who transport goods using these modes of transport as well as other parties, such as logistics providers. In certain circumstances, final consignees established in the EU will also have to submit ENS data to ICS2.

Traders are strongly advised to prepare in advance for Release 3 to avoid the risk of delays and non-compliance. Affected businesses will be required to ensure they collect accurate and complete data from their clients, update their IT systems and operational processes and provide adequate training to their staff. From 11 December 2023, traders will also need to successfully complete a self-conformance test before connecting to ICS2, to verify their ability to access and exchange messages with customs authorities.

EU Member States will grant authorisation, upon request, to the affected traders to gradually connect to ICS2 within a time-limited deployment window. Member States can grant the deployment window anytime within the following timeframes: from 3 June 2024 to 4 December 2024 (maritime and inland waterway carriers); from 4 December 2024 to 1 April 2025 (maritime and inland waterway house level filers); and from 1 April 2025 to 1 September 2025 (road and rail carriers). If traders are not ready on time, and do not provide the data required under ICS2, goods will be stopped at the EU borders and will not be cleared by the customs authorities.

The EU is a major player in international trade – it accounts for around 14 % of the world’s trade in goods. By collecting safety and security data, EU customs authorities will be able to detect risks earlier and to intervene at the most appropriate point in the supply chain to keep trade safe for the EU and its citizens. ICS2 will simplify the movement of goods between customs offices at the first point of entry and final destination in the EU. ICS2 will provide a single access point to communicate with all EU Member States’ customs authorities for all EU operations instead of 27 national interfaces. For traders, ICS2 will also streamline requests for additional information and pre-departure risk screening by customs authorities, thus reducing administrative burdens for businesses.

ICS2 in detail

ICS2 has been prepared in close collaboration between the European Commission, Member States’ customs authorities and businesses. The system is being implemented in three releases that will gradually replace the existing import control system.

With Release 1, from 15 March 2021, postal and express consignments coming to or through the EU by air became subject to a subset of the Entry Summary Declaration (so called pre-loading advance cargo information – also known as PLACI) prior to their loading onto the aircraft bound for the EU. With ICS2 Release 2, from 1 March 2023, air cargo general consignments also became subject to the PLACI filing and to the complete set of data of the Entry Summary Declaration (ENS) prior to their arrival.

Release 3 is the third phase and will include maritime and inland waterways, rail and road modes of transport from 3 June 2024. Affected traders will need to be operationally ready for ICS2 within a time-limited deployment window. Like Release 2, the data filing will be provided in one single complete ENS filing, if all the necessary data is available to the party that files and assumes the responsibility for bringing the goods into the EU customs territory. Alternatively, it can be done with multiple filings, where more than one partial ENS filing is submitted by different actors in the supply chain. In case of multiple filings, each filer is responsible for ensuring that their own filings are submitted in a timely, accurate and complete way.

Live Animal Transport: EU Tables Improved Conditions

Posted on by Keith McKinley

In an attempt to overhaul the current EU framework governing live animal transport, the European Commission unveiled today a proposal which partly considers the true chain of responsibility and care for animals during road transport.

Following a lengthy consultation process, the European Commission presented today a new legislative proposal to replace the current regulation overseeing the protection of animals during transport. This long-awaited revision aims to improve the welfare of animals from the first point of departure to their final destination, including to outside the EU. The proposal contains several provisions which could directly or indirectly impact the welfare of animals during transport.

These include restrictions on the length of the journey for slaughter animals, more space for animals in vehicles and other technical specifications such as temperature control, special provisions for journeys to third countries, clarifications on the role of various parties along the logistics chain, especially the role of the organisers of the ‘animal journey’, and digitalisation and enforcement.

IRU Director of EU Advocacy Raluca Marian said, “IRU welcomes the Commission’s much-needed efforts to fundamentally overhaul the rules governing animal welfare during transport. The Commission has addressed some concerns, but its approach is still lopsided towards the various parties which have to guarantee the welfare of the animals during their journey, especially on competence, knowledge and training. Unfortunately, this approach is not in sync with the actual reality of animal transport.”

Following an initial review of the proposal, IRU has identified two particular issues.

More clearly defined responsibilities

The liability across the logistics chain to decide whether an animal is fit for carriage is one of the key concerns which is inadequately addressed by the proposal. The proposal addresses this by introducing clear limits for the different stakeholders in the logistics process such as organisers, keepers and transport operators.

“We’re pleased to see that the Commission has understood that drivers and transport operators can only carry out a – highly challenging – visible check during the loading process. It is extremely hard for drivers to detect hidden conditions which can worsen during transport. Reflecting this in the delimitation of the responsibility of the various parties, including organisers and keepers should provide extra guarantees against unfit animals being presented and loaded for transport,” highlighted Marian.

Cumbersome training only for transporters

The issue of liability and knowledge is closely related to the training of professionals involved in the logistics process of live animal carriage. The proposal only foresees training and exams for road transport drivers and attendants.

Marian said, “This is still a very one-sided approach. The truck driver is only one link in the chain. In contrast, no obligation is foreseen for the journey organiser who actually has the overview of the complete journey of an animal, not just of one single transport leg. If animal welfare was taken seriously, all professionals involved in the process, including those who organise and plan journeys, keep, attend and carry live animals, and not only the drivers, would be properly trained and fully familiar with EU and national rules as well as with the animal species they are carrying. This way they can properly assume the responsibilities they have been given to guarantee the welfare of the animals throughout the logistics chain.”

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