ICS2 Release 3: Everything UK Businesses Need to Know

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From April 1, 2025, the European Union's Import Control System 2 (ICS2) will require rail and road carriers to submit pre-arrival data on goods entering or transiting through the EU. This is part of the EU’s effort to enhance supply chain security and streamline customs procedures. While the goal is to improve border controls, many carriers are concerned about how these changes will affect their operations.  

This article explores the key challenges ICS2 Release 3 presents to rail and road carriers and offers practical solutions using cloud-based customs management software.

ICS2 Release 3 introduces several major changes that will impact how carriers handle customs declarations and data submissions. The key requirements include:  

1. House Consignment Level Data – Carriers must now provide detailed data for individual consignments rather than just master transport-level data and now includes the true consignor / consignees.  
2. Expanded Data Requirements – Additional fields are required, including accurate product descriptions, HS codes, and detailed information on consignors and consignees as mentioned above as well as the buyer and sellers if the consignee is in the EU. Economic Operators Registration and Identification (EORI) numbers are required to be declared for EU parties if they hold one not just “if known”.  
3. More Interaction with Customs – Customs can now make a request for more information (RFI). and Carriers must respond quickly to customs authorities’ requests for additional information or corrections.   
4. Hauliers will require EORI numbers to be declared as the Carrier. These changes mean that rail and road carriers will need to rethink how they manage shipment data and customs declarations.  

With stricter data requirements and a new single EU interface, rail and road carriers must navigate several challenges, including:  

• Managing Complex Data Requirements – Gathering precise and complete shipment data is now more critical than ever.  
• Ensuring System Compatibility – Existing IT systems must integrate with the new EU interface to ensure smooth data transmission.  
• Avoiding Delays and Penalties – Non-compliance can result in shipment delays, fines, or even refusal of entry into the EU.  
• Coordinating with Multiple Stakeholders – Since the data may come from various parties it is important to coordinate with the various stakeholders and share data with recipients in the EU so it can be used during the import process. 
• Increased Operational Costs – With new compliance requirements, businesses may experience a rise in administrative and technological costs associated with updating systems and training personnel.  

A cloud-based customs and freight management software solution can help rail and road carriers tackle ICS2 Release 3 compliance challenges efficiently. Here’s how:  

1. Automated Data Collection and Validation – Cloud-based solutions pull shipment data from various sources and validate it to ensure accuracy and completeness before submission.  
2. Seamless Integration with ICS2 – Modern customs software integrates directly with the EU’s single interface, reducing manual work and errors.  
3. Real-Time Compliance Monitoring – Carriers can track submission statuses and receive alerts if issues arise, allowing for quick resolution.  
4. Efficient Communication Between Stakeholders – A centralised digital platform enables carriers, freight forwarders, and customs authorities to collaborate effectively and avoid discrepancies. 
5. Scalability and Flexibility – Cloud-based solutions are designed to adapt to regulatory changes, ensuring long-term compliance and operational efficiency.  

Descartes provides advanced cloud-based customs management solutions designed to help carriers comply with ICS2 Release 3 seamlessly. Key benefits of Descartes solutions include:  

• Pre-Built Integration with ICS2 – Ensuring a smooth data exchange process without requiring extensive IT modifications. 
• Automated Workflow Management – Reducing manual entry and streamlining ICS2 filings from existing export or Transit declarations.  
• Data Validation – Helping carriers meet the new stringent data accuracy requirements.   
• Centralised Dashboard for Compliance Monitoring – Allowing businesses to track the status of filings and quickly respond to customs requests.  
• Scalable Cloud Infrastructure – Enabling businesses of all sizes to adapt to evolving customs regulations.  

By leveraging Descartes Customs and freight management software solutions, businesses can ensure compliance with ICS2 while reducing operational burdens and enhancing efficiency.  

To ensure smooth compliance with ICS2 Release 3, rail and road carriers should:  

1. Evaluate Current Data Management Systems – Identify any gaps in your existing customs declaration process.  
2. Implement a Cloud-based Customs Solution – Choose a software provider that offers full integration with ICS2 and can handle the new data requirements. 
3. Train Staff on the New Requirements – Ensure all relevant personnel understand the changes and how to use the new system effectively.  
4. Test and Optimise Processes – Conduct internal tests to identify potential issues and optimise workflows before the September 2025 deadline. For road and rail carriers, the deployment window for ICS2 Release 3 is from 1^st April 2025 to 1^st September 2025. It’s essential to request a specific deployment window at least one month before your intended go-live date within this period. 
5. Engage with a Trusted Customs Partner – Work with established providers like Descartes to ensure a seamless transition and long-term compliance.  
6. Obtain an EORI number: Register with the customs authority of an EU Member state to receive an EORI number.  

1. Goods will be stopped at the EU Customs borders  
2. The goods in question will not be cleared by the customs authorities  
3. Inadequate declarations will either be rejected or subject to intervention, with possible sanctions imposed for non-compliance  

ICS2 Release 3 is a significant shift for rail and road carriers operating in the EU, bringing stricter data requirements and a new centralised filing system. While compliance may seem daunting, adopting a cloud-based customs management solution can streamline the process and ensure accuracy, efficiency, and regulatory adherence.  

Now is the time to evaluate your current customs procedures and invest in the right technology to future-proof your operations. By preparing now and leveraging industry-leading solutions like Descartes Customs and freight management software solutions, you can avoid disruptions and maintain a competitive edge in an increasingly regulated logistics landscape.