Embarking on the new year, 2024 brings pivotal changes with a focus on transforming the dynamics of UK and EU supply chains. Marked by stringent regulations, this year is set to redefine cross-border trade, influencing every facet of supply chain management. In this blog, we unravel the complexities of the 2024 regulations and delve into their profound effects on businesses operating within the UK and EU.
European Union Emissions Trading System (EU ETS):
One of the central regulations to monitor in 2024 is the EU ETS, imposing capped limitations on emissions from sectors such as aircraft and maritime transport between the EU and the UK. With an annual decrease in the emissions cap until 2030, the primary aim is to incentivize eco-friendly practices and curb carbon emissions. This regulation fosters collaboration among organizations, encouraging the sharing of allowances and promoting positive business practices to combat climate change.
Import Control System 2 (ICS2) – Effective March 1st, 2024:
ICS2, a newly implemented security program, mandates pre-arrival information for goods entering the EU. For UK freight forwarding and logistics providers, compliance requires the declaration of all information regarding goods destined for the EU before their arrival. Adapting swiftly to these changes is crucial for businesses, ensuring smooth cross-border clearance and facilitating efficient trade relationships across borders.
European Union Combined Nomenclature (CN):
A significant regulatory update in 2024 is the implementation of the CN, serving as a subheading requirement for goods trading within the EU. Crucial for determining customs duties rates and treatment of goods for statistical purposes, compliance with the new CN is imperative. Businesses must promptly update their master data to ensure precise and compliant custom declarations, minimizing disruptions and maintaining regulatory integrity.
UK-based Customs Declaration Service (CDS) – Mandatory on March 30th, 2024:
The introduction of the CDS presents a new format and platform for businesses outside the EU to make import and export declarations. Scheduled to become mandatory on March 30th, 2024, the CDS supersedes previous systems. Businesses must swiftly adapt to its requirements, ensuring seamless trade operations and regulatory compliance in the post-Brexit landscape.
The regulatory landscape of 2024 poses unprecedented challenges for UK and EU businesses. Navigating regulations like ICS2 and CDS requires careful consideration to ensure compliance and facilitate seamless trading operations in the post-Brexit landscape. Swift adaptation is imperative, contributing to the smooth flow of goods in and out of the EU internal market while safeguarding the interests of consumers. Stay ahead of the curve to thrive in the evolving regulatory environment.