Hurricane Commerce warns of STOP Act and ICS2 on March 15

Customs tech specialists Hurricane Commerce have pointed out that March 15th marks the date when the US STOP Act and the EU’s Import Control System 2 (ICS2) kick in, and this is set to cause major backlogs of parcels into both markets.

The US STOP Act was meant to launch on January 1st but their Customs and Border Protection needed more time to prepare for the new system. All postal operators sending parcels into the country need to provide more advanced electronic data on each parcel from that date. The EU’s ICS2 will mean a similar thing – entry summary declarations must be included with every parcel entering the EU.

Martyn Noble, CEO of cross-border e-commerce specialist Hurricane Commerce said, “March 15 is the biggest date in the diary for postal operators this year and the level of preparedness varies from one authority to the next. But the stark reality is that, as of next Monday, postal operators and their customers will need to produce complete and valid data on their e-commerce shipments. We have already seen the impact of a lack of quality data on parcels since Brexit on January 1. The STOP Act and ICS2 are the next major challenges and then we have the introduction of the EU VAT reforms in July.

“With the coronavirus pandemic continuing to place huge pressures on air freight capacity, the supply chain industry cannot afford delays, returns and additional storage, not to mention the associated extra costs,” Noble continued. “In December, we predicted that a lack of readiness for the STOP Act could result in several hundred million shipments being held up and we believe this remains the case. This is without adding in the impact of ICS2 with the onset of much greater scrutiny. The cross-border e-commerce landscape has changed for good, but those postal operators which get their data right will be able to meet these challenges and achieve scale.”

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