Eurora Solutions (Eurora), the leading AI/ML-backed (artificial intelligence/machine learning) cross-border trade compliance platform, is alerting US businesses about upcoming regulation changes in the European Union (EU). Beginning March 1, 2023, any company that ships goods to the EU will be subject to the Import Control System 2 (ICS2). ICS2 is a new and updated customs electronic import system to manage the advanced safety and security risk analysis for all goods entering the EU. About 15% of all goods worldwide are imported to this one market.
The ICS2 requires carriers transporting packages into or through the EU to provide a complete set of data on the goods prior to arrival. General descriptions such as clothes or artwork will no longer be accepted. Instead, goods need to be assigned HS codes (minimum six digits), which are recognized worldwide by customs authorities to describe products. Individual countries can add even more codes on top of that. The general rule is that the longer the code, the more accurate the commodity description. Eurora’s AI-based solution can quickly and accurately assign HS codes.
While it may seem that retailers are not impacted by ICS2, that is not true. Retailers will need to assign the correct HS codes or rely on the carrier, postal operator or logistics provider to do so but most will have no knowledge of what is inside the shipment. If the codes are incorrect, shipments could be delayed or customers may end up paying more if the codes need to be adjusted.
“There is still a lot of confusion from retailers on what they need to do to be compliant with ICS2,” said Chris Lentjes, US CEO of Eurora. “The best thing they can do is to start assigning the required HS codes on March 1st. If they don’t, they risk alienating customers because of shipping delays and unexpected charges. We understand it may seem overwhelming because many legacy or homegrown tech solutions are not built for this but Eurora is. We can help retailers quickly and accurately assign HS codes, in addition to helping simplify all aspects of cross-border trade.”
Eurora’s HS Code allocation service provides the correct HS code for goods and parcels in real time. The platform supports up to 10 digits of country-specific nomenclatures using the power of AI to assign the correct codes in seconds. Eurora’s platform is able to process 5,000 requests in milliseconds, providing the highest level of accuracy, speed and automation available in the market. There are more than 15,000 10-digit commodity codes in the EU alone, making it impossible to match the speed and cost with manual or hybrid methods, which are most used today.
For more details, read the Eurora blog on this topic.
About Eurora Solutions
Eurora uses artificial intelligence and machine learning to automatically manage cross-border VAT, duty amounts, and declarations. More than 250 clients already use the company’s platform to send millions of parcels every day. Eurora closed a $40 million Series A round in April 2022.
Eurora was founded in 2018 by Marko Lastik, a global logistics expert with over 30 years of experience, most of it connected with Asia. The company has developed its proprietary AI/ML platform with scientists and grants from European Union Archimedes Fund since 2019. Eurora employs more than 200 people in 18 countries.