CargoForwarder Global reported towards the end of 2015 on The International Air Cargo Association’s (TIACA) misgivings as to whether the air cargo scene will be prepared in time for the
European Union Customs Code which is meant to be mandatory as of May this year.
At first glance, it seems not to be the case!
Is this just another example of EU regulators acting without industry knowledge?
Not all in the industry are of the opinion that the EU Customs Code will bring any benefit to its users and some are openly stating that it will harm the air cargo industry in general.
TIACA warned at the end of last year that the planned system was too complicated and that they had misgivings that only a small portion of its future users would be ready on time to implement it within the deadline set.
One of the biggest concerns for the industry are the higher costs which may be incurred because of the financial guarantees that must be given in order to clear cargo across the EU states.
Some countries within the European Union already insist of financial guarantees and others such as the United Kingdom do not.
Probably UK forwarders will be worried about what cost they face and others are still trying to figure out whether or what extra costs may be involved for them, which will eventually push rates up further.
Time is running out
This is what CargoForwarder Global reported on after looking at TIACA’s misgivings some months ago.
In the meantime, there are just under three months to go before the EU regulators press the button.
Will all be ready? Do all understand how to implement the new regulations and as mentioned above, who knows the cost burden involved and who has to shoulder the extra financial increase?
Some in the air cargo industry are of the firm opinion that although the new system was announced more than a year ago, that only few have been able to take the steps necessary to be able to meet the May deadline.
There is also no indication from the EU regulators as to whether they’ll be willing to be lenient with the implementation deadline or turn a blind eye here and there.
It would be interesting to hear from our readers in the forwarding industry how they are experiencing this transition and what problems or benefits they are expecting from the new ruling.
John Mc Donagh