Strengthening Supply Chains Amid Change - Legal Milestones, New Regulations, and Global Solidarity
International Trade: Global Trade and Tariff Changes – Logistics Must Stay Resilient
The global trade landscape is shifting once again with the implementation of new U.S. tariffs as of 5 April 2025 at 12:01 AM (EST). While these tariffs will not be applied in addition to the existing 25% tariffs on steel, aluminium products, and motor vehicles, they will introduce further challenges for businesses operating in global supply chains. Goods already shipped and en route to the U.S. before the effective date will not be subject to these new tariffs.
The imposition of reciprocal tariffs has raised concerns within the business and logistics communities. Predictability and stability are essential for trade, yet additional tariffs may disrupt global supply chains, increase costs for businesses and consumers, and create further trade distortions.
As businesses navigate these changes, contractual implications remain unclear, particularly regarding the allocation of tariff-related costs between exporters and importers. There is also uncertainty about whether certain goods will continue to qualify for duty-free entry under tariff concession order arrangements.
FIATA reaffirms its commitment to supporting its Members in addressing these challenges and ensuring the continued movement of goods across borders, and will continue to monitor the situation closely and advocate for supply chain resilience in global logistics.
International Trade and Law: FIATA Advocates for Multimodal Integration and Legal Harmonisation in Asia-Pacific
On 26-27 March, FIATA participated in the Forum of Dry Ports Operators, Logistics and Multimodal Transport Service Operators, organised by the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) in Bangkok, Thailand. This multi-stakeholder forum was convened as part of the UN ESCAP’s new project on “Strengthening performance, interconnections and multimodal network integration of dry ports in the Asia-Pacific region” following the conclusions of the Working Group on Dry Ports in 2023 which emphasised the need for enhanced practical cooperation, and brought together representatives from governments, industry and international organisations. The Forum highlighted the UN ESCAP Intergovernmental Agreement on Dry Ports (in effect since 2016 and has been adopted by 18 Member States) and the importance of dry ports as part of an integrated system for intermodal transport and logistics.
The FIATA Legal Services Director, Ms Andrea Tang, participated as a speaker in a joint session co-organised by UN ESCAP and the UN Commission on International Trade Law (UNCITRAL) on “New Approaches to Improving Operational Environment for Multimodal Transport Operations”, together with fellow speakers from UNCITRAL, the Global Shippers Forum and the International Chamber of Commerce (ICC) Banking Commission / Bank of China. The session focused on the latest developments on the draft UNCITRAL Negotiable Cargo Documents (NCD) Convention and the pilot issuance of NCDs for multimodal transport operations, noting that, in a recent UN ESCAP regional survey, 100% of respondents had stated that harmonisation of legislation on multimodal transport is necessary.
During the session, the Ms Tang emphasised the crucial role of multimodality and digitalisation, particularly in today’s market dynamics which make preparedness, agility and flexibility crucial for the resilience of global trade along critical trade corridors. In this context, the electronic negotiable FIATA Multimodal Transport Bill of Lading (eFBL)’s speed, security, compliance with international conventions/standards, and ability to act as a document of title, provides significant opportunities in facilitating trade in multimodal corridors. This is particularly important for landlocked territories where multimodality is even more critical. The work on the draft UNCITRAL NCD Convention, in which FIATA has played an active role since its inception, will further strengthen the use of the eFBL by providing greater legal certainty and harmonisation as to the recognition for multimodal documents of title in paper and digital form. As evidenced by 2 pilots using the eFBL on real-life transactions last year, this will be a key driver and a monumental step forward for connectivity, efficiency, digital trade and access to trade finance. Participants at the session strongly welcomed FIATA’s role and work on the eFBL in facilitating trade in the region, and FIATA reiterated its commitment to working closely with its member community and governments to facilitate multimodal transport corridor developments in the region.
The Forum closed with a video message from the FIATA Director General, Dr Stéphane Graber, who welcomed the participation of FIATA’s freight forwarding community at the Forum, which addressed the key themes at the very core of FIATA's work: multimodality, connectivity, partnerships and trade facilitation. Dr Graber emphasised the importance of freight forwarders as crucial actors at the heart of multimodal transport solutions, particularly critical in the face of disruption. In his message, Dr Graber welcomed the development of crucial infrastructure to facilitate integration and connectivity in the region, and underlined the importance of public-private cooperation, as well as regional and global cooperation to facilitate multimodal connectivity within the region and beyond. Dr Graber reaffirmed FIATA’s support for the work conducted by UN ESCAP and UNCITRAL to facilitate trade and enhance the operational environment, and its continued commitment to support its members in the Asia-Pacific region and beyond.
From left to right: Dr Stéphane Graber, FIATA Director General and Ms Andrea Tang, FIATA Legal Services Director.
Safety and Security: EU Commission issues Guidance on ICS2 Release 3 and NCTS-P6 Deployment
The European Commission has released guidance on the deployment timeline for ICS2 Release 3 Step 3 and the New Computerised Transit System - Phase 6 (NCTS-P6), introducing new customs rules for road and rail transport entering the European Union (EU).
New Customs Rules from April 2025
From 1 April 2025, all goods entering the EU by road and rail must be covered by an Entry Summary Declaration (ENS) under the Union Customs Code (UCC).
New Computerised Transit System - Phase 6 (NCTS-P6)
The NCTS-P6 will be deployed between March and September 2025, replacing previous security data rules. It applies to all EU Member States, Norway, and Switzerland and Common Transit Convention (CTC) contracting parties. The deployment window of NCTS-P6 starts on 1 March 2025 and ends on 1 September 2025.
ICS2 Release 3 for road and rail
The Import Control System 2 (ICS2) Release 3 will require ENS submissions for road and rail transport starting 1 April 2025. Economic Operators (EOs) unable to comply with ICS2 by 1 April can request a deployment window. Where a ICS2 deployment window is granted to an EO, they are allowed to use the NCTS-Phase 5 to lodge safety and security data with transit declaration until 1 September 2025.
FIATA advises that EOs connect to the ICS2 system. EOs can either connect their system to ICS2 by either using a third-party IT service provider, or by using the ICS2 web interface. In any case, EOs must obtain an Economic Operators Registration and Identification (EORI) number immediately to be able to start their connection activities.
Useful Links:
- How to get an EORI number and other additional information can be found on the ICS2 - European Commission webpage.
- Detailed guidance on the start of ICS2 Release 3 and NCTS-P6 Deployment is available in the EU Advance Cargo Information System (ICS2) CIRCABC group.
International Trade and Law: FIATA Contributes to Landmark UN Convention on Negotiable Transport Documents
FIATA, represented by its Vice President Richard Gluck, recently participated in the United Nations Commission on International Trade Law (UNCITRAL) Working Group VI in New York to complete the drafting of a new international convention governing negotiable multimodal cargo documents (NCD Convention).
Multimodal cross-border shipments have grown significantly, particularly in response to disruptions and uncertainties in the supply chain, increasing demand for multimodal transport documents such as the FIATA multimodal transport bill of lading (FBL). The NCD Convention will strengthen the legal framework for negotiable multimodal transport documents such as the FBL by facilitating legal certainty and global harmonisation of rules. This will be a monumental step forward for global trade, providing greater legal certainty concerning the enforceability of multimodal and unimodal transport documents where title to the goods is transferred and related payments are made.
Forwarders, their shipper customers and banks stand to benefit from the Convention when using the FBL as a negotiable document of title, especially for intermodal movements across national boundaries where no such law currently exists. The prominence given to electronic transport records in the convention will also be a key driver for digital trade and will promote wider use of the digital FBL (eFBL) in the global industry.
In preparing its submissions to the Working Group VI, FIATA partnered with the Global Shippers Forum (GSF) and the International Chamber of Commerce (ICC) Banking Commission to provide industry input on key trade needs, drawing on the success stories of the recent eFBL pilots conducted at the end of 2024 along critical trade corridors.
Key features of the draft NCD Convention include:
- NCDs for all modes of transport (road, rail, sea and air) would be covered, both unimodal and multimodal, in respect of shipments where either the origin or destination country has ratified the convention.
- To be subject to the NCD convention, a transport document would need to contain a clear annotation to that effect and contain certain basic information (already covered in the FBL). Application of the NCD convention would be entirely voluntary: it would apply only to documents issued by agreement between the consignor and the transport operator as being subject to the NCD convention.
- Electronic negotiable cargo records such as the eFBL would be recognised as enforceable under the Convention.
- The NCD convention deals only with negotiability and would not affect existing international conventions, regional agreements or national laws governing transport operations or cargo liability.
The final draft of the convention and an accompanying report will be posted on the UNCITRAL Working Group VI public website in due course. The draft convention will be presented to UNCITRAL for its approval at its next meeting in Vienna this July. Once approved by UNCITRAL, it will be recommended to the UN General Assembly to be opened for ratification. The convention would then go into effect after it has been ratified by at least three countries. Meanwhile, it is expected that the Working Group VI will continue to meet for two further sessions to finalise the explanatory note to the Convention.
Richard Gluck, FIATA Vice President.
Earthquake Aftermath Relief Fund: The FIATA Family Supports Myanmar
The recent 7.7-magnitude earthquake in Myanmar has caused widespread devastation, with Mandalay, Nay Pyi Taw, and the Sagaing area among the most affected regions. While Yangon remains operational, infrastructure damage is disrupting supply chains, impacting manufacturers, traders, and communities in need.
FIATA has launched an Earthquake Aftermath Relief Fund to support freight forwarders on the ground through its Association Member, the Myanmar International Freight Forwarders’ Association (MIFFA). Funds raised will directly assist MIFFA in delivering essential relief services and navigating operational challenges caused by damaged roads, bridges, and airport restrictions.
MIFFA has expressed deep gratitude for the international support and remains committed to ensuring logistics operations continue despite the crisis. Relief efforts are ongoing, and MIFFA is facilitating the clearance of essential goods needed for affected communities.
Your contribution can make a difference. Join the FIATA Family in supporting Myanmar’s freight forwarders and their vital role in the country’s recovery.