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Logistics blog

eFTI

New eFTI European Law

New eFTI European Law

03/02/2022

New eFTI European Law

03/02/2022
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3 minutes
New eFTI European Law

New eFTI European Law

2/3/22
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Reading time:
3 minutes
New eFTI European Law
Contents

What is the current situation?

“<1% des opérations de transport de marchandises dans l’UE sont entièrement dématérialisées”.

Low level of acceptance of electronic documents/information

‍Oneof the main problems today would come from the multiplicity and lack of interoperability of electronic document and information exchange systems. This means that the document is physically printed, signed and sent. In some cases, scanned versions of the documents accompany the physical invoice. In practice, this type of data and document exchange, without a common structure and secure digital solution, has many disadvantages and complications, such as:

An additional burden in terms of financial and human resources:
Entities involved in the data exchange process must invest time and finances, as well as devote additional human capital in order to develop a point-to-point connection between their information systems.

Chain of Delay:
Paper-based data exchange causes many delays - delays in receiving physical documents, resulting in delayed payments, as well as delayed delivery of goods and services and potential loss of revenue.

Endangerment of data and businesses :
Sharing data via email without a secure digital solution puts not only the data being exchanged at risk, but also businesses as a whole.

Multiple legal requirements and legal framework (at international, European and national level)‍
Despite all efforts, European transport policy is still confronted with many multiple legal requirements in all countries. Moreover, transport is the only sector in the EU where GHG emissions have increased since 1990. This is why the new eFTI 2020 regulatory document recommends that all logistics, supply chain and transport companies in the EU digitize and automate all their documents. Administrative practices differ so much from one authority to another regarding the acceptance of electronic documents and information during transport that it is becoming increasingly difficult for companies to navigate.

"The eFTI regulation will increase the efficiency of all types of transport, reducing costs for operators, simplifying enforcement, and removing language barriers. This will significantly improve the efficiency of transport in the EU single market," Raluca Marian adds.

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What are the benefits?


"The objectives are to promote the use of digital technologies to meet regulatory requirements within the EU, to reduce the administrative burden and to promote digitalization in freight transport and logistics."

Multiple IT solutions are currently used in Europe for the exchange of freight information. The incompatibility of these solutions often leads drivers to prefer paper documents, a costly and time-consuming process.

As a uniform legal framework, the eFTI will standardize the use of electronic information, which will encourage carriers to move toward digital solutions. It will also facilitate control work, reducing waiting times during inspections.

"This regulation is just a starting point for further digitization of transport, such as the ratification of the eCMR Convention by all EU Member States," says Raluca Marian, General Delegate of the IRU's Permanent Delegation to the European Union. "Using eCMR instead of its paper alternative has already proven to be seven times cheaper."

The European Commission estimates that reducing the administrative burden of using digital forms will save operators up to €27 billion over the next 20 years. Given the economic impacts of COVID-19 on freight transport in Europe, estimated at €64 billion by 2020, these savings represent an element of relief in operators' pockets.

The EU has approved the Electronic Freight Transport Information (eFTI) regulation, which will come into effect by 2024. The regulation establishes a legal framework for road, rail, sea, and air transport operators to share information with enforcement authorities in an electronic digital format. This is a significant challenge for the EU transport sector, but it aims to make European logistics more efficient and promote the growth of EU transport companies.

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