Faster Freight Transport? - How the eFTI Regulation (EU) 2020/1056 Is Driving the Digitalization of Freight Transport
A. What is the eFTI Regulation?
Regulation (EU) 2020/1056 of the European Parliament and of the Council of July 15, 2020, on electronic freight transport information (hereinafter: “eFTI Regulation”) requires the authorities of EU Member States to accept electronic freight information in the future when such information must be provided under EU transport regulations. The Regulation, or rather this obligation on the part of the authorities, will apply in full as of July 9, 2027.
Important: Although the Regulation is primarily directed at authorities and Member States, it effectively has a direct impact on companies’ compliance processes because—provided the company in question wishes to provide information electronically—it sets the framework for how electronic freight information must be provided in the future to ensure that the flow of information is not disrupted.
B. Why was the eFTI Regulation introduced?
The eFTI Regulation is intended, in particular, to drive the digitization and reduction of bureaucracy in freight transport and logistics services. Cross-border freight transport has so far been heavily paper-based (waybills, certificates, permits). Differing national requirements lead to disruptions, delays, and high administrative burdens. The eFTI Regulation is intended to digitize and, in particular, standardize these information flows.
The eFTI Regulation is also intended to ensure legal clarity and harmonization. Until now, it has largely been up to the Member States to decide whether and how they accept electronic documents. The eFTI Regulation creates a uniform framework in which electronic information can be transmitted in a standardized form across the EU and read by authorities.
Furthermore, the regulation aims to promote efficiency, cost savings, and transparency. Standardized electronic information is expected to make inspections more efficient (e.g., shorter wait times during inspections, more targeted risk assessment). Businesses are expected to save costs through reduced paper usage, fewer duplicate submissions, and automated processes. Especially in the current challenging economic climate, this is an important and appropriate step.
Crucially: The eFTI Regulation could ultimately serve as the foundation for further steps toward digitization. Future digital services—such as those for customs, tolls, sustainability reporting, or supply chain transparency—can build upon eFTI data and platforms.
C. How does the eFTI Regulation work?
The eFTI Regulation requires authorities to accept electronic freight information provided that relevant EU regulations mandate the provision of certain information, this information is available in a compatible electronic format, and it is provided via an eFTI platform that meets the requirements of the Regulation.
Companies therefore currently have no general obligation to submit everything electronically—but they do have a legal right to use electronic information within the specified framework. However, the Regulation makes it clear that there is a possibility of implementing such an obligation in the future (see the intention to conduct an assessment by 2029, Art. 16(1)(a)).
Essential to the implementation of the eFTI Regulation are, on the one hand, the eFTI platforms and, on the other hand, the eFTI service providers. eFTI platforms are solutions based on information and communication technology, such as operating systems, operating environments, or a database, that serve to process eFTI (“electronic freight transport information”). These platforms must store freight information in a structured, machine-readable format and be able to make it accessible to authorities; in particular, the platforms must support defined data structures and interfaces and ensure the integrity, availability, and confidentiality of the data. Furthermore, it must be possible to trace who provided or accessed which information and when. Certification and compliance requirements must also be met.
The eFTI Regulation and its implementing regulations provide for a standardized eFTI data model in which the relevant cargo information is mapped (e.g., shipper, consignee, type and quantity of goods, routes, permits, special features such as dangerous goods). The goal is to ensure that various systems (e.g., freight forwarding software, transport management systems, warehouse IT) can communicate uniformly with the eFTI platforms and that authorities can access the information using their own IT systems without requiring individual solutions for each company.
It is important for companies that authorities can access the eFTI data in the event of an inspection. Companies should therefore ensure that correct and complete data is always stored in the system, that access is enabled, and that internal processes are designed to minimize data and information gaps as much as possible.
D. What does the eFTI Regulation mean in practice?
Even though the regulation does not formally impose an immediate obligation on all companies, there could effectively be pressure to adapt because authorities will increasingly expect electronic information in the medium term, and customers may also demand digital proof more frequently due to the simplified handling. Not least for this reason, early and efficient implementation could provide competitive advantages.
Certainly, a transition will initially be particularly advisable for those companies that operate predominantly in the cross-border sector. But what specifically needs to be considered?
Existing IT systems should be adapted to eFTI standards. This requires technical and organizational adjustments as well as the selection of suitable service providers. Legal and compliance risks must be addressed with care. Incorrect or incomplete data can lead to fines, liability claims, or competitive disadvantages. It must be ensured that the electronic provision meets all legal requirements (e.g., documentation and retention obligations). As is the case wherever IT systems and data intersect, data protection and information security requirements must be observed. Companies must ensure that only authorized persons have access to cargo information, that data transfers comply with the GDPR and national data protection regulations, and, in particular, that appropriate technical and organizational measures are in place.
E. What specific steps should companies take now?
First, if not already done, companies should clarify which business transactions actually fall within the scope of the eFTI Regulation and how the relevant information is currently maintained, documented, and retained. It is also recommended to conduct an inventory of the systems currently in use.
Each company should then make a strategic decision regarding which areas should be consistently handled electronically in the future. In addition to defining requirements and reviewing existing contract terms as well as all previously used documents for compatibility with the eFTI data models, the next step must involve adapting internal guidelines and compliance structures. This encompasses, on the one hand, work instructions and standardized processes (including the assignment of specific responsibilities), and on the other hand, employee training, as well as issues related to data protection and information security.
F. Conclusion
The eFTI Regulation is a central component of digitalization in European freight transport. Now that the electronic CMR consignment note and digital dangerous goods transport documents have already proven themselves in practice, the regulation now obliges the competent authorities to accept electronic freight information and creates a binding framework for digital processes in the field of freight transport and logistics services.
Those who develop a clear digitalization strategy early on and implement suitable eFTI solutions can actively use the regulation as a lever for more efficient and transparent logistics processes. This is likely to be particularly beneficial for companies that operate predominantly in the cross-border sector and may already be partially digitized, as well as those that deal with numerous regulatory interfaces.
In contrast, the impact on companies that operate primarily at the regional level and are rarely subject to inspections is likely to be rather limited at this time.
One thing, however, should be noted in conclusion: At least for now, the eFTI Regulation does not yet represent a definitive move “away from paper,” but merely a first step toward digitization. Practice will show whether this will merely result in an indirect push toward digitization for companies in the future, or whether the European Commission will even introduce a normative obligation for companies to provide digital documents after 2029.