The government has confirmed the final implementation date for the fifth version of the New Computerised Transit System (NCTS5).
NCTS5 was initially rolled out on 1 July 2024 but not all aspects of its functionality were live on this date.
Under transit procedures completed on the system, goods can be moved across territories using duty suspension and without needing to complete customs declarations for each country.
All member nations of the Common Transit Convention (CTC) are bound to facilitate these easements and introduce NCTS changes.
January deadline confirmed
After a meeting of CTC members, 21 January has been confirmed as the rollout date for the final NCTS5 functions, known as ‘Final State Rules’.
This includes a number of key changes for importers and exporters to understand.
HMRC advised importers and exporters to check with their software provider that they are ready for the system changes. Importers and exporters should also familiarise themselves with the changes under NCTS5.
Software providers are also being advised to make their customers aware of the changes being introduced.
These changes include:
· Removal of the mandatory requirement for a paper Transit Accompanying Document (TAD)
· Electronic Presentation of Movement Reference Number (MRN)
· Mandatory Commodity Codes for all goods in transit
· Pre-lodged declarations and amendments to pre-lodged declarations
‘Important milestone’
Ilona Kawka, digital trade & customs specialist at the Chartered Institute of Export & International Trade, said that the transition represented “an important milestone in the modernisation of transit processes.”
“The system enhances real-time visibility, accuracy in goods movement and allows further digitalisation of the supply chain. It also reduces the overall administrative burden by phasing out mandatory paper-based Transit (TADs) and introducing electronic MRNs.”
She added that the requirement for commodity codes would mean that governmental agencies would receive more accurate information about goods.
Additionally, the new requirements for pre-lodged declarations and incident reporting will enable traders to prepare and have more control over the movement of goods.
“In the long term, these improvements will allow businesses to engage in cross-border trade with greater efficiency and flexibility.”
More information
A period of downtime is expected, during which NCTS5 for Great Britain and Northern Ireland (XI) will not be available.
HMRC says it will provide further information about the downtime during December, as well as a webinar recapping all the changes.
The date and time of the webinar have yet to be confirmed.