NCTS 5 Transition: The Deployment of Phase 5 (2.1) is on Track
-
Freya Jane
- Director of Customer's Success
“29 countries, including all EU states and contract partners of the Common Transit Convention (CTC), must fully shift to NCTS5 2.1 by 21 January 2025.“
Background
The New Computerised Transit System (NCTS) is a digital Europe-wide transit system. It is intended to control and improve the management of goods under the Union and Common Transit.
NCTS is made up of linked national applications that communicate with one another over a shared network. The messages are exchanged electronically on three levels:
- External domain: Between customs and economic operators
- National domain: Between customs offices of one country
- Common domain: Between customs administrations and with the commission
Who Uses NCTS?
| Traders | Move goods across borders |
|---|---|
| Logistics Providers | Manage goods in transit |
| Software Developers | Support user systems for NCTS operations |
NCTS P5 Deadline: Who is the intended audience?
The upcoming NCTS P5 deployment deadline is for the following countries:
- All EU States
- Andorra (AD)
- Belgium (BE)
- Hungary (HU)
- Malta (MT)
- Portugal (PT)
- San Marino (SM)
Why is NCTS5 2.0 shifting to NCTS5 2.1?
The core reasons for the update are:
- It ensures goods tracking more effectively.
- It suspends VAT and duties until goods are delivered.
- It completes customs procedures away from borders.
Transition to NCTS 5
NCTS5 2.0 is upgrading to 2.1 as per the requirement of the Common Transit Convention (CTC); it aims to ensure the smooth movement of goods across borders.
Here are the key changes in NCTS 5 2.1:
1. Multiple House Consignment (MHC)
NCTS5 2.0 requires individual item details for the consignor and consignee, making transit declaration more time-consuming and complicated.
The new NCTS5 2.1 introduces Multiple House Consignments to facilitate traders, allowing them to declare multiple goods under a single transit declaration.
Goods are transferred from one consignor to one consignee in each house consignment. This method streamlines the documentation for intricate supply chains and adds flexibility to the management of consignor and consignee details.
MHC: During the transition period (NCTS5 initial phase):
Consignor information:
- Cannot be declared individually per item if goods are from multiple consignors.
- Can be declared at the overall consignment level only if all goods share the same consignor.
- For goods from multiple consignors, a single transit declaration (IE015) can still be used.
Consignee information:
- Can still be declared individually for each item.
Key points to remember:
- No changes to transit or logistics procedures from NCTS5 2.0.
- Multiple house consignments’ are not yet functional.
- Maximum goods per declaration remain at 999 items.
After the transition periods end on 22 January 2025 (NCTS5 2.1 Final State):
Introduction of ‘Multiple House Consignments’:
- These allow goods to be grouped by individual consignor-consignee pairs.
- Each house consignment can hold up to 999 items.
Declaration Changes:
- Up to 1999 goods items can be declared per transit declaration.
- Goods from the same consignor-consignee pair are grouped into one house consignment.
- Multiple consignors and consignees must use house consignments; a single consignor or consignee can still be declared at the overall consignment level.
How is Multiple House Consignment beneficial?
- This eliminates the need to declare consignor and consignee information at the item level.
- It increases the number of goods to declare, i.e., from 999 in NCTS5 2.0 to 1999 in NCTS5 2.1.
- Simplifies documentation by classifying similar items under designated consignees and consignors.
- Reduces the possibility of data errors or confusion by clearly separating consignor-consignee relationships.
The goal of this change is to improve the flexibility and accuracy of customs procedures, resulting in smoother operations for businesses dealing with multiple consignors and consignees.
2. Electronic MRN presentation:
Under NCTS5, the Movement Reference Number (MRN) must now be submitted electronically. Both inbound and outbound movements of goods must follow this requirement. It eliminates the need to print and carry Transit Accompanying Documents (TAD).
| For inbound movements at GVMS locations, the MRN will be included within the Goods Movement Reference (GMR). |
|---|
| For inbound movements at non-GVMS locations, the MRN will need to be presented as a linear barcode. |
| For outbound movements, the Border Force will continue to print the TAD with the MRN. |
3. Introduction of the Office of Incident
NCTS5 2.1 introduces the “Office of Incident Registration” for simplifying the registration of incidents en route. It helps reduce delays at the office of destination.
4. Possibility to amend pre-lodged declarations
Following the complete implementation of NCTS5, traders will be able to make changes to pre-lodged declarations before their complete submission.
5. Prioritising driver awareness
The drivers must be fully aware of the updated NCTS5 requirements and must know how to submit MRN electronically. It is the responsibility of the authorised consignor and consignee to ensure that the driver has all the necessary information regarding goods.
6. Use of HS codes
The user is required to select the type of declaration after choosing the country of departure. In NCTS5 2.0, the users have the option of using “Simple CT” declarations where HS code is not required. The updated version of NCTS puts restrictions on using this option.
However, a simple CT option can still be used in some countries during the transition period. Once the period is over and the final mode is activated, all the countries will be unable to use this type of declaration.
7. Updated security section
The previous checkbox has been replaced with a list of values (0, 1, 2, 3):
- 0: No ENS/EXS declarations required.
- 1: ENS declaration required.
- 2: EXS declaration required.
- 3: Both ENS and EXS declarations required.
If 1, 2, or 3 is selected, the following fields become mandatory:
- Place of Loading
- Country of Loading
- Place of Unloading
- Country of Unloading
How to prepare for NCTS5?
- Update your IT system: Consult with your software provider and make sure that the system is updated as per new requirements.
- Ensure driver awareness: The driver must be aware of all the changes and should know how to present MRN electronically.
- Get ready for variances: Businesses should be aware that procedures could be different between countries during the transition period.
Ensure a smooth transition to NCTS5 2.1 with iCustoms’ iNCTS!
Our software is continuously evolving and improving to meet all regulatory requirements and simplify transit declaration.
Ensure a smooth transition to NCTS5 with iCustoms’ iNCTS!
Our software is continuously evolving and improving to meet all regulatory requirements and simplify transit declaration.
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