As the go-live date for the latest update to the New Computerised Transit System (NCTS5) approaches, HMRC is holding a series of webinars to inform traders ahead of the transition.
The next phase will go live on 1 July 2024 under transitional rules, entering final state rules on 22 January 2025. New functionality will be introduced on each date.
The system is used by those moving goods via transit – the process that reduces the number of declarations required when goods must cross multiple borders – and all Common Transit Convention (CTC) member countries will be legally required to upgrade their systems. HMRC wants to ensure industry stakeholders including agents, express operators, fast parcel operators, hauliers, and software developers and traders are prepared.
Webinars
HMRC’s next webinar will be held on 15 May at 1pm BST, and interested parties can access the meeting via this Microsoft Teams link.
The previous webinar was held on 5 March, following which HMRC sought to answer attendees’ common questions.
Timeline – July
From 1 July, NCTS5 will enable users to amend any pre-lodged or rejected declarations, an improvement on the current iteration, in which a declaration must be cancelled and resubmitted if any changes are required.
From July it will also be possible to enter a commodity code of up to six digits into NCTS5. It won’t be mandatory to include commodity codes in declarations until 22 January, though HMRC strongly recommends traders submit codes before then in order to familiarise themselves with the process.
Finally, from 1 July, changes to consignments will see traders no longer able to enter multiple consignors at the consignment level of the declaration, instead needing to enter them at item level. Ultimately, from 22 January 2025, it will be possible to include multiple-grouped items with more than one consignor and consignee in the same declaration. HMRC states:
“This will accommodate up to 1999 house consignments, each with 999 line items, (therefore up to 1999 consignors or consignees), within 1 declaration.”
It sought to emphasise this point after the 5 March webinar, due to confusion from some traders around the number of consignments it was possible to include in a single declaration.
Timeline – January 2025
From 22 January 2025, additional functionality will be introduced. It will be possible to present an electronic version of the Movement Reference Number (MRN), although this comes with the important caveat that a paper version should still be carried, as some CTC member states may not yet have the infrastructure to facilitate electronic transmission.
HMRC notes that, in the UK, MRNs will be digitally recorded at customs offices where the Goods Vehicle Movement Service (GVMS) is employed.
“However, there may be a requirement to carry a Transit Accompanying Document (TAD) if electronic presentation of the MRN is not supported at the Office of Transit, or the Office of Destination. The TAD will still be printed at any UK office of departure to facilitate all border crossings throughout the journey.”
Real-time reporting of incidents to a nearest customs office while consignments are en route will be possible via NCTS5. Currently, it’s necessary to wait until the consignment has reached the Office of Destination, which can cause delays.