top of page
Search

Detailed Briefing: Key Changes with NCTS 5 & Future Roadmap

In a detailed session led by Sharon Heron from the NCTS Policy team during the ACITA conference in October 2024, the latest updates to the National Transit Policy (NCTS) were unveiled. These changes aim to enhance customs operations' efficiency, especially for cross-border trade businesses. With the rollout of NCTS Phase 5 (P5), traders must prepare for significant reforms, including the full digitalisation of transit documents and enhanced reporting requirements.


Here’s a breakdown of the key updates and what they mean for businesses:


Migration from NCTS P4 to NCTS P5: A Two-Stage Deployment

The transition from NCTS P4 to P5 was completed in two phases:

  • Northern Ireland (XI): NCTS P5 went live on 28th June 2024.

  • Great Britain (GB): The system was deployed on 1st July 2024.

Since then, the NCTS P5 has processed over 400,000 movements, showing its capacity and reliability across both regions.

NCTS5 Statistics as of 30th September 2024

Northern Ireland (XI) (09:25 AM):

  • Total Movements: 5,406

  • API Departures: 2,367 | API Arrivals: 2,846

  • Web Departures: 26 | Web Arrivals: 167

Great Britain (GB) (09:30 AM):

  • Total Movements: 440,472

  • API Departures: 322,015 | API Arrivals: 97,643

  • Web Departures: 8,479 | Web Arrivals: 12,335


Service Stability and Performance

One of the significant achievements of the NCTS P5 rollout has been its stability. Since its launch, there have been:

  • No instances of unplanned downtime.

  • No priority 1 defects identified, ensuring smooth operations for traders.

To further improve the system, a major code release took place on 28th September 2024, addressing minor issues and refining system performance.


Lessons Learned and Continuous Improvement

HMRC has undertaken extensive internal and external evaluations of the NCTS5 rollout, focusing on:

  • Enhancing the Trader Test Environment (TTE).

  • Introducing additional test scenarios to better prepare traders for upcoming system changes, particularly for the January 2025 release.


Webinars and Communication: Preparing for Key Milestones

Several webinars are scheduled to help traders and customs professionals stay informed about the upcoming changes:

  • 09 October 2024: Addressing fixed defects, the office of incident, and commodity codes.

  • 08 November 2024: A detailed session on new data fields.

  • 02 December 2024: Overview of multiple house consignments and new data fields.

  • 22 January 2025: Final state rules webinar.


NCTS Phase 5: Roadmap to Final State (22 January 2025)

By 22 January 2025, the NCTS Phase 5 system will reach its final state, incorporating several major changes aimed at simplifying and streamlining transit procedures.

Key Changes from 22nd January 2025:

  1. Removal of the Paper Transit Accompanying Document (TAD):

    • A significant shift towards digitalisation, the requirement for a paper TAD will be eliminated, and businesses will need to adjust to the electronic submission of transit information.

  2. Electronic Presentation of MRN:

    • Upon arrival, the Movement Reference Number (MRN) must be electronically presented, further moving customs processes towards a paperless environment.

  3. Mandatory Use of Commodity Codes:

    • Every goods item listed in a transit declaration must include a commodity code to ensure compliance and accuracy.

  4. Pre-Lodged Declarations:

    • Traders can now pre-lodge transit declarations up to 30 days in advance, offering greater flexibility and efficiency in managing movements.

  5. Real-Time Reporting for Serious Incidents:

    • Customs offices will receive real-time incident reports, ensuring prompt responses to any issues that arise during transit.

  6. Multiple House Consignments:

    • The declaration of goods will now be required at the house consignment level, rather than item level, allowing traders to group items based on consignors and consignees.


MRN Presentation Rules for UK Ports

The transition to NCTS5 will also bring changes to how MRNs are presented at UK ports:

  • GVMS Ports: Drivers must input all transit MRNs into a Goods Movement Reference (GMR) system.

  • Non-GVMS Ports: Transit MRNs can be presented either via a linear barcode on a mobile device or through a paper TAD.


Upcoming Resources and Publications

Traders can expect further guidance in the coming months to ensure they are prepared for the final state rules:

  • December 2024: A public notice detailing MRN requirements at ports.

  • January 2025: The release of a Revised Transit Customs Handbook, incorporating all NCTS5 final state changes.


Conclusion

The continuous updates to the NCTS represent HMRC’s commitment to improving customs transit procedures, making them more efficient, digital-friendly, and secure. As the system moves towards its final state in January 2025, traders must be aware of the forthcoming changes, especially around the electronic presentation of MRNs, mandatory commodity codes, and the removal of paper-based transit documents.


For businesses engaged in cross-border trade, these updates offer significant benefits, such as simplified processes and real-time incident reporting, but they also require diligent preparation to ensure compliance with the new rules.


For further updates, be sure to attend the upcoming webinars and review the revised guidelines set to be published by HMRC. Stay tuned as we continue to provide in-depth insights and support for navigating these complex customs changes.


We make transit declarations for you

Need help lodging customs declarations? We can do it for you, please get in touch.


Fancy a Call?



I offer comprehensive support for customs clearance and transit compliance. I’d love to talk to you about your questions on NCTS Phase 5. I offer a free expert call of up to one hour, which you can book seamlessly here. I also offer public, in-house, and on-demand training tailored for customs professionals and their partners. For more details, visit www.customsmanager.org.


Sources That I Base Our Information in This Blog On

To find more information on NCTS Phase 5 and related regulations, members can:


I Am New To Your Website; What Do I Do?

Welcome! Thanks for reading our content. If you found it valuable, I invite you to get STANDARD Membership to our Trade Intelligence service. Only in this way will you be able to receive updates directly in your inbox. I inform our members about customs, export control, and sanctions changes – BASED ON YOUR PREFERENCES (you will be asked to complete a survey when you start). This ensures the information you receive is always relevant and helpful. STANDARD membership is free of charge. To get started, leave your e-mail address at www.customsmanager.info.


Learn With Me

I, along with my team, offer extensive training on various customs, export control, and sanctions topics. Please visit www.customsmanager.org/events to explore the course plan and book one of our public courses.


About the Author

Arne Mielken is a customs, export control, and sanctions expert with over 20 years of experience. He has worked as an executive director for Big 4 Consultancies, global trade management technology companies, and several international trade and export associations across the UK and EU. Arne is also a Freeman of the City of London and a Liveryman of the Worshipful Company of World Traders. He is proud to be a member of many prestigious associations, including the Customs Practitioners Group (CPG), the UK’s Association for International Trade (ACITA), the Europäischen Forum für Außenwirtschaft e.V. (EFA), and the Office de développement par l’Automatisation et la Simplification du Commerce Extérieur (ODASCE).


Connect With Me & My Team

Learn more about me here and connect with me on LinkedIn. I also run a channel where you can get free tips and advice on customs, export controls, and sanctions.


Our Meeting Place in the Heart of London

Meet us face-to-face at our sparkling Central London Office, located at the German Business Hub, 42 Essex Street. When you’re in London, join us for a free cup of coffee or tea for a friendly chat, or attend our live training and networking events in the global City of London. Just email us your time and date of arrival, and I will gladly meet you there.

Disclaimer: The information provided in this blog post is for educational purposes only and should not be construed as legal advice. It is recommended to consult with legal professionals or specialists regarding specific compliance requirements and guidance. Book a free call with our expert at Customs Manager Ltd.



Comments

Terms of Website Use

Cookie policy

Privacy policy

© 2025 by Customs Manager Ltd.

bottom of page