If you are an NCTS user who moves goods using transit or represent an NCTS user, the following information will be important to you or your client.
The Common Transit Convention (CTC) authority has announced that there will be an extended transition period for the move to NCTS Phase 5. The CTC has been influenced by the number of CTC member countries confirming that they require more time before implementation.
HMRC have also confirmed that UK Industry feedback has indicated that more time would be needed to ensure UK Industry preparation is fully ready for implementation, and as a result, have advised that the new date for implementing NCTS5 in the UK will be 1st July 2024.
HMRC have liaised with industry stakeholders to ensure the new implementation date is achievable. The new date has also been influenced by the necessary avoidance of goods movement peak periods and other key Government project delivery dates.
What should traders do now?
UK trade should continue to use the current NCTS system until the cutover to NCTS5 on 1st July 2024.
The HMRC Trader Test environment remains open and will be switched into Transitional mode on 11th October 23, as planned.
Those who are building software should continue with development and testing to align with the revised implementation date.
HMRC plans to issue regular updates to keep users up to date.
If you are interested in exploring this topic further, you might find it worthwhile to consider the training courses and live clinics offered by Strong & Herd LLP:
Focus On: NCTS What you need to know
Since the UK left the customs union of the EU, there has been an increased need for companies to use transit to move goods into or through the EU Member States. This workshop takes you from a basic review of what transit / NCTS are to the application process to become an authorised consignee/ consignor. It also illustrates how to apply for and use a transit guarantee. With tips on making transit declarations, the role of the Transit Accompanying Document (TAD) and discharging a transit movement.
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