NCTS5 is in operation in the EU & UK since 21 January 2025. Let’s explore what you need to know to stay ahead.
What Questions I Will Answer in this blog
How will the transition from NCTS P4 to NCTS P5 impact customs operations in Great Britain and Northern Ireland?
What are the key changes to the NCTS system that are happening now?
What are the new requirements for MRN presentation and commodity codes?
Introduction
NCTS Phase 5 builds on Phase 4 to modernise transit processes under the Common Transit Convention, ensuring alignment with international standards by 2 December 2024. The transition involves two key implementation stages: Transitional Rules (1 July 2024) and Final State Rules (21 January 2025), introducing new IT functionalities and digital processes.
As customs, export control, and sanctions professionals, staying informed about transit changes is critical to maintaining smooth operations. The latest NCTS updates, particularly the migration to NCTS Phase 5 (P5), significantly affect how we manage cross-border movements.
"Staying on top of NCTS updates is not just about compliance—it's about mastering efficiency in customs operations."Arne Mielken, Managing Director, Customs Manager Ltd
Abbreviations I Use in this Blog
I’ll be using several abbreviations throughout this post to ensure clarity:
NCTS: New Computerised Transit System
P4/P5: Phase 4 / Phase 5 of NCTS
MRN: Movement Reference Number
GVMS: Goods Vehicle Movement Service
TAD: Transit Accompanying Document
TTE: Trader Test Environment
How Will the Transition to NCTS P5 Impact Your Operations?
The migration from NCTS Phase 4 to Phase 5 is completed with Northern Ireland (NI) adopted NCTS P5 on 28th June 2024, and Great Britain (GB) followed on 1st July 2024.
However, the true game-changer occured on 21nd January 2025, when the final state rules were fully implemented. The upcoming shift required adaptability from all of us in the customs industry. From import specialists to customs consultants,we needed to be prepared for the mandatory removal of paper TADs, the need for electronic MRN presentation, and the inclusion of commodity codes for each goods item on transit declarations.
Top tip: Read our Factsheet on Transit (GB): Six Key NCTS 5 Changes In 2025
What Are the Key Changes in January 2025?
The NCTS P5 introduces six significant changes designed to streamline transit processes and improve the accuracy of customs declarations. Here are the headlines:
Electronic MRN Presentation: Drivers must have MRNs electronically accessible.
Inbound Movements: GVMS locations will handle Office of Transit formalities electronically; non-GVMS locations still require MRN barcodes and paper TADs.
Pre-Lodged Declarations: Amendable before final submission, providing flexibility.
Office of Incident: Manage disruptions in transit at local Customs offices.
Responsibilities
Authorised Consignors: Ensure drivers have MRNs and barcodes in a compliant format.
Authorised Consignees: Facilitate drivers with electronic MRNs at delivery points.
Paper TADs: A fallback option where electronic measures are unavailable.
Office of Incident Reporting: Incidents during goods movement must now be reported in real-time to the nearest customs Office of Incident. Customs officials will record incident details directly in NCTS5, replacing the current process of reporting upon arrival at the Office of Destination.
Mandatory Commodity Codes: A 6-digit harmonised system (HS) code must be provided for every goods item on the declaration. For movements involving Northern Ireland, an 8-digit code (including the combined nomenclature code) matched against the EU TARIC database can also be included.
New Data Fields: Additional data fields will now be mandatory, including the commodity code field.
Multiple House Consignments: This functionality allows transit users with software to group items with multiple consignors and consignees within a single declaration, supporting up to 1,999 goods items per declaration.
Pre-Lodged Declaration Amendments: Users can amend pre-lodged declarations before they are accepted and the Movement Reference Number (MRN) is issued.
Paperless Transit Accompanying Document (TAD): Drivers will no longer be required to carry a paper TAD. For goods released into Transit by Border Force at an Inland Border Facility or border location, TADs will only be printed if specifically requested.
Electronic MRN Presentation: MRNs can now be presented electronically, including as part of the Goods Movement Reference (GMR) at GVMS border locations.
Fallback Process: The Single Administrative Document (SAD/C88) will no longer be used as a fallback. Instead, a blank TAD can be printed from user software or the Transit Manual Supplement.
There are further adjustments to prepare for. I recommend you read our factsheet: Transit (GB): Six Key NCTS 5 Changes In 2025
Arne’s Takeaway
The NCTS P5 update is a significant milestone for the customs and trade community. By embracing the changes—such as the removal of paper TADs, mandatory commodity codes, and electronic MRN presentation—you’ll streamline your processes and stay ahead in a rapidly evolving industry.
Arne’s Takeaway: Be proactive in familiarizing yourself with these updates and use all available resources, such as webinars and handbooks, to ensure compliance and efficiency.
Expert Recommendation
Read our factsheet which provides more information on the changes.
Preparation: Prepare for varied implementation levels across national administrations and ensure compliance with local procedures during the transition to digital systems.
Familiarize Yourself with the new MRN and commodity code requirements now.
Attend Webinars: Don’t miss the upcoming webinars focusing on key changes and technical aspects.
Attend our transit training. Book on www.customsmanager.org/events
Make sure your systems and processes are ready for the final state of NCTS P5.
We make transit declarations for you.
Did you know that we made a transit declaration for you? Need help lodging transit 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:
Updates from the HMRC transit policy team during the latest Transit Task & Finish Group meeting
Subscribe to The Customs Watch, our weekly law, guidance, and policy update consolidation.
Visit our Knowledge Hub at www.customsmanager.info for information on customs, transit procedures, and more.
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.
#training #education #clearance #consultancy #advice #support #Customs #ExportControls #Sanctions #CustomsAgent #CustomsClearance #CustomsConsultant #Import #Export #CustomsProfessional #FreeTrade #LondonTraining #CustomsExperts #SanctionsCompliance #ExportControl
Comments