NCTS phase 5: what changes for customs transit?
NCTS phase 5 renews the EU customs transit system: declarations are aligned with the Union Customs Code (UCC), with new data requirements and the registration of en route events. Deployment was set for 2 December 2024.
Short answer: NCTS is the EU system for handling customs transit. With phase 5 (NCTS-P5), transit declarations are aligned with the Union Customs Code: new data requirements apply and events during transport are registered en route. According to the European Commission, phase 5 deployment was set for 2 December 2024.
What NCTS is and what it does
The New Computerised Transit System (NCTS) is the electronic system the EU uses to manage and control the movement of goods under the customs transit procedure. It is used for Union Transit (movement between two points within the customs territory of the Union) and for Common Transit (movement between the EU and countries party to the Convention on a common transit procedure).
Under the transit procedure, customs duties and trade policy measures are temporarily suspended while the goods are in transit. NCTS tracks each consignment via a Master Reference Number (MRN) and ensures the goods travel along the authorised route until the procedure is discharged at the office of destination. For carriers, freight forwarders and customs agents, NCTS is therefore the operational backbone of every transit movement.
What phase 5 changes
NCTS has been rolled out in successive phases. Phase 4 dates from 2009; phase 5 (NCTS-P5) is the current version. The core of phase 5 is its alignment with the Union Customs Code (Regulation (EU) No 952/2013). In practice this means:
- New and adjusted data requirements in the transit declaration, in line with UCC data requirements.
- Registration of en route events, so deviations during transport are recorded in the system.
- Updated interfaces between NCTS and other customs systems.
According to the European Commission, full deployment of phase 5 was set for 2 December 2024. The transition proceeded per Member State and per party to the Common Transit Convention; consult the main source page for the current status per country, as dates and exceptions may differ per party.
What this means in practice
Anyone placing goods under transit should align their declaration process with the UCC data requirements of phase 5. This calls for correct and complete information in the transit declaration and for software or a service provider that supports NCTS-P5. Because phase 5 also registers en route events, it is important that deviations (such as a changed route or an incident) are reported promptly and accurately.
For carriers, freight forwarders and customs agents this means: ensure your connection to NCTS-P5 is in place and that staff understand the changed data elements. The legal basis remains the Union Customs Code; NCTS is the system through which that procedure is carried out electronically. For the exact obligations and the status in your country, always consult the official European Commission page.
Read more: Transport & Logistics. Take the scan.
Sources
- https://taxation-customs.ec.europa.eu/online-services/online-services-and-databases-customs/new-computerised-transit-system-ncts_en
European Commission โ New Computerised Transit System (NCTS); phases, phase 5 and deployment. - https://eur-lex.europa.eu/eli/reg/2013/952/oj
Regulation (EU) No 952/2013 (Union Customs Code); legal basis for customs transit.
Read next
Customs and freight: the guide for importers, carriers and forwarders
The EU is digitalising and tightening the customs and freight process: ICS2 for import security, AEO status as a trusted trader, eFTI and e-CMR for digital freight documents, EMSWe for ports. This guide brings together what applies and where to start.
AEO status: what does Authorised Economic Operator offer and what are the requirements?
AEO status marks you as a trusted trader with customs. You get fewer checks, priority treatment and easier access to simplifications. The requirements: a compliance record, sound records, solvency and competence.
The EU customs reform: EU Customs Authority and Data Hub (towards 2028)
In 2023 the Commission proposed the largest customs reform since the customs union: an EU Customs Authority and a central EU Customs Data Hub. The proposal is still in the legislative process; the first Data Hub functions are envisaged towards 2028.