NCTS Phase 5 is a computerized system used to manage the movement of goods under the Common Transit Convention. NCTS Phase 5 introduces a range of enhancements designed to modernize the system. These include better data integration, improved risk management, and more streamlined communication between customs authorities and traders. The goal is to reduce transit times, improve accuracy, and increase the overall efficiency of the customs process. The system went live in Ireland earlier this year. Unfortunately, there were significant issues with NCTS P5 integrating with CDS and the GVMS system in the UK. This led most traders continuing to use P4 until these issues were resolved in the last number of weeks.
Impact on Irish Businesses
The implementation of NCTS P5 will have a substantial impact on Irish businesses involved in transit operations. First, it will streamline transit procedures, making them faster and more reliable. Businesses will benefit from reduced delays at customs checkpoints, which will, in turn, lead to quicker deliveries and lower costs.
Moreover, NCTS P5 enhances data accuracy. This is crucial for businesses, as accurate data reduces the risk of errors in customs declarations. Consequently, businesses can expect fewer delays and complications due to incorrect or incomplete information.
Another key impact is the improved communication between customs authorities and traders. NCTS P5 allows for real-time updates on the status of goods in transit. This transparency helps businesses plan their operations more effectively and reduces uncertainty in the supply chain.
Issues with GB GMRs and Resolution
Before the implementation of NCTS P5, there were significant issues with the UK’s Goods Movement References (GMRs). These references were required for moving goods between Great Britain (GB) and the EU post-Brexit. However, businesses faced challenges with GMRs due to system integration issues and data discrepancies. These problems led to delays and confusion at borders, negatively impacting trade.
NCTS P5 addresses these issues by improving data integration between the NCTS and GMR systems. The new system ensures that data is accurately transferred and matched, reducing the risk of discrepancies. This improvement has resolved many of the issues that businesses faced with GMRs. As a result, transit operations between Ireland and Great Britain have become smoother and more predictable.
Preparing for NCTS Phase 5
Irish businesses should take steps to prepare for NCTS Phase 5. First, they need to ensure that their systems are compatible with the new requirements. Updating software and training staff on the new procedures are essential steps. Additionally, businesses should review their transit processes to identify areas where NCTS P5 can bring improvements. From October 21st 2024 all transit declarations must be submitted to Revenue in NCTS P5. At the end of the transition period in January 2025 all T1 and T2 transits will require a 6-digit HS code.
For more detailed information on NCTS Phase 5 click here https://www.revenue.ie/en/customs/documents/electronic/ncts-p5-information-for-the-trade.pdf
Conclusion
NCTS Phase 5 represents a significant advancement in the management of transit operations in Ireland. By improving efficiency, accuracy, and communication, it offers substantial benefits to businesses involved in cross-border trade. Although the transition to NCTS P5 may require some adjustments, the long-term benefits make it a positive development for Irish businesses. With the issues surrounding GB GMRs now resolved, companies can expect smoother and more reliable transit operations moving forward. NCTS P5 software is now live on Custran.
To discuss your specific transit requirements contact Custran today click here
