Changes to Transit Declarations from 4th May

HMRC are making some changes to NCTS on 4 May that could affect how you make your transit declarations.

Background

When making a declaration into NCTS for transit movements, you are required to provide an accurate guarantee reference amount, in line with the Common Transit Convention (CTC).

The guarantee reference amount is the amount of duties that are suspended on the transit movement. You must provide a guarantee against this amount. If you use a Customs Comprehensive Guarantee (CCG) then NCTS keeps track of the amount of guarantee that you have used and does not allow you to start new movements unless you have enough unused guarantee.

 

What is changing

The UK NCTS system was upgraded on 14 January, so that if you did not enter a value, the NCTS system entered a default amount in your declaration. This amount is set by the CTC at the sterling equivalent of 10,000 euros for each transit movement.

However, because many businesses were unable to enter an accurate guarantee reference in their transit declarations, HMRC temporarily reduced the default value of 10,000 euros to £1, to allow businesses to continue making transit movements.

This was only a temporary measure until businesses and software developers could ensure that they were able to enter accurate guarantee reference amounts into their declarations.

HMRC will be resetting this value to the sterling equivalent of 10,000 euros on the 4 May.

You must now ensure that you are able to enter accurate guarantee reference amounts in all your transit declarations. If you do not enter a value, NCTS will automatically add a value of 10,000 euros in sterling and will hold 10,000 euros of your guarantee against the movement. NCTS keeps track of the amount of your guarantee that you have used and does not allow you to start new movements unless you have enough unused guarantee.

The changes being made in order to comply with CTC requirements have also been published on Gov.uk.

 

Your next steps

You must ensure that you can enter an accurate guarantee reference amount with each transit declaration. If you are able to enter a guarantee reference amount then you should already be doing so. Sequoia allows you to do this.

See the Sequoia Resource Centre for more information on how this works.

 

Enter a guarantee reference amount in every declaration

You must ensure that you are entering an accurate guarantee reference amount with each transit declaration.

In most cases, you should be able to calculate an accurate guarantee reference amount, based on the value of the customs and other duties on the goods that are suspended whilst they are in transit. You must enter this value as the guarantee reference amount.

In some exceptional cases, it may not be possible to calculate an accurate amount at all. In these cases only, you may enter an amount of 10,000 euros in sterling. You should enter this amount into NCTS yourself if you are able to.

NCTS will not accept a value below £1 for transit declarations made using software. Therefore all guarantee reference amounts must be £1 or more.

Sequoia will calculate and enter the guarantee reference amount in your declaration automatically if you have linked export shipments and/or consolidations to the transit movement prior to creating the transit declaration. If not then you can enter the details manually. See the Sequoia Resource Centre for more information on how to do this.

If you do not declare a guarantee reference amount, then NCTS will automatically enter a default of 10,000 euros in sterling.

 

Make sure your guarantee is large enough

You must continue to monitor your actual guarantee usage and ensure that you have sufficient guarantees in place to cover all of your open transit movements. This requirement applies regardless of whether or not you are able to enter an accurate amount on NCTS.

If you reach the limit of your guarantee, then you will not be able to start any new movements, until either some of your open movements are closed and the guarantee released, or you arrange for your guarantee limit to be increased.

 

Increase your guarantee if you need to

If you reach your limit of guarantee, then you will not be able to start any new movements, until either you apply for your guarantee limit to be raised, or until open movements are closed and the guarantee released.

To increase the amount of your guarantee please follow guidance on how to apply for a Customs Comprehensive Guarantee including considering applying for a waiver using form CCG1F.

https://www.gov.uk/guidance/apply-for-a-customs-comprehensive-guarantee-to-cover-customs-debts


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