NCTS Phase 5 - Sequoia Development Update - February 2023
UK NCTS phase 5 is due to go live on 16 November 2023. To meet the requirements of the Common Transit Convention (CTC), all member countries must transfer to phase 5 by 30 November 2023.
There are significant changes being made to transit. As well as a complete redesign of the transit declaration itself, Phase 5 introduces:
- A single declaration supports up to 99 house consignments, each with up to 999 items.
- Pre-lodgement of declarations
- Amendment of pre-lodged declarations
- Cancellation of declarations
- Presentation of goods
- Enhanced guarantee management and guarantee query
- Registration of any incidents that may occur during transit
- Reporting of major discrepancies and recovery action
- Reporting of non-arrived movements (now out of scope)
As the current (Phase 4) and the new (Phase 5) systems are very different, running them side by side is impossible. Therefore there will not be a period of ‘dual running’ and it will not be possible to use both systems to process the same movement. The transition from one system to another across 35+ EU and CTC transit countries and territories is complicated.
Essentially, any transit movement started prior to 16th November 2023 will be processed through to write off on the Phase 4 system. From 16th November, all new movements will be handled entirely on the Phase 5 system.
From a development point of view, in Sequoia the two requirements (Phase 4 and Phase 5) will be kept separate; all of the Phase 5 functionality will be developed as a new module. This is at a Sequoia design stage at the moment, whilst we continue to evaluate information being received from HMRC.
In addition, the new transit declaration structure is only compatible with CDS export declarations. Therefore the Phase 5 module in Sequoia will only map data from CDS export declarations.
We don’t have a date yet when we anticipate the NCTS 5 functionality will be available in Sequoia.