BIFAlink February 2023


Policy & Compliance

For ICS2 there are two declaration stages for air, unlike other modes of carriage – one prior to loading in the form of the Preloading Advance Cargo Information (PLACI) and one prior to arrival, which is the full Entry Summary Declaration (ENS), although it should be noted that the two can be combined into a single declaration or built up over a number of individual declarations. New Computerised Transit System 5 A change is coming to the New Computerised Transit System (NCTS), with all member countries of the Common Transit Convention (CTC) required to transfer to NCTS5 by 30 November 2023. HMRC has considered the technical and operational options available, testing them with software developers to give users a smooth transition from NCTS4 to NCTS5. A direct cutover approach will be adopted where NCTS5 is introduced straight after closing down NCTS4. This will take place in Great Britain and Northern Ireland at the same time for simplicity. In fact, it will be mandatory to submit transit declarations on NCTS5 from 16 November 2023. This will allow transit movements started on NCTS4 before this date to progress through and finish without needing to be resubmitted before the change-over date of 30 November 2023. If you are a declarant using the free-to-use web portal via the Government Gateway to submit your transit movements, you will need to

enrol to the new web portal for NCTS5. HMRC will let you know nearer the time, how and when you can do this. If Members are using a software developer, HMRC is talking to them separately, so they know what they need to do and by when. If commercial software is used to upload your movement information, the software supplier will be able to tell you nearer the time how and when you can get the new software. NCTS5 will provide benefits to users by bringing new and enhanced functionality to improve the service provided to Members using the system. In summary the main enhancements are: • The ability to amend pre-lodged declarations to avoid having to cancel and re-submit; • Introduction of a Digital Transit Accompanying Document (TAD) so the paper document does not need to be carried with the goods; • Increased flexibility for the Customs ‘office of incident’ role, which can be carried out at any Customs location during the movement. In conclusion there are significant changes to Customs systems to be implemented during 2023. Dependent on a Member’s specific business, the impact of one change may be greater than another one. However, recent history, whether it be planning for post-Brexit changes or the implementation of CDS imports, highlights the need to understand what they are, allocate sufficient resources and develop a coherent plan.

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new Union Customs Code (UCC) processes and procedures relating to the entry of goods. These include: • Multiple filing of advance cargo information by the carrier and another party (including freight forwarders) under Article 127(6) of the UCC; • The involvement of more supply chain actors and business models as set out Article 127(4) of the UCC. ICS2 will: • Strengthen protection of EU citizens and the internal market against security and safety threats. • Allow EU Customs authorities to better identify high-risk consignments and intervene at the most appropriate point in the supply chain. • Facilitate cross-border clearance of legitimate trade. • Simplify the exchange of information between Economic Operators (EOs) and EU Customs authorities. ICS2 will be released in three phases as outlined below. • Release 1 – which was released on 15 March 2021 covering all postal and express consignments; • Release 2 – due on 1 March 2023 covering all airfreight movements; • Release 3 – due to be introduced on 1 March 2024 covers all goods in maritime and inland waterways, road and rail traffic.


February 2023

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