As Belgium prepares for the mandatory rollout of the New Computerised Transit System (NCTS) Phase 5 on January 21, 2025, businesses involved in EU customs transit procedures need to prepare for significant changes. This transition introduces updated documentation requirements, new system protocols, and emergency procedures that require immediate attention. Here’s a comprehensive guide to help your business stay compliant, minimize disruptions, and transition smoothly.
Key Changes: The Big Bang Deadline
From January 21, 2025, all new transit declarations must be processed in the NCTS Phase 5 system. The previous version (Phase 4) will no longer be accepted, marking the end of the transition period.
What Does This Mean for Businesses?
- Phase 4 Declarations:
If your movement was initiated before January 21, 2025, and both starts and ends in Belgium, or departs Belgium to another country, it will still be processed under Phase 4. - Phase 5 Declarations:
Any movements initiated before January 21, 2025, destined for Belgium but departing from another Member State must be processed in Phase 5.
To minimize disruption, an emergency procedure is in place to ensure continued operations if the new system faces issues.
What’s Changing with the Documents?
One of the most important updates is the transition to the new Transit Accompanying Document (TAD) and List of Items (LoI), which replace older documents.
- The DAU – DOCUMENT T will no longer be accepted starting December 9, 2024.
- The new TAD format, in line with Annex B-02 of Regulation (EU) 2015/2446, will be mandatory.
- A List of Items (LoI), as per Annex B-03, must accompany the TAD, even for single-item shipments.
Action Items for Compliance:
- Double-check your TAD and LoI: Ensure you’re using the latest formats for each shipment.
- Refer to the UCC-DA Annex B for detailed data requirements, and review Dataset D1 for guidance.
- From December 9, 2024, stop using the old TAD version, as it will no longer be accepted.
Emergency Procedures: Your Safety Net
In the event of system unavailability or a delay in processing, businesses can rely on the Business Continuity Plan (BCP) procedures to continue their operations.
How to Navigate Emergency Procedures:
- Paper-based TADs may be temporarily used, but ensure they are clearly marked with emergency reference numbers (MRN) and customs verification remarks.
- Manual Processing: Local customs will handle the validation and stamping of affected documents, ensuring minimal disruption.
Steps to Take for Emergency Use:
- Prepare paper TADs, include the emergency reference number (MRN), and ensure customs verification remarks are filled in.
- Submit paper documents to local customs offices for manual processing.
- If system availability is restored, update your declarations electronically.
Streamlined PLDA Clearance Procedures
For import clearances via PLDA:
- Enter your declarations electronically in PLDA as required.
- Update specific fields such as the “previous document” and “special mentions” fields to reflect NCTS-related references.
- After validation, submit your PLDA declaration number and NCTS documents to your local customs office for manual processing.
Expert Advice: How to Ensure a Smooth Transition
Expert Tip 1: Early System Upgrades
Start upgrading your systems and integrate the new NCTS Phase 5 protocols as early as possible to avoid a last-minute rush. Delays can result in costly customs hold-ups and lost business.
Expert Tip 2: Staff Training
Training your staff on the new procedures, document formats, and emergency protocols is essential. Make sure your team is well-prepared to handle any issues that arise during the transition.
Expert Tip 3: Build Relationships with Customs
Proactive communication with local customs offices can ensure smoother clearance and faster resolution if something goes wrong.
Real-World Examples: How Businesses Are Adapting
Case Study 1: A Logistics Provider’s Successful Transition
A logistics company based in Belgium successfully transitioned to NCTS Phase 5 ahead of the deadline by conducting a full systems audit and training their staff three months in advance. They also partnered with local customs offices to ensure timely updates and processing of emergency cases. As a result, they had zero delays in shipments once the system went live.
Case Study 2: E-Commerce Seller Tackles Documentation Changes
An e-commerce seller that ships goods within the EU found the document transition challenging. By downloading the latest TAD templates early, the seller was able to avoid delays with their shipments and maintain smooth operations during the initial Phase 5 launch period.
Next Steps for Businesses: Stay Ahead of the Curve
With the January 21, 2025 deadline fast approaching, it’s essential to act now to ensure a smooth transition to NCTS Phase 5. Here’s what businesses should do next:
- Upgrade Your Systems: Ensure your IT infrastructure can process Phase 5 declarations.
- Train Your Staff: Equip your team with the knowledge and tools they need to manage the new procedures.
- Stay Informed: Regularly check for updates from official sources and customs authorities.
- Prepare for Emergencies: Familiarize yourself with the Business Continuity Plan (BCP) and be ready to use emergency procedures when necessary.
Final Thoughts: Preparing for the Big Bang
The transition to NCTS Phase 5 is a major event in the customs landscape. While it introduces significant changes, being proactive and prepared will ensure that your business stays compliant and avoids disruptions. By upgrading your systems, training your staff, and staying ahead of the regulatory curve, you’ll be in a strong position to navigate the future of customs transit with ease.
Make the changes today to avoid complications tomorrow and keep your business running smoothly in an increasingly connected global market.
