3.1 INTRODUCTION

• The New Computerised Transit System (NCTS) is the electronic declaration and processing system for Common Transit declarations.
• NCTS processes the declaration and controls the transit movement.
• It is used by the UK, EU member states and other CTC signatories.
• Traders must use NCTS for goods moved under the Common Transit Convention.

3.2 ECONOMIC OPERATOR REGISTRATION IDENTIFICATION (EORI) NUMBER

• An EORI number identifies businesses/operators importing or exporting to the EU.
• The source notes that HMRC issued XI-prefixed EORI numbers from December 2020 to operators believed to need them.
• The EORI must be included on relevant pre-arrival and pre-departure information and when importing, exporting or moving goods under transit.
• From January 2021, a GB EORI number was required for the relevant UK activities.
• The source notes that the Trader Identification number is a 12-digit number, normally based on the VAT Registration Number with a 3-digit extension.

3.3 NCTS PROCEDURE

• NCTS movements are open to consignors and consignees authorised by Customs.
• Customs checks include whether the consignor/consignee can provide the required guarantee.
• The guarantee covers potential VAT/customs-duty liability if the transit movement is not completed correctly.
• Access to the NCTS web service requires relevant business details, EORI number, guarantee and Trader Identification number.
• Technical requirements include Government Gateway access, a suitable computer, PDF capability, a printer able to print barcodes, and appropriate browser settings.
• When a transit declaration is made, NCTS sends an electronic message to the customs office of departure.
• If accepted, the system allocates a Movement Reference Number (MRN).
• The vehicle must carry a Transit Accompanying Document (TAD), even though NCTS is intended to be largely paperless.
• The TAD contains the MRN in numerical and barcode form.
• The TAD is presented at the office of destination and any offices of transit.

3.4 OFFICES OF TRANSIT

• UK operators normally encounter offices of transit when crossing between the EU and a third country.
• Examples include EU/EFTA borders such as France/Switzerland and Italy/Switzerland.
• The office of transit receives an anticipated transit record from the office of departure.
• The carrier presents the goods and TAD at the office of transit.
• Customs validates the movement and sends confirmation to the office of departure when the crossing is satisfactory.

3.5 GUARANTEES

• The CT principal, normally the authorised consignor but potentially the carrier, must have a Customs-approved guarantee.
• The guarantee covers taxes or duty that could become due if the transit movement is not properly completed.
• Potential liability includes goods being sold in the UK, disposed of in a transit country, or not properly cleared at destination.
• Banks and insurance companies are the principal organisations acting as guarantors.
• When a movement is correctly completed, an arrival notification is sent by the authorised consignee to the office of destination.
• If the notification is not received, Customs can investigate and may make a claim under the guarantee.
• The source states that guarantees remain 'live' for 12 months.
• Three guarantee types:
• Individual Guarantee – generally used for no more than 3 movements a year or where a large customs debt needs separate cover.
• Comprehensive Guarantee – commonly used; covers an unlimited number of CT movements, with the required level assessed from the principal's trade.
• Guarantee Waiver – may be granted to financially sound regular users; the business becomes entirely responsible for outstanding duty and charges if a movement is not properly completed.

3.6 VEHICLES AND CONTAINERS

• Vehicles and containers used under CTC must be sealed by Customs.
• Vehicles must meet the construction standards applicable to TIR operations.