NCTS+ +Information+for+the+Transit+Trader[1]

NCTS - Information for

the Transit Trader Document: NCTS Transit Trader

Version: 3.1 Date: April 2006

TRANSIT TRADER UK NCTS Project Table of Contents

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1. INTRODUCTION ....................................................................................................................................1

1.1 Scope and purpose of this document ..................................................................................................1

1.2 Flow diagram key .................................................................................................................................1

2. NCTS PROCEDURES.............................................................................................................................2

2.1 Introduction ..........................................................................................................................................2 2.1.1 How will NCTS impact on UK Traders? ...................................................................................2 2.1.2 Electronic Processing ...................................................................................................................2

2.1.4 Further information on the options and applying for transit simplifications is available as follows: 3

2.1.5 Information Exchange (IE) Messages.............................................................................................3

2.1.6 Movement Reference Number (MRN) ...........................................................................................3 2.1.7 Transit Accompanying Document (TAD) and List of Items (LoI) ..........................................4

2.1.8 Confirmation of Authorised Consignees ........................................................................................4

2.2 NCTS Normal Procedure.....................................................................................................................5 2.2.1 Office of Departure.......................................................................................................................5 2.2.3 Office of Destination.....................................................................................................................7

2.3 NCTS Simplified Procedures...............................................................................................................8 2.3.1 Authorised Consignors and Consignees .....................................................................................8 2.3.2 Office of Departure (Authorised Consignor) ..........................................................................8 2.3.3 Office of Destination (Authorised Consignee) ........................................................................9

3. NCTS NORMAL PROCEDURE OFFICE OF DEPARTURE ......................................................11

3.1 Goods present......................................................................................................................................11 3.1.1 To whom will this particular procedure apply? ......................................................................11 3.1.2 Use of Guarantee types 2 (Individual Guarantee), 4 (Individual Guarantee Vouchers) and 9 (Individual Guarantee with Multiple Usage) ........................................................................................11 3.1.3 Declaration to NCTS and allocation of MRN. .........................................................................11 3.1.4 Control Decision: No Control .................................................................................................12 3.1.6 Control Decision: Control .......................................................................................................14 3.1.7 Flow diagram: NCTS Normal Procedure Office of Departure declaration ......................16

3.2 Declaration Pre-Lodged.....................................................................................................................17 3.2.1 To whom will this particular normal procedure apply?.........................................................17 3.2.2 Declaration to NCTS ..................................................................................................................17 3.2.3 Acceptance of Declaration and Allocation of MRN ................................................................17 3.2.4 Control and Release ...................................................................................................................17

3.3 Cancellation.........................................................................................................................................17 3.3.1 At what point can cancellation be applied? .............................................................................17 3.3.2 How is a cancellation requested? ..............................................................................................18 3.3.3 Flow diagram: OoDep Cancellation ......................................................................................18


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3.4 Discharge of the Movement (Write-off) ...........................................................................................18 3.4.1 Office of Write-Off .....................................................................................................................18 3.4.2 Action by Office of Destination .................................................................................................19

4. NCTS NORMAL PROCEDURE OFFICE OF DESTINATION ...................................................20

4.1 Trader at Destination connected to the NCTS.................................................................................20 4.1.1 To whom will NCTS Normal Procedure apply?......................................................................20 4.1.2 Arrival Notification ....................................................................................................................20 4.1.3 Diversion from a different NCTS Office of Destination .........................................................20 4.1.4 Control Decision: No Control .................................................................................................21 4.1.5 Control Decision: Control .......................................................................................................21

4.2 Trader at Destination not connected to NCTS ................................................................................22 4.2.1 Arrival Notification ....................................................................................................................22 4.2.2 Control and Release ...................................................................................................................22

4.3 Flow diagram: NCTS Normal procedure Office of Destination .................................................23

5. NCTS SIMPLIFIED PROCEDURE OFFICE OF DEPARTURE.................................................24

5.1 Authorised Consignor ........................................................................................................................24 5.1.1 To whom does the Simplified Procedure apply? .....................................................................24 5.1.2 Declaration to NCTS and Allocation of MRN .........................................................................24

5.2 Control and Release ...........................................................................................................................25 5.2.1 No Control: ...............................................................................................................................25 5.2.2 Control:.....................................................................................................................................25 5.2.3 Cancellation.................................................................................................................................26 5.2.4 Write-off ......................................................................................................................................26

5.3 Flow diagram: OoDep Simplified Procedure (Authorised Consignor) ......................................27

6. NCTS SIMPLIFIED PROCEDURE OFFICE OF DESTINATION..............................................28

6.1 Authorised Consignee ........................................................................................................................28 6.1.1 To whom does the simplified procedure apply? ......................................................................28 6.1.2 Registering Arrival Notification on NCTS ............................................................................28

6.2 Control and Release ...........................................................................................................................29 6.2.1 No Control: ...............................................................................................................................29 6.2.2 Control:.....................................................................................................................................29

6.3 Flow diagram: OoDest Simplified Procedure (Authorised Consignee).....................................30

7. NCTS PROCEDURE OFFICE OF TRANSIT.................................................................................31

7.1 Office of Transit..................................................................................................................................31 7.1.1 When will Office of Transit procedures apply?.......................................................................31 7.1.2 Presentation to Customs at the Office of Transit ....................................................................31 7.1.3 Diversion from a different NCTS Office of Transit ................................................................31 7.1.4 Movement Turned Back ............................................................................................................31 7.1.4 Notification of Crossing Frontier ..............................................................................................32


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7.1.5 Movement Stopped .....................................................................................................................32

7.2 Flow diagram: Office of Transit .......................................................................................................33

8. GLOSSARY AND ABBREVIATIONS................................................................................................34

A. SPECIMEN OF THE TRANSIT ACCOMPANYING DOCUMENT (COPY A ) ............................1

B. SPECIMEN OF THE LIST OF ITEMS (SHEET A)` ..........................................................................1

C. REQUIREMENTS FOR APPROVAL OF AUTHORISED CONSIGNORS ....................................1

D. REQUIREMENTS FOR APPROVAL OF AUTHORISED CONSIGNEES...................................C

TRANSIT TRADER UK NCTS Project Chapter 1. Introduction

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1. Introduction 1.1 Scope and purpose of this document 1.1.1 The purpose of the NCTS Information for the Transit Trader document is to assist the

Community/common transit (CT) trader on how the New Computerised Transit System (NCTS) operates in the UK. It was last updated to reflect the changes brought in by NCTS Phase 3.2 in the autumn of 2005 and other changes such as the withdrawal of paper loading lists. In functionality/messaging terms NCTS Phase 3.2 does not impact greatly on the trade bearing in mind that the main change (from paper to electronic) was implemented when NCTS Phase 3.1 went live in the UK in July 2003.

1.1.2 NCTS Phase 3.2 introduced:

Guarantee management (implications for traders at Departure and Destination are set out in the following chapters).

Enquiry handling - provides the facility for Customs National Administrations to send enquiries about movements between CT offices electronically.

Confirmation of Authorised Consignees (see Section 2.1.8). 1.1.3 This latest update includes details of the XML communication route (see Section 2.1.3). 1.1.4 The document focuses on the NCTS procedures that are available to the CT trader and the associated terms

and conditions for those traders that are/wish to be approved to use simplified procedures as Authorised Consignors and/or Consignees. It should also provide a useful supplement when examining the technical implications of the message structures contained in the Technical Interface Specification (TIS).

1.1.5 This document is only intended as a broad overview of NCTS procedures, albeit hopefully a helpful one.

Further information on NCTS (eg contact information, declaration completion rules, fallback procedures) can be found on the HMRC website (www.hmrc.gov.uk) under the Import & Export section (there is an extensive NCTS page within this section).

1.1.6 The information in this document does not override or replace any extant EU and UK Customs

regulations relating to the Community/Common Transit procedure, and is intended only to explain the use of NCTS within those regulations.

1.2 Flow diagram key 1.2.1 To assist the reader in understanding the flow diagrams, please see the key below. The key identifies

message flows from and to the trader and Customs, and on and off line functions

Key

NCTS State

IE E Message to/from trader

IE E message to/from customs offices

Reject On line action Opposition Off line action

System timer function

TRANSIT TRADER UK NCTS Project Chapter 2. NCTS Procedures

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2. NCTS Procedures 2.1 Introduction 2.1.1 How will NCTS impact on UK Traders? 2.1.1.1 The NCTS computerises the Community/Common Transit paper based system without substantial

change to the current CT procedures and their governing regulations and requirements. 2.1.1.2 The NCTS replaced the use of paper declarations (T1/T2/T2F), for all Community/common transit

movements, including movements wholly within the UK (UK Transit). NCTS has not, however, in the short term at least, replaced the existing UK Transit procedures using CSP inventory systems, or the simplified procedures for movements by air, sea or rail.

2.1.1.3 The roles and responsibilities of the Principal, and/or his representative, remain unchanged. The

Principal is responsible for providing a guarantee to cover the duties and taxes which may become due if the movement is not satisfactorily completed and for producing the goods intact to the Customs Office of Destination within a prescribed time limit.

2.1.1.4 Traders using the NCTS by electronic communication routes (see below) will be able to use either the

Normal procedure or, provided that they are authorised as Authorised Consignors or Consignees, the Simplified procedure. The following paragraphs give a description of the arrangements for use of these procedures at departure and destination.

2.1.2 Electronic Processing 2.1.2.1 Council Regulation (EC) No 837/2005 and Decision No 4/2005 of the EC/EFTA Joint Committee on

Common Transit made the use of the NCTS compulsory for traders with effect from 1 July 2005. Paper declarations are no longer accepted except where fallback applies and for declarations from private travellers with goods in excess of their allowances (which will be entered to the NCTS by Customs offices of departure).

2.1.2.2 Trader interface options for UK-NCTS are via EDCS (Electronic Data Capture Services the

Departmental e-mail gateway) or the NCTS Web Service. 2.1.3 XML Route

2.1.3.1 A third communication channel for NCTS, an XML (Extensible Markup Language) route went live from mid April 2006. The XML is used as a wrap for the EDIFACT message. In this way, we use XML as the transport mechanism instead of email. EDIFACT will still be used for the data representation.

2.1.3.2 The use of XML will overcome many of the problems associated with email. However, it should be understood that, although this new channel provides greater assurance of message delivery to the NCTS, it does not resolve any of the internal processing problems being experienced or speed up the overall NCTS process. If you are interested in using the XML route, please contact your local Software Supplier for technical information.


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2.1.4 Further information on the options and applying for transit simplifications is available as follows:

a). Information on the NCTS Electronic Communication Routes (EDCS or Web) can be found at:

NCTS Electronic Communication Routes http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&id=HMCE_PROD_010344&propertyType=document

b). Information on NCTS EDCS completion rules can be found at: NCTS EDI Traders Message Completion Rules http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageMySite_ShowContent&id=HMCE_PROD1_024334&propertyType=document

c). Information on NCTS Web completion rules can be found at: UK NCTS: Web channel - Declaration completion rules http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageMySite_ShowContent&id=HMCE_PROD_011331&propertyType=document

d) Information on the NCTS XML Channel at:

NCTS Online XML route http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&id=HMCE_PROD1_025417&propertyType=document

e) The CCTO will be able to supply application forms for Community/Common Transit Simplifications See Appendix C2 for the address of the National Simplification Team.

2.1.5 Information Exchange (IE) Messages 2.1.5.1 It must be emphasised that traders are not able to interface directly with the NCTS, to input or amend

data or to access records and standing data, but will simply exchange defined structured messages with the system. These messages are known as Information Exchange (IE) messages and are specifically identified by number, e.g. the electronic transit declaration is IE015. To enable processing it is essential that traders keep their standing data up to date and promptly advise the CCTO of any changes. It should also be noted that changes to standing data take 3 working days to implement.

2.1.5.2 Details of the structure of the various IE messages that will be exchanged with the NCTS are set out in

the UK NCTS Technical Interface Specifications (TIS), which includes the changes for Phase 3.2. These messages, particularly the Transit Declaration, IE015, are based on the Single Administrative Document (SAD) box data required for paper declarations and no new information from traders is required. For the TIS, and information on trade testing, see the HMRC website (www.hmrc.gov.uk) for details (under the Import & Export, NCTS, Technical information and General information sections respectively).

2.1.6 Movement Reference Number (MRN)


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2.1.6.1 A key element of the NCTS is the Movement Reference Number, a unique number generated by the system upon its acceptance of a correct declaration. The MRN has a defined structure of 18 characters; e.g. 06GB00005112345678. The first two indicate the year (2006), the second two the country of the Office of Departure (GB), the next six the code for the Office of Departure (000051 = Felixstowe) and the last eight (12345678) consist of the unique identifier for the movement and a check digit. See the TIS for further information.

2.1.6.2 Provided that this number is known, any customs office connected to the NCTS anywhere throughout

Europe can access the Transit Declaration and thereby perform any necessary control of the transit movement, whether or not that office is the declared Office of Destination or of Transit.

2.1.6.3 Following release of a movement at departure (see Chapters 3 & 5), traders may wish to track the

status of their MRN(s) (currently only for international movements) using the European Commission website: www.europa.eu.int/comm/taxation_customs/dds/cgi-bin/mishome?Lang=EN

2.1.7 Transit Accompanying Document (TAD) and List of Items (LoI) 1

2.1.7.1 While the NCTS is designed to be a largely paperless system, a covering document, the Transit Accompanying Document (TAD) must still accompany the goods during transit and be presented, together with the goods, at any Office of Transit en route and at the Office of Destination. A specimen of the TAD is included in this document at Appendix A.

2.1.7.2 The TAD must bear the MRN printed both in numerical format and as a Barcode. This is a legal

requirement and the Barcode is intended to allow automatic processing, by use of Barcode readers, at busy CT offices, most notably on EU/EFTA borders eg France/Switzerland.

2.1.7.3 For multi item consignments, the TAD may be supplemented by a List Of Items (LoI), i.e. an

electronic load list. The LoI is an integral part of the IE015 Transit Declaration. A specimen of the LoI print is included in this document at Appendix B. Since 1 January 2005 Paper Load Lists (PLL) cannot be used in the NCTS except under the Fallback Procedure.

2.1.7.4 The TAD and LoI are used in a similar way as Copies 4 and 5 of the OTS paper declaration and

continuation sheets, eg Any change of means of transport, or other incident, en route will be recorded on the TAD

(Boxes 55 and 56) and captured to the NCTS when the TAD is presented at the next NCTS office;

The TAD will be used when presenting goods at Offices of Transit. No electronic messages can be exchanged with these offices and the MRN must be used to access the movement record on the NCTS. Use of the Barcode greatly speeds up this procedure.

For details of the NCTS offices see the European Commission website: www.europa.eu.int/comm/taxation_customs/dds/en/csrdhome.htm

2.1.7.5 Full details and instructions as to the form and printing of the TAD and LoI, including the Barcode, are set out in the UK NCTS Technical Interface Specification (TIS), published on the NCTS page of the HMRC Website.

2.1.8 Confirmation of Authorised Consignees

1 LoI required for declarations with more than one item. The NCTS Web route only allows up to 99 items to be entered per declaration. Up to 999 items can be entered per declaration via the NCTS EDCS route.


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2.1.8.1 The Confirmation of Authorised Consignee facility, introduced in Phase 3.2.2 will allow the NCTS Live Service Helpdesk to electronically request confirmation from a CT office in another Member State that a trade entity is authorised, at that office, to receive goods under the authorised consignee simplified CT procedures.

2.1.8.2 If a UK trader wishes to use this facility, he/she should contact the NCTS Live Service Helpdesk via

E-Mail. The Helpdesk will pursue the enquiry electronically on the NCTS and reply to the trader via email.

2.1.8.3 The UK trader must provide the Helpdesk with the following information for the confirmation

enquiry to be made:

The TIN of the trade entity concerned; The name and address of that trade entity; The office code of the CT Office of Destination to which the Authorised Consignee is

linked. For details on how to contact the Helpdesk, please see:

NCTS trade enquiries - contact information -http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&id=HMCE_PROD_009153&propertyType=document on the HMRC website.

2.2 NCTS Normal Procedure 2.2.1 Office of Departure

See Chapter 3 for a full description of the procedures.

2.2.1.1 The goods must be present at the Office of Departure or at a Sub-place i.e. a designated place approved and controlled by that office. If the goods are present at a Sub-place, this place must be specified in the declaration.

2.2.1.2 The Principal may make the declaration to the NCTS and exchange the necessary messages, or may

use a Representative to do so on his behalf. The party communicating with the NCTS will be the declarant. N.B. NCTS responses will always be sent to the declarant, not to the Principal, if different.

2.2.1.3 Before making the declaration see Section 3.1.2 for arrangements to record guarantees on the Guarantee Management System.

2.2.1.4 The declarant lodges an electronic declaration to the NCTS at the Office of Departure using the

Normal Procedure. The declaration must include the declarants own unique number relating to the consignment, the Local Reference Number (LRN). The LRN must be unique for every declaration; however, there are circumstances when it can be reused.

2.2.1.5 The declaration may be submitted prior to presentation of the goods, provided an agreed location code

is included in the declaration (see para 2.1.4 for links to completion rules). The Office of Departure will action acceptance of the declaration on NCTS only when the goods are presented at that office, and the traders unique reference, the Local Reference Number (LRN) is submitted.


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2.2.1.6 Where the electronic declaration, and if necessary LoI, is complete and correct, the NCTS will automatically accept the declaration and the transit declaration will enter the Submitted state within the NCTS.

2.2.1.7 Prior to the introduction of phase 3.2.1, which took effect from the 26 September 2005, a transit

declaration at this stage would automatically enter the Accepted state. The unique Movement Reference Number (MRN) would have been issued and an Acceptance Notification message, IE028, which included the MRN, would have been sent by the NCTS to the declarant.

2.2.1.8 However 2.2.1.9 valid EDI Normal procedure declarations will now only enter the Accepted state when a valid

Customs Sub Place is declared. A normal procedure declaration entered without completion of the sub-place field will enter the Submitted state.

2.2.1.10 If a valid and suitable comprehensive guarantee or waiver is recorded on the NCTS, then no guarantee

or certificate needs be produced. Otherwise a suitable guarantee must be lodged at the Office of Departure (see Section 3.1.2). As a precaution, it is advisable that guarantee certificates are valid and readily available for presentation to ensure release for transit in the event of the NCTS being unavailable (see HMRC website for details on fallback).

2.2.1.11 The Office of Departure uses the NCTS to process and clear the movement/guarantee and inputs

positive release of the goods to the system. Upon release, an electronic release message (IE029, Release for transit) is sent by the NCTS to the declarant and the Transit Accompanying Document (TAD) is generated. The TAD, together with any LoI, will be automatically authenticated by the system and can be printed, at the declarants choice, either

at the Office of Departure; or at the declarants premises, provided that the declarant is approved to do so and has a printer

properly configured to print the TAD, and List of Items, in the legally required format and including the printed Bar Code.

It is this message (IE029) that permits the release for transit, and it is this message alone, not any earlier message in the process sequence, that contains all the necessary data for printing the TAD/LoI.

2.2.1.12 The TAD must accompany the goods to the Office of Destination and be produced there and at any

Office of Transit en route, together with the goods. The Office of Destination will send electronic Arrival Advice and Control Results messages back to the Office of Departure. Providing the Control Results are Satisfactory the movement will be discharged electronically.

2.2.1.13 Automatic authentication of the TAD will include the time limit2 set by the Office of Departure for the transit movement to be completed. Release of the movement will activate timers within NCTS against this Expected Arrival date and a subsequent Expected Control Results date. Expiry of these timers activates the enquiry process.

2.2.1.14 The Expected Control Results date for full electronic movements between NCTS offices i.e. the date

by which the office of destination must return the electronic Control Results message, is the Expected Arrival date + 6 days. On release of the movement, the NCTS will automatically send an electronic Anticipated Arrival Record advice message to the declared NCTS Office of Destination, and an Anticipated Transit Record advice message to any declared NCTS Offices of Transit. See Chapter 7 for Office of Transit procedures, which are distinct from the procedures at Offices of Departure and Destination, and also Glossary and Abbreviations for the definition of an Office of Transit.

2 In special circumstances the timescales may be extended but only upon request by the trader and approval by Customs.


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2.2.15 It is particularly important that the Principal is aware of the impact on guarantees in the event of delayed/non presentation at the Office of Destination (see paras 4.1.2 and 6.1.2.1).

2.2.16 Once the transit movement has ended, and satisfactory control results have been received from the Office of Destination, the declarant will be advised electronically, by a Write-off Notification message, of the discharge of the movement.

2.2.3 Office of Destination

See Chapter 4 for a full description of procedures. 2.2.3.1 The Principal, or the carrier, have a legal responsibility to present the goods at the Office of

Destination or at a customs-approved sub-place ie a designated place approved and controlled by that office.

2.2.3.2 The Destination Trader, [i.e. the Principal, the carrier or the recipient (eg an ERTS operator)] or his representative, must advise the Office of Destination immediately of the arrival of the goods, either by physical presentation of the TAD (see Section 4.2.1) or by sending an electronic Arrival Notification message to NCTS using the Normal Procedure. The party actually sending the Arrival Notification will be the notifier. NB NCTS responses will always be sent to the notifier, not to the Destination Trader, if different.

2.2.3.3 Destination traders that choose not to use NCTS at destination to make their own Arrival Notification should note that they might receive a second class service. Clearance of the TAD and release of the goods in these circumstances will be subject to Charter Standard time frames. This means that for Customs declarations completed correctly, we will release at least 90% of consignments within 12 working hours.

2.2.3.4 Failure to arrive movements whether electronically or by presentation of the TAD has even greater

significance under NCTS Phase 3.2 as the process of releasing the guarantee liability amount cannot start until the goods have been arrived. This could therefore impact on traders wishing to move goods at departure but cannot because the GMS has not been re-credited for movements that remain undischarged at destination.

2.2.3.5 Provided that the Arrival Notification message is in the correct form and is sent before expiry of the

Expected Arrival timer the NCTS will accept the notification and automatically send an Arrival Advice message to the Office of Departure, inhibiting the start of an enquiry.

2.2.3.6 The Destination Trader must subsequently present the accompanying document, TAD, together with any LoI to the Office of Destination, within prescribed time limits.

2.2.3.7 The Office of Destination will make a control decision, against the data sent forward by the Office of

Departure through the NCTS, and, following any control, resolve any discrepancy and input Control Results to NCTS.

2.2.3.8 Input of the Control Results by the Office of Destination will generate an electronic advice to the

Office of Departure, inhibiting the Expected Control Results timer and the start of any enquiry. If the results are satisfactory, discharge of the movement will be automatic; if not satisfactory, the movement will be discharged when it is written-off by the Office of Write-Off, following the resolution of any irregularity.

2.2.3.9 Upon satisfactory completion of the movement, a release message is sent by NCTS to the notifier.N.B.

This constitutes only release from the transit procedure, not necessarily from customs control, as the goods are deemed to be in temporary storage and, where appropriate, e.g. are not in free circulation, must be entered to a subsequent procedure.


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2.3 NCTS Simplified Procedures 2.3.1 Authorised Consignors and Consignees 2.3.1.1 The NCTS allows approved traders to move goods under customs control from or to their premises,

ports/airports or other approved places such as warehouses, DEP, ERTS and other temporary storage facilities without the need to present the goods and corresponding documents to the Office of Departure or destination. Authorised traders will, depending upon the conditions of their authorisation, enjoy the benefits of printing the TAD at their premises (authorised consignors) and time out release to move (authorised consignors) or unload (authorised consignees) the goods.

2.3.2 Office of Departure (Authorised Consignor)

See Chapter 5 for a full description of the procedures. 2.3.2.1 To be approved as an Authorised Consignor a trader must meet certain requirements see Appendix

C. 2.3.2.2 Those traders wishing to become Authorised Consignors must, as a condition of their authorisation,

use the NCTS from the date that approval to use the simplified procedure is given.

2.3.2.3 An Authorised Consignor must use (a) designated Office(s) of Departure, which will be nominated in his application and named in the authorisation. The designated Office(s) of Departure will manage the transit procedure.

2.3.2.4 An Authorised Consignor need not present the goods at the designated Office of Departure, but at an

Authorised Location, either at: his own premises; or a customs controlled area at the Office of Departure; or other customs approved facilities directly associated with the Office of Departure e.g.

warehouse, DEP, ICD, ERTS and other temporary storage facilities including unattended or occasionally attended port/airports.

2.3.2.5 A DEP or ICD allows an approved operator (consolidator, exporter, forwarder or airline) to present

goods and submit a declaration to us at their Customs approved inland premises and allows any controls including examination to be carried out at the premises.

2.3.2.6 In order to control your exports from your own premises, you will also need to be approved to operate

under Local Clearance Procedures (LCP). An Export declaration under the New Export System (NES) will be required and a simplified declaration under LCP must be made. Both of these procedures require prior authorisation by Customs.

2.3.2.7 Public Notice 276, The New Export System provides more information for exporters click on the

following link: New Export System (NES) http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_InfoGuides&propertyType=document&id=HMCE_PROD_009741.

2.3.2.8 The Authorised Consignor may be approved to use more than one Office of Departure and may specify

more than one Authorised Location in the application. Each location to be used must be associated with and approved by each designated Office of Departure and must be specified in the authorisation3.

3 To enable processing it is essential that traders keep their standing data (e.g. Authorised Locations) up to date and promptly advise the CCTO of any changes. It should also be noted that changes to standing data take 3 working days to implement


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2.3.2.9 An Authorised Consignor must have the goods available for examination at the Authorised Location associated with the designated Office of Departure to which the transit declaration is to be made. The Authorised Location must be recorded in the NCTS.

2.3.2.10 The Authorised Consignor must be the Principal for the movement and must be authorised to use a CT

comprehensive guarantee or guarantee waiver, the details of which must be recorded on the NCTS. 2.3.2.13 The Authorised Consignor will lodge an electronic declaration to the NCTS at the Office of Departure

using the Simplified Procedure. The declaration must include the Authorised Consignors own unique number relating to the consignment, the Local Reference Number (LRN). The LRN must be unique for every declaration; however, there are circumstances when it can be reused (see 3.1.3.6.)

2.3.2.12 The declaration must also include the details of any seals to be used and the expected arrival date of the

movement at the Office of Destination as agreed with the Office of Departure and specified in the authorisation.

2.3.2.13 The NCTS will then

a) automatically accept the declaration, generate the unique Movement Reference Number (MRN) and send an Acceptance Notification message, including the MRN, to the Authorised Consignor;

b) allow, upon its acceptance of the declaration, automatic time-out release of the movement, provided that

no control decision is taken by the Office of Departure.

c) upon release, send an electronic release message (IE029, Release for transit) to the Authorised Consignor. The TAD and, where applicable, the List of Items, will be printed at the Consignors premises, and will be automatically authenticated by the system. It is this message (IE029) that permits the release for transit, and it is this message alone, not any earlier message in the process sequence, that contains all the necessary data for printing the TAD/LoI.

2.3.2.14 Release of the movement, automatically by time-out or by customs action, will activate the timers and

messages described under the Normal Procedure above at section 2.2. 2.3.2.15 Under Phase 3.2 it is particularly important that the Authorised Consignor is aware of the

impact on guarantees in the event of delayed/non-presentation at the Office of Destination (see para 4.1.2 ).

2.3.2.16 Once the transit movement has ended, and satisfactory control results have been received from the Office of Destination, the Authorised Consignor will be advised electronically, by a Write-off Notification message of the discharge of the movement.

2.3.3 Office of Destination - (Authorised Consignee)

See Chapter 6 for a full description of the procedures. 2.3.3.1 To be approved as an Authorised Consignee a trader must meet certain requirements see Appendix

D. 2.3.3.2 Authorised Consignees, must, as a requirement of EU Regulations, use the NCTS to communicate

electronically with their associated Office of Destination. Those traders wishing to become Authorised Consignees must, as a condition of their authorisation, use the NCTS from the date that approval to use the simplified procedure is given.

2.3.3.3 An Authorised Consignee must use (a) designated Office(s) of Destination, which will be nominated in his application and named in the authorisation. The designated Office(s) of Destination will manage the transit procedure.


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2.3.3.4 The Authorised Consignee is not required to present the goods at the designated Office of Destination but may instead receive the goods under the CT procedure at an Authorised Location, either at

his own premises; or a customs controlled area at an Office of Destination; or other customs approved facilities directly associated with an Office of Destination eg

warehouse, ERTS and other temporary storage facilities including unattended or occasionally attended port/airports.

2.3.3.5 Please note: If you prefer to remove goods under the Community Transit procedure to your own

premises you will need to be approved for the LCP (Local Clearance Procedure). The requirement to hold an LCP authorisation is required by EC legislation to allow the receipt of goods by notation in the authorisation holders records and to enable Customs to carry out effective controls.

2.3.3.6 The Authorised Consignee may be approved to use more than one Office of Destination and may

specify more than one Authorised Location in his application. Each location to be used must be associated with and approved by the designated Office of Destination and must be specified in the authorisation.

2.3.3.7 The Authorised Consignee must be able to take full responsibility for the control of the goods at the

Authorised Location, to carry out any prescribed unloading checks and to meet the requirements for ending the CT movement, to the satisfaction of the Office of Destination.

2.3.3.8 Upon arrival of the goods at the approved premises, the Authorised Consignee must advise the Office

of Destination of the arrival of the goods by sending an electronic Arrival Notification message to NCTS at the Office of Destination, using the Simplified Procedure.

2.3.3.9 Failure to arrive movements has even greater significance under NCTS Phase 3.2 as the process of

releasing the guarantee liability amount cannot start until the goods have been arrived. This could therefore impact on traders wishing to move goods at departure but cannot because the GMS has not been re-credited for movements that remain undischarged at destination.

2.3.3.10 Provided that the Arrival Notification message is in the correct form, the NCTS will accept the

notification and automatically send an Arrival Advice to the Office of Departure, inhibiting the Expected Arrival date timer and the start of an enquiry.

2.3.3.11 The Authorised Consignee must send the TAD/LoI to the office of destination within the agreed time

limit specified in his authorisation. 2.3.3.12 If not selected for control by the Office of Destination, the NCTS will automatically, upon expiry of a

timer, send an electronic Unloading Permission message to the Authorised Consignee. This message includes the Anticipated Arrival Record (AAR) data sent to the Office of Destination by the Office of Departure.

2.3.3.13 The Authorised Consignee must carry out the necessary check of the goods, against the AAR data, and

subsequently respond with an electronic Unloading Remarks message to NCTS. If this message is Satisfactory, then NCTS will automatically

send an electronic Release from Transit message to the Authorised Consignee; and generate electronic advice of satisfactory results to the Office of Departure, discharging the

movement and inhibiting the Expected Control Results timer and the start of any enquiry. 2.3.3.14 If the Unloading Remarks are not satisfactory, or the movement has been selected for control by the

Office of Destination, prior to expiry of the timer, then automatic release will be inhibited. 2.3.3.15 If selected for control and following control and the resolution of any discrepancies, the Office of

Destination will input Destination Control Results to the NCTS and release the goods from transit. An electronic release message is sent by NCTS to the Authorised Consignee.

end of chapter

TRANSIT TRADER UK NCTS Project Chapter 3. NCTS Normal Procedure Office of Departure

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3. NCTS Normal Procedure Office of Departure 3.1 Goods present 3.1.1 To whom will this particular procedure apply? 3.1.1.1 Any Principal, or his representative, that submits an electronic declaration to NCTS, including, where

appropriate, the electronic List of Items (LoI). The goods must be present at the Customs Office of Departure or at a designated Sub-place approved and controlled by that office e.g. local ERTS.

3.1.2 Use of Guarantee types 2 (Individual Guarantee), 4 (Individual Guarantee Vouchers) and 9

(Individual Guarantee with Multiple Usage) 3.1.2.1 The GMS is used only by National Customs Authorities to manage guarantee types 0 (Waiver), 1

(Comprehensive), 2 (Individual Guarantee), 4 (Individual Guarantee Vouchers) and 9 (Individual Guarantee with Multiple Usage). For guarantee types 2, 4 and 9 the trader must fax the guarantee to the CCTO 3 working days4 in advance of the electronic declaration being submitted 5. At the same time the access code(s) must be e-mailed to the CCTO. This will allow for the details to be recorded on the Guarantee Management System (GMS). Once recorded on GMS the CCTO will provide (via e-mail) the trader with the Guarantee Reference Number(s) (GRN), which together with the access code(s) 6, will be input on the electronic declaration. Prior to submitting the declaration the trader must lodge the guarantee certificate with the Office of Departure. Not until the guarantee has been recorded on GMS can a movement be released on the NCTS.

Note: Currently type 9 guarantees are not in use. Holders of types 0 or 1 guarantees may request to use type 9 only if and when the EC Member States and EFTA countries agree to temporarily prohibit the use of comprehensive guarantees (including waivers) for goods identified as being subject to large scale fraud. This measure is provided for in Article 94(7) and Annex 47A of Regulation 2913/92/Article 58(6) and Annex IV of Appendix I to the Common Transit Convention.

3.1.3 Declaration to NCTS and allocation of MRN 3.1.3.1 The declarant submits an electronic Declaration (IE015), including if necessary the LoI, to the NCTS.

The declaration must include the declarants own unique number relating to the consignment, the Local Reference Number (LRN)7, the identity of the Customs Office of Departure (and of the Sub-place if goods are presented there).

4 If the trader is unknown to HMRC (not currently recognised as trading in the UK) then the recording of guarantees on the GMS will take approximately 4 working days (to allow for the capture and download of trader details). 5 Traders using Guarantee types 0 (Guarantee Waiver) and 1 (Comprehensive Guarantee) will have already had their details input to GMS by the CCTO. 6 The security of the Access Code(s) is the Principals responsibility; should the Principal consider that the code(s) has/have been compromised, they must contact CCTO and change it/them. 7 The format of the LRN is left to traders discretion, provided that it is unique and that it does not exceed 22 characters.


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3.1.3.2 When a GMS UK guarantee (types 0, 1, 2 4 and 9) is used to secure duties/taxes on a transit movement under NCTS Phase 3.2, declarants must not enter a value as a default guarantee liability amount will be automatically entered by the NCTS. For guarantee type 2, the Office of Departure will overwrite the default amount with the actual liability in GB pounds and for guarantee type 4, the Office of Departure will overwrite the default amount with the actual liability of 7000 for each voucher. For guarantee types 3 (Individual guarantee in cash), 5 (Guarantee waiver, secured amount does not exceed EUR 500) 6 (Guarantee not required), 7 (Guarantee not required between OoDep and Office of Transit), 8 (Guarantee not required for certain public bodies) and A (Guarantee waiver by agreement), an amount will be entered by the Office of Departure.

3.1.3.3 For foreign guarantees, the declarant will be encouraged to enter the actual liability amount. If this isnt

completed, a () sterling equivalent will be automatically input by the system. For guarantee type 4, the Office of Departure will overwrite the default amount with the actual liability of 7000 for each voucher. Note: The use of default values (for the Normal and Simplified procedures) is UK Policy and will not necessarily be applied by other European states. The use of default values in the UK does not change in any way the existing traders responsibilities in relation to his guarantee management. Nor does it affect the recovery of the actual liability amount for the goods in the event of irregularities and subsequent action taken by Customs.

3.1.3.4 The NCTS will automatically validate the declaration, for proper completion of mandatory data fields,

validity of codes used etc. and verification of some declared data against standing data.

3.1.3.5 A declaration will be rejected by the NCTS if the content is incorrect or any required data is missing. An IE016 message, Declaration Rejected, will be sent to the trader. The IE016 message will contain the reasons for rejection.

3.1.3.6 As it is not possible to interface with the NCTS and amend a declaration, following receipt of the IE016

the declarant will need to re-submit the IE015 declaration with amended data. In these circumstances the declarant will be able to re-use the Local Reference Number (LRN) on the re-submitted declaration.

3.1.3.7 Providing the declaration passes validation, the declaration will enter the Submitted state within

the NCTS.

3.1.3.8 Prior to the introduction of phase 3.2.1, which took effect from the 26 September 2005, a transit declaration at this stage would automatically enter the Accepted state. The unique Movement Reference Number (MRN) would have been issued and an Acceptance Notification message, IE028, which included the MRN, would have been sent by the NCTS to the declarant.

3.1.3.9 However valid EDI Normal procedure declarations will now only enter the Accepted state if a

valid Customs Sub Place is declared. A normal procedure declaration entered without completion of the sub-place field will enter the Submitted state.

3.1.3.10 The declaration passes into the Accepted state within NCTS at the Office of Departure and is ready

for processing by customs. Prior to processing by customs (section 3.1.4 onwards), should the declaration require amendment then the declarant must request cancellation (see Section 3.3) and submit a new declaration with a new LRN. The cancellation request must make reference to the new LRN or, if the new declaration has already been submitted and accepted by the NCTS, the new MRN.

3.1.4 Control Decision: No Control

3.1.4.1 If Customs decide not to control, they will enter No Control on the NCTS and the declaration will

pass to the Guarantee Under Registration state within the NCTS.


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3.1.4.2 If Customs reject the guarantee (e.g. the guarantee type is not appropriate for the goods) then this is input to the system by Customs and the declarant will be advised off-line ie as per current arrangements e.g. phone or fax. Upon receipt of off-line advice the declarant must submit a new declaration with a new LRN (in these circumstances Customs will perform the cancellation see Section 3.3). Prior to submitting the new declaration it is essential that the information advised by Customs is acted upon. Failure to do so may result in the same problem recurring e.g. guarantee needs to be recorded on GMS as explained in section 3.1.2 above. The cancellation request must make reference to the new LRN or, if the new declaration has already been submitted and accepted by the NCTS, the new MRN.

3.1.4.3 Normally Customs will perform the accept guarantee function. It is at this stage that the GMS will

perform guarantee validity checks (eg is the guarantee valid and the declarant entitled to use it?8) and if successful, register the guarantee and debit the liability amount9 from the guarantee recorded on the GMS. N.B. The checking/registering of foreign guarantees will be performed by the GMS in the appropriate European country where the guarantee details were recorded on GMS. As a precautionary measure it is advisable that guarantee certificates are valid and readily available for presentation to ensure release for transit in the event of the NCTS being unavailable (see HMRC website for details on fallback).

3.1.4.4 Providing registering of the guarantee is successful Customs can release the movement and the declarant will receive the Release for Transit message, IE029. However, release by NCTS/Customs will be dependent on completion of the Inland transport Mode (box 26) / Identity of means of transport at departure (box 18). Under NCTS Phase 3.2, failure to enter the means of transport will either result in Customs seeking details to enable release or the declaration being rejected:

if both boxes 18 and 26 are left blank (completion of box 18 alone is sufficient to enable release by

Customs) Customs will request the necessary information before the movement can be released; or

other than for modes 5 and 7 (which do not require an identity to be entered), if the mode is entered but the identity is left blank the declaration will be rejected and will need to be resubmitted.

It is recommended that the completion rules be consulted for guidance.

3.1.5 Concession to leave Box 18 blank where the road transport details are not known at the time the transit declaration is made

3.1.5.1 The Official Journal of the European Union (OJ L148) dated 11 June 2005 contains Commission Regulation (EC) No 883/2005 of 10 June 2005 which amends Regulation (EEC) No 2454/93 (Customs Code Implementing Provisions - IP). Regulation 883/2005 introduces the following changes concerning the completion of Boxes 18 and 52 of the CT (NCTS) declaration. Although it is a mandatory requirement to complete Box 18 (identity and nationality of the means of transport at departure) on a CT declaration, it is recognised that, at container terminals with high levels of traffic, the identity of the road means of transport to be used is not always known at the time the transit declaration is made. The EC Member States and EFTA countries have therefore agreed that, where goods are carried in containers and moved by road, the requirement to complete Box 18 can be relaxed for authorised principals who can guarantee to enter the details on the TAD (as a box 55 amendment) before presentation of the goods at the office of destination. UK principals who wish to take advantage of this concession can apply in writing to the CCTO.

Please see the following link to JCCC Paper (05) 47 for more information:

8 The security of the Access Code(s) is the Principals responsibility; should the Principal consider that the code(s) have been compromised, they must contact CCTO and change it. 9 Either the default value, the value entered by the declarant or by Customs if UK guarantee types 2, 3 or 4).


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http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_PublicNoticesAndInfoSheets&propertyType=document&columns=1&id=HMCE_PROD1_024547

3.1.5.2 If the guarantee fails GMS checks the declarant will be automatically notified with a Guarantee not valid message, IE055 (e.g. for guarantee type 2 if the office entered on the declaration is different to the Office of Departure recorded on the GMS). Upon receipt of the IE055 the declarant must request cancellation (see Section 3.3) and submit a new declaration with a new LRN. Prior to submitting the new declaration it is essential that the error, as recorded on the IE055, is resolved to avoid the same problem recurring eg if the guarantee does not exist follow the steps explained in section 3.1.2 above. The cancellation request must make reference to the new LRN or, if the new declaration has already been submitted and accepted by the NCTS, the new MRN.

3.1.5.3 The IE029 message contains all the data for, and will prompt, the printing of the TAD, either at the Office

of Departure (for collection by the carrier) or, provided he is approved to do so, at the declarants premises. The declarant will need to have a specified printer properly configured to print the TAD and List of Items in the legally required format and including the printed Bar Code. It is this message (IE029) that permits the release for transit and it is this message alone, not any earlier message in the process sequence, that contains all the necessary data for printing the TAD/LoI.

3.1.5.4 The TAD will be automatically authenticated by the NCTS and will not need to be further stamped or

authenticated. The authentication will include the identity of any seals affixed, if the movement is covered by a binding itinerary10 set by the Office of Departure, and the time limit for the transit movement to be completed, ie the Expected Arrival Date.

3.1.5.5 On release of the movement, the NCTS will automatically send an electronic Anticipated Arrival Record

(AAR) advice message to the declared NCTS Office of Destination, and an Anticipated Transit Record (ATR) advice message to any declared NCTS Offices of Transit. See Chapter 7 for Office of Transit procedures, which are distinct from the procedures at Offices of Departure and Destination, and also Glossary and Abbreviations for the definition of an Office of Transit.

3.1.6 Control Decision: Control 3.1.6.1 If Customs decide to Control, they will key the Control function and the declaration will move to the

Under Control state within NCTS. The trader will automatically be advised of the intention to control, by message IE060, Control Decision Notification. The Customs Officer will then perform the necessary controls as per current arrangements and record the Control Results on the NCTS.

3.1.6.2 If the Customs control checks reveal serious irregularities, the Control Results will be recorded as

Unsatisfactory. As a result the movement will not progress any further. The declaration will pass to the Not Released for Transit state within the system and the declarant will receive a Not Released for Transit message, IE051. This effectively cancels the movement.

3.1.6.3 If the Customs control checks reveal minor discrepancies, which can be resolved, Customs will clarify the irregularity with the declarant but as there is no facility to amend the declaration, the declarant will be required to input a new declaration with a new LRN and arrange for Customs to cancel the original declaration.

10 Generally only applicable to the movement of sensitive goods, as defined in Annexe 44C of EU Reg. 2454/93. IP Art 3552 legally requires the minimum of countries to be defined. Exclusion, under Art 3721(d) is required to be applied for as a CT Simplification.


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3.1.6.4 If the Control Results are recorded on the system as Satisfactory (ie no irregularity) the declaration will pass to the Guarantee Under Registration state for acceptance or rejection of the guarantee. Providing everything is satisfactory the accept guarantee function is performed.


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3.1.7 Flow diagram: NCTS Normal Procedure Office of Departure declaration

IE015 Declaration From Declarant Automatically Rejected if invalid Rejection Notification

Declaration enters Submitted state if no Sub-place declared

MRN Automatically Accepted if valid Customs sub-place entered IE028 Acceptance To Declarant Control Decision

No Yes

No Control Control IE060

Control Decision Notification To Declarant

No discrepancies? Minor discrepancies? Major discrepancies?

Trader contacted Trader advised Cancellation required Resolved Not Resolved

Control Results Control Results

Satisfactory Not Satisfactory Route Restrictions Add if applicable

Accept Reject

IE055To Declarant see para 3.1.5.2 IE051 Guarantee not valid Not Released

To Declarant

IE029 Register Control Dates Release To Declarant

TAD printed at Customs Office or at Declarants premises TAD handed to Carrier

NCTS

Guarantee under Registration*

Under Control*

Not Released for Transit

Movement Released**

Accepted*

Positive Negative

Guarantee registered*

Trader Advised see para 3.1.5.2

Release for Transit

Submitted

IE016


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* In any of these states, the declaration can be cancelled ** The movement can be cancelled provided that the goods have not been removed

3.2 Declaration Pre-Lodged

3.2.1 To whom will this particular normal procedure apply?

Any Principal that submits an electronic declaration to NCTS prior to presentation of the goods at the Office of Departure/designated sub place.

3.2.2 Declaration to NCTS

3.2.3.3 The declarant submits an electronic declaration (IE015 message) to NCTS, which indicates that

the goods are not yet available for control. This is by input of the term Pre-Lodgement in the Agreed Location Code field of the IE015, and/or information relating to the location of the goods in the Agreed Location of Goods field. NB Use of the Agreed Location of Goods field is subject to prior arrangement with the Office of Departure.

3.2.2.2 NCTS will not accept the declaration but will hold it in a Submitted state within NCTS. The declaration cannot be accepted until the goods have been properly presented at the Office of Departure (or designated sub-place).

3.2.3 Acceptance of Declaration and Allocation of MRN

3.2.3.1 On presentation of the goods to Customs at the Office of Departure the presenter will need to

provide the Local Reference Number (LRN) included in the declaration submitted. Customs will access the declaration on the NCTS by reference to the LRN and must either accept or reject the declaration.

3.2.3.2 A declaration will be rejected if there is any discrepancy between the goods presented and the

declaration. The Customs Officer will key Reject and an IE016 message, Declaration Rejected, will be sent to the declarant. This effectively cancels the declaration and the declarant will then need to re-submit the declaration with corrected data. In these circumstances the trader will be able to re-use the Local Reference Number (LRN) on the re-submitted declaration.

3.2.3.3 Providing the declaration is acceptable, the Customs Officer will key Accept, the declaration

will pass to the Accepted state within NCTS and the Acceptance Notification message, IE028, including the MRN, will be sent by the NCTS to the declarant.

3.2.4 Control and Release

3.2.4.1 Once the declaration has been accepted, control and release will take place.

3.2.4.2 The TAD may be printed either at the Office of Departure or at the declarants premises, provided

they are approved to do so.

3.3 Cancellation

3.3.1 At what point can cancellation be applied?

3.3.1.1 Cancellations can only take place at the Office of Departure and are subject to Customs approval and action on the NCTS. The declarant can request a cancellation or it can be initiated by Customs regardless of whether or not a request has been received.


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3.3.1.2 Except where a declaration is still in the Submitted state or has been Rejected, it can be cancelled at any time, and in any state, prior and after Movement Release but only if the goods have NOT been removed (for movements that have been released but not removed the request must be made to Customs off-line).

3.3.2 How is a cancellation requested?

3.3.2.1 A declarant can request a cancellation by sending an IE014 message, Cancellation Request to the NCTS. Customs will either accept or reject and notify the declarant of the Cancellation Decision, by IE009 message.

A declarant can request cancellation off-line eg by fax or phone, in which case the Customs Officer will key the request to the NCTS. The Cancellation Decision message, IE009, will be sent to the declarant electronically.

3.3.2.2 Customs can initiate a cancellation and will notify the declarant of the decision using the

IE009 message.

3.3.3 Flow diagram: OoDep Cancellation

a) Trader requests cancellation

IE014 Cancellation Request

Cancellation decision IE009 Cancellation decision Accept Reject

b) Customs Officer cancels movement

Cancellation decision IE009

Cancellation decision

3.4 Discharge of the Movement (Write-off)

3.4.1 Office of Write-Off

3.4.1.1 Once the movement has been released, the declaration will pass to the Movement Released state and timers within the NCTS will start, set against the Expected Arrival date and a subsequent

NCTS State

Cancel Requests

Cancelled

NCTS State

Cancelled


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Expected Control Results date. Expiry of these timers activates the enquiry process (see para 2.2.1.13).

3.4.1.2 The Office of Departure becomes the Office of Write-Off and, in the UK, this function will always

be performed by the CCTO, who will take responsibility for all enquiry matters.

3.4.2 Action by Office of Destination

3.4.2.1 When a transit movement arrives at an NCTS Office of Destination, that office must immediately capture an Arrival Notification (see 4.1.2), to record the arrival on the NCTS, which sends back an electronic Arrival Advice message to the Office of Write-Off, stopping the Expected Arrival Date timer and re-setting the Expected Control Results timer (eg to actual arrival date + 6 days).

3.4.2.2 Following the introduction of NCTS Phase 3.2, failure to arrive transit movements has

greater significance as the process of releasing the guarantee liability amount cannot start until the goods have been arrived. If traders do not produce the goods and the TAD at an Office of Destination, this may impact on their ability to move goods at departure as the GMS will not have been re-credited for movements that remain undischarged at destination.

3.4.2.3 The NCTS Office of Destination must subsequently record Destination Control Results on the NCTS, normally within one working day of the arrival of the movement but, in any event, within 6 days.

3.4.2.4 The movement will normally be discharged (written-off) automatically by the NCTS when

Satisfactory Destination Control Results are input to the NCTS by the Office of Destination upon completion of the movement. The declarant at the Office of Departure will automatically be advised of the discharge by Write-off Notification message IE045.

3.4.2.5 If serious discrepancies are discovered by the Office of Destination, however, and Unsatisfactory

control results are recorded by them on NCTS, the movement will not be discharged automatically. The Office of Write-Off will be responsible for recording write-off on NCTS, upon satisfactory resolution of the irregularity. The declarant at the Office of Departure will then receive the IE045 Write-Off Notification.

end of chapter

TRANSIT TRADER UK NCTS Project Chapter 4. NCTS Normal Procedure Office of Destination

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4. NCTS Normal Procedure Office of Destination

4.1 Trader at Destination connected to the NCTS 11

4.1.1 To whom will NCTS Normal Procedure apply?

4.1.1.1To those Principals, Carriers, Recipients, or their representatives, that present goods and CT documents at an Office of Destination in the UK and who are electronically linked to the NCTS. Recipients may include the operators of any customs approved sub-place eg warehouses, ERTS and other temporary storage facilities, including unmanned or occasionally manned ports/airports.

4.1.1.2 The procedure described in the following paragraphs will not apply to Principals, Carriers,

Recipients or their representatives that will continue to physically present the TAD, together with the goods, at the Office of Destination (see Section 4.2).

4.1.2 Arrival Notification

4.1.2.1 The Destination Trader (ie Principal, Carrier or Recipient) or their representative, will submit an

electronic Arrival Notification IE007 message to the NCTS at the Office of Destination when the goods are present either at the Office of Destination or at a designated sub place approved by that office e.g. an ERTS. The party actually sending the IE007 Arrival Notification will be the notifier.

4.1.2.2 If any change of means of transport (Box 55), or any other incident en route (Box 56), has been

noted on the TAD, these details must be included in the IE007 message.

4.1.2.3 IE007 Arrival Notification messages will be automatically validated by the NCTS and will be rejected if the content is incorrect or any required data is missing (eg location of goods omitted). If this occurs then an electronic Arrival Notification Rejection message IE008 will be sent to the notifier. The IE008 message will contain the reasons for rejection. A new revised IE007 message will need to be sent to the Office of Destination.

4.1.2.4 Normally the Arrival Notification will pass validation and the NCTS will find the relevant

Anticipated Arrival Record (AAR), sent forward by the Office of Departure and held on the NCTS at the Office of Destination, by reference to the MRN. The NCTS will automatically send an electronic Arrival Advice message to the Office of Departure/Write-Off, stopping the Expected Arrival Date timer running there. The movement record will pass to the Arrived state within the NCTS at the Office of Destination and is ready for processing by customs. The added importance of the Arrival Advice is that it will also re-credit the liability amount (debited at departure see para 2.2.3.4) for guarantee types 0, 1 and 9 registered on the GMS. This process does not write-off the movement but will allow the trader at departure to reuse the re-credited amount to move goods.

4.1.3 Diversion from a different NCTS Office of Destination

4.1.3.1 Subject to binding itinerary conditions, CT regulations allow for a transit movement to be ended at any Office of Destination ie other than the office declared. In respect of binding itinerary conditions, if the diverted Office of Destination is in the same Member State as the original Office of Destination and the binding itinerary is set at country level only then the diversion can be permitted.

11 NCTS mandation does not apply to normal procedure traders at destination. However, Authorised Consignees must already be connected to NCTS and those wishing to apply must connect as soon as approved (see Chapter 6).


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4.1.3.2 If the IE007 Arrival Notification submitted relates to a movement for which the actual Office of Destination does not hold the relevant Anticipated Arrival Record, the NCTS will automatically request the AAR from the Office of Departure12.

4.1.3.3 The NCTS at the Office of Departure will automatically respond13 and, upon receipt of the AAR, the NCTS at the Office of Destination will accept the Arrival Notification, send the Arrival Advice message to the Office of Departure/Write-Off and pass the AAR, the movement record, to the Arrived state, ready for processing by customs. The Arrival Advice will also re-credit the liability amount (debited at departure -see para 2.2.3.4) for guarantee types 0, 1 and 9 registered on the GMS. This process does not write-off the movement but will allow the trader at departure to reuse the re-credited amount to move the goods.

4.1.3.4 The NCTS will update the movement record at the declared Office of Destination to reflect that the

movement has ended elsewhere. 4.1.4 Control Decision: No Control 4.1.4.1 The Office of Destination will receive the Anticipated Arrival Record as soon as the transit movement

has been released on the NCTS at the Office of Departure providing the Office of Destination with prior advice of the intended arrival of the goods. The AAR contains all of the original transit declaration data and this will allow the Office of Destination to pre-determine their control decision, substantially speeding up the clearance process.

4.1.4.2 If Customs decide that control is not necessary then they will key No Control on the NCTS, which will

pass the movement record to the Goods Released state. The NCTS will automatically send an IE025 Goods Released message to the notifier advising him that the goods have been released from transit.

4.1.4.3 At the same time, the NCTS will automatically send back to the Office of Departure/Write-off a

Satisfactory Destination Control Results message, which will automatically discharge (write-off) the movement (see Section 3.4).

4.1.5 Control Decision: Control 4.1.5.1 Customs may decide to control and must subsequently enter Destination Control Results to the movement

record on the NCTS. CT regulations require that, except where justified, the Office of Destination should forward the Destination Control Results message to the Office of Departure/Write-Off within one working day of the Arrival Notification being accepted.

4.1.5.2 If the Control Results are Satisfactory, Customs at the Office of Destination will record this on the

movement record and the NCTS will automatically pass the movement record to the Goods Released state, send the IE025 Goods Released message to the notifier, and send a Satisfactory Destination Control Results message back to the Office of Departure/Write-Off, which will automatically discharge (write-off) the movement.

4.1.5.3 If the Control Results are Unsatisfactory, Customs at the Office of Destination will record the details on the

movement record and must decide whether or not any action in resolution of the irregularity needs to be taken by the Office of Departure/Write-Off.

4.1.5.4 If not, the goods will be released from transit and the IE025 Goods Released message sent electronically

to the Notifier. The Unsatisfactory Destination Control Results are sent electronically back to the Office of Departure/Write-off, but the movement is not discharged until those results are accepted by that office and the movement is written-off by them on the NCTS (see Section 3.4)

12 The construction of the MRN allows the NCTS to recognise and communicate with the NCTS in the country of the Office of Departure. 13 This exchange of messages is fully automatic and requires no customs decision or interface.


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4.1.5.5 In the event of serious discrepancies, where action by the Office of Departure/Write-off is required to resolve the irregularity, release of the goods may be delayed by Customs pending that resolution. The Unsatisfactory Destination Control Results are sent electronically back to the Office of Departure/Write-off, but are flagged by the NCTS for immediate attention.

4.1.5.6 When satisfied that the goods may be released, the Office of Departure/Write-off will send an electronic response that will automatically generate the IE025 Goods Released message to the notifier at the Office of Destination. The movement will be finally discharged when it is written-off by the Office of Departure/Write-off upon resolution

4.2 Trader at Destination not connected to NCTS

4.2.1 Arrival Notification

4.2.1.1 If goods moving under cover of an NCTS TAD are presented at an Office of Destination, or an associated approved Sub-place, and the Destination Trader is not able to make an electronic Arrival Notification, then either:

the TAD, together with any supplementary LoI, must immediately be physically presented to Customs at the Office of Destination or

for goods presented at a customs-approved sub-place, an informal communication arrangement to immediately inform customs of the arrival of the goods should be agreed between the office of destination and the manager/operator.

4.2.1.2 An additional copy of the TAD can be submitted to the office of destination as alternative evidence of the

end of the procedure. Customs will endorse the copy with the phrase alternative proof (or its foreign equivalent).

4.2.1.3 Although not a means to release liability/normal enquiry procedure, traders may also find it useful to

request a receipt for the TAD following presentation of the goods at the office of destination. This will inform the principal that the carrier delivered the transit documents to the office of destination and also plays an important role in the event of an enquiry being generated where the office of departure has not received confirmation of arrival on the NCTS. A receipt can be requested by completion of Form TC11 (UK Form C1129). Customs will endorse and return the receipt.

4.2.1.4 Destination traders that choose not to use NCTS at destination to make their own Arrival Notification

should note that they might receive a second class service. Clearance of the TAD and release of the goods in these circumstances will be subject to Charter Standard time frames. This means that for Customs declarations completed correctly, we will release at least 90% of consignments within 12 working hours.

4.2.1.5 Customs at the Office of Destination will register the Arrival Notification on the NCTS, against the relevant movement record, by reference to the MRN on the TAD, which will generate the automatic Arrival Advice message to the Office of Departure.

4.2.2 Control and Release

4.2.2.1 Customs at the Office of Destination will make Control decisions and subsequently update the NCTS movement record with the Control Results as described in Sections 4.1.4 and 4.1.5 above, electronically discharging the movement.

4.2.2.2 Customs will notify the Destination Trader of the release of the goods from transit in accordance with local practice.


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4.3 Flow diagram: NCTS Normal procedure Office of Destination (Goods arrived at Office of Destination / Customs Sub Place)

IE007 Arrival Notification From Notifier

Automatically Rejected if invalid IE008

Automatically Accepted if valid Rejection Notification To Notifier

AAR found by system?

Yes No

Diversion Accepted Rejected

Control Decision No Yes

No Control Control

IE025 Release Notification To Notifier Destination Control Results

Satisfactory Discrepancy IE025 Release Notification IE025 To Notifier Discrepancy resolved

end of chapter

Arrival Record Requested

Goods Released

Under Control

Anticipated Arrival

Waiting for Resolution

Arrival Accepted

Arrival Record Rejected

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5. NCTS Simplified Procedure - Office of Departure

5.1 Authorised Consignor

N.B. The procedures below simplify the NCTS Normal Procedure described in Chapter 3. It is strongly recommended that the Normal Procedure is understood before reference to this Chapter, as not all requirements and processes common to both procedures have been duplicated here.

5.1.1 To whom does the Simplified Procedure apply?

5.1.1.1 To CT Principals that are approved as Authorised Consignors (see Appendix C for approval requirements).

5.1.1.2 Authorised Consignors are entitled to automatic timed-out release of goods entered to the transit procedure,

held either at their own authorised premises or under Customs control at authorised locations, and can print the TAD at their own office (see Section 2.3.2).

5.1.2 Declaration to NCTS and Allocation of MRN

5.1.2.1 Authorised Consignors using guarantee type 9 should see Section 3.1.2 re arrangements prior to submission

of the declaration.

5.1.2.2 The Authorised Consignor submits an electronic declaration (IE015 message), including, where appropriate, the electronic List of Items (LoI), to the NCTS at his designated Office of Departure. The Declaration must include:

the Authorised Location of the goods; the code A3 (Considered Satisfactory) in the Control Results field, which identifies use of the

Simplified procedure; the intended time-limit for completion of the transit movement; the binding itinerary for the movement (as a minimum at country level); and the details of any seals attached to the means of transport or to the packages (see Appendix C).

N.B. Inland transport Mode (box 26) / Identity of means of transport at departure (box 18). Under NCTS Phase 3.2, failure to enter the means of transport may either result in the movement being processed under the normal procedure or the declaration being rejected:

if both boxes 18 and 26 are left blank (completion of box 18 alone is sufficient to enable release) the movement will be processed under the normal procedure (with Customs requesting the necessary information before the movement can be released); or

other than for modes 5 and 7 (which do not require an identity to be entered), if the mode is entered but the identity is left blank the declaration will be rejected and will need to be resubmitted.

It is recommended that completion rules be consulted for guidance. Please see section 3.1.5 for details on the Concession to leave Box 18 blank where the road transport details are not known at the time the transit declaration is made.

5.1.2.3 The NCTS will validate the IE015 declaration, including checks to ensure that the Principal is entitled to

use the Simplified Procedure, as an Authorised Consignor, and that the Authorised Location declared is registered against both the Authorised Consignor and the Office of Departure (see para 2.1.4 for information available on completion rules).

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5.1.2.4 The declaration will be rejected if the content is incorrect or any required data is missing and an IE016 message, Declaration Rejected will be sent to the Authorised Consignor. This effectively cancels the declaration and the Authorised Consignor will need to resubmit a new IE015 declaration with amended data. In these circumstances the Authorised Consignor will be able to reuse the Local Reference Number (LRN) on the resubmitted declaration.

5.1.2.5 Providing the declaration passes validation, the NCTS will accept it and allocate a unique Movement

Reference Number (MRN) to it. An Acceptance Notification message, IE028, which will include the MRN, will be sent by the NCTS to the Authorised Consignor.

5.1.2.6 The declaration passes into the Accepted state within the NCTS at the Office of Departure and an

Automatic Release timer will start within the NCTS. The duration of this variable timer will be set by the Authorised Consignors designated Office of Departure, as specified in the authorisation, and will be dependent upon a number of considerations, such as the type and remoteness of the Authorised Locations used by the Consignor.

5.2 Control and Release

5.2.1 No Control

5.2.1.1 At any time up to expiry of the Automatic Release timer, Customs may inhibit the timer and select the

movement for control. If they do not do so, the timer will expire and the NCTS will, providing the guarantee is successfully registered, automatically release the movement, and send a Released for Transit message, IE029, to the declarant. See para 5.1.2.2. regarding the impact on/inhibit of automatic release if identity of means of transport at departure is not entered.

5.2.1.2 For the simplified procedure, registering of the guarantee will be automatic. Although described for the normal procedure, paragraph 3.1.4.3 explains the principle of how this will be performed, bearing in mind that for the simplified procedure this function will be automatic without the need for Customs intervention. If the guarantee fails GMS checks the declarant will be automatically notified with a Guarantee not valid message, IE055. See para 3.1.5.2 for guidance on dealing with an IE055.

5.2.1.3 Prior to expiry of the timer, Customs may also amend/introduce Route Restrictions (Binding Itinerary)14. This

action will not inhibit the release timer.

5.2.1.4 The IE029 message will prompt the printing of the TAD/List of Items. The TAD will be printed at the declarants premises and will be automatically authenticated by the NCTS. It is this message (IE029) that permits the release for transit, and it is this message alone, not any earlier message in the process sequence, that contains all the necessary data for printing the TAD/LoI.

5.2.1.5 On release of the movement, the NCTS will automatically send an electronic Anticipated Arrival Record (AAR) advice message to the declared NCTS Office of Destination, and an Anticipated Transit Record (ATR) adv

Documents

NCTS+ +Information+for+the+Transit+Trader[1]