The customs landscape has undergone significant transformations recently, particularly for UK importers and exporters. One of the most notable shifts has been transitioning from the CHIEF system to the new Customs Declaration Service (CDS).
It is crucial to stay informed and prepared as the UK adjusts to post-Brexit regulations and the impacts of leaving the Customs Union.
NCTS Phase 5
The New Computerised Transit System (NCTS) Phase 5 is a critical upgrade for countries participating in the Common Transit Convention (CTC). This system aims to streamline the process of moving goods across multiple countries, making transit more efficient.
On 1 July, 2024, NCTS Phase 5 completely replaced the previous NCTS Phase 4 system. The upgrade introduced significant changes to transit declarations for both departures and arrivals, requiring more detailed and complex data submissions. ASM has developed a new NCTS5 module and has delivered seminars to explain the changes and demonstrate the new software.
All CTC countries must transition to NCTS5 by January 2025, which means further updates and functionalities will be rolled out as the final deadline approaches.
The Windsor Framework
The Windsor Framework aims to facilitate seamless trade within the UK while preserving Northern Ireland's place in the Union. Although labelled a 'simplified procedure,' the framework is intricate, involving multiple schemes and solutions to ensure cohesive operation.
Recent procedural changes include the introduction of physical checks on SPS (sanitary and phytosanitary) goods, with more changes planned through 2025.
Starting in September 2024, the Green Lane system — now called the Simplified Process for Internal Market Movements (SPIMM)—will be fully operational, streamlining the movement of goods between Great Britain and Northern Ireland. This will bring about additional changes in customs declaration processes and require freight forwarders to adapt to new procedures.
Safety and Security Requirements
As part of the new Border Target Operating Model (BTOM), safety and security (S&S) declarations for EU imports into Great Britain will become mandatory from October 2024. While S&S GB declarations have been required for ocean and air routes, this requirement will now extend to road haulage.
This change represents a significant shift for road carriers, who previously did not need to submit S&S declarations for internal EU movements.
Although a user interface for S&S GB has yet to be made available, it may be introduced before October. Freight forwarders might process these declarations through a community system provider or other compatible software. ASM is currently integrating S&S GB functionality into its Sequoia software.
ICS2
The European Union's Import Control System 2 (ICS2) requires electronic submission of shipment information before goods arrive in the EU.
Release 3, which went live in June, mandates full entry summary declarations for maritime and inland waterway movements, with road and rail carriers expected to comply by 1 April, 2025. ASM is preparing its systems to meet these new requirements.
Looking Ahead at ASM
At ASM, we are dedicated to providing the tools freight forwarders need to comply with regulatory changes while enhancing overall system efficiency. These regulatory updates involve substantial work for both software developers and businesses managing goods movement, who must stay current with evolving systems.
The transition to CDS was a significant milestone, but smaller system changes are increasing as we navigate the post-Brexit landscape. To meet the growing demand, we are expanding our team and increasing our resources throughout 2024.
By staying proactive and adaptable, freight forwarders can navigate these transitions and ensure they remain compliant and efficient in the ever-changing customs landscape.