Navigating NCTS Phase 5: What Logistics and Trading Companies Need to Know
- ibccstax
- 3 days ago
- 4 min read
How IBCCS TAX Georgia helps businesses transition to the new EU Customs Transit System
Starting from December 2024, all EU Member States of the Common Transit Convention (CTC) countries officially moved to the newest version of the New Computerised Transit System - Phase 5 (NCTS - P5).
This shift has a direct impact on companies involved in international trade and logistics. At IBCCS Tax Georgia, we are already assisting clients in understanding the new requirements and obtaining the necessary license. Here's what you need to know.
What Is NCTS and Why It’s Crucial for Your Cross-Border Trade?
The New Computerised Transit System (NCTS) is a digital customs platform that simplifies and speeds up the transit of goods between EU countries and partner countries under the Common Transit Convention.
It allows businesses to submit transit declarations electronically and track goods via a unique Master Reference Number (MRN). This ensures greater transparency, efficiency, and compliance for all parties involved.
For companies trading across borders or expanding their presence, Georgia remains a strategic gateway to the EU and regional markets.
Key NCTS-P5 Updates: What’s New in the Customs Transit Process?
NCTS covers three main communication flows:
Between business and customs (external domain)
Between customs offices within one country (national domain)
Between national customs administrations and the European Commission (common domain).
The new version, NCTS Phase 5, comes with several major improvements:
Updated data requirements to match the Union Customs Code (UCC).
A new four-level declaration structure:
Declaration - Master Consignment - House Consignment - Goods Items
New digital functionalities (declaration before goods presentation, simplified procedures, en-route incident reporting).
Integration with systems like AES (Automated Export System) and ICS2 (Import Control System 2 - from 2025).
These changes help customs authorities monitor goods more efficiently and allow businesses to automate more of their processes.
How Logistics Companies Can Prepare for NCTS-P5 Compliance
Adapting to NCTS-P5 may require:
Updating your internal systems and software to match the new data format
Ensuring your declarations meet the new structure and requirements
Planning for conformance testing (to make sure your system is compatible)
Staying in touch with customs authorities and service providers.
At IBCCS TAX, we help clients navigate this transition - from understanding the regulations to getting licensed and compliant.
NCTS Licensing: How IBCCS TAX Georgia Supports Your Business
To operate within the NCTS, businesses need a brokerage license that authorizes them to submit transit declarations electronically and manage customs procedures under the Common Transit system.
At IBCCS TAX Georgia, we provide full support in obtaining this license, offering a tailored and comprehensive service that includes:
Initial consultation
Assistance with documentation
Internal audit and compliance check
Managing the full application process
Ongoing advisory support in Georgia
Our internal audit helps identify and resolve potential issues early, reducing the risks of delays or refusals during licensing.
Our goal is to simplify the licensing process, minimize administrative burdens, and ensure your smooth entry into NCTS operations.
Embracing Digital Customs with Confidence
NCTS - P5 marks a big step in the digitalization of customs in Europe. It gives customs and businesses a more modern, transparent way to handle transit operations.
However, to benefit from this system, companies must be well-prepared and compliant. If you trade across borders and need help navigating the NCTS system, our team at IBCCS TAX Georgia is ready to support you.
Contact IBCCS TAX Georgia for Expert Customs Advisory
Are you a business operating in or trading with the European Union, looking to stay ahead in customs compliance? Contact our team at helloGeorgia@ibccs.tax to find out how we can help you smoothly transition to NCTS-P5 and beyond with expert guidance and tailored support.
We are here to simplify the complexities of customs procedures and ensure your goods move efficiently across borders.
Frequently Asked Questions about NCTS-P5 and IBCCS TAX Support
What is the NCTS-P5 system?
NCTS-P5 (New Computerised Transit System – Phase 5) is the latest version of the EU-wide digital customs transit system. It enables faster and more secure movement of goods under the Common Transit Convention by allowing electronic declarations, real-time tracking, and improved integration with other customs systems.
When does NCTS-P5 become mandatory?
NCTS-P5 became mandatory for all Common Transit Convention countries, including EU Member States, starting from December 2024. Businesses involved in international transit operations must comply with the new system.
Who needs an NCTS license?
Any business that submits transit declarations electronically - such as freight forwarders, customs brokers, logistics providers, and trading companies - needs to obtain an NCTS license. This license authorises them to operate under the new digital system.
How long does the licensing process take?
The timeline can vary depending on your business’s readiness and local customs procedures, but typically it takes between 2–6 weeks. With IBCCS TAX support, the process is often faster due to pre-audits and full guidance.
How can IBCCS TAX Georgia help with NCTS compliance?
IBCCS TAX Georgia offers end-to-end support including initial consultations, documentation review, internal compliance audits, license application management, and ongoing advisory services. We help businesses reduce delays, ensure accuracy, and stay fully compliant with NCTS-P5 requirements.
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