HM Revenue and Customs (HMRC) has announced an extended partnership with Netcompany to deliver the next phase of the New Computerised Transit System (NCTS).
The NCTS is a digital system used across the European Union and countries party to the Common Transit Convention, including the United Kingdom, to manage and monitor the cross-border movement of goods.
This latest appointment sees Netcompany leading the development and implementation of Phase 6 of the NCTS. The project aims to ensure compliance with evolving European and national requirements, reinforcing the UK’s digital customs infrastructure and supporting streamlined trade processes.
Background of NCTS
The New Computerised Transit System was implemented in 2004 as part of a collaborative effort among EU member states and Common Transit Convention signatories.
Its primary function is to process transit declarations and related data to facilitate the secure and efficient movement of goods through customs. Over the years, NCTS has become a central tool for customs management, helping authorities supervise goods transported across borders while ensuring safety and security compliance.
For the United Kingdom, active participation in the NCTS remains an essential facet of customs operations, particularly in the post-Brexit landscape. The system underpins the control arrangements for goods transiting between the UK, the EU, and other CTC member countries.
Netcompany’s Role in Previous Phases
Netcompany played a significant role in the most recent upgrade, Phase 5, of the NCTS in partnership with HMRC. The company successfully completed this phase by 28 June 2024 in Northern Ireland and 1 July 2024 in Great Britain, well in advance of the full deployment deadline of 2 December 2024.
This implementation focused on replacing outdated systems with a modern, automated platform. The upgrade reduced administrative burdens, shortened processing times, and enhanced control and transparency for the transit process, benefiting both customs officials and the wider trade community.
Scope of Current Phase 6 Project
For Phase 6, Netcompany is tasked with designing and implementing additional upgrades to maintain compliance with new European Union standards and UK-specific requirements.
The updated system must remain closely aligned with the evolving regulations of the EU, including forthcoming changes specified under the Import Control System 2 (ICS2) Release 3. Richard Davies, Netcompany’s UK Country Managing Partner, stated, “Responsible digitalisation drives everything we do.
Our continued work through this latest phase is crucial in supporting HMRC in protecting UK borders and facilitating appropriate tax collections on imported, exported, and transited goods.”
Technological Updates with ERMIS Platform
Netcompany will leverage its ERMIS platform to deliver the new requirements. ERMIS is an integrated customs solution designed to provide flexibility, efficiency, and regulatory compliance through a modular microservices architecture.
The platform already supports transit processes for the European NCTS as well as regimes in other regions, including ASEAN. Key functions of ERMIS include managing major importation areas such as Free Circulation and e-Commerce, supporting export procedures, and administering preclearance for goods at both pre-arrival and pre-departure stages.
The platform is currently responsible for facilitating over 2 million transit declarations annually in the UK and manages over 20 million declarations across the EU each year.
Anticipated Impacts and Industry Reactions
Industry observers view the renewed partnership as confirmation of Netcompany’s capacity to deliver complex digital infrastructure for national customs. Efficient digital customs processing is seen as essential for ensuring smooth trade flows and meeting compliance obligations.
In a statement attributed to Davies, he explained, “The ERMIS solution delivers the compliance and functionality required to maintain efficient trade flows between the UK and EU, which directly supports economic growth and business competitiveness.
As trade requirements continue to evolve, our focus remains on delivering systems that meet regulatory obligations while minimising operational complexity for traders.”
Final Summary
With the extension of its collaboration with Netcompany, HMRC is investing in the continued modernisation of the UK’s digital customs framework. These advancements are designed to ensure the country remains compliant with changing European regulations while supporting efficient and secure border processes.
The focus on adaptable, scalable technology underpins the government’s commitment to safeguarding economic growth and simplifying trade for businesses. Looking ahead, stakeholders will closely watch the implementation progress and outcomes of Phase 6.
For those seeking insight into ongoing customs technology reforms, platforms such as Pie offer updates and analysis on significant public tech projects.
