UK to Remain in Common Transit Convention after Brexit

Posted on: 24/12/2018

The UK is set to remain in the Common Transit Convention (CTC) after Brexit, meaning that simplified cross border trade will continue to be available, for example for shipments by road to Norway, Switzerland and Turkey.

 

Currently, the UK is a member of CTC as an EU member, and according to a government notice has negotiated membership in its own right after Brexit. It means that UK traders will only have to make customs declarations and pay import duties when they arrive at their final destination.

 

Membership of the CTC, and its supplementary convention the Convention on the Simplification of Formalities in the Trade of Goods, reduces administrative burdens on traders by removing the need for additional import/export declarations when transiting across multiple customs territories. It also provides potential cash flow benefits by allowing the movement of goods across a customs territory without the payment of duties until the final destination – countries who are not in the Convention would have to pay each time their goods crossed a border.

 

To benefit from Common Transit, the company must be registered as a consignor/consignee to use NCTS, as must the carrier.

 

As well as the export and import customs declarations the movement has to be entered onto the New Computerised Transit System (NCTS) to get a Transit Accompanying Document (TAD) reference/ bar code Movement Reference Number MRN

 

To move goods under CT someone must take out a Transit Guarantee in case the goods go missing within the EU and the TAD doesn’t get closed correctly.


To be a consignor/consignee you have to meet Authorised Economic Operator – Customs (AEOC) compliance standards and the guarantee is via the Customs Comprehensive Guarantee scheme (CCG), again subject to AEOC checks.  If forwarders handle the NCTS declarations, they will charge.

Companies who seek to use the NCTS system to move goods across the EU to non-EU countries after Brexit should speak to their freight companies to ensure they know how this will work.

 

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