Guidance

NCTS guarantees

Updated 1 April 2021

Using guarantees in New Computerised Transit System

You must include guarantee details on every declaration.

The New Computerised Transit System (NCTS) software checks the guarantee reference number quoted against the principal’s Trader Indentification Number (TIN) and the declared access code. Any validation failures will result in the declaration being rejected.

You can use more than one guarantee on a declaration, as long as they are not both comprehensive guarantees or waivers.

A comprehensive guarantee or guarantee waiver which is not sufficient to cover the movement may be topped up by other means, such as individual guarantee or vouchers.

Using somebody else’s guarantee

If you use someone else’s guarantee with their permission, put in their TIN as principal, and use their guarantee reference number. You will also need to ask the principal to have an access code set up by UK Central Services Office (CCTO) for you to use.

Guarantees from EU member states

If the details are already known to CCTO and they have been entered onto the Minimum Common Core (MCC) database, you can use a guarantee from an EU member state. Otherwise another form of guarantee will be required and NCTS must still be used. A principal may only use a guarantee issued in the country where that principal is established.

Office of departure

Guarantee validation within NCTS should allow use of the guarantee from any UK office of departure.

Changing guarantee details

Guarantee details may be queried by Customs. Following your response to the query, the guarantee information on the declaration may subsequently be amended by Customs at the office of departure before release of the movement.

Keep your electronic guarantee details up to date

Contact the Simplifications Guarantees Team on Telephone: 0300 322 7908 (CCTO) to update your electronic guarantee data or with any queries on guarantees.

Guarantee reference amounts

From 14 January 2021 it became a requirement to provide an accurate guarantee reference amount in NCTS declarations for Transit movements on the Great Britain and Northern Ireland NCTS systems, in line with the Common Transit Convention (CTC).

In exceptional circumstances, where you are unable to determine the guarantee reference amount, the CTC allows it to be fixed at 10,000 euros for each transit operation. If you do not enter a value, NCTS will automatically add the equivalent of 10,000 euros in sterling.

Temporary treatment for when no value can be entered into NCTS

As many customers were unable to enter an accurate guarantee reference amount, we temporarily reduced the default value of 10,000 euros to £1 to ensure transit movements could continue. This was only a temporary measure to allow traders and software developers time to make the necessary changes so that an accurate guarantee reference amount could be entered in their declarations.

This temporary measure will end on 4 May 2021.

From 4 May 2021

From 4 May 2021 we will be resetting the default value to 10,000 euros in sterling.

From this date if you do not enter a value, NCTS will automatically add the sterling equivalent of 10,000 euros for each transit movement. If you are using software to make your transit declarations into NCTS a value below £1 will not be accepted and may result in the sterling equivalent of 10,000 euros being entered.

NCTS will keep track of the amount of guarantee that you are using for all your open transit movements, and you must make sure that your transit guarantee is large enough to cover all of your transit movements.

If you reach the limit of your guarantee, then NCTS will not allow you to start any new movements, until either some of your open movements are closed and the guarantee held against them is released, or you arrange for your guarantee limit to be increased.

Steps to take now

  1. Update your Software

  2. Enter a guarantee reference amount in every declaration

  3. Make sure your guarantee is large enough

  4. Increase your guarantee if you need to

Step 1: Update your Software

You must enter an accurate guarantee reference amount with each transit declaration. If you are able to enter a guarantee reference amount then you should already be doing so.

If you use software to make your transit declarations into NCTS you must make sure you’ve applied any updates from your software provider to allow you to make this entry.

Step 2: Enter a guarantee reference amount in every declaration

If your NCTS software does not automatically enter an amount then you must enter it manually. If you do not enter an amount, NCTS will enter a value of 10,000 euros in sterling and your guarantee will be held against the movement until it is released.

In most cases, you should be able to calculate an accurate guarantee reference amount, based on the value of the customs and other duties on the goods that are suspended whilst they are in transit. Where this is possible, you must enter this value as the guarantee reference amount. If you are using software to make your transit declarations into NCTS a value below £1 will not be accepted.

In some exceptional cases, it may not be possible to calculate an accurate amount at all. In these cases only, you may enter an amount of 10,000 euros in sterling. You should enter this amount into NCTS yourself if you are able to.

Step 3: Make sure your guarantee is large enough

You must continue to monitor your actual guarantee usage and make sure that you have sufficient guarantees in place to cover all of your open transit movements. This requirement applies regardless of whether or not you are able to enter an accurate amount on NCTS.

If you reach the limit of your guarantee, then you will not be able to start any new movements, until either some of your open movements are closed and the guarantee released, or you arrange for your guarantee limit to be increased.

Step 4: Increase your guarantee if you need to

Get more information on how to apply for a Customs Comprehensive Guarantee including considering applying for a waiver using form CCG1F.

You can check the amount of guarantee needed for Common and Union Transit.

If you need to arrange for a guarantor to cover your potential debt, less the amount of any HMRC agreed waiver you should ask your bank or insurer about being a guarantor before you apply to HMRC for a Customs Comprehensive Guarantee. There may be restrictions on the size of the guarantee your bank or insurer is able to offer you which could affect the size of the Customs Comprehensive Guarantee you can apply for.

Get more information on how to get a guarantor for your Customs Comprehensive Guarantee.