HMRC extends Netcompany appointment for NCTS

Netcompany has been reappointed by HM Revenue and Customs (HMRC) to deliver phase 6 of the New Computerised Transit System (NCTS). NCTS is a Europe-wide digital system designed to provide better management and control of goods under Union and Common Transit. It involves all EU countries and Common Transit Convention (CTC) contracting parties, including the UK. Based on transit declarations, NCTS processes safety and security data for entry and exit formalities.

NCTS was originally launched in 2004, with the UK involved in the transit system. Netcompany assisted HMRC with the deployment of phase 5, completing the work on 28 June 2024 for Northern Ireland and 1 July for Great Britain. Well ahead of the full deployment date of 2 December 2024.

That implementation saw Netcompany help replace legacy systems with a modern, automated platform. Therefore reducing administrative burden, accelerating processing times and delivering enhanced control and visibility across the entire transit process. The systems have strengthened the UK’s digital customs capabilities among CTC member countries.

Richard Davies, Country Managing Partner UK, Netcompany, commented, “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.”

ERMIS to solve the challenge

Netcompany will now design and deliver upgrades to enable the UK to meet evolving European compliance requirements. The changes will also align with the UK’s national requirements and solutions. Netcompany will leverage ERMIS, its dedicated, self-contained, reusable, and integrated family of customs solutions.

With a micro-services architecture, ERMIS is a flexible platform that allows it to support transit regimes across the world. It currently supports transit systems that include EU NCTS and ASEAN ACTS. Its functionalities include support for:

• Major importation areas (such as Free Circulation, Special Procedures, e-Commerce),
• Facilitating export procedures (including export declarations, Special Procedures, Exit/Indirect Exit),
• Managing Preclearance for Pre-Arrival and Pre-Departure formalities.

The key changes for Phase 6 include aligning with ICS2 Release 3, removing certain security options (1 & 3), updating the API, and enhancing data fields. The next key implementation date is June 2026.

The micro services architecture will enable it to update the system to support Phase 6. Netcompany will begin the work in 2026. ERMIS has already facilitated over 2 million transit declarations annually in the UK. The platform is widely used across the EU and processes over 20 million declarations and 150 million transactions annually. 

Davies added, “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.”

Enterprise Times: What does this mean

For Netcompany, this is validation of the ERMIS platform; it has delivered against NCTS Phase 5, and now HMRC is looking for the firm to continue its support to meet regulatory changes. The information sourced is unclear; it appears the first phase of the project has already been completed. In September, an update was rolled out that fixed some issues in the Phase 5 deployment and prepared the solution for Phase 6.

This is a solid win for Netcompany and ERMIS, delivering a strong endorsement for the solution. It will be interesting to see when the next update for phase 6 is delivered and which of the two options allowed under the regulations HMRC opt for.

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