6. The Business Continuity Procedure
Explains the business continuity procedures to be followed during downtime of the customs' system (NCTS) or traders' system.
This section explains the Business Continuity Procedures to be followed during downtime of the customs’ system (NCTS) or traders’ system. It explains the BCP processes in place for Office of Departure, Office of Transit and Office of Destination.
To note all movements started under business continuity procedure (SAD) shall be ended according to the provisions governing the use of that procedure.
The relevant Force of Law comes from the Customs Statutory Instruments.
6.1.1 Use of paper Transit declarations
The use of paper Transit declarations is permitted only either:
- during business continuity when the NCTS is unavailable
- for private travellers with goods in excess of allowances
The general rule is that paper-based Transit declarations are drawn up either in written form by hand (making sure that they are completed legibly, in ink and in block letters) or printed out by a computerised system, if necessary, on plain paper.
You should therefore ensure that you have facilities to print off the paper documents without which the Transit movement cannot start. The SAD or TAD must be signed by the holder of the procedure or their representative.
It is possible for an email version of the signed paper-based Transit declaration to be sent to Border Force who will be able to print off the documents at the Office of Departure if starting a movement.
6.1.2 Business continuity: ‘Scheduled’ Downtime in the HMRC Central System
Where possible, information on scheduled downtime will be posted up to 7 working days in advance on the HMRC service availability and issues page.
Traders are advised to check the site regularly for the date, time and duration of ‘scheduled’ downtime. Availability of the EDCS (email), Web and the XML channels are reported separately on this page. This will help traders to organise their business accordingly.
Holders of the procedure have permission to use the business continuity procedure in accordance with Transit Manual part V, Business Continuity Procedure for Common Union Transit during periods of scheduled downtime. Holders of the procedure must retain details in their records of all business continuity documents used, the date and time that they started to use business continuity and when they reverted to the NCTS.
Where the decision to revert to a business continuity procedure is taken, it is important to ensure that any declaration entered in the NCTS, but not processed further due to system failure is invalidated. The trader is obliged to provide information to the competent authorities each time he/she submits a declaration in the system but subsequently reverts to a business continuity procedure. In such cases, any Transit data with an LRN or MRN allocated to the Transit operation must be withdrawn from the NCTS.
Upon reinstatement of the central system, holders of the procedure must immediately revert to using the NCTS. Those MRNs already in NCTS but not accepted at CTC movement or started by SAD can now also be processed as normal.
6.1.3 Business continuity: ‘Unscheduled’ Downtime
Traders may wish to view the HMRC service availability and issues page to establish if any unscheduled downtime and the Fallback Procedure is invoked.
During ‘unscheduled’ downtime when the central system is unavailable, principals have permission to use the business continuity procedure.
Where the principal’s system is unavailable the principal should firstly contact the software supplier to try to effect a repair. However, if there is then still a need to use the business continuity procedure, it will not be necessary to obtain prior permission from HMRC.
If a holder of the procedure has submitted a declaration on the NCTS but has received no response within expected timescales this may be as a result of a system failure. Corrective action will be necessary to deal with any messages stuck in the system. In this case the holder of the procedure must phone the NCTS Helpdesk on 0300 322 7908 during office hours (8am to 5pm Monday to Friday) for further information.
Holders of the procedure must retain details in their records of all business continuity documents used, the date and time that they started to use business continuity and when they reverted to the NCTS. Where the decision to revert to a business continuity procedure is taken, it is important to ensure that any declaration entered in the NCTS but not processed due to NCTS failure, is invalidated. The trader is obliged to provide information to the competent authorities each time he/she submits a declaration in the NCTS but subsequently reverts to a business continuity procedure. In such cases, any Transit data with an LRN or MRN allocated to the Transit operation must be withdrawn from the NCTS.
Upon reinstatement of the central system, holders of the procedure must immediately revert to using the NCTS.
6.1.4 Business continuity procedure at Office of Departure
What do you need to start a movement under NCTS business continuity procedure?
Before you can operate the business continuity procedure, you should have lodged official copies of your Guarantee Certificates at the Office of Departures you plan to use. If you have only one guarantee certificate, you must take it to the Office of Departure with your declaration. The Guarantee Certificate is returned to you by CCTO when your guarantee is agreed. You have the option to request multiple copies if you expect to use multiple Offices of Departure.
Outbound procedures
Your Driver/Haulier must be provided with a business continuity procedure document in the SAD or TAD format which must be signed by the holder of the procedure or their representative and must be a signatory that matches one of the signatories on the Guarantee certificate lodged at the Office of Departure being used. It is possible for an email version of the signed paper-based SAD or TAD to be sent to Border Force. Please send the email to the address shown on the Customs Office List (COL) for the Office of Departure you will be using - refer to the:
For the paper-based Transit declaration, three copies of the SAD are required – copies 1, 4 and 5:
- copy 1 is retained by the customs Office of Departure after the declaration is registered
- copy 4 accompanies the goods to the customs Office of Destination and is retained there
- copy 5 accompanies the goods to the customs Office of Destination, which returns it to the customs authorities in the country of departure after the end of the Transit procedure
Where the TAD is used an MRN is not allocated to the Transit operation. Instead, the national reference number for the business continuity procedure is used and inserted in the right upper corner of the TAD. Two copies of the TAD, supplemented, if necessary, by a list of items (LoI), are required. The first copy of the TAD is retained by the customs Office of Departure. The second copy of TAD accompanies the goods to the customs Office of Destination.
The Haulier will also need to supply a completed TC10 Transit Advice Note (TAN) for each subsequent Office of Transit that they go through before arriving at the Office of Destination. The TAN is retained at the Office of Transit. You will therefore need to have a supply of TC10 Transit Advice Notes (Form C1128) to provide to the carrier. The TC10 is available from HMRC by calling the Customs and International Trade Helpline on 0300 322 9434 and requesting a TC10 form for use with NCTS. A copy of the form will then be emailed to you which you can print off and use as required. If you no longer have a supply of TC10, a photocopy of copy 4 of the SAD or a photocopy of a second copy of the TAD should be supplied to the Haulier for presentation and retention by the customs office of transit.
Checks completed by Border Force
The customs Office of Departure will:
- check that copies 1, 4 and 5 of the SAD are properly completed and, where the SAD-BIS forms or loading lists are used, that they are attached to the SAD
- if the trader has used the TAD instead, check that two copies of the TAD are properly completed and, where an LoI is used, that it is attached to the TAD
- check the validity and amount of the guarantee
- check documents such as trader’s invoice, manifest or other documents
When checking the validity of the guarantee, the customs Office of Departure will check that the:
- guarantee details shown in Box 52 of the SAD or the TAD match the original guarantee documents presented
- guarantee is valid in all Contracting Parties involved in the Transit operation
- guarantee is in the name of the holder of the procedure named in Box 50 of the SAD or TAD
- guarantee has not expired (TC31 and TC33 certificates are still valid)
- validity period of one year from the date of issuance has not expired (validity of TC32 voucher)
- signature on the declaration in Box 50 of the SAD or the TAD corresponds to the signature on the reverse of the TC31 comprehensive guarantee certificate or the TC33 guarantee waiver certificate
To do this a TC31 comprehensive guarantee certificate or the TC33 guarantee waiver certificate needs to be lodged with the Office of Departure.
The customs Office of Departure will register the Transit declaration by putting a registration number in Box C ‘Office of Departure’ of the SAD or the TAD and by inserting in Box D(/J) ‘Control by Office of Departure’ of the SAD or the TAD the details of inspections carried out, seals affixed, and time limit allowed. It then will add its signature and the stamp.
BF will undertake all other normal formalities of the Office of Departure including:
- proper completion of the appropriate copies of the SAD or the TAD
- completion of the possible control
- furnishing of the guarantee, where required (see Part III)
- setting of the time limit
- setting of a prescribed itinerary, where required
- acceptance and registration of the declaration
- verification of the declaration
- affixing seals, where required
Priority Goods Process for goods moving from a port in the South East of GB
In order to manage traffic and congestion at ports in the South East, HMRC and BF will prioritise certain movements through Dover/Folkestone, EuroTunnel, Ramsgate and Newhaven.
If your goods are not shown on the priority list, you will be asked to wait.
We strongly advise if your goods are not shown on the priority list you should consider the alternative processes that are set out below this section.
HMRC/BF will prioritise NCTS business continuity procedure movements of:
- life or death consignments only
- serum
- transplant tissue
- medical radioactive for hospitals, pacemakers
- live animals
- human remains
- urgent medical supplies on dry ice
- dangerous goods
- firearms
- explosives on key side
- extremely high value goods (for example, artwork)
- perishable goods
Copy 1 of the SAD or a first copy of the TAD are retained by the customs Office of Departure. The goods placed under the Transit procedure are carried to the customs Office of Destination on the basis of copies 4 and 5 of the SAD or a second copy of TAD.
If moving goods out of GB from any location other than Dover/Folkestone, EuroTunnel, Ramsgate and Newhaven – the Priority Goods Process will not apply, and you can use Transit to move any goods through those ports if you are able to operate the business continuity procedure.
Alternative Processes
If you are unable to access the Transit Process by using the Business Continuity Procedure, then you can either:
- complete the normal export declaration process when leaving GB (which means that the driver will need to amend their export declaration and remove reference to ‘TRANS from Box 40 of the declaration) and can complete the normal import declaration process into the EU
- use the export declaration to move goods out of GB and on arrival at the EU port, rather than import the goods into that country, the haulier could use an agent to start a union Transit movement from that point, if moving goods on to a second EU destination
User of the Simplified Procedure (Authorised Consignor)
Preauthorisation is required for an Authorised Consignor to start movements at their authorised premises in the case of invocation of NCTS Business Continuity procedure. An option is available at the time of authorisation to access this facility. Alternatively, you can ask for an amendment to your authorisation to access this facility. Please refer to the Transit Manual to be reauthorised to use the Business Continuity Process.
If you are authorised to use the business continuity procedure, you will be obliged to use a Special Business Continuity Stamp, approved by CCTO Simplifications Team, for any movements that you start at your premises. There are special rules governing the storage and use of these stamps and the terms and conditions governing their use will be set out in your authorisation.
If you are not preauthorised and possess the business Continuity Stamp you will not be able start movements at your approved premises.
If you have met these criteria you will be able to start the movement and should use this process.
You must inform your normal customs Office of Departure, by email or in another way agreed in the authorisation of all forthcoming Transit operations. In this way, we can, if necessary, carry out checks before the release of the goods. The information sent must include the:
- details of the Transit declaration
- date and time of dispatch of the goods and details of seals to be affixed, if appropriate
- normal trade description of the goods
- numbers of the attached documents, if appropriate
Your Haulier must be provided with a business continuity procedure document in the SAD or TAD format which must be signed by the holder of the procedure or their representative.
The Haulier will need to supply a completed TC10 Transit Advice Note (TAN) to each Office of Transit. The TAN is retained at the Office of Transit. You will therefore need to have a supply of TC10 Transit Advice Notes (Form C1128) to provide to the carrier. The TC10 is available from HMRC by calling the Customs and International Trade Helpline on 0300 322 9434 and requesting a TC10 form for use with NCTS. A copy of the form will then be emailed to you which you can print off and use as required. If you no longer have a supply of TC10, a photocopy of copy 4 of the SAD or a photocopy of a second copy of the TAD should be supplied to the Haulier for presentation and retention by the customs office of transit.
After departure of the goods, you must send copy 1 of the SAD or a first copy of the TAD to your normal Office of Departure without delay.
6.1.5 Business continuity procedure at Office of Transit
If the goods are entering the UK, the driver must proceed to the declared Office of Transit for any ports not operating the Goods Vehicle Movement System (GVMS).
At a UK Office of Transit, customs will check that:
- the information on the TAD is correct and has not been altered without good reason
- any prescribed itinerary has been followed
- any customs seal applied at the Office of Departure or previous Office of Transit is still intact
Provided that no major irregularities are identified customs will then return the TAD to the carrier and allow the movement to continue.
If a major irregularity is identified, customs will terminate the movement at the Office of Transit, which will then become the Office of Destination.
The goods may then either be:
- entered to another customs procedure, or put into free circulation
- authorised to move forward under a new CTC Transit declaration
Customs will notify the CCTO of the irregularity and the subsequent action taken.
If the driver is entering GB via a port operating GVMS then the Office of Transit checks will be completed digitally while the goods are crossing, and Drivers will be notified in advance of arrival if the goods will need to proceed to the declared Office of Transit for a physical check. If no message is received, then the driver can proceed directly to the declared Office of Destination.
6.1.6 Business continuity procedure at Office of Destination
If the movement is started under NCTS Standard procedure
The Office of Destination will discharge the movement on the basis of the particulars presented on the TAD inputting, information into NCTS to close the movement when it is up and running.
If the movement is started under business continuity procedure
If NCTS was down when the Transit movement was started then instead of the Transit Advice Note, photocopies or digital copies of copy 4 of the SAD or a second copy of the TAD should be used to progress the Transit movement.
At the Office of Destination, the carrier must present the goods, the SAD or the TAD and required documents; the Office of Destination will:
- register the Transit declaration and record on them the date of arrival
- check the business continuity procedure stamps on the SAD or the TAD
- stamp the SAD or the TAD with their customs office stamp
The Office of Destination will decide whether the goods will be examined or not entering the appropriate control result code in Box I on the SAD or the TAD.
Following any controls, the Office of Destination must send both copies of the SAD (or copy of the TAD) to the CCTO who will retain copy 4 and return copy 5 to the Office of Departure.
The carrier will then be free to leave with the goods.
User of the Simplified Procedure (Authorised Consignee)
In the case of a business continuity procedure, the authorised consignee has to inform without delay the competent authority by whatever means they have agreed in the authorisation (email or another way) about the arrival of goods. After the unloading permission given by the customs Office of Destination, the goods maybe unloaded at a place or places specified in the authorisation.
The authorised consignee has to indicate:
- the date of arrival and actual state of the seals
- the control result code
- his/her authorisation stamp on copies 4 and 5 of the SAD or on a second copy of the TAD, which accompanied the goods and deliver them to the customs Office of Destination as soon as possible, no later than the following working day
The authorised consignee must inform the customs Office of Destination of the arrival of the goods in accordance with the conditions laid down in the authorisation in order for the competent authorities to carry out controls, where necessary, before the release of the goods.
The information sent to the customs Office of Destination should contain the:
- business continuity procedure declaration number
- date and time of arrival of the goods and the condition of the seals, if appropriate
- normal trade description of the goods (including HS code, if it is part of the declaration)
- details of excess quantities, deficits, substitutions or other irregularities such as broken seals
In general, the hours during which the authorised consignees can receive goods will coincide with the normal opening hours of the customs Office of Destination. However, taking account of the individual activities of certain economic operators, the competent authorities may include in the authorisation the provision that goods arriving outside of the opening hours of the relevant office can be released by the authorised consignee.
In addition, the customs authorities may authorise authorised consignees who receive consignments according to a regular schedule (fixed days and hours) to provide details of the schedule to the appropriate customs office. This may exempt the authorised consignee from giving information as each consignment arrives and may allow them to dispose of the goods at the time of arrival without intervention by the customs Office of Destination.
Note that in all instances where excess quantities, deficits, substitutions or other irregularities such as broken seals are discovered, the customs Office of Destination must be informed immediately.
If the customs authorities decide to examine the goods, they must not be unloaded by the authorised consignee. If customs do not wish to examine the goods, the authorised consignee must be given permission to unload them.
Where the customs authorities do not check the consignment on arrival, the authorised consignee must enter in the left-hand division of Box I of copies 4 and 5 of the SAD or of a second copy of the TAD and, if applicable, in his records the:
- date of arrival
- condition of any seals affixed - note that the second subdivision of Box I is reserved for the entries of the customs Office of Destination
Copies 4 and 5 of the SAD or a second copy of the TAD must be forwarded without delay by the authorised consignee to the customs Office of Destination.
The Office of Destination will apply the normal formalities in respect of the:
- recording, control or annotation of the SAD or the TAD
- return of copy 5 of the SAD or a second copy of the TAD to the customs Office of Departure
- treatment of irregularities
- possible checks and so on
The use of the Common Transit procedure does not affect the requirement to comply with UK prohibitions and restrictions; see UK Integrated Trade Tariff Volume 1 for details.
Where non–Domestic goods are to be transhipped from one aircraft to another or one ship to another for direct delivery to another country and the goods do not leave airside or portside, the Common Transit procedure is not required in order to tranship the goods.
If, however, the goods leave the perimeter of the airport or port, Common Transit is required.
An alternative to Common Transit would be the Temporary admission (TA) procedure. TA would require a guarantee for any duty and VAT. This would be refunded following satisfactory evidence of export. A guarantee waiver can only be granted to traders who regularly use TA.
Customs warehousing (CW) is an option. If the importer was merely the depositor, a guarantee would not be required, and the duty and VAT would be suspended. Type A warehouse keepers would, however, charge for the storage.
Information on TA and CW is available within the guidance on temporary storage and customs warehousing.