Improving Customs Transit Systems
In the Islamic Countries
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In particular, TIM’s positive effect on firms’ exports can be mainly traced back to an increased
number of shipments. In terms of the latter, the differential growth rate associated with the TIM
has been 1.2 percentage points. Importantly, given the TIM’s trade impacts, its prorated
development and implementation costs, and its annual operative costs, the system has had a
benefit/cost ratio of at least 40 US dollars per dollar invested in it.
2.2.3 New Computerised Transit System (NCTS)
The Community Transit system was created in 1968 following the introduction of a common
customs tariff in the same year. Since then, the context of working has dramatically changed.
The EU expanded from six to twenty-eight countries (2019), internal customs borders in the EU
have disappeared, and the volume of trade has increased dramatically.
The NCTS started in the European Union in the early ’90 s, only four countries participated, and
the scope was to cover only transit movements. Today, the number of participating countries is
29, and the number of transits (as measured by the number of issued unique Movement
Reference Numbers - MRNs) has skyrocketed. Moreover, the EU and the EUMember States have
come to realize that the NCTS platform has the potential to develop additional functionalities in
addition to the transit function. Thus, the purpose, the legislative framework, as well as the ICT
features of the NCTS, are all in the state of development.
2.2.3.1 NCTS in the EU – the DG TAXUD perspective
NCTS (New Computerised Transit System) materializes the electronic exchange of the transit
data between the European Union Member States’ CAs in parallel and in anticipation of the
movement of the goods. It also enables communication between the Customs administrations
and the business community.
The NCTS is a transit system based on an exchange of electronic messages. The NCTS,
implemented by the first group of EU and EFTA countries in 2001-2002, serves as a tool to
manage and control the transit system. Based on the use of electronic data-processing
techniques, it guarantees much more efficient management than the paper-based system.
The main objectives of the NCTS are:
 To increase the efficiency and effectiveness of transit procedures;
 To improve both the prevention and detection of fraud;
 To accelerate transactions carried out under a transit procedure and to offer adequate
security for the participating Customs administrations.
As a general rule the NCTS is mandatory for both external and internal European Union (EU)
transit and for the common transit procedure (the international transit procedure between the
EU,EFTA and other participating countries – Switzerland, Norway, Iceland, Turkey, Republic of