NEW COMPUTERIZED TRANSIT SYSTEM: ESSENCE AND PROSPECTS

Keywords: New Computerized Transit System (NCTS), participants in customs procedures, electronic messages between trader and customs, electronic messages between customs authorities, risks of the NCTS project

Abstract

The relevance of implementing the New Computerized Transit System (NCTS) in Ukraine stems from the country's strategic goal of European Union membership. Deployment of the NCTS is a mandatory requirement for EU candidate countries, as it accelerates transit procedures, increases their efficiency and security. While offering undeniable advantages, the peculiarities of the NCTS development pose certain challenges that require attention and resolution. Further implementation of the NCTS project in Ukraine necessitates a deep understanding of its essence, as well as outlining development prospects. The purpose of the article is to study the essence of the NCTS as a transit management tool and outline the prospects for its application in Ukraine. To conduct this study, a combination of research methods was employed. A literature review was carried out to analyze recent academic publications focusing on the planning and implementation of the NCTS project specifically in Ukraine over the past few years in relation to the country's accession to the Convention on a Common Transit Procedure. Key research papers by domestic scholars were reviewed and synthesized to provide on the NCTS deployment progress and challenges in Ukraine. Additionally, an analysis of primary sources such as regulatory documents, technical specifications, ‘Action roadmap on Ukraine's accession to the EU/EFTA common transit procedure’, ‘Management Risk Plan for implementing NCTS in Ukraine’, and support materials related to the NCTS was conducted to extract essential details about the system's functionality, implementation process, peculiarities, and further development prospects within the context of Ukraine's European integration efforts. The study provides an overview and analysis of the NCTS implemented in Ukraine. Key results include: elucidating the essence of NCTS as an IT tool for managing transit procedures across the EU and countries party to the Convention on a Common Transit Procedure, aimed at accelerating, streamlining and securing transit operations; outlining the functional capabilities of NCTS that allow participants to track the movement of goods in real-time across 36 countries; analyzing the challenges of synchronized NCTS development across different versions deployed in participating countries; detailing the implementation Roadmap, risk management strategies, technical support infrastructure; identifying ongoing initiatives like the upgrade to NCTS Phase 5 and potential transition to Phase 6 to further enhance transit efficiency and security. This study on the implementation of the NCTS in Ukraine offers practical value for customs authorities, traders, industry associations and policymakers. By analyzing the functionality, development challenges and future prospects of NCTS, the article provides stakeholders with a detailed understanding of this IT tool for managing transit procedures. The NCTS brings undeniable benefits, including accelerated transit procedures and heightened efficiency and security. This study navigates through the intricacies, offering an understanding of the NCTS as a transit management tool.

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Published
2024-01-30
How to Cite
Melnyk, O. (2024). NEW COMPUTERIZED TRANSIT SYSTEM: ESSENCE AND PROSPECTS. Economy and Society, (59). https://doi.org/10.32782/2524-0072/2024-59-38
Section
ECONOMICS