Customs Declaration Industry: EU NCTS Phase 6 Deployment

European Commission Reports NCTS Phase 6 Deployment Linking Transit Declarations With ICS2 Safety Data

BRUSSELS, Belgium — October 26, 2026 — The European Commission has announced the deployment of Phase 6 of the New Computerised Transit System (NCTS), now in use across the 27 EU Member States and the countries of the Common Transit Convention, a total of 41 participating countries. The upgrade is relevant to the customs declaration software market, as it changes how transit and pre-arrival security data are filed.

According to the Commission, the upgrade lets economic operators submit a transit declaration and pre-arrival safety and security data at the same time through a single channel, the NCTS Phase 6 system. The data covers entry into the Safety and Security Area and follows Import Control System 2 (ICS2) requirements.

Phase 6 has two options, and each participating country’s customs authority decides which to implement. Under the opt-in option, entry summary declaration particulars are included in the transit declaration, and NCTS Phase 6 connects to ICS2 so that its requirements for risk analysis, control recommendations and decisions are met. Under the opt-out option, the entry summary declaration is lodged directly in ICS2.

Only complete entry summary declarations can be lodged together with a transit declaration, the Commission noted. Countries may move from opt-out to opt-in later, and a “State of Play” overview of each country’s choice is available from the Commission.

The Commission said the opt-in model allows faster processing and shorter clearance times, and lets traders use a single declaration in a single system. It also cited improved data validation to reduce errors and the risk of penalties, along with greater visibility of consignments. For customs authorities, it cited stronger oversight, improved risk management and greater automation.

Key Highlights:

• NCTS Phase 6 is in use across the 27 EU Member States and Common Transit Convention countries, covering 41 participating countries.

• Under the opt-in model, a transit declaration and the pre-arrival safety and security data can be submitted together through one system, in line with ICS2.

• Each country chooses opt-in or opt-out, and only complete entry summary declarations can be lodged with a transit declaration.

• The Commission describes the deployment as part of a wider reform toward a data-driven approach to import supervision.

Analyst Insight:

According to analysts at Next Move Strategy Consulting, the global customs declaration software market was valued at USD 1.46 billion in 2025 and is estimated at USD 1.62 billion in 2026. It is projected to reach USD 3.96 billion by 2035, a compound annual growth rate of 10.4% from 2026 to 2035.

NMSC analysts note that Europe led the market with approximately 34% share in 2026. They say the Union Customs Code, ICS2 and the planned EU Customs Data Hub are sustaining software investment across the 27 member states. They add that freight forwarders and logistics providers are the fastest-growing end-user group, at a CAGR of 11.1% from 2026 to 2035, as digital customs declaration software connects with broader logistics systems.

Industry Outlook:

The effect on declarants will vary by country, because each national authority decides between opt-in and opt-out. Software providers and filers will need to track those national choices and the ICS2 requirements they apply. The Commission links the deployment to a wider customs reform, so further changes to declaration processes are expected in the coming years.

Source: European Commission, Taxation and Customs Union

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Prepared By: Sanyukta Deb