Netcompany-Intrasoft, a member of Netcompany Group, has successfully implemented the New Computerized Transit System (NCTS) Phase 5 for the State Customs Service of Ukraine, with the system going live in Q2 2024.
The contract was awarded through an international tender organized by the Lithuanian Central Project Management Agency (CPVA) in 2022. The contract was funded by the EU programme Public Finance Management Support Programme for Ukraine (EU4PFM), components 1, 3 and 4 (EU4PFM), which aims to improve public finance management, thereby ultimately improving public service delivery and the business climate and to strengthen Ukraine’s resilience against the Russian war of aggression.
Can you help strengthen Ukraine’s infrastructure and at the same time move the country closer to EU membership in the middle of the war against Russian aggression?
For Ukraine that is not a matter of if, but how quick. That’s why just two months after Russia’s invasion, Netcompany decided to accept the contract awarded under Force Majure conditions and start the implementation of the NCTS Phase 5 customs system for the State Customs Service of Ukraine. The goal: to strengthen Ukraine’s trade and ties to the EU in their accession journey.
Despite extraordinarily challenging conditions, the NCTS Phase 5 system successfully went live on April 22nd this year, ahead of many EU member states. This achievement demonstrates that vital infrastructure can be developed and expanded even during wartime, relying entirely on remote work. It is worth mentioning that Ukrainian customs team faced significant challenges, including ongoing power outages caused by Russian bombardments and the need to reschedule meetings due to the impact on civilians and infrastructure.
As a member of the Common Transit Convention (CTC), Ukraine has successfully complied with the CTC’s legal requirements by implementing NCTS Phase 5, which is also mandatory for all EU member states. NCTS Phase 5 entails the implementation of a customs IT system that ensures integration and interaction with other member states’ customs systems. This new system enhances functionality for traders and facilitates smoother trade between Ukraine and the EU, simplifying the import and export of goods. This is a vital step to bring Ukraine closer to EU membership, rebuild, and help ensure that both the country and its citizens have the supplies and goods needed to get through the war.
The system development was financed under the EU project Public Finance Management Support Programme for Ukraine (EU4PFM), implemented by Central Project Management Agency (Lithuania) and delivered and developed by Netcompany. This project marks the first time that the Ukrainian State Customs Service has engaged an external IT service provider to develop a system of this magnitude. The agreement for the new system based on Netcompany’s ERMIS™ COTS customs solution was established just weeks after Russia’s invasion and, despite the ongoing war, the system is now fully implemented and operational. Leveraging its extensive global experience in e-customs, Netcompany developed and integrated a comprehensive software system – ERMIS™ product suite, which meets Union Customs Code (UCC) requirements and provides EU connectivity through a commercial off-the-shelf (COTS) approach. This system benefits from the flexible and open architecture of its ERMIS™ suite, ensuring compliance with both Ukrainian and EU standards, and seamlessly integrates within any European Customs Administrations technology landscape, significantly reducing project risks and duration.
Vladyslav Suvorov, the Deputy Head of the State Customs Service of Ukraine:
»Ukraine is reforming its customs system in line with EU standards following the implementation of the Association Agreement. One of the international obligations was to accede to the Convention on a Common Transit Procedure and start application of NCTS.
The introduction of a new system and conducting the final monitoring mission during war-time became a real challenge for Ukraine. No country acceded to the Convention under such conditions. It encouraged the State Customs Service of Ukraine to react quickly to the rapid changing environment and make important decisions. In a short period, it was necessary not only to prepare the legal framework but also to deploy the system and train a large number of customs officers to use it.
We appreciate Netcompany for its position and constant support of Ukraine, understanding that it was also a challenge for them. However, taking into account the difficult conditions, unforeseen circumstances and changing environment, caused by the war, Ukrainian Customs also expects from Netcompany a fairly quick response to the needs of the customer.
CPVA is currently implementing almost 20 projects and programmes in Ukraine, which, thanks to the determined efforts of Lithuania, Ukrainian partners, and international counterparts, are transformed into much-needed changes for Ukraine in its path to EU integration, even in times of war.«
Vytenis Alisauskas, EU4PFM Key International Expert on Customs:
»The successful completion of this contract marks a continuation of Ukraine’s positive experience in implementing the NCTS. One of the key factors behind the success of this complex project was the effective organization of the State Customs Service. This included the application of project management principles, with a clear project structure, ongoing monitoring with contractor reporting, and oversight by a Supervisory Board that approved interim results. Equally important was the project’s leadership by the department responsible for transit clearance, rather than the IT department. This experience is crucial for Ukraine’s future, particularly in developing the E-Customs system.«
Lars Langer, Partner responsible for customs, Netcompany:
»We are extremely proud that our 20 years of experience with customs integration in Europe can contribute to bringing Ukraine a step closer to EU membership and at the same type help the country rebuild through stronger trade with Europe. A strong and independent Europe needs unobstructed trade. We are very proud to have managed to deliver to a country at war and help Ukraine during their fight for freedom against Russia’s aggression. Through responsible digitalisation, European IT systems that can easily and smoothly communicate across member states can be the binding force in a united Europe.«
