What Are Transit Documents?
Transit documents are customs documents that allow goods to move through one or more countries without paying import duties at each border crossing. Instead, the goods travel "under suspension" — duty is held in abeyance until the goods reach their final destination and are released into free circulation there.
The two main transit document types in the context of UK–EU trade are T1 (external transit) and T2 (internal transit). Both fall under the Common Transit Convention (CTC), which the UK joined as an independent contracting party following Brexit.
T1: External Transit
A T1 document is used for goods that do not have EU Community status — in other words, goods that have not been released into free circulation in the EU or that originated outside the EU.
When Is T1 Used?
Common T1 scenarios include:
- Goods manufactured in China or other third countries that are transiting through the EU to reach the UK
- UK goods transiting through the EU to reach a third-country destination
- Goods in a customs warehouse in the EU being moved to another customs warehouse or to their final destination
Under a T1, the goods can cross borders without paying duties in each transit country. The goods travel under a financial guarantee that HMRC or the competent authority can call upon if the goods do not arrive at their declared destination.
T2: Internal Transit
A T2 document is used for goods that have EU Community status — goods that have been released into free circulation in an EU member state and on which EU duties have already been paid.
When Is T2 Used?
T2 scenarios include:
- EU goods transiting through a non-EU country (such as Switzerland or Norway) to reach another EU member state
- EU goods transiting through the UK (following Brexit) to reach another EU destination
A T2 proves that the goods have EU status and prevents them from being treated as non-EU goods (and thus liable for EU import duties) simply because they crossed a non-EU territory.
Key Differences at a Glance
| Feature | T1 (External) | T2 (Internal) | |---|---|---| | For goods with | Non-EU Community status | EU Community status | | Duties already paid | No | Yes (in EU) | | Common use | Third-country goods transiting EU | EU goods transiting non-EU territory | | Risk to guarantee | Higher (no EU duty paid) | Lower |
How the Transit Process Works
- The transit declaration is lodged with the customs authority at the office of departure
- A Movement Reference Number (MRN) is generated
- The goods travel with a Transit Accompanying Document (TAD)
- At the office of destination, the arrival is confirmed (transit discharged)
- If goods do not arrive, the guarantee is called
Why Use a Customs Agent for Transit?
Managing transit documents requires:
- Accurate declaration data
- A valid transit guarantee (a financial bond that covers duty in transit)
- Knowledge of routing and transit procedures at each border
- Timely discharge at the destination office
Errors or delays can result in the guarantee being called, goods being held, or significant additional costs.
Customs Clearance 24 prepares and manages T1 and T2 transit documents for clients moving goods across multiple customs territories. Contact us to discuss your transit requirements.