Transit is one of the most useful but least understood customs procedures available to UK traders. Used correctly, it lets goods move across multiple countries with duty and VAT suspended until they reach their final destination. Used incorrectly, it can leave the principal liable for the full debt. Here is what you need to know about T1 and T2 declarations under the Common Transit Convention (CTC).
What is Common Transit?
The Common Transit Convention is an international agreement that allows goods to move between its member countries without paying duty or VAT at each border. Members include the United Kingdom, the European Union, Switzerland, Norway, Iceland, Liechtenstein, Turkey, North Macedonia, Serbia and Ukraine.
Goods travel under a single transit declaration — a T1 or T2 — opened at the office of departure and closed (discharged) at the office of destination.
T1 vs T2 — what's the difference?
The two procedures differ in the customs status of the goods being moved:
- T1 — non-Union (or non-UK) goods. The goods are in customs suspension. Most movements involving the UK after Brexit are T1.
- T2 — Union goods being moved across a non-EU territory. Used, for example, when EU goods cross Switzerland to reach another EU member state. T2F is a variant for goods moving to or from special EU fiscal territories such as the Canary Islands.
For UK exporters sending goods to or through the EU, the T1 will be the default. T2 is rare in a post-Brexit context but still relevant for goods being moved on behalf of an EU client.
The role of the principal
The principal is the legal owner of the transit declaration and carries financial responsibility for the goods until the MRN is discharged. If the goods disappear, are diverted or arrive late at the office of destination, HMRC or the relevant EU customs authority can demand the full duty and VAT from the principal.
For this reason, principals must lodge a comprehensive guarantee — a financial security covering the maximum customs debt that could arise across their open movements. The amount is calculated on a 12-month projection.
Office of departure, transit and destination
A transit movement involves several customs offices:
- Office of departure — where the declaration is opened
- Offices of transit — at every external border crossed
- Office of destination — where the declaration is presented and discharged
The MRN (Movement Reference Number) travels with the goods. The driver carries a Transit Accompanying Document (TAD) showing the MRN and a barcode.
Discharge — closing the movement
Discharge is the most important and most overlooked step. Goods must be presented to the office of destination, the MRN must be closed in the customs system, and confirmation of discharge must be received. If discharge does not happen within the prescribed time limit (usually a few days), an enquiry procedure begins — and the clock starts ticking on the principal's potential liability.
Common pitfalls
- Goods arriving at destination but the consignee not presenting the TAD
- Mismatched seal numbers between the TAD and the actual seal
- Choosing the wrong type of guarantee for the route
- Forgetting that T1 alone does not clear the goods — a separate import declaration is still needed
Need help?
PCS Port Clearance Services Ltd specialises in T1 and T2 transit for UK importers, exporters and hauliers. We hold our own comprehensive guarantee, open transits 24/7 at every UK port, and our bilingual English and Turkish team is particularly experienced on the UK–Turkey corridor through the EU. Call +353 1 960 2215 or email customs@pcsl.uk.com — see our transit service for more.