Transit is the customs procedure that lets goods travel from one customs office to another, across one or several countries, without paying import duty and VAT along the way. In Europe it runs under two linked regimes: Union transit inside the EU, and the Common Transit Convention (CTC), which extends the same system to the EFTA states, the United Kingdom, Türkiye and several other neighbours. Every movement is declared electronically in the New Computerised Transit System (NCTS), receives a Movement Reference Number (MRN), and is backed by a guarantee held by the principal, who is liable if the goods never arrive. The key takeaway: duty is suspended, not waived, and the movement is only finished when the destination office discharges it. If you already know the road-only alternative, compare it with the TIR carnet.
What is transit, and why do goods use it?
Normally, goods arriving in a customs territory must be declared and cleared at the border, with duty and VAT paid or deferred. Transit moves that moment onward. Goods can enter at a port such as Rotterdam, travel under customs supervision to an inland terminal or another country, and be cleared there, with duty, VAT and trade-policy measures suspended in the meantime.
It suits cargo that must be cleared inland, goods crossing several customs territories on one road or rail journey, and Union goods that must cross an EFTA or UK territory between two EU points. Transit is also a way to move goods to a bonded warehouse or other customs facility without clearing them first.
A common misconception: a transit declaration is not a customs clearance. It does not release goods for free circulation, and it does not settle duty. It is a promise, backed by a guarantee, that the goods will be presented intact at the office of destination within a time limit. Clearance, if any, is a separate step afterwards.
Union transit and the Common Transit Convention: which countries are covered?
Union transit applies inside the EU customs territory. The Common Transit Convention is a separate international agreement that lets the same procedure work between the EU and a group of non-EU countries, using one declaration and one guarantee for the whole journey.
According to the European Commission's and the EU's trade-policy pages, the CTC network as of late 2025 covers the EU and these other parties: Iceland, Norway, Switzerland and Liechtenstein, the United Kingdom, Türkiye, North Macedonia, Serbia, Ukraine and Georgia (which joined on 1 February 2025), plus Moldova and Montenegro (which joined on 1 November 2025, with the country codes MD and ME). The Commission's NCTS page describes the system as running across 41 participating countries but does not list them by name on that page, so confirm the current membership and each country's start date with the Commission or your national customs authority before you plan a route.
A new member does not extend existing guarantees automatically. Ireland's customs notice on the Moldova and Montenegro accession says traders who want to name either country as an office of transit or destination must amend their comprehensive guarantee. Check that yours covers every country on the route.
T1 vs T2: what the transit status means
Every transit declaration states the customs status of the goods. This is the point most often misunderstood, because the status is about the goods' customs position, not the vehicle or the route.
| Code | Meaning | Typical use |
|---|---|---|
| T1 | Non-Union (external transit) goods. Duty, other charges and trade-policy measures are suspended until the goods reach the destination. | Third-country goods landing at a port and moving inland; UK-origin goods sent to the EU after Brexit; Union goods exported to a common transit country |
| T2 | Union (internal transit) goods. | EU goods that must cross a common transit country, such as Switzerland, on the way to another EU point |
| T2F | Union goods moving between a special fiscal territory and the rest of the EU customs territory. | Movements to or from a special fiscal territory (check the Commission's list) |
Two points matter in practice. First, GOV.UK's transit guidance says goods of UK domestic status exported to the EU or another CTC country should be declared as T1, because UK goods are no longer Union goods. Second, T2 is a statement that the goods have Union status, so it needs proof or a reliable record of that status. If you cannot show it, the goods are treated as non-Union and travel as T1. Documents such as T2L and T2LF are separate proofs of Union status, not transit declarations, and each can be used only once when first presented.
The MRN: what the Movement Reference Number is
When the office of departure accepts a correct declaration, NCTS generates an 18-character Movement Reference Number. HMRC's guidance describes it as a unique number generated on acceptance, and its example is 22GB00005112345678 (it begins with the year and a country code).
The MRN is the reference for the whole movement. The carrier travels with it on the transit accompanying document, the customs offices along the route use it, and the destination office uses it to close the movement. If a shipment is queried or goes missing, it is the number customs, the carrier and the guarantor all look up. Keep it in the shipment file and send it to the consignee before arrival.
Who is the principal, and what are they liable for?
The principal (also called the holder of the procedure) is the person who lodges the transit declaration, or on whose behalf it is lodged, and who takes responsibility for the movement. HMRC's guidance, citing Article 8 of the Convention, states that the holder is responsible for ensuring the goods are produced intact at the office of destination within the time limit, and for complying with the transit rules throughout. As a general rule, the principal needs to be established in the customs territory where they hold the procedure; check the Union Customs Code and your national authority for the details that apply to you.
The principal is often a forwarder, haulier or consignor acting under a guarantee, so the role is commercial as much as technical:
- The principal answers for the goods even if a subcontracted carrier causes the problem.
- If goods are not presented, customs can pursue the principal for the duty and VAT that would have been due.
- HMRC notes that holders may also face civil penalties for serious or repeated failures at destination.
- HMRC advises holders to have a process confirming that carriers and recipients know the goods are moving under transit; without one, customs can pursue only the holder for debts arising from non-production.
If you are a shipper using a forwarder, ask in writing who will act as principal and under whose guarantee.
The guarantee: comprehensive, individual or waived
A guarantee is how customs secures the duty and VAT that could fall due if the movement is not completed. Transit guarantees cover a potential debt, not an existing one; a debt arises only if the goods fail to reach their destination or the duties go unpaid. HMRC's guidance describes three forms:
- Individual guarantee: covers one movement. HMRC's rules say a single guarantor is named and the guarantee must not be dated more than 28 days before the movement starts.
- Comprehensive guarantee: covers many movements for a business that moves goods regularly, within a reference amount that customs sets. It must be valid for every country the movement will pass through.
- Guarantee waiver: certain operators with an appropriate authorised economic operator status, or other approval, may be exempt from providing a guarantee. This depends on the authorisation your customs authority has granted you, so confirm your own position rather than assuming it.
The guarantee is released only after the destination office is satisfied the goods have arrived and the transit requirements are met. A guarantor that is a bank or insurer has its own exposure. HMRC's guarantor guidance says liability runs from the day the guarantee starts until all linked movements are closed and any debts are settled.
Office of departure, transit and destination: how a movement runs
- Office of departure. The principal lodges the declaration in NCTS. The office checks it, verifies guarantee cover, sets the time limit, accepts it and issues the MRN. Goods are released into transit, sometimes sealed.
- Office of transit. Where the goods cross into another CTC or EU country, the border office is told of the crossing. This is a checkpoint, not a new declaration.
- Office of destination. The goods and the transit accompanying document are presented. Customs records the arrival and any control results and sends the result back through NCTS.
- Discharge. Once satisfactory results are recorded, the movement is discharged and the guarantee is released. HMRC's guidance notes that this is automatic in NCTS once the destination results are recorded, and that a release message only frees the goods from transit, not from customs control.
Customs sets the time limit for presentation at the destination office. HMRC's guidance says it would normally expect a maximum of 8 days for movements to the EU and 4 days for movements to the UK, and notes that 14 days is allowed for movements to Türkiye. Separately, HMRC's guarantor guidance says movements are normally expected to finish within a maximum of 21 days of leaving the office of departure. Treat these as UK examples and check the limit stated on your own declaration.
Authorised consignor and consignee: simplified transit
Businesses that run many transit movements can apply for authorisation to simplify the process. An authorised consignor starts movements from its own premises without presenting the goods at the office of departure. An authorised consignee receives and ends movements at its own premises without going to the office of destination. HMRC's guidance notes that premises used to start or end movements require authorisation. These simplifications come with conditions, so they suit businesses with regular volumes rather than occasional shippers; check the conditions with your customs authority.
What happens if a transit movement is not discharged?
If the destination office never confirms arrival, the movement stays open. Customs then starts an enquiry, and under HMRC's process this begins when the transit office of the country concerned receives an enquiry message. Common causes of non-discharge, according to HMRC, include a carrier driving through the border without presenting the goods, and late presentation without a reasonable explanation.
If the principal cannot prove that the goods arrived or that the movement was regular, a customs debt can arise. HMRC's guarantor guidance gives these figures for UK-administered movements: the authority has 9 months from the expected arrival date to notify a guarantor that it is at risk, and if it does, the debt and its amount must be communicated to the guarantor within 3 years of the movement starting. These are HMRC's stated periods; the EU and the other CTC countries have their own national procedures under the same Convention, so confirm the periods that apply to your route.
The practical lesson is to keep arrival evidence: the delivery note or CMR and the NCTS discharge message. If a shipment is held, damaged or diverted, tell the customs office and your guarantor straight away rather than waiting for a debt notice.
How does Common Transit differ from TIR and from UK transit?
The TIR carnet is a separate international system, set up under a UN convention, for goods in sealed road vehicles or containers, with a carnet and a guarantee chain run by national associations. It is road-focused by design. CTC and Union transit are electronic, work across road, rail, sea and air, and rely on the principal's own guarantee.
After Brexit the UK stopped being part of Union transit but continues in the CTC as a party in its own right, and it uses NCTS. The practical effect is that UK-origin goods going to the EU are declared as T1, and a road or rail movement can run under one declaration from a UK or EU office of departure to an office of destination in the other. For import clearance in the UK itself, see the UK import declarations and CDS guide.
NCTS Phase 5 and Phase 6: where the system stands (October 2026)
NCTS is the common IT system behind transit. The Commission's NCTS page says Phase 5 had a full deployment date of 2 December 2024. A Chartered Accountants Ireland trade note and the Greek customs authority both report that the transition period for Phase 5 ended on 21 January 2025, after which all participating countries were required to submit data under full Phase 5 rules.
The next stage is Phase 6 (NCTS-P6), which the Commission's page says is now in use across the EU Member States and CTC countries and links to the ICS2 safety and security changes (see the ICS2 entry summary declaration guide). Rollout is not uniform. HMRC announced its Phase 6 deployment for 1 June 2026, with a two-hour outage from 7am, and the Commission refers to a state-of-play document that records each country's Phase 6 arrangements (opt-in or opt-out). As of October 2026, check the Commission's NCTS page or your national customs authority for the exact status of the countries on your route, and make sure your software or customs agent has been updated.
What to do next
- List the countries on your route and confirm each is a CTC party and has started using NCTS.
- Ask your forwarder or broker whether the movement is T1 or T2, who the principal is, and under which guarantee.
- Agree who presents the goods at the destination office, and who keeps the MRN and discharge evidence.
- Make sure your customs software or agent supports the current NCTS phase for every country on the route.
More than 29,300 logistics companies are searchable by country and service in the CargoLinked directory, so you can look for customs brokers and forwarders in the countries on your route. The public requests board lists freight that shippers have posted for forwarders to quote on directly.
This article is general information, not legal, tax or customs advice. Transit rules differ by country and change over time. Confirm the current requirements with the issuing customs authority, the European Commission or a licensed customs professional before you move goods.
