Transit Procedures in the UK: Moving Goods Without Paying Duty

What Is Transit and Why Does It Matter?

Transit is one of the most powerful yet underutilised customs tools available to businesses moving goods internationally. In simple terms, transit allows goods to move across one or more countries without the importer paying customs duties at each border crossing. Duties are suspended — not waived — and only become due when the goods reach their final destination and are released into free circulation.

For UK-based importers, freight forwarders and logistics companies, understanding transit is essential. Whether you’re moving goods through the UK to the EU, or bringing goods into the UK via multiple transit countries, the rules that apply have been significantly updated by the Customs (Miscellaneous Amendments) Regulations 2025, effective from 16 July 2025.

The Common Transit Convention (CTC) Explained

The United Kingdom participates in the Common Transit Convention (CTC), which enables duty-free movement of goods across all member countries until they reach their declared destination. CTC members include the UK, all EU member states, Iceland, Norway, Liechtenstein, Switzerland, North Macedonia, Serbia and Turkey.

The key mechanism is the guarantee: the party responsible for the transit movement must provide a financial guarantee covering the potential duties on the goods. This guarantee is held by HMRC and is released once the goods arrive at their destination office and the transit is properly discharged.

Full guidance is published by GOV.UK — Customs Miscellaneous Amendments Regulations 2025.

NCTS — The New Computerised Transit System

All transit movements under the CTC must be declared electronically using the New Computerised Transit System (NCTS). This is the UK’s digital platform for managing transit declarations from start to finish — from the office of departure to the office of destination.

NCTS handles:

• Submission of transit declarations (T1 for non-EU goods, T2 for EU-status goods)
• Authorisation of departure from UK customs offices
• Transmission of data to destination country customs offices
• Confirmation of arrival and discharge of the transit guarantee
• Queries and control messages when goods are selected for examination

Businesses that regularly move goods under transit procedures should consider using specialist transit document services to ensure declarations are submitted accurately and on time.

Key Change in 2025: End of Paper-Based Transit for Air and Rail

One of the most significant operational changes introduced by the 2025 Regulations is the removal of the option to use paper-based transit declarations for air and rail movements. This was previously permitted as a fallback in exceptional circumstances, but from July 2025 it is no longer available.

What this means in practice:

• All air transit movements must now be declared electronically via NCTS
• All rail transit movements must be submitted digitally
• Paper T1 or T2 documents issued at airports or rail freight depots are no longer accepted as transit declarations
• Operators who previously relied on paper backups must ensure their IT infrastructure is fully NCTS-compatible

This change aligns the UK with EU and CTC-wide digitalisation standards and reduces the risk of fraud associated with paper documentation.

T1 Transit — Understanding the Declaration Types

Transit declarations come in different types depending on the customs status of the goods:

• T1 (External Transit): Used for non-Union goods — i.e., goods that have not paid EU duties. This is the most common type for UK exports transiting through EU countries, or non-UK goods transiting through the UK.
• T2 (Internal Transit): Used for goods with Union customs status that are temporarily leaving the EU customs territory.
• T2F: A variant used for movements to or from certain EU territories with special fiscal status.

For businesses importing through the UK using T1 procedures, professional support from specialists in T1 transit online can significantly reduce administrative burden and guarantee management complexity.

Simplified Transit Declarations

Authorised Economic Operators (AEOs) and businesses with specific HMRC authorisations can use simplified transit declarations. These allow:

• Submission of declarations with reduced data sets
• Faster processing at offices of departure
• Reduced physical examination frequency
• Streamlined guarantee management

To qualify for simplified declarations, businesses must meet HMRC’s criteria for compliance history, internal control systems and financial standing. The application process is managed through the Customs Comprehensive Guarantee (CCG) framework.

Guarantee Requirements for Transit

Every transit movement requires a guarantee covering the potential customs debt. There are three main types:

1. Comprehensive guarantee: Covers multiple transit movements up to a fixed reference amount. Most suitable for frequent transit operators.
2. Individual guarantee: Covers a single transit operation. Provided by a bank or surety company.
3. Cash deposit: A cash payment held by HMRC equal to the potential duties. Rarely used in practice.

Guarantee reference amounts are calculated based on the potential duties on the highest-value transit movement expected within any given period.

Common Mistakes in Transit Procedures

Transit errors can result in the guarantee being called in and substantial duty bills. The most common mistakes include:

• Failing to present goods at the office of destination within the time limit
• Incorrect description or quantity of goods on the declaration
• Not providing the correct guarantee reference
• Failure to discharge the transit movement after delivery
• Using outdated or incompatible NCTS software

FAQ — Frequently Asked Questions

Source: GOV.UK — The Customs (Miscellaneous Amendments) Regulations 2025