Customs and Transit: T1, T2 and EORI

The Customs Union and Countries Outside It

The European Union forms a customs union: goods move between member states without duties and without customs checks at the border. Customs formalities therefore arise mainly where a shipment leaves, enters, or merely passes through Union territory.

When Do Customs Regulations Apply?

• When importing goods from countries outside the EU (for example Turkey, the United Kingdom, Switzerland)
• When exporting goods from the EU to third countries
• When goods transit that are not in free circulation in the EU
• When transporting goods subject to excise duty (fuels, alcohol, tobacco)

T1, T2 and T2L Documents

Customs transit is built on the T1 and T2 transit declarations, which are processed in the electronic NCTS (New Computerised Transit System).

T1 is used for goods without Union status, for example goods imported from third countries for which customs duty has not yet been settled. The carrier must keep to the designated route and deadline and deliver the shipment to the specified customs office.

T2 is the transit declaration for goods with Union status, for example when passing through a country of the common transit regime, such as Switzerland. The goods keep their status as Union goods.

T2L is not a transit. It is a document that proves the Union status of goods when no transit declaration is used.

The NCTS System

Transit operations are processed electronically in NCTS. In recent years the system has moved in stages to a new version (NCTS Phase 5) and the switchover dates differed between countries, so check the current state with the customs authority.

EORI and Export Declarations: What the Shipper Handles

The EORI number (Economic Operators Registration and Identification) is needed by economic operators who lodge a customs declaration, or on whose behalf one is lodged. For exports and imports this is usually the trader, that is the consignor or consignee; for a transit declaration it may also be the carrier or a customs representative.

Exporting goods from the EU requires an export customs declaration. It is lodged by the exporter, that is the consignor, or by their customs representative. After the goods leave EU territory, their exit is confirmed, which the consignor typically needs, for example, to treat the export as VAT-exempt.

Switzerland and the United Kingdom

Neither Switzerland nor the United Kingdom is part of the EU customs union, so a shipment needs a customs declaration for export from the EU and customs clearance in the destination country. For shipments to Switzerland see transport to Switzerland.

Customs Regimes

In international transport you will meet several customs regimes:

• Release into free circulation: goods are cleared through customs, duties and VAT are paid, and the goods then move freely within the EU
• Transit: goods pass through EU territory without customs clearance (under a T1 or T2 transit declaration)
• Export: goods leave the EU customs territory, requiring an export customs declaration
• Temporary admission: goods enter the EU temporarily (for example exhibition items) without duty payment

Practical Obligations of the Carrier

When transporting goods subject to customs procedures, the carrier must ensure the following:

1. A valid CMR document: a consignment note confirming the acceptance of goods for transport
2. Customs documents: T1/T2 or other documents as required by the customs regime
3. Invoices and packing lists: for customs clearance purposes
4. Seals and security: customs seals must not be broken during transport
5. Compliance with deadlines: transit operations have set deadlines for delivery to the destination customs office

The same customs regulations apply to both FTL transport and LTL transport; the only difference lies in the organisation of customs clearance for groupage shipments.

Common Mistakes and How to Avoid Them

The most common mistakes in customs procedures include incorrect tariff classification of goods, incomplete documentation, exceeding transit deadlines, and breaking customs seals. These issues can be prevented through thorough document preparation and working with a customs representative.

Conclusion

Customs rules are an integral part of transport outside the customs union and of transit. A proper understanding of T1, T2 and T2L documents, the EORI number and the export declaration is key to smooth transport operations. EVEREST Solutions provides customs clearance. We provide road freight across Europe. Contact us.