When you need to transport goods between countries, there are a host of rules and regulations put in place by the taxation and customs union. These ensure that everything is handled properly for the safety of the person/company delivering and public distribution in the exit country. You will need to have the right transit documents ready before your goods are transported.
What transit documents will I need?
Depending on whether you are transporting goods outside of the United Kingdom or having them shipped in from the EU, you will need either a T1 or T2 customs transit document. These forms will need to be set up by a customs broker or guarantor, as they will be liable for any duties or VAT applied to the goods. The reason behind this is to ensure that taxes are levied by any transit countries you pass through if protocols aren’t met at the destination country. T1 or T2 forms cannot be used to supersede duty and VAT that may be payable to customs, but instead will be closed at the destination country by an import clearance agent who will declare them as evidence that all costs have been paid.
What does the T1 form cover?
The T1 transit document is awarded when goods non-EU goods are transported. It is typically issued for freight that is being moved outside of the UK to the EU, or for non-EU goods that are travelling into the UK. When goods fall into this group, it means that some protocols have not been met (for example, import tax was insufficiently covered) and the products are controlled by customs for the time being.
With this form, customs officials will be notified that the goods have arrived at their desired destination, but are not ready to be cleared for distribution. When this is the case, they may be transported to a separate facility or stored in a bonded warehouse until further notice. This is often covered by the taxation and customs union for your peace of mind. You can settle the document by correcting the protocol that is lacking, to move forward with the transaction.
What does the T2 form cover?
The T2 transit document is applied to either community goods that come from the EU or are bought in the EU, or non-community goods that have been imported and cleared for distribution. It is commonly used to declare that goods are safe for trading in the destination country.
What to know before applying for transit documents
Some key points to keep in mind are:
- If the debt is active, it’s known as actual debt, but if it is given later on in the shipping process, it’s considered potential debt (this refers to default or delayed duties or VAT)
- A customs guarantee will be required when duties and other fees are not paid at the time of import/export
- You may also need a guarantee when import duties are disputed
- If duties or charges aren’t paid on time, your guarantor will take responsibility for the debt
Also, the place in which you pay your customs can dictate which form you apply for. For example, community goods transported from Spain to Italy will require duties to be paid at the exit country, so T2 forms will suit your needs. When non-community goods are moved between different countries, they will typically be under customs control and will have restrictions for public distribution, so the T1 form will be more appropriate.
Customs Documentation In Summary
Failure to provide the correct documentation for your exports can lead to multiple problems for your business. From fines to heavy restrictions on what and where you can send in the future. If you are unsure, there are many service providers who can support you with the correct paperwork to support the transportation of your goods. From freight forwards, brokers and customs specialists, depending on the needs of your business, many of them will already have a online system you can utilise to produce your paperwork for you.
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