Customs Transit without Secrets – T1 and T2 in Practice

In global trade, thousands of shipments cross national borders each day before reaching their final destination. While the process may appear straightforward, it depends on a complex framework of procedures that keep international supply chains moving while protecting the fiscal interests of states. One of the most critical elements is customs transit, which forms the foundation of efficient cross border goods movement.

Customs transit enables the movement of goods through the territories of European Union Member States and countries that are party to the Convention on a Common Transit Procedure, including Iceland, North Macedonia, Norway, Serbia, Switzerland, Turkey, Ukraine and the United Kingdom. Introduced in 1987, the Convention standardised transit rules, eliminated the need for multiple customs clearances at internal borders, and streamlined international supply chains.

The transit system, including T1 and T2 procedures, is based on electronic declarations through the New Computerised Transit System (NCTS). Implementation timelines for subsequent phases of NCTS, including phases 5 and 6, as well as integration with ICS2, vary between countries. While the core documentation requirements remain consistent, adaptation to national regulations and system readiness is essential, as certain Member States apply transitional arrangements for ICS2 until June 2026.

Although the term “transit” is commonly used in everyday practice, it refers to two distinct procedures: T1 and T2.

• T1 refers to external transit, covering non-EU goods moving through the customs territory of the European Union or Common Transit Convention countries without the immediate payment of duties and taxes, until they are released for free circulation or placed under another customs procedure.
• T2 or internal transit, applies to Union goods that are already in free circulation and need to pass through the territory of a third country, such as Switzerland or Norway, when moving from one European Union Member State to another.

Whether handling a T1 or T2 movement, the process is centred on the New Computerised Transit System (NCTS), which allows customs authorities to open, monitor and discharge transit procedures electronically. Once a declaration is accepted, a Movement Reference Number (MRN) is generated and a Transit Accompanying Document (TAD) is issued. The TAD accompanies the goods from the office of departure to the office of destination.

For a transit procedure to run smoothly, the following elements are essential:

• A correctly completed transit declaration (T1 or T2), including full details of the consignor and consignee, CN codes, weight, number of packages, mode of transport, customs seals, customs offices involved and the transit time limit,
• A commercial document, typically a commercial invoice or pro forma invoice, documenting the sale of goods,
• A transport document, such as a CMR consignment note, confirming the transport contract,
• Proof of customs status and origin where required in practice, for example a T2L or T2LF document as evidence of Union status for T2 movements, or a certificate of origin where tariff preferences apply,
• Any required certificates, licences or permits for regulated goods, including sanitary, veterinary, safety or environmental documentation

Transit is a procedure in which accuracy is critical. An imprecise description of goods may result in additional controls, a damaged customs seal can lead to the assessment of duties and VAT, and failure to meet the time limit may trigger a formal enquiry. For businesses operating within tight delivery schedules, such errors can generate significant operational and financial consequences.

For this reason, an increasing number of companies choose to outsource transit procedures to specialised customs agencies. Derry Bros provides professional advisory services and full support in customs clearance, ensuring that procedures are structured in line with operational requirements and supply chain models. Beyond efficiency gains, this approach supports regulatory compliance and reduces operational risk.