Customs Transit: Proof Of Union Status

Since March 1, 2024, the T2L T2LF forms can only be created and submitted electronically. This blog explains the purposes of these forms and other Proof of Union Status (PoUS) documentation.

In this article, we'll delve into proofing the Union Status of your goods, electronic use of T2L/T2LF forms, explaining what they are, when they are used, how to apply for them, and the countries where they are required.

Whether you're a seasoned exporter or just starting your journey, this guide will provide valuable insights to navigate the transit process confidently.

What changed on March 1 2024?

The main change of the Proof of Union Status (PoUS) system is to use electronic methods instead of paper forms like T2L/T2LF and shipping companies' manifests to show that your goods were in free circulation and that customs duties had been paid (where applicable) in the European Union before they temporarily left the EU, transiting through a non-EU country. In other words, if you move goods that are part of the Union between EU Member States (MS) while briefly leaving EU customs territory, you can use the T2L/T2LF and Customs Goods Manifest (CGM) data for vessels. The only difference from before is that you have to prove your Union status electronically.

The EU is using a centralised and electronic PoUS system for this reason. It can share information in a standard and easy way. It also allows customs authorities to share information during the customs processes to prove Union status.

Describe "Union Status."

When a good is acquired within the European Union, imported into the EU and allowed to circulate freely, or made entirely of goods that meet the aforementioned requirements, it is considered to have "Union status".

Your products have "non-union" status if they are not allowed to enter the internal EU market. Since your goods can change status to "union goods" when they are released into free circulation, any goods that are within the EU customs territory are presumed to be union goods.

Within the EU customs territory, non-union goods can usually be found under the following conditions:

• The products are kept in a location under customs control, such as a bonded warehouse, temporary storage facility, or port, while they wait for customs clearance.

• When products are transported on a T1 form until the transit clearance is finished at the destination, for example, they are subject to a specific procedure.

• Fisheries items obtained by a vessel flying the EU flag outside of EU territorial seas.

• Fish items obtained from fishing in EU waters by a non-EU-flagged vessel.
  

In these circumstances, it is presumed that the products are not "Union Goods", and you will need to provide evidence to the contrary. This is completed within the Proof of Union Status (PoUS) system when utilising T2L and T2L (F) forms, and this is now moved "online".

Why evidence of union status is required

When your products are transported throughout the EU by air, rail, road, or sea, they maintain their union status. Goods that exit EU territory, however, are presumed to be non-union.

For instance, all products are presumed to be non-union if a vessel arrives from foreign seas and is not an RSS vessel. On the other hand, your items may have been sent by sea from an EU member to their final destination.

To demonstrate that your items are union goods in this situation and are consequently free from third-country import clearance processes and tax and VAT payment, you will require a T2L or a T2L (F).

What is an electronic T2L/T2LF form?

T2L and T2LF forms are used to show that goods have recently been in free circulation within the EU but have temporarily left the community for transit purposes. T2L and T2L (F) proof of union status are usually valid for 90 days from registration.

T2L stands for "Transportation Under Customs Control", and T2LF stands for "Transportation Under Customs Control by Land or Inland Waterway". In other words, the means of transport for the goods is the primary distinction between a T2L and a T2LF.

What distinguishes T2Ls and T2L (F) forms from one another?

If the EU country of destination is within the EU's fiscal/tax territory—which is distinct from the EU's customs territory—you will need to use a T2L form instead of a T2L (F).

So,

• When your products are going to an EU nation that is within the EU's tax territory, you need to use a T2L form.

• When your products are being sent to an EU nation outside the EU's tax jurisdiction, you have to use a T2L (F) form. These nations are members of a unique tax regime with a different VAT structure than the rest of the EU.
  

The following regions need a T2L (F) form because of unique tax considerations:

1. Canary Islands

2. 2Guadeloupe, Martinique, Mayotte, French Guiana, Réunion, and Saint-Martin Mount Athos are examples of French overseas territories.

3. Aland Island

4. Cyprus

5. Malta
   

For any other location, a T2L form is necessary.

How can I make electronic notifications to proof the PoUs?

Businesses can use the EU Customs Trader Portal (EUCTP) to reach the PoUS Specific Trader Portal (PoUS STP). The Uniform User Management and Digital Signature system (UUM&DS) controls EU Customs Trader Portal access. This system ensures that only authorised Economic Operators, customs representatives, and employees can access EU Customs' electronic systems.

What information do I need to complete the PoUs e-form?

The T2L (Transportation Under Customs Control) notification is essential when exporting goods from non-EU nations to EU member states. In the past, the T2L paperwork was submitted to customs officials for inspection when the goods arrived at the EU border. Now, this is available instantly online for all concerned customs officials to view instantly online. It proves the products have achieved Union status and are eligible for lawful importation into the EU. It is necessary for obtaining customs clearance and acts as evidence of the products' Union status.

The operation of a T2L document is broken down as follows:

• The T2L document confirms that the exported products from a non-EU nation have obtained Union status. "Union status" refers to a product's ability to move freely throughout the EU market and comply with customs laws.

• The exporter or their designated agent must make the application for the T2L document. Giving precise and comprehensive details regarding the products and the export transaction is essential.

The T2L document needs several crucial details, such as:

• Exporter Information: The exporter or their agent's name, address, and phone number.

• Information on the Consignee: The name and address of the person in the EU who will be receiving the goods.

• Description of Goods: Precise and comprehensive details, such as kind, number, weight, value, and any relevant product or harmonised system codes.

• Origin of items: The nation from whence the items were made, procured, or produced.

• The customs office where the items will leave the non-EU nation is known as the Customs Office of Departure.

• Customs Office of Destination: The customs office where the goods will be entered within the European Union.
  

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Some top tips to consider when dealing with e-T2L or e-T2LF

• Retention and record-keeping are facilitated as documents are now stored online. There is no need for the exporter and customs authorities to keep paper copies of the T2L document on file. Maintaining these documents for the necessary time is crucial to adhering to customs laws.

• Exporters must guarantee compliance with EU customs laws and enable the seamless movement of products across borders by acquiring and accurately filling out the T2L paperwork. It minimises delays and trade disruptions by streamlining the customs clearance process and supplying proof of the products' Union status.

• To get ready for an e-T2L/T2LF form, compile the following data and files:

1.       Transport Specifics: Specify the means of transportation—air, sea, land, or rail—that were utilised to transfer the commodities from the non-EU nation to the EU. Name the ship or aircraft and, if appropriate, its registration number.

2.       Supporting Documents: You might be required to submit more documentation based on the particular demands made by the customs authorities. Commercial invoices, packing lists, transit paperwork, origin certificates, licences, and permissions are a few examples of these. Verify that every piece of supporting documentation is true, comprehensive, and compliant with customs laws.

3.       Regulation Compliance: Become familiar with all relevant customs regulations, including import limitations, licence requirements, and any unique clauses pertaining to the products you are exporting. Make sure your products meet these rules and that you have the required licences or certifications.

• Completing the electronic version of the T2L/T2LF through the EU Customs Portal (via national customs portals) form accurately and including all required information and accompanying documentation is crucial. Any mistakes or omissions could cause fines or delays in the customs clearance process. Consider enlisting the aid of a customs agent or consultant, like the experts at Customs Manager Ltd, or a freight forwarder to guarantee a seamless export process. They can assist you in preparing the T2L form and navigating the export procedures.
  

Who accepts or needs the electronic version of the T2L/T2LF?

When exporting commodities from non-EU nations to EU member states, the T2L form is utilised. Goods that are shipped to EU member states by land or inland waterway must utilise the T2LF form. Every EU member state is covered by it, including:

Austria, Belgium, Bulgaria, Croatia, Denmark, Estonia, Cyprus, Czech Republic, Finland, France, Germany, Greece, Hungary, Italy, Ireland, Latvia, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden. It can also be used for trade with Northern Ireland, but not with Great Britain.

Are there any other methods to demonstrate the Union Status?

While T2L and T2L (F) forms are used in a lot of shipments, union commodities may also be recognised in various ways when they are transported by sea:

1.       Using an RSS (Regular Shipping Service) for ocean freight

An ocean vessel operating under the Regular Shipping Service (RSS) exclusively sails between ports in the EU. There's no ship-to-ship communication or port visits to any other ships outside the community. As a result, it has been established that any item sent via an RSS has union status.

2.       ATA Carnet

ATA Carnet document for products leaving the EU will specify whether the items are eligible for reimport under union status.

3.       Car

Getting a car through customs, where the licence plate and registration paperwork serve as evidence of the automobile's union or non-union status.

Our Recommendation

Exporters must comprehend the intent, use, and specifications of T2L and T2LF forms to guarantee adherence to EU customs laws and promote seamless cross-border commerce. Exporters can guarantee the effective flow of their goods inside the EU and expedite the customs clearance process by adhering to the required regulations and submitting accurate information.

To maintain compliance and optimise your export procedures, seek advice from customs professionals or freight forwarders with experience managing documentation. Keep in mind that precision and attention to detail are critical while filling out T2L/T2LF forms, even in their electronic version.

Please get in touch with one of our team members if you require assistance with the submission of these documents, e-customs or customs clearance. We are always happy to help.