Our Transit Series - PART 1: First Steps

Getting Started with Transit: A Step-by-Step Guide

Navigating international trade can feel like a complex web of rules, regulations, and paperwork. However, leveraging Common and Union Transit procedures can make it much easier, allowing goods to move efficiently across borders without the hassle of customs declarations and duties at each crossing. These transit procedures speed up operations and allow customs processes to be completed away from the border, even at authorised traders' premises, helping reduce costs and simplify logistics.

Transit is a customs fiscal facilitation that defers import declarations and duties until your goods reach their final destination. It’s particularly beneficial when moving goods between EU and Common Transit countries, such as the UK and EU Member States, as it removes the need for customs procedures in multiple countries within the same customs regime.

If you're new to the world of transit, here’s a simple, step-by-step guide to help you prepare and ensure a seamless transit experience.

Step 1: Is Transit Right for You?

Before diving into the world of transit, it's essential to determine whether Common or Union Transit procedures are right for your situation. These procedures streamline the movement of goods, but they don’t fit every scenario. For instance, if you’re shipping electronics from the UK to Germany, and need to transit through France without making customs declarations at each border, Union Transit can help by minimising paperwork. However, if your goods have already cleared customs or are subject to special rules, transit procedures may not apply. Assess your shipment's characteristics, destination, and the specific customs requirements to see if transit is the right option. If in doubt, working with a trusted customs agent like Customs Manager Ltd can ensure you’re on the right path.

Step 2: Secure a Financial Guarantee

To proceed with transit, you’ll need to arrange a financial guarantee covering any duties that may be suspended during transit. This is a vital step that can take time. You can get this guarantee from an authorised bank, through a loan agreement with a guarantor, or by using a Joint Contractual Liability (JCL). If opting for JCL, complete form JCL1, which provides security for potential customs debts. For quicker processing, you may want to include JCL with your Customs Comprehensive Guarantee (CCG) application, especially if you're applying for a guarantee reduction or waiver, or if you're reliant on another company’s support. Keep in mind that a JCL can only cover potential debts within the UK, not for cross-border or actual debts.

Step 3: Apply for Transit

Once you’ve secured a financial guarantee, it’s time to apply for transit. This involves completing the necessary application for Common Transit (for Great Britain) or Union Transit (for Northern Ireland). During this process, you’ll need to register for the New Computerised Transit System (NCTS), a key step for initiating transit declarations. In regions like Great Britain, access to the GB NCTS system is crucial. If your goods are destined for export outside your customs territory, you’ll also need to register for your country’s export system, such as the UK’s National Export System for goods with UK duties paid or those ending up in the EU.

Step 4: Choose the Office of Departure & Office of Destination

Once the paperwork is in place, the next step is to select the correct customs office of departure. This is where you’ll present your goods and all required documentation. If you have authorised consignor status, you can start transit directly from your premises without presenting goods at the office of departure. This can save time and streamline the process.

Final Considerations

While it may take up to 2–3 months to complete the necessary steps and secure the required guarantees and registrations, careful scheduling and preparation are key to a smooth transit journey. With proper planning, you can ensure efficient movement of goods, reduced border delays, and cost savings, all while staying compliant with customs requirements.

By following these steps, you can navigate the complexities of transit procedures and ensure that your international shipments move quickly and smoothly across borders.