T1 Documents / T1 Forms – What You Need to Know

Goods entering the EU require clearance at the first border, but what happens if the first country isn’t the destination? Or, what happens when the goods are only passing through the EU, but aren’t destined to be community goods? We explore how T1 documents, also known as T1 forms, are used in this article. 

Contents

• What is a T1 document?
• What is the procedure when using a T1 customs document?
• What is needed to create a T1 form?
• How long do I have to close off a T1 customs document?
• Are T1 customs documents related to T2 forms, T2Ls and T2L(F)s?
• Customs Support Group is here for your T1 documents and other transit procedures

What is a T1 Document?

A T1 document is used for moving goods across the EU’s borders without completing an import clearance, meaning that you don’t need to pay the import duty and VAT until the goods arrive at the destination. This is essential when you are moving goods to an EU country without entering it directly.

For example, if you are moving goods from the UK to Germany via The Netherlands, you will use a T1 form to enter The Netherlands and then complete the import declaration in Germany.

Note that the goods do not need to be destined for an EU country, either. You can also move goods through the EU to EFTA states like Norway, Switzerland, Iceland, and Liechtenstein, as well.

Because of the suspension of the taxes, goods travelling on a T1 form are under customs bond – meaning that the creator of the T1 document is liable for the tax if the procedure is not closed in time. Repeated missed deadlines can create compliance challenges and result in revoked licences, which is why working with a trusted customs partner helps you to monitor and manage these procedures.

Note that the T1 customs document is not the same as a T2 transit form, which is used to move EU goods through a non-EU country under bond – such as from France to Ireland through the United Kingdom.

Customs Support Group provides T1 forms for businesses in the UK, Norway, and Turkey, as well as T2 documents for businesses throughout the EU. Contact us for more information.

What is the Procedure When Using a T1 Customs Document?

The T1 customs document is usually created by the customs broker at origin, who is liable for the payment of duty and VAT. This is because the T1 form is usually created at the same time as the export clearance. However, note that not all export customs brokers can create a T1 document because there are additional steps required to hold the customs guarantee.

To obtain a T1 form, your customs broker will first need to complete the declaration electronically on the New Computerised Transit System (NCTS).

Then, your haulier will present your goods to the border force for authorisation and be presented with a T1 customs document. The exception to this rule is when the origin premises has been granted Authorised Consignor status, which allows the T1 form to be printed at the inland facility.

Once the T1 procedure is live, a copy of the T1 document must travel with the goods at all times so that an inspecting customs officer can identify the goods are travelling under transit.

T1 forms are closed off at the destination by presenting your goods to a border agency. The import clearance agent will also declare the T1 document on their declaration so that there is a record that the import duty and VAT have been paid.

CSG works with traders and logistics service providers like you to support compliance with T1 transit document regulations, helping you to avoid fines, border delays, and unnecessary audits. Contact us to see how we can make your customs more efficient today.

What is Needed to Create a T1 Form?

T1 forms are created using the same documentation that is required for an export customs clearance – a  commercial invoice, packing list, and transport documentation at minimum. You also need to have all the details of your goods classification.

That last detail has become more important following a recent update. Previously, you needed to have a single HS code on the T1 document, but now you need to have every commodity listed. This is another common classification pitfall for exporters, because the lack of duty payment means that the classification is often not given the attention it needs to have.

Yet, such an oversight can cause compliance issues, so it is essential to get it right.

Once your customs partner has processed the T1 form, this will be added to their guarantee. Note that customs only guarantee companies up to a certain amount, meaning that outstanding procedures are a drain on their availability and may temporarily prevent future shipments from being guaranteed.

Customs Support Group has links to all major ports in the UK, Norway, Turkey, and Switzerland, and authorisation to complete T1 customs documents when exporting from these countries to the EU. Contact us for more information

How Long Do I Have to Close Off a T1 Customs Document?

Once a T1 form has gone live, it is expected to be closed off within 2-3 weeks. After this, customs will begin the process of reclaiming the outstanding duty and VAT from your customs broker.

During stage one of the reclaim, the Central Community Transit Office (CCTO) will send a notice to your customs broker that they need evidence that the T1 procedure has been completed so that they can close the T1 document on NCTS.

One month after the stage one notice, the CCTO will issue a “Right to be heard” notice, which gives you another month to produce evidence that the T1 transit procedure has been completed.

If evidence has not been received by the end of this month, your customs broker will be issued with a C18 payment demand for the duty and VAT that is owed on the shipment.

Customs Support Group provides end-to-end customs clearance services with our T1 documents, allowing us to monitor every stage of the customs journey so that we can proactively close procedures, address problems, and protect you from compliance issues. Contact us to stay protected in your business.

Are T1 Customs Documents Related to T2 Forms, T2Ls and T2L(F)s?

T1 customs documents are similar to T2 forms, T2Ls and T2L(F)s, but the latter three are used when transiting goods from one EU country to another.

The purposes of the T2, T2L, and T2L(F) are similar in that they provide entry to the EU country without paying tax on freely circulating goods, but the form required depends on the transit and territories involved:

• A T2 form is used when moving goods through a third country, and involves a customs bond.
• T2L, and T2L(F) forms are used when the goods temporarily leave the EU but do not enter another country, such as when moving goods by sea through international waters. These do not involve customs bond, and are only for proving union status. The use of the T2L or T2L(f) depends on whether the destination is in the same fiscal territory or not as EU Member States are not all in the same financial territory despite sharing a customs territory.

Customs Support Group is Here For Your T1 Documents and other Transit Procedures

Customs Support Group generates T1 forms for exporters just like you throughout the UK, Norway, Switzerland, and Turkey, and can complete the import clearance at the EU destination. We have also significantly increased our guarantee over recent years to accommodate our growth.

Supporting you with both your T1 documents and end-to-end customs clearance, we help you remain compliant at every stage when you are moving your goods under a transit procedure. Contact us for more information today.