When goods need to cross the territory of the European Union without import duties being settled straight away, customs transit T1 and T2 comes into play. These are two distinct regimes that allow cargo to move between the customs office of departure and the customs office of destination under customs control, without going through a full clearance at every border. At SILE Customs Broker we handle transit declarations every day for importing and exporting businesses, and in this article we explain what sets T1 apart from T2, what documentation you need and how each one is processed step by step.
Key points about customs transit T1 and T2
- T1 (external transit): non-Union goods that have not yet had duty or VAT paid on them.
- T2 (internal transit): Union goods crossing a common transit country without losing their status.
- Both regimes are managed through the NCTS system and suspend duties until the transit is discharged at the customs office of destination.
- They require a guarantee (individual or comprehensive) to cover any incident during the journey.
- Assigning the wrong code (T1 instead of T2, or vice versa) is the most common mistake and can lead to unexpected assessments or holds.
What is customs transit and when do the T1 or T2 regimes apply
Customs transit is the regime that allows goods to be transported between two points within the customs territory of the Union (or of the Common Transit Convention) with suspension of customs duties, VAT and commercial policy measures that would normally apply to an import. The goods travel “sealed” from a fiscal point of view: nothing is charged until they reach their final destination or the regime is discharged.
This mechanism means goods do not need to be cleared at every border they cross, which would otherwise slow international transport down considerably. It is managed through the NCTS (New Computerised Transit System), the electronic platform connecting the customs offices of departure, transit and destination in real time.
There are two categories within the Union transit regime, depending on the customs status of the goods: T1 transit and T2 transit. Assigning the wrong code is one of the most common mistakes when submitting a transit declaration, and it can lead to holds or unexpected assessments.
Differences between T1 transit and T2 transit
The difference between T1 and T2 is not about the route or the mode of transport, but about the customs status of the goods: whether duty has already been paid in the EU or not.
T1 regime: external transit
T1 (external transit) applies to non-Union goods, i.e. goods coming from a third country that have not yet been released for free circulation in the European Union. Under this regime, the goods can move through Union territory with import duties and VAT suspended until they reach the customs office of destination, where the transit is discharged and, where applicable, import clearance begins.
T2 regime: internal transit
T2 (internal transit) applies to Union goods that have already had duty paid, or that hold Union status, but which cross a common transit country (Switzerland or Norway, for example) during their journey without losing that status. The purpose of T2 is precisely to prevent Union goods from being treated as foreign when crossing that territory.
Comparison table: T1 transit vs T2 transit
| Aspect | T1 transit (external) | T2 transit (internal) |
|---|---|---|
| Status of the goods | Non-Union, from a third country | Union goods, with duty already paid |
| Duty and VAT | Suspended until import clearance | Already settled; not charged again |
| When it applies | Goods not yet released for free circulation in the EU | EU goods crossing a common transit country (Switzerland, Norway, etc.) |
| Risk if not discharged | Import duty and VAT are assessed | Assessed as if it were non-Union goods |
| Typical example | Import from China with a final destination in another Member State | Spanish export transiting through Switzerland en route to another EU country |
In short: if duty has not yet been paid in the EU, the goods travel as T1; if it has already been paid and the goods only cross a common transit country, they travel as T2.
How to process a customs transit T1 or T2 step by step
Processing a customs transit T1 or T2 declaration follows a fairly standardised sequence, usually handled by a customs agent on behalf of the holder of the procedure:
- Submission of the transit declaration in the NCTS, indicating the T1 or T2 code according to the status of the goods, the customs office of destination and the planned route.
- Provision of the guarantee required to cover the potential customs debt during the journey.
- Acceptance at the customs office of departure, which validates the data and issues the Transit Accompanying Document (TAD) with the MRN (Movement Reference Number).
- Movement of the goods to the customs office of destination, with possible checks at offices of transit if the route crosses third countries.
- Presentation at the customs office of destination, which notifies the system of the arrival and checks the goods against the transit declaration.
- Discharge of the regime: once everything is confirmed correct, the customs office of destination releases the guarantee and, where applicable, import clearance begins with the SAD or the new H1 system.
Documents required for the transit declaration
- Transit declaration submitted in the NCTS (details of the consignor, consignee, goods and route).
- Commercial invoice and packing list for the goods being transported.
- Transport document: CMR, bill of lading or waybill, depending on the mode used.
- Transit guarantee, individual or comprehensive, according to the holder’s volume of operations.
- Commodity code (TARIC) and precise description of the goods.
The role of NCTS in T1 and T2 transit
The NCTS is the system that has fully digitalised the management of Union transit: the declaration is submitted electronically, the customs office of destination receives notice of arrival even before the transport itself arrives, and the guarantee is released automatically once the regime is discharged. This drastically cuts waiting times compared with the old paper-based system (TIR or manual T1/T2).
Customs guarantees for T1 and T2 transit
Every customs transit operation requires a guarantee to respond to customs should the goods fail to arrive at their destination or an irregularity occur. There are two main types:
- Individual guarantee: covers a single transit operation and is calculated on the total amount of suspended duty and taxes.
- Comprehensive guarantee: allows regular operators to cover multiple transit operations with a single amount, provided they hold the corresponding authorisation (and, where applicable, a partial or full waiver of the guarantee).
You can consult the regulatory detail of the regime in the Spanish Tax Agency’s transit manual, which sets out precisely how T1 and T2 goods are classified and how guarantees are managed.
Common mistakes when handling a T1 or T2 transit
- Assigning the wrong code (T1 instead of T2 or vice versa) through not knowing the actual customs status of the goods.
- Miscalculating the guarantee amount, which can block acceptance at the customs office of departure.
- Failing to discharge the regime on time, which triggers the suspended customs debt and can lead to penalties.
- Errors in the declared route when the journey includes offices of transit in third countries under the Common Transit Convention.
Working with a specialist customs service significantly reduces the risk of incidents in this type of operation.
Frequently asked questions about customs transit T1 and T2
Who can apply for a T1 or T2 transit?
The holder of the goods can apply for it themselves, but in practice it is handled by an authorised customs agent or freight forwarder, who submits the declaration in the NCTS and is answerable to customs for the data declared.
How long does it take to discharge a customs transit?
It depends on the route and the time limit set by the customs office of departure when accepting the declaration, but with the NCTS, discharge at the customs office of destination is usually confirmed within hours once the goods have been presented and checked.
What happens if the goods do not arrive at the customs office of destination?
If the regime is not discharged within the set time limit, the customs office of departure opens an enquiry procedure and, if the incident cannot be justified, the guarantee is called in and the corresponding customs debt is assessed.
Does T1/T2 transit replace the SAD?
No. Transit is a preceding regime that suspends the settlement of duty during transport. Once discharged, if the goods are permanently imported, the SAD (or the H1 system from October 2025) is submitted for import clearance.
Manage your customs transit T1 or T2 with SILE Customs Broker
Choosing the right regime, calculating the guarantee correctly and submitting the transit declaration without errors makes the difference between goods moving without incident and goods being held at an office of transit. At SILE Customs Broker we manage T1 and T2 transits for importing and exporting businesses, backed by NCTS and up-to-date knowledge of customs regulations.
If you need to arrange a customs transit or want to resolve queries about your specific operation, get in touch with us. We’ll advise you with no obligation.