What you need to know when transporting your goods through the EU using a T1 form.
When you are exporting from the UK to the EU, or beyond, you may need to use a T1 form to pay the duty and VAT in the right country. T1 transit documents allow your goods to travel through the European Union under bond, instead of paying the taxes at the first border.
But when should you use a T1, and how do they work. Find out in this article.
How do T1 forms work?
A T1 form places the duty and VAT for your shipment under a bond guarantee, allowing the goods to move through other countries without the taxes being paid. This financial guarantee is held by a customs clearance agent, who are liable for the taxes until the T1 transit document is closed.
For you to obtain a T1 form, your customs broker must complete a second declaration with the export clearance. This confirms to EU customs that the goods are moving under bond, and advises them of the liable party in the event that your T1 form is not closed off.
Once you have a T1, this must travel with the vehicle so that any border authorities can identify the load. It must then be presented to customs with the import declaration at the destination country so that it can be closed off, and the liability removed from your broker.
When is a T1 form required?
The T1 transit procedure is needed in three scenarios:
The T1 will be closed when the goods exit the EU.
Your goods are passing through other EU countries before the destination.
The procedure will be closed during customs clearance.
The procedure is closed by the customs-controlled area.
The T1 transit document process
Before you can get a T1, you need to know that your customs broker can raise one. Not every agent can raise T1 forms due to the guarantee that is required, so do not assume that your export clearance agent can provide you with a community transit document.
To raise a T1 transit document, you will need to send the same documents that are required for an export customs clearance. Your broker will complete a declaration on NCTS, which will generate a reference for your carrier to give to authorities at the export border. Customs will then provide you with the T1, which must remain with the shipment.
On arrival at the first EU border, the T1 form will be presented to authorities by your carrier, and your shipment will be allowed to move inland without paying duty and VAT.
Where a T1 transit document is closed off depends on the type of movement, but it will always be by customs authorities. Once the T1 form is closed, your customs broker will have the bond removed from their guarantee.
How long do I have to complete the T1 form procedure?
A T1 customs form is expected to be closed off within a suitable timeframe for the destination, which is normally within two to three weeks.
If your carrier has neglected to complete the T1 form, or your import duty and VAT haven’t been paid yet, then the Central Community Transit Office (CCTO) will begin the process of pursuing your broker for the taxes:
– Stage one is a request for evidence of closure, which gives a month to provide proof.
– Stage two is a “Right to be heard” notice, which gives another month to complete.
– Stage three is the issuance of a C18 notice, which demands payment of any taxes owed.
If a C18 notice is issued to your broker, they will pass the duty and VAT on to you. If there are multiple C18s raised against your company, then HMRC may withdraw permission for you to use T1 forms. This is why it is essential for you to use a European road freight company that understands the T1 process.
Need a T1 form?
Cory Brothers provide T1 forms, customs clearance, and European road freight from anywhere in the UK.
Contact us for a quote today.