T1 transit procedure: duties, liability and responsibility when opening and ending a T1
What a T1 is can be said in one sentence. What happens if it is not properly completed? That fills entire binders. This is exactly the misunderstanding we regularly encounter at Martin Spedition: many companies regard the T1 as a document that is created and filed away. In reality it is the starting signal for a customs procedure that is under strict official supervision and has to be actively ended.
This article explains the complete process, the roles involved and the consequences when something goes wrong.
What a T1 transit procedure is and what it is needed for
The T1 procedure is the external Union transit procedure under Art. 226 et seq. of the Union Customs Code (UCC). It allows non-Union goods to be moved within the customs territory of the EU or between the EU and the contracting parties to the Common Transit Convention without the import duties having to be paid at the point of departure. The duties are suspended during the movement, not waived.
Typical example: a consignment of non-Union goods arrives at the port of Hamburg and is to be moved to a consignee in southern Germany who wants to carry out the import clearance there. For this purpose a T1 procedure is opened at the port, the goods are transported under customs supervision and presented to customs at the destination.
Five terms that must not be confused
In connection with the T1, five terms are frequently mixed up:
- Opening: the transit declaration is lodged electronically and the procedure begins once the office of departure has released the goods.
- Movement under T1: the goods are transported to the destination under the ongoing transit procedure.
- Presentation at destination: the goods and the required information are presented at the office of destination or to an authorised consignee.
- Termination: this occurs when the goods, together with the required information, have been properly made available to the office of destination. Art. 233(2) UCC defines this moment.
- Discharge: the office of departure compares the opening data with the control results of the office of destination and establishes that the procedure has been carried out properly.
The physical arrival of a truck at the consignee is neither automatically a termination nor a discharge of the T1 procedure.
Who is the holder of the transit procedure?
The holder of the procedure is the person who lodges the transit declaration in their own name or in whose name it is lodged. This is neither the consignor nor the consignee nor the carrier.
In practice the holder is frequently the freight forwarder or a customs agent acting as a direct or indirect representative. Depending on the form of representation, the consequences in terms of liability differ considerably.
The duties of the holder are clearly set out in Art. 233(1) UCC: the holder must present the goods intact at the office of destination within the prescribed time limit and in compliance with the measures taken to ensure identification. And the holder must provide a guarantee for the import duties that may potentially arise.
Why the guarantee is not a detail
As a rule, Art. 233(1)(c) UCC applies: no transit procedure without a guarantee. This guarantee covers the amount of import duties that would be incurred if the goods were released for free circulation, i.e. customs duty and import VAT.
The guarantee can be provided as an individual guarantee per transit movement or as a comprehensive guarantee for several movements. In both cases the economic risk lies with the holder of the procedure: if the procedure is not properly discharged, the guarantee can be called.
Opening a T1 is therefore not a purely administrative service but an economic commitment.
The electronic process: NCTS and ATLAS
Since the mandatory introduction of NCTS Phase 5 in 2024, the entire handling of the transit procedure has been electronic. In Germany this runs via the ATLAS-Versand IT system, which is connected to the Europe-wide NCTS.
The process: the holder of the procedure lodges the transit declaration electronically with the office of departure. After examination and acceptance, the system assigns a Master Reference Number (MRN). This number uniquely identifies the transit movement. The office of departure may inspect the goods before release. After release the movement may begin. The transit accompanying document or the electronic reference accompanies the consignment.
Time limits and presentation at destination
Upon release, a time limit is set within which the goods must be presented at the office of destination. The time limit is usually up to eight days but may vary depending on the route.
A common mistake in practice: the driver delivers the goods to the consignee, unloads them and then drives on. For the driver and the consignee the transport appears to be complete. The transit procedure, however, is not. As long as the goods have not been properly presented at the office of destination or accepted by an authorised consignee, and the confirmation via NCTS has not been made, the procedure remains open and the holder's guarantee remains encumbered.
If the consignee holds the status of an authorised consignee under Art. 233(4)(b) UCC, they may receive the goods on their own premises without having to bring them to the office of destination. But even then, certain notification and documentation obligations must be fulfilled.
What happens after presentation
After the transit procedure has been completed, the goods acquire the status of temporary storage under Art. 144 UCC. They must subsequently be assigned a customs-approved treatment, for example release for free circulation (import clearance), placement under another customs procedure or continued temporary storage.
A T1 is not automatically discharged by the goods being cleared or placed in a warehouse. It is discharged by the office of departure after the office of destination has transmitted the control results and no discrepancies have been found.
What happens if a T1 is not properly ended?
If the office of departure receives no confirmation of proper termination, it initiates an enquiry procedure. The office of departure requests the holder of the procedure to provide evidence of proper termination within a set time limit.
If this is not successful, the customs authorities can assess a customs debt. The amount corresponds to the import duties that would have been incurred for the goods in question. The guarantee provided can be called.
Who is specifically liable depends on the individual case: on the legal position as holder of the procedure, on the form of representation and on whether the carrier or the consignee has breached obligations. Art. 79 and Art. 233(3) UCC regulate the responsibilities in detail. A blanket statement that the party who opened the T1 always pays would not be legally correct.
Why we only open T1s in connection with the transport
This question comes up regularly: companies ask whether we can take on only the opening of the T1 as a stand-alone service, without the associated transport.
In most cases we cannot offer this. The reason lies in the responsibility described above. As holder of the procedure, the opening company is liable with its guarantee for the proper termination of the procedure. If we organise the transport ourselves, we have influence over the process: we can monitor the presentation, check the confirmation via NCTS and intervene immediately in the event of problems. Without control over the transport this is not possible, and the risk of an undischarged procedure increases considerably.
This is not a blanket rejection of such orders. It is a business decision that follows from the legal and economic significance of the T1 procedure.
Practical example: the truck was there, the T1 was open
A truck carrying non-Union goods travels under T1 to a consignee in southern Germany. The driver reaches the warehouse, the goods are unloaded and the driver drives on. For everyone involved on site the matter is closed.
Three weeks later the holder of the transit procedure receives a letter from the office of departure: the T1 was not properly ended. The office of destination has not received an arrival notification. The office of departure requests evidence of the whereabouts of the goods within a set time limit. If the evidence cannot be provided, the assessment of a customs debt and the calling of the guarantee are imminent.
What had happened? The consignee had accepted the goods but had failed to present them to customs. The goods had physically arrived, but the transit procedure had not yet been completed.
It is precisely this gap between physical delivery and termination under customs law that is the reason why a freight forwarder has to keep the entire process in view: not only the transport, but also the confirmation in NCTS.
Questions about the T1 procedure or about transport planning with transit procedures? We are here for you.
FAQ on the T1 transit procedure
A T1 is the external Union transit procedure under Art. 226 et seq. of the Union Customs Code (UCC). It is needed to move non-Union goods within the EU customs territory or between the EU and the contracting parties to the Common Transit Convention without paying import duties at the point of departure. The duties are not waived but suspended for the duration of the movement. Since NCTS Phase 5 the transit declaration is lodged exclusively electronically; in Germany this is done via ATLAS-Versand. After acceptance and release the movement receives a unique Master Reference Number (MRN).
The central responsibility lies with the holder of the transit procedure. Under Art. 233(1) UCC the holder must present the goods intact and within the prescribed time limit at the office of destination and must provide a guarantee. In addition, the carrier and, where applicable, a consignee who knows that the goods are moving under transit are also obliged to present the goods under Art. 233(3) UCC. Responsibility is therefore shared between several parties. Who the holder of the procedure is depends on who lodged the transit declaration or in whose name it was lodged.
Liability depends on the specific facts and on the legal position of the parties involved. The holder of the procedure is claimed against first, because their guarantee secures the procedure. In addition, under Art. 79 UCC other persons can be held liable as customs debtors, for example the carrier or the consignee, if a breach of obligations can be proven against them. A blanket statement that the party who opened the T1 is always liable is not legally correct. It depends on the type of representation, the contractual arrangements and the fault in the individual case.
The transit procedure ends when the goods, together with the required information, have been presented at the office of destination or properly handed over to an authorised consignee. The office of destination notifies the office of departure of the arrival via NCTS and transmits the control results. Discharge is then carried out by the office of departure, which checks whether the data match and whether there are any irregularities. Only after discharge is the holder's guarantee released. Simply unloading the goods at the consignee without presenting them to customs is not sufficient.
Yes, if the office of destination stated in the transit declaration is a border customs office, the procedure can be ended there. In many cases, however, the T1 is opened in order to move the goods to a destination inland. The goods must then be presented at the competent office of destination there or to an authorised consignee at the intended location. Unilaterally breaking off the procedure at a border customs office that is not designated as the office of destination is in principle not permitted, unless an approved diversion or a change of the office of destination has been made.
Not automatically. The T1 procedure is ended by presenting the goods at the office of destination or by their arrival at an authorised consignee together with the corresponding notification in NCTS. Whether the goods are subsequently placed in a customs warehouse or in a temporary storage facility is a follow-up step that comes after termination. Merely storing the goods physically without proper presentation and NCTS notification does not end the transit procedure. The goods must first be presented to customs before they can be placed under another procedure or in temporary storage.
If the office of departure receives no confirmation of proper termination, it initiates an enquiry procedure. The holder of the procedure is requested to provide evidence of the whereabouts of the goods and of their proper presentation within a set time limit. Alternative proof can be issued on request. If the required evidence cannot be provided, the customs authority can assess a customs debt equal to the import duties that would have been incurred for the goods if they had been released for free circulation. The guarantee provided can be called in full. Colloquially, "closing a T1" means, in customs law terms, the discharge of the procedure by the office of departure after the data have been successfully reconciled.
For the electronic transit declaration via NCTS or ATLAS the following information and documents are usually required: details of consignor and consignee, a precise description of the goods, the commodity code (customs tariff number), the value of the goods, the number and type of packages, the gross and, where applicable, net weight, the means of transport (vehicle registration), the office of departure, the office of destination and any relevant previous documents and customs references. Depending on the specific movement, additional or different details may be required. The freight forwarder checks the submitted documents for completeness and plausibility before lodging the declaration, since incorrect data can delay release or lead to subsequent claims from the customs authorities.
