What is the transit procedure (Transit)?

What is the transit procedure (Transit)?

Transit, also known as Common Transit, is a customs procedure that allows goods to move between two points in the customs territory or between different customs territories.
The biggest advantage of transit is the ability to temporary suspension of the obligation to pay duties and taxes at the time of entry into the customs territory concerned. Customs formalities can only be completed at the designated office of destination and not at the first border port.

This saves exporters and carriers time and costs - there is no need for multiple customs declarations when crossing successive borders.

Why use transit?

Without the transit procedure, transporting goods from, for example, the UK via France and Switzerland to Italy would mean having to lodge as much as a six customs declarations (export, import, re-export, etc. in each country).
The use of the transit procedure limits these formalities to:

• export declaration in the UK,
• import declaration in Italy,
• and a TAD (Transit Accompanying Document) that accompanies the consignment and is scanned at subsequent borders.

What is CTC?

Transit operates only within Common Transit Convention (CTC). The system includes:

• UK,
• 27 European Union countries,
• EFTA countries: Switzerland, Norway, Iceland, Liechtenstein,
• Turkey,
• North Macedonia,
• Serbia,
• Ukraine.

The agreement allows goods to be transported between the two countries without payment of fees or duties until they reach their destination.

How does transit work?

The basis is the document TAD (Transit Accompanying Document)issued at the start of transport.

• The goods move from the office of departure, through the offices of transit, to the office of destination.
• When the goods are delivered, the TAD is closed and the procedure settled.
• Goods in transit are still under customs control and require final import clearance.

Who can use transit?

The transit procedure can be used by anyone, but certain conditions apply. The beneficiary must have financial guarantee, which secures potential customs and tax liabilities if the goods do not reach their destination.

Most often, the procedure is handled by carriers, freight forwarders or customs agents. However, exporters can also use it themselves.

Transit simplifications

There are two important facilitators in the system:

• Authorised Consignor - allows the procedure to start directly at the sender's premises.
• Authorised consignee - allows the procedure to be terminated at the place of the recipient rather than at the customs office.

Responsibilities and compliance requirements

Transit is a strictly regulated procedure.

• There are specific time limits for delivery.
• Violations are subject to financial penalties or revocation of entitlements.
• Shipment data is available to both the customs offices of the country of departure and the countries of transit and destination.

Summary

The transit procedure is one of the key tools in international logistics. It allows goods to move efficiently between CTC countries, minimising formalities and costs. However, the proper use of this procedure requires experience, financial guarantees and knowledge of the regulations.

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