The use of T1 forms has grown since Brexit, when the UK left the EU customs territory. This is because the T1 customs form allows your goods to move through the EU without paying Duty and Vat until arrival in the destination country, which is now essential for exports to the countries that are further into the EU than the France or sea borders.
How does the T1 transit procedure work?
T1 customs forms are closed off at destination by presenting your goods to a border agency. The import clearance agent will also need to declare your T1 forms on their declaration to customs so that there is record that the Duty and Vat have been paid.
What is needed to create T1 forms?
For a customs broker to have authorisation to begin the T1 transit procedure, they need to have a guarantee that they can allocate the Duty and Vat of a shipment against. In the event that your T1 customs form is not closed off at the destination, the customs broker has guaranteed they will pay the taxes. Your broker is only allowed a finite amount of Duty and Vat to be allocated against their guarantee at any time, so that there is always enough capital to pay any outstanding taxes.
At UK Customs Solutions, we have links to all ports and have authorisation to complete T1 transit procedures.
How long do I have to close off a T1 customs form?
During stage 1 of the reclaim, the Central Community Transit Office (CCTO) will send a notice to your customs broker that they need evidence of the T1 transit procedure being completed so that they can close the T1 customs form on the NCTS.
1 month after the stage 1 notice, the CCTO will issue a “Right to be heard” notice, which gives another month to produce evidence that the T1 form has been closed off.
After this month’s notice ends, your customs broker will be issued with a C18 payment demand for the Duty and Vat that is owed on the shipment.