What does transit mean in customs terminology?

Transit in customs terminology refers to a customs procedure that allows goods to be transported between customs territories without paying import duties or taxes during transportation. It is a temporary arrangement where duties and taxes are paid only in the destination country if the goods remain there. The transit procedure facilitates international trade by enabling the smooth movement of goods across customs borders while maintaining customs supervision throughout the transportation.

What Does Transit Mean in Customs Terminology?

Transit is a form of customs procedure where goods are transported under customs supervision from a departure customs office to a destination customs office without having to pay duties or taxes during transportation. This customs procedure is particularly useful in international trade when goods are transported, for example, within the EU customs territory or between countries outside the EU.

There are various types of transit procedures, the most common being:

T1 transit (external transit) – used for transporting non-EU goods within the EU customs territory
T2 transit (internal transit) – used for transporting EU goods to or through EFTA countries
TIR carnet – an international transit system, particularly used for traffic between the EU and third countries
ATA carnet – a document used for temporary importation, for example, for exhibitions

The main advantage of the transit procedure is that it exempts the goods holder from paying duties and taxes in each transit country. This streamlines the logistics chain and significantly reduces costs associated with freight handling.

How Does the Transit Procedure Work in Practice?

The transit procedure begins when the consignor submits a transit declaration to the departure customs office. Today, this is usually done electronically through the NCTS (New Computerised Transit System). The process steps are:

Submitting the transit declaration and presenting the goods at the departure customs office
Establishing a guarantee for the payment of potential duties and taxes
Sealing the goods and validating the transit document
Transporting the goods to the destination customs office within the given time limit
Completing the transit procedure at the destination customs office

Several parties are involved in the transit procedure: the person responsible for transit (usually the sender), the transport company, the guarantor (who provides the security), and authorized consignors and consignees who can use simplified procedures. Kouvola Cargo Handling offers modern forwarding services that often handle the entire transit process on behalf of the customer, making international logistics more seamless.

What Are the Most Common Challenges Related to Transit and How Are They Resolved?

The transit procedure involves several challenges that can cause delays and additional costs. The most common problem situations include:

Exceeding time limits in transportation, which may result in customs retaining the guarantee
Incomplete or incorrect documents that prevent the completion of the transit procedure
Breaking of seals during transport
Differences in customs regulations between countries
Adequacy and management of guarantees

To resolve these challenges, it is advisable to rely on the expertise of an experienced forwarding service. A professional forwarder ensures that transit documents are error-free, necessary guarantees are properly established, and transport deadlines are closely monitored. At Cargo Handling Group, we help our customers navigate the complex world of transit procedures by leveraging our years of experience in the logistics industry.

How Can a Company Optimize Its Transit Procedures?

Companies can significantly enhance their transit operations in the following ways:

Obtaining authorized consignor or consignee status, which allows goods to be sent and received directly from the company’s premises without visiting customs
Fully utilizing electronic customs systems
Implementing a unified guarantee system for multiple transit operations
Selecting a professional forwarding partner who masters transit procedures

Digital solutions, in particular, have significantly changed transit procedures in recent years. Modern forwarding services offer technology-focused solutions that automate declaration submission and tracking, reducing errors and speeding up the process.

When choosing a partner to handle transit procedures, look for experience, technological expertise, and an effective service network. At Cargo Handling Group, we offer tailored forwarding services that allow your company to focus on its core business while we take care of transit procedures and other customs-related functions professionally and cost-effectively.