Authorised consignor UK – when it pays to open transit from your own warehouse

Any business that regularly ships goods between the UK and the EU (or vice versa) under the Common Transit Convention (CTC) procedure will eventually ask itself: is it worth obtaining Authorised Consignor status and opening transit movements directly from our own warehouse? Traditionally, to start a T1 or T2 procedure the driver had to travel to a customs office, present the goods, and obtain confirmation that the transit had been opened (a departure message) in the NCTS system. That took time and generated transport costs. Authorised Consignor (AC) status, granted by HMRC, allows businesses to open transit procedures directly at their own premises — without visiting a customs office for every shipment. For high-frequency shippers this can mean significant savings in time and money. However, obtaining AC status comes with obligations, upfront costs, and is not economically viable for every business. In this article we analyse when AC makes sense, how to apply, and what obligations you take on.

What is Authorised Consignor status?

Authorised Consignor (AC) is an authorisation granted by HMRC to businesses participating in the Common Transit Convention (CTC) that regularly ship goods under transit procedure and wish to open transit movements at their own premises (warehouses, production facilities, logistics centres) without having to present each shipment at a customs office.

Legal basis: AC status is governed by the Convention on a Common Transit Procedure (Kyoto Amendments) and UK domestic legislation. Further details at GOV.UK — Authorised Consignor Status.

What AC specifically allows: - opening T1 and T2 transit directly from the business's own premises (no trip to a customs office) - generating a Transit Accompanying Document (TAD) and sealing the container or trailer on-site - submitting a transit declaration to NCTS (New Computerised Transit System) from your own system or through a customs agent

What AC does NOT allow: - closing a transit movement (that is done by an Authorised Consignee — a separate party in the chain) - exemption from the transit guarantee (still required) - shipping prohibited or restricted goods without additional licences

Who can apply for AC status?

HMRC sets specific requirements for businesses applying for AC status:

Criterion	Requirement
Compliance history	No serious customs law infringements in the past 3 years
Shipment volume	Minimum regular transit activity (HMRC does not specify a precise number, but expects at least several movements per month)
Transit guarantee	Possession of an approved customs guarantee covering the potential customs debt
Premises	Physical premises (warehouse, facility) with the ability to seal vehicles and store documents
IT system	Access to NCTS (directly or via a customs agent/broker)
Customs knowledge	Staff competence in transit procedures (HMRC may verify this during a preliminary inspection)

How to apply for AC status with HMRC?

The AC application is submitted to HMRC via the GOV.UK portal or by post (C1800 — Application for Authorised Consignor status).

Step by step:

1. Prepare the documentation — gather company details (EORI number, registered address and premises addresses), transit guarantee information (number and amount), a description of customs processes within the business, and contact details of the person responsible for customs procedures.

2. Submit the application — form C1800 is available on GOV.UK. Complete and send to the HMRC National Clearance Hub (NCH).

3. HMRC preliminary inspection — an HMRC officer may visit your premises to verify conditions: whether you have a suitable area for sealing vehicles, whether staff understand the AC obligations, and whether your IT system is ready to connect to NCTS.

4. HMRC decision — typically 30–90 working days from submission of a complete application. HMRC issues the AC authorisation with a reference number and lists the approved premises.

5. Granting of approval — the approval is tied to specific premises (addresses), not to the company as a whole. If you wish to open transit from a new warehouse, you must submit an amendment to your authorisation.

Authorised Consignor obligations

AC status carries serious obligations. HMRC can revoke the authorisation if these are breached:

Obligation	Details
Sealing	Applying HMRC-approved customs seals to the vehicle or container before it leaves the premises
TAD documentation	Printing and attaching a Transit Accompanying Document (TAD) to every consignment
NCTS submission	Lodging the transit declaration in NCTS before the goods physically depart
Register	Maintaining a register of all transit movements opened from the premises (minimum 4 years)
Anomaly reporting	Immediately reporting to HMRC any irregularities (damaged seals, missing TAD, etc.)
HMRC audit	Availability for HMRC inspection at any time

When does AC pay off? A cost analysis

The key question: your own AC vs outsourcing to a customs agency?

Costs of your own AC (one-off and ongoing):

Item	Indicative cost
Application preparation (lawyer/broker)	£500–£2,000
Transit guarantee (annual fee, % of guarantee amount)	0.5–1.5% of the guarantee amount
NCTS software or access via agent	£50–£300/month
Customs seals (annual supply)	£100–£500
Staff training	£300–£1,000
Administrative time (compliance)	5–15 hours/month

Costs of outsourcing to a customs agency:

Item	Indicative cost
Fee per T1 transit opening (per movement)	£200–£500 (including guarantee and closure)
Transport to/from customs office (saving)	£50–£150 per movement

Break-even point: If agency costs average £250 per movement, and your own AC costs approximately £3,000/year (guarantee + software + compliance), AC becomes cost-effective at more than 12–15 transit movements per year. At 50+ movements per year the saving can amount to £5,000–£15,000 per year.

Comparison table: own AC vs outsourcing

Feature	Own AC	Outsourcing to an agency
Cost per movement (at 50 movements/year)	£60–£120	£200–£500
Operational flexibility	High (you can load overnight/weekends)	Limited (agency working hours)
In-house time commitment	High (compliance, NCTS, register)	Low
Compliance risk	Full responsibility	With the agency
Time to first shipment	3–6 months (application + verification)	Immediate (agency holds AC)
Required in-house knowledge	High	Low

When is it better NOT to apply for AC?

Your own AC status is not always the best solution. Consider staying with a customs agency if: - you have fewer than 10–15 transit movements per month - your staff have no customs experience and you do not want to invest in training - shipments are irregular (seasonal, one-off projects) - you do not have premises meeting HMRC requirements (e.g. no vehicle sealing area) - you do not want to bear compliance risk (penalties for NCTS errors, guarantee issues)

In these cases outsourcing is more cost-effective — you pay only for movements actually carried out, with no fixed compliance overhead.