How to set up your business for CTC transit in the UK — step-by-step guide

Taking on CTC (Common Transit Convention) transit in the UK yourself is a serious operational decision — it requires registration, a financial guarantee, and a solid understanding of the procedures involved. However, for businesses with a regular transit volume it can mean significant cost savings and far greater control over the process. This guide walks you through every stage of the setup: from obtaining an EORI number to submitting your first transit declaration.

What is CTC and why does the UK still participate in the system?

CTC (Common Transit Convention) is a multilateral treaty that allows goods to be transported across signatory countries without paying duty at each border along the route. Duty is "suspended" for the duration of the transit and settled only in the country of destination.

The UK acceded to CTC as an independent signatory after Brexit (it is a member of EFTA solely for CTC purposes — it does not participate in the EEA). This means: - Goods travelling from Poland through the UK to Ireland can move under the CTC procedure without an import declaration in the UK - Polish companies exporting to the UK can open a T1 procedure in Poland and close it in the UK - The UK processes transit through its own NCTS (New Computerised Transit System)

For Polish businesses exporting to the UK or arranging transit across UK territory, CTC is often the only practical way to avoid paying duty twice.

Step 1 — EORI registration and an HMRC account

Before you can use the UK transit system, your business must hold:

GB EORI — an Economic Operators Registration and Identification number issued by HMRC. Without a GB EORI you cannot submit any customs or transit declaration in the UK.

How to obtain a GB EORI: 1. Go to gov.uk/eori 2. Sign in via Government Gateway (create an account if you do not already have one) 3. Complete the online form — you will need a UK VAT number (if registered) or your company details 4. An EORI is usually issued within a few working days

CTC registration with HMRC — a GB EORI alone is not sufficient. You must separately register as an authorised transit principal in the HMRC CTC system. Registration is completed through Government Gateway and requires you to accept the terms of use for the UK NCTS.

[LINK: link to HMRC CTC guidance on gov.uk]

Step 2 — Access to the UK NCTS

NCTS (New Computerised Transit System) is the IT platform for submitting and tracking transit declarations. In the UK it operates as NCTS Phase 5 (the version currently being rolled out in line with the European standard).

Access to the UK NCTS can be obtained through: - HMRC Government Gateway — direct access via the portal at gov.uk/submit-transit-declaration - Commercial software — most customs agents and logistics companies use specialist software (e.g. ASM Sequoia, CDS-compatible tools) with NCTS integration

For businesses handling a high transit volume, we recommend investing in commercial software — the HMRC portal is functional, but less convenient when processing multiple declarations on a regular basis.

Step 3 — Transit guarantee

This is the step that stops many businesses in their tracks. Every CTC transit declaration must be secured by a transit guarantee — a financial security in case the goods do not reach their destination and the duty is not paid.

Types of transit guarantee:

Type	Description	Best suited for
Individual (single journey)	Covers one specific transit movement	Businesses with low volume
Comprehensive	A limit covering multiple simultaneous transits	Businesses with regular volume
Guarantee via customs agent	The customs agent makes their guarantee available	Simplest option for businesses without their own guarantee
Cash deposit	Cash deposit held by HMRC	Rarely used

How much is the guarantee? The guarantee amount equals the estimated duty and VAT on the goods being transported. For goods worth £100,000 with a 5% duty rate the guarantee should be at least £5,000. For a comprehensive guarantee, HMRC may grant a reduction (50% or 30%) to businesses with a good customs compliance record and AEO status.

How to obtain a comprehensive guarantee: 1. Submit an application to HMRC via Government Gateway 2. HMRC will assess the risk and set a guarantee limit 3. Obtain a Guarantee Reference Number (GRN) and Access Code 4. Quote the GRN on every transit declaration

[LINK: more about transit guarantees — contact Easy Clearance]

Step 4 — T1 vs T2: which procedure applies to your goods?

Before submitting a declaration you need to know whether your goods qualify for T1 or T2.

T1 (External Transit) — used for non-Union goods (goods from third countries or goods that have not been released into free circulation in the EU). The most common type of transit in UK–EU trade since Brexit.

T2 (Internal Transit) — used for Union goods moving through the territory of a third country (e.g. through Switzerland or the UK). T2 confirms the Union customs status of the goods.

Practical rule: - Goods from Poland (EU) being exported to the UK → T1 on the UK side (opened by the UK customs agent) - Union goods travelling from the EU through the UK to another EU country (e.g. Poland → UK → Ireland) → T2 to confirm Union status

Choosing the wrong procedure — T1 instead of T2 or vice versa — can cause problems when discharging the transit and may result in a duty liability.

Step 5 — How to submit a transit declaration (step-by-step procedure)

Once you have your EORI, NCTS access, and a guarantee in place, you can submit your first declaration:

1. Prepare your data — goods description, CN codes, value, weight, details of the consignor and consignee, office of departure, and office of destination
2. Submit the declaration in NCTS — generate an LRN (Local Reference Number) for your own records
3. Obtain the MRN — once accepted by NCTS, the system assigns an MRN (Movement Reference Number)
4. Generate the TAD (Transit Accompanying Document) — either a paper or electronic document that travels with the consignment
5. Hand the TAD to the driver — the driver must carry the TAD throughout the transit
6. Office of departure verifies and releases the consignment
7. Office of destination confirms arrival and discharges the procedure

Step 6 — Tracking the MRN and discharging the procedure

Once the transit procedure has been opened, you can track the MRN status through NCTS or via the HMRC system. The transit procedure must be discharged at the office of destination — failure to discharge within the prescribed time (which is normally determined by the distance of the route) triggers an automatic enquiry procedure and a potential charge against the guarantee.

If the transit has not been discharged: - The office of departure sends an enquiry to the office of destination - If the goods cannot be located, HMRC initiates a recovery procedure and requests payment of duty from the guarantee - The time allowed for resolution depends on the route and HMRC regulations