T1 vs T2 Transit Declaration – What Is the Difference?

T1 vs T2: the core difference

When people ask for the "difference between a T1 and T2 document", they usually expect two forms. In practice T1 and T2 are status codes on a transit declaration, and the status says what kind of goods are moving. HMRC's Transit Manual supplement puts it simply: within the Common Transit Convention (CTC), goods are either non-Union goods (T1) or Union goods (T2).

Everything else in the process, the NCTS declaration, the MRN, the guarantee and the discharge at destination, works the same way for both. For the full T1 workflow see our guide to the T1 transit document in the UK; this article concentrates on how T1 and T2 differ and when each one applies.

What is a T1 declaration (non-Union goods)?

HMRC's guidance on Union Transit says the external procedure, or T1 status, applies to the movement of non-Union goods, meaning goods not in free circulation. HMRC's Transit Manual supplement adds that goods duty-paid in the UK are treated as domestic goods, and that when they are exported to the EU or another CTC country they are declared as T1.

This is why a pallet of ordinary UK-made or UK-cleared goods leaving Great Britain for an EU customer is declared as T1: for the EU side it is not Union goods, and transit lets you delay paying duties and other charges until the movement ends. If you are new to the term, see what T1 transit is.

What is a T2 declaration (Union goods)?

T2 is the status for Union goods, that is, goods in free circulation in the EU. HMRC's guidance on Union Transit describes the internal Union Transit procedure, or T2 status, as applying to Union goods moving from the UK or an EU member state to or through a Common Transit country, and to Union goods moving to or from San Marino or, for industrial goods of Harmonised System chapters 25 to 97, to or from Andorra. The related T2F status applies to Union goods moving to, from or between the EU special territories.

For a UK business the practical point is narrower. HMRC's Transit Manual supplement says that where goods from one EU member state are transhipped in the UK and sent to another EU member state, UK customs officers may be asked to confirm that the goods kept their Union (T2) status. That can be done by authenticating a T2 declaration in NCTS.

T2 document after Brexit: why T2 is rare from Great Britain

Since the UK left the EU, goods in free circulation in Great Britain are UK domestic goods, not Union goods. HMRC states that movements of goods starting in Great Britain (England, Scotland and Wales) will almost always have T1 status. So a UK exporter sending goods to Germany, France or Poland under transit should expect to declare T1, not T2.

The exceptions come from the opposite direction. HMRC's Proof of Union status guidance explains that Union goods lose their status if they enter Great Britain and do not travel under the transit procedure. To retain Union status, goods moving by road between Northern Ireland and an EU country across Great Britain need a T2 transit declaration. The same guidance notes that Union status cannot be assumed when goods have travelled outside the EU during their journey.

T2L and proof of Union status: not a transit declaration

A T2L is easy to confuse with T2 but does a different job. A T2L proves that goods have Union status; it does not start a transit movement. HMRC's NCTS guidance lists "to submit proof of Union status declarations (T2L)" among the things you cannot do in NCTS.

• Form of proof: HMRC says a T2L or T2LF can prove Union status regardless of value, and a commercial invoice or transport document can be enough for Union goods worth under EUR 15,000 if it covers only Union goods.
• Digital filing: HMRC says T2L and T2LF are now electronic documents on the Proof of Union status system.
• Scope of the guidance: HMRC's published rules on this point concern Northern Ireland and the EU. A GB-based exporter shipping UK goods to the EU will normally not need one, because those goods are T1.

A T2LF is the version that shows the goods come from an EU special territory and may be subject to VAT on arrival.

How the two declarations are lodged: NCTS, MRN and who does what

Both T1 and T2 are lodged in the New Computerised Transit System. HMRC says traders using Union Transit and Common Transit must make their declarations in NCTS. The sequence for a movement leaving Great Britain is:

1. Work out the status. Decide whether the goods are T1 or T2 before you start. For GB goods this is T1.
2. Make the export declaration. HMRC says that in most cases you must do this before the transit declaration. You do not need one if the goods are already under duty suspense before transit starts or the movement ends in Northern Ireland.
3. Lodge the transit declaration in NCTS. You need your EORI number, the goods status, your local reference number, your guarantee reference number, the expected transit time (HMRC says no more than 14 days), the export declaration MRN, and the reference numbers of the offices of departure, transit and destination.
4. Receive the MRN. When the declaration is accepted and the goods are released, NCTS issues the 18-character MRN.
5. Move the goods. You list an office of transit for each customs area the goods enter, and the goods and MRN are presented at the office of destination. HMRC notes that the haulier can use the export declaration references to create a goods movement reference (GMR) where the goods leave from an arrived-declaration location.
6. Discharge. The movement is closed when customs at the destination confirm the goods arrived, which also releases the guarantee.

The declarant lodges the transit declaration; the haulier moves the goods. Transit does not replace other pre-arrival filings, so check separately whether an ENS declaration is needed for the EU side. For the numbers themselves, see what an MRN is and the difference between a transit MRN and an import MRN.

Guarantee: the same rule for T1 and T2 movements

HMRC states that an HMRC-accepted guarantee is needed for transit movements, covering potential debts from customs duties, import VAT and excise duties if a movement is not discharged properly. That potential debt is not chargeable if the movement is closed correctly at destination. Your guarantee reference number (GRN) goes on the declaration.

• You must hold a Customs Comprehensive Guarantee (CCG) if you move goods under transit more than 3 times in a 12 month period, or if you want to become an authorised consignor.
• When you open a movement, part of the guarantee is allocated to it until it is discharged. You cannot open a new movement without enough guarantee left.
• To estimate potential debt, HMRC says to use the highest third-country rates of duty and VAT. Where you genuinely cannot work out the figure, you can assume the sterling equivalent of EUR 10,000.

More detail is in our article on the transit guarantee under the CTC.

Which countries can T1 and T2 movements go to?

The UK is a CTC contracting party. HMRC lists the other members as the EU (including EU special territories where customs rules apply), Georgia, Iceland, Liechtenstein, Moldova, Montenegro, Norway, North Macedonia, Serbia, Switzerland, Turkey and Ukraine. HMRC's page records that Georgia was added on 5 March 2025 and Moldova and Montenegro on 1 November 2025. Transit can be used by air, rail, road or sea. For road movements to a non-CTC country you may be able to use TIR, which is a separate system; see our comparison of TIR and Common Transit and the background on the Common Transit Convention.

Documents the driver carries and how the movement ends

HMRC says the driver needs the MRN. Since 21 January 2025 a paper transit accompanying document (TAD) is no longer mandatory; the MRN can be shown manually, digitally or as a printed linear barcode, and Border Force can print a TAD on request if the MRN cannot be sent electronically. The goods and MRN must be presented at the office of destination so NCTS records arrival.

When the office of destination records satisfactory control results, the movement is discharged and the declarant at departure receives a write-off notification. If the movement is not closed, HMRC warns of delays and possible fines or additional duties, and the guarantee stays tied up. The same applies to T1 and T2.

Common mistakes with T1 and T2

• Declaring T2 for GB-origin goods. GB goods are non-Union goods; use T1.
• Treating T2L as a transit document. It proves status only and is not lodged in NCTS.
• Skipping the export declaration. In most cases it must come first, and its MRN goes on the transit declaration.
• Too little guarantee. Without enough guarantee left you cannot open a new movement.
• Not discharging. An open movement keeps the guarantee committed and can trigger an enquiry.

FAQ – T1 vs T2 questions

What is the difference between a T1 and a T2 document?

T1 and T2 are status codes on a transit declaration, not separate forms. T1 is used for non-Union goods and T2 for Union goods. HMRC says goods starting a movement in Great Britain will almost always have T1 status, so UK to EU transit declarations are normally T1.

Is a T2 transit declaration used for goods leaving the UK for the EU?

Rarely, if the goods start in Great Britain. HMRC treats goods made in Great Britain or with UK duties paid as non-Union goods, which means T1. T2 appears when goods that already have Union status travel through the UK, for example EU goods moved between two EU member states.

What is T2L and is it the same as T2?

No. A T2L is proof that goods have Union status. It is not a transit declaration and cannot be submitted in NCTS. HMRC's guidance on T2L is aimed at movements to and from Northern Ireland and the EU, and T2L is now lodged digitally on the Proof of Union status system.

Do I need a guarantee for T1 and T2?

HMRC says an HMRC-accepted guarantee is needed for transit movements, and your guarantee reference number goes on the transit declaration. A Customs Comprehensive Guarantee is required if you move goods under transit more than 3 times in a 12 month period. Check your own movement with HMRC or your agent.

Who lodges the T1 or T2 declaration, and in which system?

The declarant lodges the transit declaration in the New Computerised Transit System (NCTS), which HMRC says traders using transit must use. The export declaration is a separate declaration made before it, in most cases. The haulier moves the goods.

Do I still need an export declaration if I use T1?

In most cases yes. HMRC says you must make an export declaration before completing the transit declaration, and the export MRN goes on the transit declaration. You do not need one if the goods are ending their movement in Northern Ireland or are already under duty suspense before transit starts.

What does the driver need to carry on a T1 or T2 movement?

The driver needs the 18-character MRN. HMRC says that since 21 January 2025 a paper transit accompanying document is not mandatory, and the MRN can be shown manually, digitally or as a printed barcode. Border Force can print a TAD if the MRN cannot be sent electronically.

Official sources

• GOV.UK: Preparing to move your goods out of Great Britain using transit — HMRC
• GOV.UK: Transit Manual supplement, 2. Status of goods — HMRC
• GOV.UK: Union Transit, moving goods between 2 EU territories — HMRC
• GOV.UK: Get proof your goods have Union (EU) status — HMRC
• GOV.UK: Use the New Computerised Transit System — HMRC
• GOV.UK: Check the amount of guarantee you need for transit movements — HMRC
• GOV.UK: Check if you can use transit to move goods to the EU and Common Transit countries — HMRC
• GOV.UK: Moving goods out of Great Britain using transit, step by step — HMRC
• GOV.UK: Transit Manual supplement, Common/Union Transit — HMRC

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