T1 Transit vs Direct Import — when to choose each option?
T1 transit and direct import are two fundamentally different customs procedures. Choosing the wrong one can result in goods being stopped, paying duties that could have been avoided, or being unable to complete a route. We explain when to use each — with scenarios and costs.
What is T1 transit (NCTS)?
T1 is a transit procedure based on the NCTS (New Computerised Transit System) — the electronic transit declaration system used in the United Kingdom and the European Union. The T1 procedure is used for goods of non-union (or non-British) customs status, meaning goods that have not been released for free circulation in the respective customs territory.
When goods travel from Poland through France, cross via the Eurotunnel, and continue through the UK — with a final destination such as Ireland — they should not be subject to an import procedure in the UK. Instead, a T1 procedure is opened, which "secures" potential customs duties via a guarantee and permits the goods to transit freely to their destination or out of the UK. The procedure is discharged electronically in NCTS once the goods reach their destination or leave UK territory.
Key features of T1:
- → Goods under T1 are not released for free circulation — UK duty and VAT are suspended
- → A customs guarantee is required to secure potential liabilities for the duration of transit
- → The procedure must be discharged — failure to discharge results in charges being called from the guarantee
- → Handled electronically through NCTS — the declaration includes the route, goods description and guarantee
- → Agent handling cost: from £70 per transit leg
What is direct import into the UK?
Direct import (standard import) means that goods entering the UK are cleared at the border as goods intended for the UK market. The importer pays duty (according to the UK Global Tariff) and import VAT (or uses PVA — Postponed VAT Accounting), and the goods are released for free circulation in the UK.
This is the simpler logistical scenario — goods enter the UK and stay there. An import declaration is submitted via CDS (Customs Declaration Service) by the importer or a customs agent acting on their behalf. Once the declaration is accepted and charges settled, the goods are released for free circulation.
Key features of direct import:
- → Goods remain in the UK — duty payable under the UK Global Tariff and 20% VAT (or PVA)
- → Simpler process — CDS import declaration, ENS/GMR for the port of entry
- → Importer's GB EORI required, or acting through an agent as indirect customs representative
- → Preferential duty rates possible (0% TCA) with documented EU origin
- → Agent handling cost: from £55 per import declaration
Comparison: T1 Transit vs Direct Import
| Criterion | T1 Transit | Direct Import |
|---|---|---|
| Destination of goods | Does not remain in the UK — continues to the EU, Ireland or another country | Remains in the UK — for sale, warehousing, distribution on the UK market |
| UK duty and VAT payment | Suspended (no charge if procedure discharged) | Required — duty + 20% VAT or PVA |
| Customs guarantee | Required — secures liability for the duration of transit | Not required (DDA optionally for deferred payment) |
| Declaration system | NCTS (New Computerised Transit System) | CDS (Customs Declaration Service HMRC) |
| Procedural complexity | Higher — opening and discharging NCTS, guarantee, monitoring | Lower — single declaration, standard documents |
| Agent cost | from £70/leg | from £55/declaration |
| When to use | EU–UK–EU routes, customs warehouses, re-export, Ireland via UK | Final deliveries to the UK, regular purchases from UK suppliers |
When to use T1 and when to use direct import?
route When to use T1?
- check_circleEU–UK–EU routes: Goods travel from Poland through the UK (Channel Tunnel, Dover) to Ireland or another EU country — they do not enter free circulation in the UK.
- check_circleUK customs warehouse: Goods arrive at a UK customs warehouse and are either released for import or re-exported from there — T1 applies until they leave the warehouse.
- check_circleRe-export through the UK: Goods from non-EU countries (e.g. China) arrive at a UK port and continue to the EU without unloading or UK import clearance.
- check_circleInter-port movements within the UK: Goods arrive at Felixstowe and travel to Southampton — internal T1 transit instead of a double import/export entry.
- check_circleDeferred destination decision: When the decision on whether goods stay in the UK or continue to the EU has not yet been made — T1 gives time to decide without paying duties.
arrow_downward When to use direct import?
- check_circleGoods remain in the UK: Deliveries for UK customers, distribution on the UK market, warehousing intended for sale in the UK.
- check_circleRegular orders from UK suppliers: A Polish company buys goods regularly from UK suppliers — each delivery is a standard import entry on the Polish side.
- check_circleUK e-commerce: Goods imported into the UK by online sellers on Amazon, eBay — they go to a UK fulfilment centre and are sold locally.
- check_circleLess complex logistics: Smaller consignments with no need for transit — a single point of entry, a single clearance, straightforward documentation.
- check_circleNo guarantee risk: The company does not want to tie up capital in a customs guarantee or does not meet the requirements to obtain one — direct import does not require a guarantee.
Practical scenarios with costs
Scenario 1: Polish company imports furniture from the UK to its own warehouse in Warsaw
The furniture brought from the UK remains in Poland — this is a standard import into the EU. On the UK side, the exporter submits an export declaration (from £45); on the Polish side, a Polish customs agent files the Polish import entry. T1 is not needed. Correct procedure: UK export + Polish import.
Scenario 2: Goods from the Netherlands travel via Eurotunnel to the UK, then by ferry to Ireland
The goods are not intended for the UK market — they are transiting through the UK. On entry into the UK, a T1 procedure is opened in NCTS, which is discharged once the ferry sails from Dover/Holyhead to Ireland. No UK duties are payable. Cost: from £70 per T1 leg plus the transit guarantee.
Scenario 3: Container from China arrives at Felixstowe — part of the goods for the UK, part for Poland
This is a mixed scenario. The portion intended for the UK market undergoes direct import. The portion continuing to Poland can be placed under T1 transit or cleared as a UK import and then re-exported. The most common approach is a split: direct import for the UK portion + T1 or export declaration for the Poland-bound portion. Individual quotation required.
Disclaimer: The information on this page is general in nature and does not constitute legal or tax advice. The choice of customs procedure depends on the specific circumstances of the transaction. Please contact a consultant for advice on individual cases.
FAQ
When is T1 required instead of direct import? expand_more
T1 is used when goods enter the UK without the intention of remaining on the UK market — transit to another country, customs warehouse, re-export. Direct import is appropriate when the goods are to remain in the UK.
Do I have to pay duty in the UK when using T1? expand_more
No — UK duty and VAT are suspended during the T1 procedure. Payment would only arise if the procedure were incorrectly discharged (e.g. goods remain in the UK without an import entry).
How much does a T1 procedure cost? expand_more
Handling T1 through a customs agent costs from £70 per leg. In addition, there is the cost of the customs guarantee (depending on the goods value). Direct import starts from £55.
Can goods transit through the UK without an import entry? expand_more
Yes — that is exactly what a T1 procedure is for. Goods travel through the UK under customs supervision (NCTS) without paying duties, provided they do not enter free circulation in the UK. A correct NCTS declaration and an active customs guarantee are required.
What happens if a T1 procedure is not discharged in time? expand_more
An undischarged T1 procedure results in customs charges being called from the guarantee and an investigation being opened. It is therefore essential to discharge NCTS declarations promptly and to monitor all active procedures.
Not sure which procedure you need?
Get in touch — we will advise you whether you need T1, direct import, or another procedure, and how quickly we can arrange clearance.