Customs Clearance in Europe: Standard, Fiscal and T1 Procedures Explained

Published November 26, 2019 · Sino-Euro Railway

For rail shipments arriving in the European Union, three customs procedures cover most import scenarios: standard customs clearance, where duties and VAT are paid and goods enter free circulation; fiscal clearance, where import VAT is deferred to the destination EU country; and the T1 transit document, which lets uncleared goods move onward to another customs procedure.

Standard customs clearance suits all types of shipments. Once the goods leave the port or rail terminal, they are cleared for "free movement": import duties and VAT are paid, and the goods can be transported to any place within the European Union.

Fiscal customs clearance suits transshipments and any shipment that first arrives in an EU country that is not the destination country, provided the destination country is also an EU member. Its advantage is cash flow: the customer pays only the import duties up front, while the VAT is charged later by the local tax office in the destination country.

The T1 transit document suits shipments consigned to a third country or shipments that will pass into another customs transit procedure. Goods moving under a T1 remain uncleared and must be handed over to another customs procedure within a short period of time.

Other procedures, such as the ATA Carnet for temporary imports, are available for special cases — contact us for details on the best option for your shipment.

Q: What is the difference between standard and fiscal customs clearance in the EU? A: Under standard clearance, import duties and VAT are paid immediately and the goods enter free circulation. Under fiscal clearance, only duties are paid on arrival and VAT is settled later with the tax office in the destination EU country.

Q: When do I need a T1 transit document? A: When uncleared goods must move through or within the EU before being cleared — for example, when they are consigned to a third country or will enter another customs transit procedure.