External Transit The Ultimate FAQ Guide 1

External Transit: The Ultimate FAQ Guide

If you have any question about external transit, you will find the answer right here.

So, keep reading to learn more.

What Is External Transit in Customs?

External transit is a term used to describe the transportation of non- Union goods.

custom transit

custom transit

Under What Circumstances Does The External Union Transit Procedure Apply?

It concerns the following:

  1. Non-Union goods with excellent import levies
  2. Union goods which:

Are being exported to common transit country through the union or being transported beyond the territory of a common transit country during export but:

  • Are entitled to the repayment of import duties as long as they are transported from the area of the Union, or
  • Have gone through customs export formalities to allow compensation on export to non-Eu countries under the CAP, or
  • Are stocks detained by the national intervention agencies in the EU and have gone through export regulations on export to third countries under the CAP

What Are The Modes Of External Transit?

In the world of trade, external transit movement occurs by:

  1. By post
  2. Under the EU transit procedure
  3. Under the cover of ATA using a transit document
  4. Under a TIR carnet as long as that journey starts or end outside the EU.
    It’s attained between two positions in the EU to the third-country territory, or concerns the shipment that must be unloaded with customs territory of EU.
    Which are transported with shipment that must be to be unpacked in the third country.

modes of external transit

modes of external transit

How Does External Transit Differ From Internal Union Transit?

The main difference between these two terms is;

External transit deals with the transportation of non-Union goods whereas internal transit concerns the transportation of Union goods.

It’s pretty clear; external is outside the Union, internal is in the Union.

internal transit

internal transit

What Is The Difference Between TIR (Transports Internationaux Routiers) And External Transit?

Both of them are types of transit. However, they are different in terms of:

TIR- Here goods are transported internationally via one or more borders. Road operation is involved in between the journey.

External transit on the other hand is classified under Union Transit, where goods are transported within the region of the union.

transports inernationaux routiers

transport internationaux  routiers

What Are The Principal Regulations Governing External Union Transit In The EU?

The principals and laws of custom transit procedure are below:

  • Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015,
  • Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015
  • Commission Delegated Regulation (EU) 2016/341 of 17 December 2015.

Does The External Transit System Apply When Goods Are Being Transported Under Another Internationally Agreed System?

No, it doesn’t.

This includes:

  • The carriage of goods by post
  • Conveyance of goods outlined in TIR carnet, or
  • Transportation of cargo is covered by an ATA carnet that works as a transit document.

What Are The Controls On External Transit Goods?

Control measures are kept in place due to risks of fraud. Here are control measures of transit goods:

  1. Shipments with incorrect information don’t qualify for external transit procedures.
    This includes all goods whose documents don’t match the shipment
  2. EU external transit system formulates the process of customs formalities and payment of duties and declarations.

When Is The External Transit Procedure Applicable To Movements Via A Third Country?

It is only applicable in the following circumstances:

  1. When supply is made as a result of an international agreement
  2. The freight through that region or country is symbolized by a single transport document prepared by the Union

Does The External Transit System Relieve Goods Of Prohibitions And Restrictions?

No, it doesn’t.

In fact, all goods transported under transit must have licenses and comply with any prohibition and restrictions available.

Who Is Responsible For An External Transit Operation?

Transit Operation is executed by the Holder of Procedure; s/he acquires transit duties.

This individual issues a transit declaration through NCTS indicating interest perform a transit operation.

The Holder of Procedures is responsible for:

  • Presenting intact shipment with transit declaration to the customs office at a given time frame.
  • Also pays duties and any arising charges.

Additionally, an Authorized Representative appointed by the holder may act in his/her place.

The carrier or recipient of goods should produce intact goods if s/he receives goods knowing they were transported under a transit procedure.

What Is The Purpose Of Guarantees For Goods Moving Under External Transit?

It’s used for transit operation and also ensures any arising custom debts can be recovered in case of any deformity.

What Types Of Guarantees Are Available For External Transit Operations?

They include:

  • Exception from Union transit guarantee
  • Individual guarantee
  • Comprehensive guarantee

How Do You Apply Guarantee For External Transit Procedure?

It’s simple than it sounds.

All applications are done electronically. Submit an application for a comprehensive guarantee using the EU trader portal.

You will receive a certificate for comprehensive guarantees through a guarantee office, a receipt that is can be used throughout the Union.

What Are The Requirements For Guarantor For External Transit Procedures?

Guarantor’s conditions include:

  1. Must be a reliable person or third parties like a bank
  2. Should be accepted by customs authorities
  3. Should pay for duties and other arising charges

Are There Exemptions From External Union Transit Guarantee?

Yes. In the following scenarios:

It’s not required for transportation by air or sea especially where the airline or shipping company as the holder of the procedure.

Allowed to use the paper-based Manifest or an electronic Transport Document in place of the transit declaration.

How Do You Submit External Transit Declarations?

The documents can be issued online by the trade declarant. Also, the customs transit declaration service on the customs website can be used.

Can An Unauthorized Trader Initiate An External Transit Procedure?

Yes.

The trader should initiate export transit procedure by keying in the required information into NCTS.

This is to include Guarantee Reference Number (GRM) access code and transported shipment.

Transit Accompanying Document (TAD) will be released once the information is correct. Master Reference Number MRN may also be generated.

Shipments are submitted for a checkup in the customs office.

After the examination, transit is released in NCTS and TAD which MRN are produced and issued to the dealer.

Can You Use Simplified Transit Procedures For Goods Moving Under External Transit?

Yes, this depends on the subject of shipment and the circumstance.

Traders that have been accepted by the customs as authorized consignors/consignees have the benefits of having transit formalities completed at their place.

When Does An External Transit Procedure End?

External transit ends when the holder meets all his responsibilities and submits all the required documents to the customs office of destination.

Customs clearance authorities are responsible for releasing procedure.

This is when established on basis of comparison with available information in the office of departure and destination.

Goods should be presented flawlessly at a specified time and all terms and conditions must be met.

Customs authorities at the office of destination should examine goods to ensure any delays in completing transit are accounted for.

What Are The Customs Obligations In Relation To External Transit Goods?

Customs obligation applies to:

  1. The driver/carrier should clear goods whether known or not
  2. Exporter/importer- the receiver of goods who accepts them bearing in mind they are from community transit.

They should present intact goods to customs at the specified time.

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