Transit is a customs facility available to operators who move goods across borders or territories without paying the duties due when goods enter (or leave) the territory. The Community transit procedure and the Common transit procedure, operated electronically through the NCTS system, facilitate the movement of both Community and non-Community goods within the EU and between the EU and EFTA countries. For each transit operation a guarantee to cover the potential duties is normally required.

Customs can agree to accept a Comprehensive Guarantee that covers a number of transit operations carried out by the same Principal (i.e. the person responsible for the transit operation). The amount of the Comprehensive Guarantee may be set at 100% of the potential duties but it can be reduced to 50% or 30% of that amount or a guarantee waiver may be allowed subject to certain criteria regarding reliability. The use of a guarantee waiver requires specific authorisation from Customs. (Note: A guarantee waiver is not available for high risk goods i.e. spirits, cigarettes and certain CAP goods).

In order to obtain a guarantee waiver, the Principal must demonstrate that s/he;

(a) co-operates very closely with Customs,
(b) has sufficient financial resources to meet his/her obligations,
(c) has sufficient experience of the Community transit procedure, and
(d) is in command of transport operations.

However, if the Principal has Authorised Economic Operator (AEO) status (AEOC or AEOF certificate), the conditions at (a) and (b) are automatically deemed fulfilled and, subject to compliance with (c) & (d), the Principal will be entitled on application to qualify for a transit guarantee waiver.