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The Common Transit Procedure (WPT) refers to a customs procedure that allows goods to move across multiple countries in the Common Transit Area (CTA) or between EU member states without the immediate payment of customs duties, VAT, or other taxes. The WPT is part of the larger Common Transit System (CTS), which facilitates the smooth and efficient movement of goods across international borders while ensuring customs compliance and control.
In the context of the Common Transit Procedure, the Warehouse Procedure (WPT) specifically refers to the ability to store goods in a customs-approved warehouse under customs supervision until they are released for free circulation or other customs procedures.
Definition of Сommon Transit Procedure
The Common Transit Procedure (CTP) is a system used for the border crossing of union goods through countries within the European Union (EU) and several other countries that have agreements with the EU. It allows goods to move under a single customs procedure and under the "T1" or "T2" document, without needing to be cleared through transport customs at each border.
What is the Common Transit Procedure?
The Common Transit Procedure is a simplified customs process used for the movement of goods between countries that are part of the Common Transit Area (CTA) without the need for full customs status checks at every border. This common customs transit procedure allows moving goods across multiple countries with a single customs declaration and a single guarantee, rather than having to go through separate customs clearance in each country.
The primary goal of the Common Transit Procedure is to simplify and streamline the customs process for goods that are moving between customs territories. It reduces administrative costs, delays, and the need for multiple customs declarations, making international trade more efficient.
Who can use the WPT procedure?
The Common Transit Procedure is particularly useful for businesses engaged in international trade within the EU and EEA, as it streamlines the customs process and reduces administrative burden.
The Warehouse Procedure (WPT) is available to a wide range of businesses involved in importing, storing, or distributing goods within a customs-approved warehouse. Companies must ensure they are compliant with customs regulations and have the proper authorizations to use the CTP. This helps businesses optimize storage, cash flow, and customs duty payments.
The Warehouse Procedure (WPT) can be used by the following types of operators:
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Importers
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Authorized Economic Operators (AEOs)
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Customs-Approved Warehouse Operators
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Exporters/Traders
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Third-Party Warehouse Keepers
Division of the WPT procedure
When goods are transported under the CTP, the goods are sealed and accompanied by a transit document, typically the T1 or T2 transit declaration, depending on the nature of the goods and the countries involved. Customs office at the starting point of the transit (the export country) authorizes the movement. The goods are monitored and tracked during their transit across other countries. The goods are cleared by customs office once they reach their final destination in the importing country, where any applicable duties or taxes are paid.
T1 transit procedure
The T1 is specifically used for the transit of goods that are not yet cleared for importation into a customs territory. It is commonly used when goods are being transported between different countries in the Common Transit Area (CTA) or from a third country to the CTA.
T2 transit procedure
It differs from the T1 procedure primarily in that it is used for non union goods originating from or moving between EU countries or countries that are part of the Common Transit Area (CTA). In contrast, the T1 procedure is used for goods coming from third countries to the EU/CTA.
Transit procedure and the issue of VAT
The Warehouse Procedure (WPT) allows union goods to be stored in a customs-approved warehouse without the payment of customs taxes, VAT, or other charges until the union goods are released for free circulation (i.e., imported into the customs territory). This procedure is primarily used by businesses involved in the storage and distribution of goods that are not yet cleared through customs.
Importance of WPT for international logistics
The Warehouse Procedure (WPT) plays a crucial role in international logistics by allowing businesses to store goods in a customs-approved warehouse without paying customs duties, VAT, or other taxes until the goods are released for free circulation (i.e., imported into the customs territory). This procedure is essential for businesses involved in cross-border trade, as it offers various logistical and financial benefits.
Comparison of WPT and other conventions
The Warehouse Procedure (WPT) is specifically designed for storing goods under customs supervision without the immediate payment of duties or taxes, which is valuable for businesses managing inventory, cash flow, or planning to re-export goods. In contrast, other procedures like T1/T2 transit, Temporary Admission, and Customs Warehousing serve different purposes such as movement of goods across borders, temporary importation, or long-term storage with different regulatory implications. By understanding the differences between these procedures, businesses can make more informed decisions about which procedure is best suited to their needs based on the type of goods they are handling and the desired customs treatment.