A transit guarantee is the financial security that backs a transit declaration. It covers the potential customs debt — the duty, excise and VAT that would be due if the goods escaped the transit procedure. Without a valid guarantee, NCTS refuses to accept the declaration.
There are two main flavours: comprehensive and individual.
Individual guarantees
An individual guarantee covers a single transit movement. It is the simplest option for occasional movers. There are three sub-types:
- Cash deposit — you lodge the equivalent cash with customs. Released after discharge.
- Individual guarantee in the form of an undertaking — a guarantor (typically a bank or insurance company) commits to pay if the principal defaults.
- TC32 voucher — a pre-paid voucher, typically purchased from a specialist guarantor for a fee of 1–2% of the covered amount. Quick, no setup, but expensive per movement.
For one-off movements or high-value, low-volume traffic, individual guarantees are fine. For regular freight, they become punishing.
Comprehensive guarantees (CGU)
A Comprehensive Guarantee for Use (CGU) is a revolving facility. You set a reference amount — the total potential customs debt outstanding at any one moment — and the guarantor commits to that ceiling. As declarations are discharged, the available headroom replenishes.
To get a CGU you need to demonstrate to HMRC (or the equivalent EU authority) that you have:
- A clean compliance history with customs.
- A track record of regular transit movements (typically 3 movements per week for 3 months).
- The financial standing to be backed by a guarantor.
Once approved, the CGU costs a fraction of stacking individual guarantees: typically a setup fee plus an annual fee plus a small per-movement fee. For a haulier or forwarder doing 50+ transits per month, the savings are very significant.
CGU reductions
If your compliance record is solid, you can apply for reductions in the reference amount:
- 50% for businesses meeting basic compliance criteria.
- 30% for AEO-equivalent operators.
- 0% (full waiver) only available for AEO Customs Simplification / Security & Safety status.
These reductions free up working capital and reduce guarantor fees.
Which should you choose?
| Profile | Recommendation | |---|---| | Less than 10 transits per year | Individual / TC32 vouchers | | 10–100 transits per year | Comprehensive guarantee at 100% | | 100+ transits per year, clean record | Comprehensive guarantee with 50% reduction | | AEO-certified high-volume mover | CGU with 30% or full-waiver reduction |
How we help
We onboard new principals with the right guarantee setup from day one. For our customers running comprehensive guarantees, we track the reference amount in real time, top up where needed, and apply for reductions when their compliance history qualifies them. For ad-hoc traffic, we arrange TC32 vouchers same-day.