Transit Guarantees: Comprehensive vs Individual, Explained

Why Do You Need a Transit Guarantee?

The Common Transit Convention requires every transit movement to be backed by a financial guarantee equal to the potential customs debt — that is, the duty and VAT that would be payable if the goods were released for free circulation instead of moving under transit.

The guarantee protects the customs authorities of the contracting parties: if the goods disappear, are diverted, or the procedure is not properly discharged, the guarantee can be drawn on to recover the lost revenue.

The Two Main Types

1. Comprehensive Guarantee (CGU)

A Comprehensive Guarantee Undertaking (CGU) is an open authorisation that covers multiple transit movements simultaneously. It works like a credit line:

Reference amount — the total maximum liability you are authorised to have outstanding at any one time
Bank or insurer-backed — the financial institution issues an undertaking to HMRC / the customs authority
Reused across movements — as each transit is discharged, the encumbered amount is released back to the pool

CGUs are the standard choice for regular traders, freight forwarders and hauliers. They eliminate per-movement administration and allow movements to be filed in minutes.

2. Individual Guarantee

An Individual Guarantee covers a single transit movement. There are three sub-types:

Individual guarantee in cash — a cash deposit equal to 100% of the potential customs debt
Individual guarantee by undertaking — a guarantor (usually an insurer or bank) issues a single-use undertaking
Individual guarantee voucher (TC32) — a pre-purchased voucher worth €10,000, used to cover an individual movement

Individual guarantees are right for occasional shippers or one-off movements where the overhead of a CGU isn't justified.

How Do You Apply for a CGU?

In the UK, CGU authorisations are issued by HMRC. The application process:

Submit Form C1207N — the application for CGU authorisation.
Demonstrate compliance history — HMRC will assess your customs and tax history over the past three years.
Provide guarantor undertaking — a bank or approved insurer issues the financial undertaking on Form C1201.
Receive your GRN — the Guarantee Reference Number, along with an access code.
Quote your GRN on every NCTS declaration.

Approval typically takes 60–90 days for new applicants.

How Much Guarantee Cover Do I Need?

The reference amount must be high enough to cover the maximum potential customs debt of all simultaneous open movements. As a rough guide:

Estimate the worst-case duty + VAT per truck
Multiply by the peak number of simultaneous open movements
Add a 20% buffer for valuation surprises

For a UK haulier running 10 trucks of consumer goods through the EU at any one time, that typically means a reference amount in the £100,000 – £500,000 range.

What If I Don't Have Time to Set Up a CGU?

You can use our CGU. T1 Transit holds a comprehensive guarantee and we make it available to clients who need transit movements filed before they can establish their own. We file the declaration in your name as the principal, with our guarantee reference quoted.

This is the fastest way to start moving goods under transit — and the simplest way to handle one-off or low-volume routes.