Guides / UK–EU customs terms · Updated 30 September 2026

15 UK–EU customs terms explained in plain English

Fifteen customs terms every first-time UK–EU trader meets, each explained in two or three plain sentences, with links to deeper guides.

This guide is also available in Polish.

Customs paperwork is full of acronyms, and most of them turn up in your first week of trading between the UK and the EU. This guide gives a short, plain-English definition of each one, says who normally deals with it, and points you to our longer guides where you need more detail. Everything here is based on official guidance from GOV.UK and the European Commission.

Identity and systems

1. EORI number

An Economic Operators Registration and Identification number is the ID customs uses for your business. GOV.UK says you need one to move goods between Great Britain and any other country, including the EU, but not if the goods are uncontrolled and for personal use only. A UK number does not replace an EU one, so a business declaring goods on both sides will usually hold both. For a walk-through of how the UK and Polish numbers differ, see this explanation of EORI numbers for UK–EU traders. Our own guide covers when you need an EORI.

2. CDS

The Customs Declaration Service is HMRC's system for making import and export declarations. When you pay for an import declared on CDS, GOV.UK says you get a separate payment reference for every declaration, so you need the right one each time. Your agent usually submits the declaration for you; see how a CDS import declaration works.

3. MRN

The Movement Reference Number is the unique reference given to a customs declaration or transit movement once it has been accepted. You will see it on export declarations and transit documents, and it is the number hauliers and agents quote to track a movement. More in our MRN guide.

4. NCTS

The New Computerised Transit System is the electronic system where transit declarations are made. It is used for goods moving under the common transit procedure between the UK, the EU and the other common transit countries.

5. T1 (and T2)

These are transit statuses. According to HMRC's transit manual supplement, T1 covers non-Union goods and T2 covers Union goods, meaning goods already in free circulation in the EU. Goods leaving Great Britain for the EU under transit normally travel as T1. See T1 transit from the UK to the EU and transit guarantees and NCTS.

Borders and movements

6. ENS

An entry summary declaration is a safety and security declaration made before goods arrive. GOV.UK says it is needed when you move goods into Great Britain, and the carrier is responsible for making sure it is submitted, although an agent can file it. Details in our ENS guide.

7. GVMS

The Goods Vehicle Movement Service is the GOV.UK system you register with to move goods through ports that use it. It is where you get a goods movement reference. Our glossary entry on GVMS has a quick summary.

8. GMR

A goods movement reference links all the goods in one vehicle, trailer or container into a single reference. The GMR must be presented at the port of departure, the carrier checks it before the vehicle boards, and the driver uses it to see whether the goods have been selected for inspection on arrival.

Who is responsible

9 and 10. Direct and indirect representation

These describe how a customs agent acts for you. Under direct representation the agent acts in your name and you, the importer, are liable for the customs debt; GOV.UK notes the agent can only become jointly liable in limited cases, such as a deliberate or unreasonable error. Under indirect representation the agent acts in its own name on your behalf and both of you are jointly and severally liable for any customs debt. Compare them in direct vs indirect representation.

What the goods are and where they come from

11. Commodity code

A commodity code is an internationally recognised reference number that describes your product. It decides the duty rate, import VAT, licensing needs, preferential rates and measures such as anti-dumping duties. The first six digits follow an international standard, and the UK adds more digits after that. You look it up in the Trade Tariff; see how to find a commodity code.

12. Rules of origin

Rules of origin decide whether goods count as UK or EU originating under the Trade and Cooperation Agreement. Only goods that meet them can use the preferential, reduced or zero tariff.

13. Statement on origin

A statement on origin is prescribed text the exporter adds to the invoice or another commercial document to declare that the goods originate in the UK or the EU. GOV.UK says one statement can cover a single shipment or multiple shipments of identical products over up to 12 months. The alternative is importer's knowledge, where the importer relies on its own information and must keep records for 4 years. Read more in our statement on origin guide.

VAT and special procedures

14. IOSS

The Import One Stop Shop is an EU VAT scheme for distance sales of low-value goods imported into the EU, excluding excise goods. It lets a seller, or an intermediary acting for them, declare and pay the import VAT through one registration in a single Member State instead of registering in every country it delivers to. IOSS returns are monthly. It is a VAT arrangement only and says nothing about customs duty. See UK sellers shipping to EU customers.

15. Procedure 42

Customs procedure 42 is used when goods are released for free circulation in one EU Member State and then supplied straight on to a business in another Member State. The European Commission explains that the importation is exempt from VAT where the onward supply is an exempt intra-EU supply and the importer provides the required VAT numbers and evidence of dispatch. See procedure 42 explained.

Bonus: IPAFFS

The Import of Products, Animals, Food and Feed System is how importers and their agents pre-notify imports into Great Britain of live animals, products of animal origin, animal by-products, high-risk food and feed not of animal origin, composite products, and medium or high-risk plants and plant products. It applies to goods from the EU as well as the rest of the world. See our IPAFFS pre-notification guide.

How the terms fit together

A typical first shipment from Great Britain to the EU uses most of these terms in order:

• Get an EORI number before anything is declared.
• Classify the goods with a commodity code and check the rules of origin.
• Add a statement on origin to the invoice if the buyer wants to claim the preferential tariff.
• Choose your agent and agree direct or indirect representation in writing.
• The export declaration and any T1 transit get their MRNs through CDS and NCTS.
• The haulier gets a GMR through GVMS for ports that use it.
• At the EU end, the goods are released, perhaps under procedure 42 if they go on to another Member State.

If you are unsure which of these steps apply to you, our page on whether you need a customs broker is a good next read.

Related guides

• Shipping goods from Germany to the UK: customs step by step

• Movement Reference Number (MRN): what it is and how hauliers use it

• Importing Polish food products for UK shops and delis

Sources

• Get an EORI number (GOV.UK)
• Customs debt liability (GOV.UK)
• Get a goods movement reference (GOV.UK)
• Transit manual supplement: status of goods (GOV.UK)
• Proving originating status, UK–EU (GOV.UK)

General information, not legal, tax or customs advice. Rules change; confirm current requirements on gov.uk or with a registered agent before you ship.