American company buying in Holland and selling in the UK!

My Dutch supplier is claiming that I must convert the goods bought from him from T2 to T1 and export it outside the EU, and that I'm not able to sell it to the UK??!!
Is that illegal from an American company to buy from one EU company T2 goods (foods) and sell it to another EU company in T2?

Please confirm ASAP

You really need a lawyer familiar with EU regulations to get a valid answer to this question.

From http://europa.eu/legislation_summaries/customs/l11025_en.htm you can see the definitions of T1 and T2 goods and what your supplier says makes sense at first glance. If your US company buys the goods, then sells them into the EU, they are no longer EU goods, hence the transition. Perhaps you need an office, or at least an agent, in the EU, so that these transactions remain within the EU, that way avoiding the transition.

Of course, IANAL, IMHO, YMMV, etc.