Updates CBAM EU

Are You Importing CBAM Goods? Key Data Requirements and Deadlines Ahead

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CBAM affects EU importers of carbon-intensive goods like cement, steel, and aluminum. It aims to level the playing field between EU and non-EU producers. Key deadlines are approaching, with first reports due January 31, 2024.

Are you importing certain raw materials or products into the European Union? If so, you need to be aware of the Carbon Border Adjustment Mechanism (CBAM) and its impending deadlines. This new regulation affects importers of specific carbon-intensive goods, aiming to level the playing field between EU and non-EU producers.

Who does CBAM apply to?

CBAM currently applies to importers of the following goods:

  • Cement
  • Iron and steel
  • Aluminium
  • Fertilisers
  • Electricity
  • Hydrogen

It's important to note that CBAM doesn't just cover raw materials, but also some products made from these materials. For example, it includes certain iron and steel products like pipes and rails.

Is there a threshold?

Yes, there is a threshold to protect small businesses from excessive administrative burden. Importers are exempt from CBAM obligations if the total value of their imported CBAM goods does not exceed €150 per shipment.

Key dates and data requirements:

The CBAM regulation entered into force on May 17, 2023. The first quarterly reports were due on January 31, 2024, covering imports from October to December 2023.

From July 31, 2024, importers must provide detailed installation-level data, including:

  • Production processes
  • Fuel consumption and emissions sources
  • Indirect emissions (e.g., from electricity)
  • Production amounts by process
  • Precursor amounts (if applicable)

Penalties for non-compliance range from €10-50 per tonne of unreported emissions during the transitional phase, increasing to €100 per tonne from January 1, 2026.

Why is this important?

Beyond regulatory compliance, your ability to provide accurate CBAM data could impact your customer relationships and sourcing decisions throughout the supply chain.

If you're importing goods covered by the regulation above the specified thresholds, it's crucial to act promptly. The transition period has begun.

  1. Assess your imports immediately to determine if they fall under CBAM scope.
  2. Review the detailed CBAM regulations and the European Commission's guidance documents.
  3. Implement systems to track and report carbon emissions for affected goods.
  4. Consider consulting with CBAM experts to ensure full compliance.
  5. Begin preparing your quarterly CBAM reports now to avoid last-minute complications.

Don't delay – the sooner you adapt to these new regulations, the better positioned your business will be in this evolving regulatory landscape.

Need help navigating CBAM? Don't hesitate to reach out to compliance experts who can guide you through the process.

Source: CBAM Regulation: Full Texts and European Commission Guidance