CO2-Carbon Border Adjustment Mechanism (CBAM)
Have you already heard about the new regulation on CO2 border adjustment?
The EU has set itself the goal of reducing greenhouse gas emissions by 55% by 2030 compared to 1990 and achieving climate neutrality by 2050.
The CBAM creates a CO2 border adjustment system in the form of a second emissions trading system only for imports.
Many people are now asking themselves the questions: what exactly is the Carbon Border Adjustment Mechanism (CBAM), does the regulation also affect us, what do we as a company have to consider and many more. We would like to answer some questions and provide you with an overview.
Scope of covered sectors
- Cement
- Electricity
- Fertiliser
- Iron and steel
- Aluminium
- Hydrogen
Assignment on the basis of the customs tariff number according to the Combined Nomenclature. Downstream products (intermediate or final products) are also recorded, especially in the case of iron and steel, such as:
- Structural parts
- Components made of steel/ iron
- Screws, bolts and bands made of iron/ steel/ aluminium
It is possible to expand the scope of application until the end of the transition period (December 31, 2025).
When does CBAM apply?
The Carbon Border Adjustment Mechanism (CBAM) concerns imports of goods originating in a third country.
Import is the release for free circulation in accordance with Art. 201 UCC.
Countries exempt from the CBAM regulation are:
- Iceland
- Lichtenstein
- Norway
- Switzerland
- Goods that travellers carry in their luggage
- Goods with a low specific value (less than EUR 150 per consignment)
- Goods for military activities
Admission of declarants and import of goods
From January 1, 2026, customs authorities will only be allowed to import goods that fall within the scope of so-called “approved” ones Applicants”.
Natural or legal persons with a place of residence or a company headquarters, company headquarters or a permanent establishment can submit a corresponding application for approval of the status of “approved applicant” as early as December 31, 2024.
Applications are submitted via a newly introduced CBAM register and should take a maximum of 15 working days.
Submission of the CBAM declaration
The approved applicant has until May 31st. each year to submit a CBAM declaration for the previous calendar year via the CBAM register. This obligation will apply for the first time in 2027.
Transition period
The obligation to submit CBAM certificates does not begin until January 1st, 2025, but the first obligations under the regulation must be fulfilled during the transition phase from October 1st, 2023 to December 31st, 2025. Already at this point, the customs declarant or his indirect representative is obliged to submit a CBAM report to the Commission no later than one month after the end of the quarter
Do you still have unanswered questions?
Do not hesitate to get in touch with us, we will advise you about CBAM!
