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CBAM on EU imports : new reporting obligation since 01/10/2023

The EU’s Carbon Border Adjustment Mechanism started its transitional phase scheduled between 01/10/2023 and 31/12/2025.

Mainly aimed at fighting carbon leakage and ensuring fairness between European and non-EU producers, this mechanism is part of the European Green Deal initiated in 2019 and of the related Fit for 55 Agenda.

Adopted by the European Parliament and the Council on May 10th of the current year, the Regulation (EU) 2023/956 relating to the CBAM was completed by the implementing rules (EU 2023/1773) voted on August 17 and published in the Official Journal of the EU on September 15.

The CBAM’s implementation is planned in two phases:

  1. Transitional phase : 01/10/2023 – 31/12/2025

Declarants : European importers or their indirect customs representatives

Country of origin: outside the EU (except Iceland, Liechtenstein, Norway or Switzerland)

Imported goods: cement, electricity, iron, steel, fertilizer, aluminium and hydrogen (except those intended for a military operation)

Threshold: > 150 EUR

Reporting obligation: quarterly returns (Q4-2023 due by 31/01/2024)

Reporting details :

  • total quantity of each type of merchandise
  • total real intrinsic direct emissions
  • total indirect emissions
  • carbon price paid in a country of origin

Financial penalties: from €10 and €50 per tonne of undeclared incorporated CO2 emissions

Certification of declarations : recommended to be done by an accredited verifier

Competent Authority in France : DGEC of the Ministry of Energy Transition

Customs controls: Customs administration of each EU member state

No adjustment payment being required from declarants during this transitional period and the correction of the first three declarations being possible until 31/07/2024, it is important to respect the above obligations and to get prepared for the definitive phase which will start in 2026.

2. Definitive phase – 01/01/2026

  • obtain the status of the “authorized CBAM declarant” (possible starting from January 2025)
  • purchase CBAM certificates (introduced gradually starting from January 1, 2026)
  • make an annual report before May 31st of each year
  • request reimbursement of CBAM certificates in certain cases

All procedures relating to the EU’s CBAM will be carried out on a dedicated platform of the European Commission.

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