{"id":66633,"date":"2023-06-20T00:00:00","date_gmt":"2023-06-19T22:00:00","guid":{"rendered":"https:\/\/dev.goodata.eu\/news-media\/blog\/non-categorizzato\/carbon-border-adjustment-mechanism-new-obligations-for-importing-companies"},"modified":"2024-09-06T16:28:20","modified_gmt":"2024-09-06T14:28:20","slug":"carbon-border-adjustment-mechanism-new-obligations-for-importing-companies","status":"publish","type":"post","link":"https:\/\/www.goodata.eu\/en\/blog\/sustainability\/carbon-border-adjustment-mechanism-new-obligations-for-importing-companies\/","title":{"rendered":"Carbon Border Adjustment Mechanism: new obligations for importing companies"},"content":{"rendered":"

With the publication of EU Regulation 2023\/956 in the European Official Journal on May 16, 2023, the European Union formalizes the entry into force of the Carbon Border Adjustment Mechanism (CBAM). <\/p>\n

<\/p>\n

As of October 1, 2023, companies importing goods into Europe from outside Europe are required to comply with this mechanism, with obligations related to CO2<\/span><\/font> embedded in imported goods.<\/p>\n

  <\/p>\n

In collaboration with Tecno Vat’s team of international tax experts, we ensure that all importing companies affected by EU Regulation 2023\/956 receive the necessary environmental and bureaucratic advice and support to fulfill their CBAM obligations.<\/p>\n

<\/p>\n

What is CBAM: between CO2 calculation and payment obligations<\/h2>\n

<\/p>\n

The CBAM – Carbon Border Adjustment Mechanism – is a mechanism the European Union introduces to adjust\/adjust\/compensate for carbon emissions from imported goods in member territories.
\nIncluded in the “Fit for 55” program, the CBAM underscores the Union’s commitment to the 2030 GHG emission reduction and 2050 neutralization targets.
\nIn addition, this mechanism is a measure to counter environmental dumping and the relocation of high-emission production to countries outside Europe. <\/p>\n

<\/p>\n

What changes for companies importing products into Europe?<\/b><\/p>\n

<\/p>\n

If the imported commodity falls under the Combined Nomenclature codes listed in Annex I of EU Regulation 2023\/956 (e.g., aluminum, iron, steel, and cast iron products; cement and cement products; fertilizers; electricity and hydrogen), the importing company must first comply with reporting requirements<\/b>, then obtain authorized CBAM registrant status<\/b>, and finally take a number of actions including paying the amounts due<\/b> for CO2<\/span><\/font> incorporated into the imported goods.<\/p>\n

<\/p>\n

However, let us proceed in order and understand together, based on the upcoming deadlines, what needs to be done.<\/p>\n

<\/p>\n

The transition period and the reporting requirement <\/h3>\n

<\/p>\n

From October 1, 2023<\/b> to December 31, 2025, the transitional period of the CBAM, importers are required to:<\/p>\n

    \n
  • Collect information regarding the installations of production facilities located abroad, Combined Nomenclature codes and origin of goods, CO2<\/span><\/font> emissions resulting from the production of the goods and their movement to the European border.
    \nThe cooperation of the manufacturer\/supplier or operator of the production facility located in the non-EU country is essential at this stage; <\/li>\n
  • Send quarterly CBAM report<\/b> to the European Commission, detailing the total amount of CBAM goods incorporated, relative CO2<\/span><\/font> emissions and any costs incurred to address the emissions generated.<\/li>\n<\/ul>\n

    <\/p>\n

    \n

    Authorized registrant status and the full regime of the Regulations <\/h3>\n
    <\/div>\n
    As of December 31, 2024, importing companies must obtain the status of authorized declarant; to achieve this, an application must be sent to the competent authority in the EU member state of origin (in the case of a non-EU resident importer, the indirect customs representative intervenes), await verification checks, and final entry in the CBAM registry as an authorized declarant.<\/div>\n
    <\/div>\n
    As of January 1, 2026<\/b>, authorized declarants (importing companies or indirect customs representative) must:<\/div>\n
      \n
    • calculate the CO2<\/span><\/font> incorporated in imported products, submit the measurement made to verification by an accredited third party, and keep the notions useful for calculation for the next four years;<\/li>\n
    • Pay the amounts due for CO2<\/span><\/font> embedded in imported products through the purchase of CBAM certificates<\/b>.
      \nElectronic documents purchasable by member states through platform managed by the EU Commission; <\/li>\n
    • by May 31 of the year following the import, return the certificates purchased through the CBAM registry<\/b> (under implementation) and submit the CBAM declaration<\/b> including: total number of issues, number of certificates purchased and returned, copy of the verification document issued by the accredited body.<\/li>\n<\/ul>\n

      <\/p>\n

      The importer must ensure that the total CBAM certificates purchased are able to offset at least 80 percent of the CO2<\/span><\/font> diffused into the atmosphere through imported goods during the year.<\/div>\n
      Other annual deadlines to remember include June 30 and July 31<\/b>: the former corresponds to the deadline by which the importer can ask the home member state to buy back any excess CBAM certificates; the latter represents the date by which the European Commission cancels certificates purchased and returned by the importer.<\/div>\n
      <\/div>\n
      \n

      Measure, verify and communicate: meet CBAM constraints with us<\/h2>\n
      <\/div>\n
      We represent the corporate sustainability partner already of many business entities, won thanks to the professionalism and skill of our environmental engineers and consultants.
      \nToday, thanks to collaboration with Tecno Vat’s international tax experts, we are also able to meet the needs of companies where imports of goods with high emission levels, from third countries to EU member states, are a constant. <\/div>\n
      <\/div>\n
      If you would like to know the details of this collaboration and service opportunities, please fill out the form.<\/b><\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

      With the publication of EU Regulation 2023\/956 in the European Official Journal on May 16, 2023, the European Union formalizes the entry into force of the Carbon Border Adjustment Mechanism (CBAM).  As of October 1, 2023, companies importing goods into Europe from outside Europe are required to comply with this mechanism, with obligations related to […]<\/p>\n","protected":false},"author":1,"featured_media":62717,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[79],"tags":[],"class_list":["post-66633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sustainability"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.goodata.eu\/en\/wp-json\/wp\/v2\/posts\/66633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.goodata.eu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.goodata.eu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodata.eu\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodata.eu\/en\/wp-json\/wp\/v2\/comments?post=66633"}],"version-history":[{"count":0,"href":"https:\/\/www.goodata.eu\/en\/wp-json\/wp\/v2\/posts\/66633\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.goodata.eu\/en\/wp-json\/wp\/v2\/media\/62717"}],"wp:attachment":[{"href":"https:\/\/www.goodata.eu\/en\/wp-json\/wp\/v2\/media?parent=66633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.goodata.eu\/en\/wp-json\/wp\/v2\/categories?post=66633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.goodata.eu\/en\/wp-json\/wp\/v2\/tags?post=66633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}