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CBAM: EU information guide for importer of cement
The EU Commission published the “CBAM information guide for importer of cement” where: Explains that “…importer must report quarterly on the quantities of cement goods you import into the EU, and the greenhouse gas emissions released as they were produced (embedded in those goods); Recalls that “…any monetary payments until 2026, from which point the importer or his customs representative will be expected to buy and surrender CBAM certificates corresponding to the quantity of embedded emissions in the goods…”; Provides this checklist: Lists the following key points for the reporting activity: The quantity of cement products (in tonnes) in the scope of CBAM being imported to the EU during the…
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CBAM: EU information guide for importer of aluminum
The EU Commission published the “CBAM information guide for importer of aluminum” where: Explains that “…importer must report quarterly on the quantities of aluminium goods you import into the EU, and the greenhouse gas emissions released as they were produced (embedded in those goods); Recalls that “…any monetary payments until 2026, from which point the importer or his customs representative will be expected to buy and surrender CBAM certificates corresponding to the quantity of embedded emissions in the goods…”; Provides this checklist: https://europa.eu/!nF6C6q; Lists the following key points for the reporting activity: a) The quantity of aliminium products (in tonnes) in the scope of CBAM being imported to the EU…
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CBAM, operator, installation ouside EU and carbon price
Does the operator of installation pay a carbon price in his own jurisdiction? According to Guidance document on CBAM implementation for installation operators outside the EU: “… To ensure similar treatment between installations in the EU ETS and in other countries, a carbon price due in the country where a CBAM good is produced will allow for a reduction in the CBAM obligation in the definitive period from 2026 onwards….” The operator has to ensure that he includes information on carbon pricing in the monitoring methodology.
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CBAM guidance for operators and installations outside the EU
As we know, since the 1 October 2023 is entered into force the Carbon Border Adjustment Mechanism – CBAM. By means of Guidance document on CBAM implementation for installation operators outside the EU, EU gives some suggestions to the operators of installations outside the European Union. In particular, the Guidance document on CBAM implementation for installation operators outside the EU provides some practical guidelines to the operation of installations outside the European Union. Question n.1 : Are you an operator of an installation producing “CBAM goods”? To answer, the operator has to check: a) the goods produced and exported to EU ( cement, iron and steel, aluminium and some chemical…
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CBAM and inwards processing relief: how to comply with
The Union Customs Code defines the customs regime “Inward processing” as the procedure for which a good is imported into the EU for processing with suspension of import duties and VAT. After the processing operations, the processed products or the original imported goods can then be either re-exported or released for free circulation in the EU. The latter would imply the obligation to pay import duty and taxes, as well as the application of commercial policy measures. According to “Guidance document on CBAM implementation for importers of goods into the EU “ this principle is extended to the CBAM, i.e. no obligation for reporting under the CBAM arises in this…
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CBAM and AEO: the workflow to comply with
The Guidance document on CBAM implementation for importers of goods into the EU shares the following workflow aiming to simply the operational aspects of the CBAM compliance: The importer (reporting declarant) receives CBAM goods from various installations, possibly from different countries outside the EU. For each import, the importer lodges the usual customs declaration. The customs authority of the relevant EU Member State checks and clears the import, as usual. The customs authority (or the IT system used) informs the European Commission (using the CBAM Transitional Registry) of this import. This information can then be used to check the completeness and accuracy of quarterly CBAM reports. The reporting declarant requests…
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CBAM: what needs to be reported by reporting declarants
During the transitional period, importers need to report on a quarterly basis the embedded emissions in goods imported during that quarter of a calendar year, detailing direct and indirect emissions as well as any carbon price effectively due abroad. The following information must be reported by importers in the CBAM report: The total quantity of each type of goods, expressed in megawatt hours (MWh) for electricity and in tonnes for other goods, specified per installation producing the goods in the country of origin (made in); The actual total embedded emissions, expressed in tonnes of CO2e emissions per MWh of electricity or for other goods in tonnes of CO2e emissions per…
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CBAM and definitions for a better understanding
The Guidance document on CBAM implementation for importers of goods into the EU confirms and provides with the following definitions: ‘tonne of CO2e’ means one metric tonne of carbon dioxide (‘CO2’), or an amount of any other greenhouse gas listed in Annex I adjusted to the equivalent global warming potential of CO2. ‘Direct emissions’ means emissions from the production processes of goods, including emissions from the production of heating and cooling consumed during the production processes, regardless of the location of the production of the heating and cooling. ‘Indirect emissions’ means emissions from the production of electricity, which is consumed during the production processes of goods, regardless of the location…
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CBAM: What needs to be monitored by operators
TheGuidance document on CBAM implementation for importers of goods into the EU informs that the first element is the monitoring of direct emissions of the installation. Whenever an installation produces several different products, the emissions must also be appropriately attributed to the individual products. This non binding document adds that must be reported also the embedded emissions of the precursor materials. Where operators purchase precursors, they need to obtain data on the embedded emissions of precursor materials used in the production of the CBAM goods from the supplier of these precursors. The following information must be reported by importers in the CBAM report: The total quantity of each type of…
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Are you ready for the CBAM? Some guidelines from EU Commission
From 1 October 2023 are you ready for the EU’s Carbon Border Adjustment Mechanism – CBAM? Please read our analisys of the EU Commissions’s: Guidance document on CBAM implementation for importers of goods into the EU; Guidance document on CBAM implementation for installation operators outside the EU. The “Guidance document on CBAM implementation for importers of goods into the EU” establishes that the Carbon Border Adjustment Mechanism (CBAM) is an environmental policy instrument designed to support the EU climate ambitions of achieving a net reduction of greenhouse gas (GHG) emissions of at least 55% by 2030 and of reaching climate neutrality by 2050 at the latest. As already explained by…