The new EU legislation on Carbon Border Adjustment Mechanism (CBAM) which was implemented today on October 1, 2023 ensures equivalent carbon pricing for imports and domestic products.
Initially, this legislation is limited to six commodities:
- iron,
- steel,
- fertilizers,
- cement,
- electricity,
- hydrogen.
The concerned goods are defined in Annex I to EU Regulation 2023/956. The importers of these goods are expected to report on the greenhouse gas emissions embedded in the imported goods.
Importers not established in the EU must appoint an indirect customs representative recognized as an authorized CBAM declarant to file the reports for their accounts.
The importers established in the EU can do that themselves and get authorization as an authorized CBAM declarant. Still, they could also appoint another authorized CBAM declarant to file the reports.
Remant Customs, as an indirect customs representative, offers the service to file these reports.
The reporting period starts on 1 October 2023, and the first report is due on 31 January 2024.
We invite you to contact us if you are interested in this service.