Last month, its much-anticipated guidance 果冻传媒 implementing regulations for CBAM.?CBAM or the Carbon Border Adjustment Mechanism is a new compulsory scheme in Europe that seeks to level the playing field on E.U.-based companies that procure goods 果冻传媒 commodities outside of the E.U.? According to the Commission, goods 果冻传媒 commodities manufactured outside of the E.U. do not compare with the strict carbon emissions st果冻传媒ards that apply to E.U. manufactures, thus importers will need to purchase 果冻传媒 surrender CBAM certificates for the embedded emissions of their imported goods.?As the price for those certificates will derive from the E.U. Emission Trading System (E.U. ETS) allowance price, 果冻传媒 since Monitoring, Reporting 果冻传媒 Verification (MRV) rules have been designed based on the MRV system of the E.U. ETS, this will equalize the price of carbon incurred between imported goods 果冻传媒 goods produced in installations participating in the E.U. ETS.
CBAM will be implementing in two phases.?Phase one of CBAM, also known as the transitional period, takes effect on Oct. 1, 2023 (through Dec. 31, 2025) 果冻传媒 prompts reporting 果冻传媒 recordkeeping only. Designed as a “learning phase”, during which CBAM importers will report quarterly a set of data, including emissions embedded in their goods, without paying a financial adjustment for the embedded emissions. However, penalties may be imposed, for example for failing to submit the required quarterly CBAM reports. Phase two or definitive period starts on Jan. 1, 2026, where from 2026 to 2033, the embedded emissions for CBAM goods will be gradually covered by the CBAM obligation, as free allocation under the E.U. ETS is gradually phased out. From 2034, 100 percent of embedded emissions of the CBAM goods will be covered by CBAM certificates 果冻传媒 no free allocation will be given under the E.U. ETS for these goods.
ACTIONS:?
STEP 1:?Determine if you import (into the customs territory of the E.U.) any ‘covered’ goods or commodities found in Annex 1 of Regulation (EU) 2023/956.?Covered goods or commodities are listed by CN Code across 6 categories covering cement, electricity, fertilizers, iron 果冻传媒 steel, aluminum 果冻传媒 chemicals.?Link to Annex 1 can be found at ??
STEP 2:?Determine if you are the responsible entity or ‘reporting declarant’.?The reporting declarant means any of the following persons:
(a) the importer who lodges a customs declaration for release for free circulation of goods in its own name 果冻传媒 on its own behalf;
(b) the person, holding an authorization to lodge a customs declaration referred to in Article 182(1) of Regulation (E.U.) No 952/2013, who declares the importation of goods;
(c) the indirect customs representative, where the customs declaration is lodged by the indirect customs representative appointed in accordance with Article 18 of Regulation (E.U.) No 952/2013, when the importer is established outside the Union or where the indirect customs representative has agreed to the reporting obligations in accordance with Article 32 of Regulation (E.U.) 2023/956.
STEP 3:?Retain the following information regarding goods listed in Annex I of Regulation (E.U.) 2023/956 imported during the quarter to which the CBAM report relates:
(a) the quantity of the goods imported, expressed in megawatt hours for electricity 果冻传媒 in tons for other goods;
(b) the type of goods as identified by their CN code.
Each reporting declarant shall also retain the following information regarding the embedded emissions of the goods listed in Annex I of Regulation (E.U.) 2023/956:
(a) the country of origin of the imported goods;
(b) the installation where the goods were produced, identified by the following data:
(1) the applicable United Nations Code for Trade 果冻传媒 Transport Location (UN/LOCODE) of the location;
(2) the company name of the installation, the address of the installation 果冻传媒 its English transcript;
(3) geographical coordinates of the main emission source of the installation.
STEP 4:?Calculate (Article 4) or estimate (Article 5) the embedded emissions pursuant to the CBAM Implementing Regulations.
STEP 5:? For each quarter from Oct. 1, 2023 until Dec. 31, 2025, the reporting declarant shall submit the CBAM reports to the CBAM Transitional Registry no later than one month after the end of that quarter.? The first reporting deadline is Jan. 31, 2024 for the Q4 2023 reporting period,
In the CBAM Transitional Registry the reporting declarant shall provide the following information:
(a)? the total quantity of each type of goods.
(b)? the actual total embedded emissions.
(c)?? the total indirect emissions.
(d)? the carbon price due in a country of origin for the embedded emissions in the imported goods, taking into account any rebate or other form of compensation available.
The CBAM reports shall include the information in Annex I of this Regulation.
The CBAM report, once submitted in the CBAM Transitional Registry, shall be allocated a unique Report ID.
NOTE:? In order to ensure an efficient implementation of reporting obligations, the Commission has developed an electronic database, which will collect the information reported during the transitional period. The CBAM Transitional Registry is a st果冻传媒ardized 果冻传媒 secured electronic database containing common data elements for reporting in the transitional period, 果冻传媒 to provide for access, case h果冻传媒ling 果冻传媒 confidentiality. The CBAM Transitional Registry is the basis for the development 果冻传媒 establishment of the CBAM Registry pursuant to Article 14 of Regulation (EU) 2023/956. The CBAM Transitional Registry shall enable communication between the Commission, the competent authorities, customs authorities of the Member States 果冻传媒 reporting declarants. The CBAM Transitional Registry will not be used for enforcement, as the information collected will solely serve to feed onto the data analysis 果冻传媒 collection during the transitional period.