## Carbon Border Adjustment Mechanism (CBAM)

**Document last updated on 24 October. Overview of recent Changes (compared to version**

         - Last updated on 24 October Questions and Answers
- Answers updated 27, 39, 40, 52, 68, 75, 76, 89, from 8 August 2024)
- Questions added 41, 113,
   - General Outline
      - 1. Why is the EU putting in place a Carbon Border Adjustment Mechanism?
      - 2. What is the current stage of implementation of CBAM?..............................................................
      - 3. How does the CBAM work?
      - 4. How does CBAM interact with the EU Emissions Trading System (ETS)?
      - 5. How is the CBAM compatible with other ETS systems outside the EU?.......................................
      - 6. Which sectors does the new mechanism cover and why were they chosen?..............................
      - 7. To which goods does the CBAM Regulation apply?
      - 8. How will the CBAM tackle carbon leakage of finished or semi-finished products?
      - 9. Does the CBAM apply to ‘second hand’ goods?
      - 10. Does the CBAM apply to ‘returned goods’?
      - 11. Does the CBAM apply to packaging?
      - 12. Does the CBAM apply to military goods?....................................................................................
      - Reunion? 13. Does the CBAM apply to goods produced in EU outermost regions, such as Mayotte or La
      - 14. Which third countries fall under the scope of the CBAM?
      - 15. Do I need to report the import of CBAM goods originating from the UK?
      - 16. What happens during the transitional period?
      - 17. Are there penalties for non-compliance with the CBAM Regulation?
      - emissions? 18. Where can I find detailed information on how to carry out the reporting of embedded
      - 19. Is it mandatory to use the communication template Excel file?
      - 20. Who is liable in cases where incorrect or insufficient information is submitted?......................


21. Who can I contact if I have further, more specific questions? ................................................... 14

Reporting: general issues ........................................................................................................................ 14

22. Who is responsible for the reporting? ........................................................................................ 14
23. Can an importer have several indirect customs representatives, and vice versa? ..................... 15
24. What is an EORI number and what is the role of EORI numbers for the CBAM reporting? ....... 15
25. Will companies be allowed to report at centralised level if subsidiaries in the different Member
States have different Economic Operators Registration and Identification (EORI) numbers? ........... 16
26. What are the reporting obligations? By when do I need to submit a report?............................ 16
27. I was unable to submit the first CBAM report within the submission deadline due to technical
errors. What should I do? [updated 24/10] ........................................................................................ 17
28. I failed to submit a CBAM report within the submission deadline. What will happen now? ..... 17
29. I import very small quantities of CBAM goods. Do these products fall within the scope of the
CBAM Regulation? .............................................................................................................................. 18
30. What is considered a ‘consignment’? ......................................................................................... 18
31. I am a natural person and have purchased a CBAM good online for my personal use. I later
realised that the good was imported into the EU. Do I need to comply with the CBAM reporting
obligations? ......................................................................................................................................... 19
32. I have not imported CBAM goods during a given reporting quarter. Must I submit a CBAM
report? ................................................................................................................................................ 19
33. Is it mandatory to report the associated operators/installations of the CBAM goods declared?
20
34. What should I do if the operator who produced the goods is no longer in existence at the time
of import? ........................................................................................................................................... 20

Reporting: responsibilities and procedures ............................................................................................ 20

35. What is the role of the European Commission during the transitional period? ......................... 20
36. What is a national competent authority (NCA)? ......................................................................... 21
37. Do importers of CBAM goods need to be ‘authorised’ in order to import CBAM goods during
the transitional period? ...................................................................................................................... 21
38. Are there verification obligations during the transitional period? ............................................. 21
39. Which embedded emissions need to be reported by each CBAM sector? [updated 24/10] ..... 22
40. What information should reporting declarants request from producers in third countries to
ensure they can submit the quarterly CBAM report? [updated 24/10] ............................................. 23
41. I am an installation operator outside the EU. How can I best share data with EU reporting
declarants? [added 24/10] .................................................................................................................. 23
42. What documents in original shall be provided in the quarterly CBAM report? ......................... 23


43. I am both an importer and an indirect customs representative filing CBAM reports for another
importer. Do I file a single CBAM report or two separate CBAM reports? ........................................ 24
44. What is the effective ‘carbon price’ due that I need to report on? ............................................ 24
45. Who will check the accuracy of submitted data and reports? ................................................... 24
46. Is it possible to correct a CBAM report that has already been submitted? ................................ 24
47. I want to correct a CBAM report. Should I correct individual pieces of information immediately
or rather collect items for correction and submit a consolidated correction report later? ............... 25
48. Should the report be in English only or is it possible to report in other languages? .................. 25

Reporting: CBAM Transitional Registry ................................................................................................... 25

49. What is the CBAM Transitional Registry? ................................................................................... 25
50. What will the CBAM Transitional Registry be used for? ............................................................. 25
51. Is the CBAM Transitional Registry the same as the EU Customs trader portal? ......................... 26
52. Will the data shared in the CBAM Transitional Registry be dealt with confidentiality? [updated
24/10] .................................................................................................................................................. 26
53. How can I register as a declarant and access the CBAM Transitional Registry? ......................... 26
54. I am an importer based in Switzerland, or in the EEA (Norway, Iceland, Liechtenstein). How can
I access the CBAM Transitional Registry? ........................................................................................... 27
55. What CBAM Transitional Registry environments are available? ................................................ 27
56. In a company which is a reporting declarant, who can request access to the Transitional
Registry? .............................................................................................................................................. 28
57. Who can fill in the CBAM report in the CBAM Transitional Registry for the reporting declarant?
28
58. Can companies that are not directly subject to the CBAM also have access to the CBAM
Transitional Registry? .......................................................................................................................... 28
59. How should I fill in the data in the CBAM Transitional Registry? ............................................... 28
60. What information should I enter in the fields “applicable reporting methodology” and “other
source indication”? ............................................................................................................................. 29

Methodology for calculating embedded emissions in CBAM goods in the transitional period ............. 29

61. What is the relevant time period for calculating embedded emissions? Can data from previous
years be used? .................................................................................................................................... 29
62. What are simple and complex goods? ........................................................................................ 30
63. What are direct and indirect emissions? .................................................................................... 30
64. What is the “bubble approach” and how does it work? ............................................................. 30
65. If an imported CBAM good was produced using precursors from the EU (e.g. pig iron) – would
this have to be considered in the calculation? ................................................................................... 31


66. Can the absorption rule be applied for the calculation of embedded emissions of composite
goods? ................................................................................................................................................. 31
67. Will the European Commission formally or informally verify the “equivalence” of alternative
methods? ............................................................................................................................................ 31
68. How are indirect emissions for the production of CBAM goods determined? [updated 24/10] 31
69. Which emission factors for electricity should be used to determine indirect emissions? ......... 31
70. Can market-based certificates (Guarantee of Origin, Renewable Energy Certificates, etc.) be
used to justify the use of actual emission factors? ............................................................................. 32
71. Should emissions from on-site transportation be included in the calculation? ......................... 32
72. Can carbon capture and use (CCU) / carbon capture and storage (CCS) be used to reduce
emissions for the purpose of determining embedded emissions? .................................................... 32
73. Is enhanced oil recovery (EOR) eligible for deduction in the calculation of embedded
emissions? ........................................................................................................................................... 33
74. Are emission factors from life-cycle assessments (LCA) / life-cycle inventory databases
accepted? ............................................................................................................................................ 33
75. My supplier is not sending me the necessary information before the report is due. What
should I do? [updated 24/10] ............................................................................................................. 33
76. What are the default values? How does this work? [updated 24/10] ........................................ 35
77. How do you determine default values? ...................................................................................... 36
78. Until which point in time will EU importers be allowed to use alternative monitoring and
reporting methods? ............................................................................................................................ 36
79. How should emissions resulting from the use of biomass be accounted for? ........................... 36
80. How should decimal places and rounding be handled in calculations? ..................................... 37
81. Should the gross weight or the net weight of the imported CBAM goods to be used for the
calculation of the embedded emissions? ........................................................................................... 37
82. How to deal with stock items for which there is no emission data available? ........................... 37
83. If a facility is used simultaneously by multiple production processes, how do you attribute the
emissions from that facility to each production process? .................................................................. 37
84. Should saleable off-spec products be considered for the determination of the activity level?. 38

Cement .................................................................................................................................................... 38

85. Is cement defined as a complex good in the scope of the CBAM? ............................................. 38

Fertilisers ................................................................................................................................................. 38

86. Are the exothermic chemical reactions involved in fertiliser production accounted for as direct
emissions? ........................................................................................................................................... 38
87. Can CO2 bound in urea be counted as negative emissions? ...................................................... 38

Electricity as CBAM good ........................................................................................................................ 38


88. Who is the CBAM reporting declarant for electricity imports? .................................................. 38
89. What is the difference between the emission factor for electricity and the CO 2 emission factor?
[updated 24/10] .................................................................................................................................. 39
90. Which CO 2 emission factors should be used? ............................................................................. 39
91. What are the requirements to report actual embedded emissions of electricity, the so called
“conditionality”? ................................................................................................................................. 39
92. Is transit through non-EU countries considered for reporting on electricity in the CBAM? ...... 40
93. Which are the system boundaries to determine the embedded emissions of electricity? ........ 40

Hydrogen ................................................................................................................................................. 40

94. What is the connection between hydrogen as a CBAM good and the Renewable Energy
Directive (EU) 2018/2001 (‘RED II’))? .................................................................................................. 40

Iron and steel .......................................................................................................................................... 40

95. When calculating the embedded emission of steel products, are auxiliary processes such as
lime kilns or coke oven plants plants included in the boundary calculation? .................................... 40
96. Do iron ore pellets fall within the scope of CBAM? .................................................................... 41
97. Can we divide a steel site into more than one installation? ....................................................... 41
98. What should be filled in the field "steel mill identification number" in the CBAM report? ....... 41

Aluminium/Steel ..................................................................................................................................... 41

99. Should the specific embedded emissions of aluminium/steel goods be determined separately
for different alloy grades?................................................................................................................... 41

Customs .................................................................................................................................................. 42

100. Can an importer use different customs representatives for the customs declaration and the
CBAM reporting? ................................................................................................................................. 42
101. What happens if an indirect customs representative does not agree to carry out CBAM
reporting obligations? ......................................................................................................................... 43
102. Can a direct customs representative be a CBAM reporting declarant for companies established
in the territory of the EU? ................................................................................................................... 44
103. My company is registered in one EU Member State but imports CBAM goods through multiple
Member States. Should I compile all these imports into one single quarterly report? ..................... 44
104. Which is the relevant NCA in case an importer is a branch of a company registered abroad, and
both share the same EORI number? ................................................................................................... 45
105. Must goods transiting in the EU be reported under CBAM? ...................................................... 45
106. Will the CBAM reporting obligation apply to CBAM goods that have entered free circulation
within the EU due to non-compliance with a customs procedure other than import (e.g., temporary
admission), and for which all duties and taxes have already been pai through the said non-
compliance procedure? ...................................................................................................................... 45


107. Do I need to report on CBAM goods that are placed under the inward processing regime? .... 46
108. There is a tariff suspension on the CBAM good that I have imported. Am I exempt from the
CBAM? ................................................................................................................................................. 46
109. What happens if indirect customs representatives agree to act as reporting declarants only for
some goods but not for others? Do they need to submit two different customs declarations, one for
the goods for which they act as reporting declarant and one for which they do not? ...................... 46
110. Can an indirect customs representative holding an “Entry into the Declarants Records” (EIDR
authorisation) also refuse to act as reporting declarant if acting on behalf of an EU-importer for
customs purposes? ............................................................................................................................. 47

Definitive period ..................................................................................................................................... 47

111. How will the CBAM work in practice during the definitive period? ........................................... 47
112. What obligations will importers of CBAM goods have during the definitive period? ................ 48
113. How can I become an “authorised CBAM declarant”? [added 24/10] ....................................... 48
114. After 2026, are you going to prohibit the import of CBAM items if the EU importers is not an
authorised CBAM declarant? .............................................................................................................. 48
115. How can the CBAM report be submitted during the definitive period? ..................................... 48
116. How will I get access to the CBAM Registry in the definitive period? ........................................ 49
117. What will be the role of the European Commission during the definitive period? .................... 49
118. Why are indirect emissions only included in the CBAM for cement and fertilisers?.................. 49
119. Will the EU expand the scope of the CBAM? .............................................................................. 50
120. How will a CBAM declarant become ‘authorised’ and what is the timeline for its authorisation
during the definitive period? .............................................................................................................. 50
121. How can EU importers ensure that they receive the information they need from their non-EU
exporters to be able to use the new system correctly? [updated 24/10] .......................................... 50
122. How will the reliability of the reported information be ensured?.............................................. 50
123. How will the accreditation of verifiers work? ............................................................................. 51
124. How will I be able to find accredited CBAM verifiers? ................................................................ 51
125. How will free allocation be accounted for in the calculation of the CBAM obligation to be paid?
51
126. How will the CBAM benchmarks be defined? [added 24/10] ..................................................... 52
127. How will the carbon price paid in a third country be discounted from the CBAM? ................... 52
128. Will CBAM generate revenues and, if so, how will they be used? .............................................. 53


General

Please note that this FAQ document is mainly focusing on the transitional phase of the Carbon
Border Adjustment Mechanism (CBAM), which entered into force on 1 October 2023.
Nonetheless, several questions concerning the definitive period (starting in January 2026) are
also addressed.

#### 1. Why is the EU putting in place a Carbon Border Adjustment Mechanism?

- The EU is at the forefront of international efforts to fight climate change. The European
    Green Deal set out a clear path towards achieving the EU's ambitious target of a 55% net
    reduction in greenhouse gas emissions compared to 1990 levels by 2030, and to become
    climate-neutral by 2050. In July 2021, the Commission made its Fit for 55 policy proposals
    to turn this ambition into reality, further establishing the EU as a global climate leader.
    Since then, those policies have taken shape through negotiations with co-legislators, the
    European Parliament and the Council, and many have now been signed into EU law. This
    includes the EU’s Carbon Border Adjustment Mechanism (CBAM).
- As the EU raises its climate ambition and less stringent environmental and climate policies
    prevail in some non-EU countries, there is a strong risk of so-called ‘carbon leakage' – i.e.
    companies based in the EU could move carbon-intensive production abroad to take
    advantage of laxer standards, or EU products could be replaced by more carbon-intensive
    imports. Such carbon leakage can shift emissions outside of Europe and therefore
    seriously undermine the EU’s as well as global climate efforts. The CBAM will support the
    EU’s increased climate ambition and ensure that climate action is not undermined by
    production relocating to countries with less ambitious policies.

#### 2. What is the current stage of implementation of CBAM?..............................................................

- The European Parliament and the Council of the European Union, as co-legislators, signed
    the CBAM Regulation (EU) 2023 /956 on 10 May 2023. The CBAM entered into application
    in its transitional period on 1 October 2023, with the first quarterly reports due by 31
    January 2024. The set of rules and requirements for the reporting of emissions under
    CBAM are further specified in Implementing Regulation (EU) 2023/1773 laying out
    reporting rules during the transitional period. The Commission has set up the transitional
    CBAM registry, is preparing further secondary legislation, and carrying out the planned
    analysis. The definitive period of CBAM will enter into force in January 2026.
- The European Commission has made available detailed guidance for the application of
    CBAM during the transitional period. These include detailed manuals, webinars, e-
    learnings, and other materials. All information supporting the implementation can be
    accessed on the Commission’s CBAM webpage.


#### 3. How does the CBAM work?

- The CBAM has been designed to comply with the EU’s international commitments and
    obligations including World Trade Organisation (WTO) rules. The CBAM system mirrors
    the EU ETS and works as follows:
       o CBAM is applied on the actual embedded emissions in the goods imported in the
          EU, determined according to a methodology that is in line with the reporting of
          emissions under the EU ETS for the production of the same goods in the EU.
       o As from the entry into force of the definitive period of CBAM in 2026, EU importers
          will buy CBAM certificates corresponding to the carbon price that would have
          been paid, had the goods been produced under the EU's carbon pricing rules.
       o Conversely, if a non-EU producer has already paid a carbon price in a third country
          on the embedded emissions for the production of the imported goods, the
          corresponding cost can be fully deducted from the CBAM obligation.
- The CBAM will therefore help reduce the risk of carbon leakage while encouraging both,
    producers in non-EU countries to green their production processes as well as countries to
    introduce carbon pricing measures.
- To provide businesses and other countries with legal certainty and stability, the CBAM is
    being phased in gradually and initially applies only to a selected number of goods in
    sectors at high risk of carbon leakage: iron/steel, cement, fertilisers, aluminium, hydrogen
    and electricity. In the transitional period, which started on 1 October 2023, a reporting
    system applies for those goods with the objective of facilitating a smooth roll-out and to
    facilitate dialogue with third countries. Importers will start paying the CBAM financial
    adjustment in 2026.

#### 4. How does CBAM interact with the EU Emissions Trading System (ETS)?

- The EU Emissions Trading System (ETS) is the world's first international emissions trading
    scheme and the EU's flagship policy to combat climate change. It sets a cap on the amount
    of greenhouse gas emissions that can be released from power production and large
    industrial installations. Allowances must be bought on the ETS trading market, though a
    certain number of free allowances is distributed to industry to prevent carbon leakage. In
    order to step up the incentive to decarbonise, the CBAM will progressively be introduced
    as free allowances are reduced. Under the EU ETS, the number of free allowances declines
    over time for all sectors. For CBAM sectors, the decline accelerates as from 2026, so that
    the ETS can have maximum impact in fulfilling the EU’s ambitious climate goals. At the
    same time, the CBAM financial adjustment is phased in according to a gradual schedule.
- The CBAM will be based on a system of certificates corresponding to embedded emissions
    in CBAM products imported into the EU. The CBAM departs from the ETS in some limited
    areas where it was needed, as it is not a ‘cap and trade' system. For example, and unlike
    the EU ETS, an unlimited number of certificates can be purchased. Nevertheless, the price
    of CBAM certificates will mirror the ETS allowance price.


- Once the full CBAM regime becomes operational in 2026, the system will adjust to reflect
    the revised EU ETS, in particular when it comes to the reduction of available free
    allowances in the sectors covered by the CBAM. This means that the CBAM will only begin
    to apply to the products covered, and in direct proportion to the reduction of free
    allowances allocated under the ETS for those sectors. Put simply, until free allowances in
    CBAM sectors are completely phased out in 2034, the CBAM will apply only to the
    proportion of emissions that does not benefit from free allowances under the EU ETS,
    thus ensuring that importers are treated in an even-handed way compared to EU
    producers.

#### 5. How is the CBAM compatible with other ETS systems outside the EU?.......................................

- The CBAM will ensure that imported goods will get “no less favourable treatment” than
    EU products, thanks in particular to three CBAM design features:
       o the CBAM takes into consideration “actual values” of embedded emissions,
          meaning that decarbonising efforts of companies exporting to the EU will lead to
          a lower CBAM payment;
       o the price of the CBAM certificates to be purchased for the importation of the
          CBAM goods will be the same as for EU producers under the EU Emissions Trading
          System (EU ETS); and
       o the effective carbon prices paid outside the EU will be deducted from the
          adjustment to avoid a double price.
- This carbon price paid in a third country could for example be due to an established
    emissions trading system. The Commission will, before the end of the transitional period,
    adopt secondary legislation to design the rules and processes to take into account the
    effective carbon price paid abroad. During the transitional period, reporting declarants
    need to report 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.

#### 6. Which sectors does the new mechanism cover and why were they chosen?..............................

- The CBAM initially applies to imports of goods in the following sectors:
    - Cement
    - Iron and Steel
    - Aluminium
    - Fertilisers
    - Hydrogen
    - Electricity
- These sectors were selected following specific criteria, in particular their high risk of
    carbon leakage and high emission intensity which will eventually – once fully phased in –


```
represent more than 50% of the emissions of the industry sectors covered by the ETS. In
the future, the CBAM may be extended to other ETS sectors.
```
#### 7. To which goods does the CBAM Regulation apply?

- The CBAM Regulation applies to CN codes (Combined Nomenclature), which adds two
    digits to the HS code and is used as a commodity code for exports outside the EU.
- All goods for which the embedded emissions must be reported are listed in Annex I to the
    CBAM Regulation. These are called ‘CBAM goods’.
- Sectors such as ‘iron and steel’ are mentioned only for informational purposes. For
    example, this means that imports of ammonia (CN code 2814 10 00 or 2814 20 00 under
    the fertilizer sector) are covered by the CBAM Regulation even if the ammonia is not used
    to produce fertilisers.

#### 8. How will the CBAM tackle carbon leakage of finished or semi-finished products?

- The CBAM applies mostly to basic materials and basic material goods, but also to some
    finished/downstream products, such as fasteners (CN code 7318 XX XX).
- The CBAM Regulation will be reviewed at the end of the transitional period to assess,
    based on selected criteria, if additional goods and sectors within the ETS could be added.

#### 9. Does the CBAM apply to ‘second hand’ goods?

- The CBAM Regulation applies to all goods that are _imported_ into the EU, namely released
    for free circulation in the EU single market.

#### 10. Does the CBAM apply to ‘returned goods’?

- Returned goods are goods defined in Article 203 of the Union Customs Code (Regulation
    (EU) No 952/2013). They are goods that are released for free circulation and benefit from
    duty exemption because they were Union goods before, either because they have
    originally been exported as Union goods or because they were previously released for
    free circulation, and because they fulfil certain conditions (e.g. they are released for free
    circulation within three years after they were previously exported). The conditions under
    which those goods qualify as returned goods are laid down in the customs legislation, and
    competent customs authorities assess whether these conditions are fulfilled when the
    goods are declared for release for free circulation in the EU.
- _During the transitional period_ , CBAM reporting obligations do not apply to returned goods
    as defined in Article 203 of the Union Customs Code. As a result, the embedded emissions
    of these goods do not need to be included in the quarterly CBAM report. However, for
    returned goods as defined in Article 205 of the Union Customs Code, the reporting
    obligations are not waived. Article 205 applies to returned goods which were originally
    re-exported after having been placed under inward processing.


- _During the definitive period_ , reporting declarants will have to report returned goods as
    defined in Article 203 of the Union Customs Code in their annual CBAM declaration,
    however they must input ‘zero’ for the total embedded emissions corresponding to those
    goods. For returned goods as defined in Article 205 of the Union Customs Code, the
    declarant must report the embedded emissions like for any other import of CBAM goods.
- The above provisions on “returned goods” only apply to goods of non-EU origin.
    Conversely, for goods which are of EU origin (according to the rules of origin) when they
    are returned to the Union, no CBAM applies.

#### 11. Does the CBAM apply to packaging?

- The CBAM reporting obligation applies if the CN code of the packaging is given in the
    customs declaration and is covered by Annex I to the CBAM Regulation.

#### 12. Does the CBAM apply to military goods?....................................................................................

- As provided in Article 2(3)(c) of the CBAM Regulation, CBAM does not apply to goods to
    be moved or used in the context of military activities pursuant to Article 1, point (49), of
    Commission Delegated Regulation (EU) 2015/2446 (UCC-DA).
- Note, however, that Article 1(49) of Commission Delegated Regulation (EU) 2015/
    (UCC-DA) only refers to goods moved between military forces (e.g. between NATO basis)
    in the context of the military activities as specified in points a) and b) of the above
    mentioned Article. The definition provided by Article 1 (49) of the UCC-DA, therefore,
    does not apply to the movement of commercial goods, e.g. goods sold to EU military
    forces. This means that for goods produced, repaired or processed by commercial
    companies established in the EU and then sold to EU military forces, the CBAM Regulation
    applies.
- For the cross-border movements of military goods to be moved or used in the context of
    the military activities as defined in Article 1(49) of the UCC-DA, the document that can be
    used for customs purposes is the NATO or the EU form 302 as defined by Article 1(50) and
    (51) of Regulation (EU) 2015/2446 (UCC-DA). When those goods are declared by means
    of a Form 302, it is clear that they are not subject to CBAM. If they are declared in a
    different way, then it is recommendable that the importer clarifies in the customs
    declaration that the goods are not subject to CBAM because of Article 2(3)(c) of the CBAM
    Regulation. Detailed information regarding the use of the NATO and EU 302 forms can be
    found in the TAXUD guidance document on ‘customs formalities in the EU for military
    goods to be moved or used in the context of military activities (use of the form 302)’.
- Moreover, it should be noted that if goods are imported by or on behalf of the military
    authorities of an EU MS, but not to be moved or used in any of the activities referred to
    in Article 1(49) UCC-DA, then the goods cannot benefit from the exemption from CBAM.
- For completeness of information, note that according to Article 324(1)(c) and (3) UCC-IA,
    goods placed under inward processing for the delivery of an aircraft that are deemed to


```
be re-exported, a repair is within the scope of this provision. In that case, CBAM would
not apply.
```
#### Reunion? 13. Does the CBAM apply to goods produced in EU outermost regions, such as Mayotte or La

regions, such as Mayotte or La Reunion?

- The CBAM Regulation applies only to CBAM goods originating in third countries and
    imported into the customs territory of the Union. The list of territories which comprise
    the EU customs territory is included in Article 4 of the Union Customs Code (Regulation
    (EU) No 952/2013). La Réunion, Mayotte, Guadeloupe and Martinique are part of the EU
    customs territory, and therefore the CBAM Regulation does not apply to goods produced
    in these territories.

#### 14. Which third countries fall under the scope of the CBAM?

- In principle, imports of goods from all non-EU countries are covered by the CBAM.
    However, certain third countries who participate in the EU ETS or have an emission
    trading system linked to it are excluded from the CBAM, so that a carbon price is not paid
    twice for the same product. This is the case for members of the European Economic Area
    (EEA) and Switzerland.
- The CBAM applies to electricity generated in and imported from third countries including
    those that wish to integrate their electricity markets with the EU. If those electricity
    markets are fully integrated and provided that certain strict obligations and commitments
    are implemented, the concerned countries could be exempted from the CBAM. If that is
    the case, the EU will review any exemptions in 2030, at which point those partners should
    have put in place the decarbonisation measures they have committed to, and an
    emissions trading system equivalent to the EU's.

#### 15. Do I need to report the import of CBAM goods originating from the UK?

- Embedded emissions from goods originating from the UK will need to be reported during
    the transitional period.

#### 16. What happens during the transitional period?

- During the transitional period, which started on 1 October 2023 and finishes at the end
    of 2025, the reporting declarant (which could be the importer or the indirect customs
    representative) must report at the end of each quarter emissions embedded in CBAM
    goods imported quarterly, without paying a financial adjustment, giving time for the final
    system to be put in place.
- Reporting declarants should get in touch with the national competent authority (NCA) in
    the country where they are established to gain access to the CBAM Transitional Registry,
    which will be used to submit CBAM quarterly reports.


#### 17. Are there penalties for non-compliance with the CBAM Regulation?

- Yes. Reporting of embedded emissions in CBAM goods from 1 October 2023 is
    compulsory. Reporting declarants may face penalties ranging between EUR 10 and EUR
    50 per tonne of unreported emissions.
- In the case of missing, incorrect, or incomplete CBAM reports, the NCA may initiate a
    correction procedure, granting reporting declarants the possibility to rectify potential
    errors.
- The NCA shall apply penalties where a) the reporting declarant has not taken the
    necessary steps to comply with the obligation to submit a CBAM report, or b) where the
    CBAM report is incorrect or incomplete, and the reporting declarant has not taken the
    necessary steps to correct the CBAM report after the competent authority initiated the
    correction procedure.

#### emissions? 18. Where can I find detailed information on how to carry out the reporting of embedded

reporting of embedded emissions?

- All the required information to carry out the reporting is set out in the Implementing
    Regulation (EU) 2023/1773 setting out reporting rules for the transitional period.
    Commission services published, and will periodically update, two guidance documents
    (one for importers of CBAM goods and one for third-country producers) as well as one
    optional communication template to facilitate the exchange of information between
    producers and importers. You may find these documents on the CBAM webpage:
    https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en.
- The guidance document for EU importers was translated in the 24 official EU languages.
    The Guidance document for non-EU producers is now available in English, French,
    German, Polish, Spanish, Italian, Arabic, Hindi, Korean, Mandarin, Turkish, and Ukrainian.
- The CBAM website also contains webinars, e-learnings, and other materials.

#### 19. Is it mandatory to use the communication template Excel file?

- No, the use of the communication template is not compulsory but recommended.
- The communication template is a tool that allows operators to determine the embedded
    emissions in CBAM goods according to the methodology specified in Implementing
    Regulation (EU) 2023/1773. The template ensures that all relevant source streams and
    emission sources, electricity consumption as well as relevant precursors are taken into
    account for the calculation.
- The template contains a worksheet ‘Summary_Communication’ which contains all
    information needed by the reporting declarant. This worksheet thus facilitates
    communication between third-country producers and importers (or their
    representatives).


- Pre-filled versions are available on the CBAM website to help users fill in the
    communication template. Additionally, a training video detailing all necessary steps is
    available under the following link.

#### 20. Who is liable in cases where incorrect or insufficient information is submitted?......................

- Liability lies with the reporting declarant. This may be either the importer or the indirect
    customs representative. The NCA is responsible for engaging in the appropriate dialogue
    with the reporting declarant and may impose penalties.

#### 21. Who can I contact if I have further, more specific questions?

- The relevant NCA and ultimately the Commission remain at your disposal to address any
    doubts you may have on the CBAM implementation.
- The list of NCAs is published and continuously updated on the dedicated CBAM webpage
    of the Commission: Carbon Border Adjustment Mechanism (europa.eu).

Reporting: general issues

#### 22. Who is responsible for the reporting?

- Customs authorities will inform customs declarants of their obligation to report
    information during the transitional period. The reporting declarant will either be the
    importer or the indirect customs representative depending on who lodges the customs
    declaration. Customs authorities are free to choose in what form they inform reporting
    declarants of their reporting obligations.
- The person responsible for the reporting obligation can be one of the following:
    1. the importer when (i) the importer lodges a customs declaration for release for free
       circulation of goods in its own name and on its own behalf; and when (ii) the importer
       is also the declarant holding an authorisation to lodge a customs declaration and
       declares the importation of goods;
    2. the indirect customs representative, when the customs declaration is lodged by the
       indirect customs representative appointed in accordance with Article 18 of Regulation
       (EU) No 952/2013; in cases where the importer is established outside of the Union; or
       when an indirect customs representative has agreed to the reporting obligations in
       accordance with Article 32 of Regulation 2023/956, in case where the importer is
       established within the EU. The appointed indirect customs representative shall be
       established in the EU and comply with the conditions for customs representatives
       determined by the concerned Member State (see Article 18 of Regulation (EU) No
       952/2013).


#### 23. Can an importer have several indirect customs representatives,

and vice versa?

- The importer is free to use different indirect customs representatives, each being
    accountable for the specific CBAM goods that they have introduced in their customs
    declaration. Each representative will show their own EORI number at the customs, which
    is the evidence of who is responsible for the CBAM reporting obligation. Therefore, there
    can be no double-counting of embedded emissions.
- Indirect customs representatives can also carry out the CBAM reporting obligation and
    act as reporting declarant for multiple importers. In such case, the indirect customs
    representatives must still submit one single quarterly CBAM report containing all the
    CBAM goods for which they have carried out the customs declaration. An indirect customs
    representative cannot submit several quarterly CBAM reports for a single reporting
    period.

#### 24. What is an EORI number and what is the role of EORI numbers

for the CBAM reporting?

- According to Article 1(18) of the Union Customs Code Delegated Act (UCC-DA) 2015/2446,
    ‘Economic Operators Registration and Identification number' (EORI number) means an
    identification number, unique in the customs territory of the EU, assigned by a customs
    authority to an economic operator or to another person in order to register the economic
    operator or another person for customs purposes. The EORI number is unique in the
    customs territory of the EU, because it may be used for the customs-related activities of
    the person concerned in any EU Member State. For example, a Dutch company with a
    Dutch EORI number may lodge a declaration for release for free circulation in Spain. If the
    Dutch company wishes to use a customs representative, that customs representative may
    be established in Spain, but not necessarily; in the latter case, the provisions of Article
    18(3) UCC have to be respected. In any case, irrespective of the national legislations on
    customs representation, persons who comply with the criteria laid down in points (a) to
    (d) of Article 39 UCC (i.e. the criteria fulfilled by an Authorised Economic Operator for
    customs simplifications – AEOC) are entitled to provide such services in a Member State
    other than the one where they are established.
- CBAM reporting declarants must submit their CBAM report using the same EORI number,
    which was provided to the customs authorities when submitting the customs declaration.
    There can only be one EORI number per economic operator. The competent NCA will be
    the NCA of the EU Member State in which the reporting declarant has received its EORI
    number.


#### 25. Will companies be allowed to report at centralised level if

```
subsidiaries in the different Member States have different Economic
Operators Registration and Identification (EORI) numbers?
```
- In principle, CBAM goods are attributed to a CBAM reporting declarant through the EORI
    number provided to the customs authorities. This means that by default, the CBAM
    reports for the different subsidiaries (with different EORI numbers) will be done
    separately.
- However, multiple group entities of the same multinational corporation can appoint one
    single indirect customs representative to carry out customs obligations and the related
    CBAM obligations at a centralised level for all group entities.
- It is also possible that one group entity acts as indirect customs representative for the
    CBAM goods imported by all other group entities. However, the general rule still applies:
    indirect customs representatives which act as reporting declarants and submit CBAM
    reports must also carry out the customs obligations related to the goods covered by the
    CBAM report.
- Further, it would also be possible for one group entity to submit CBAM reports as service
    provider for other group entities of the same multinational corporation. This is in principle
    possible, but (i) the other group entities would remain reporting declarants for the goods
    they imported and would therefore remain legally liable for the CBAM report, and (ii) the
    group entity acting as service provider would need to submit a separate CBAM report for
    the goods imported by each group entity, including for the goods it has imported itself.

#### 26. What are the reporting obligations? By when do I need to submit

a report?
During the transitional period of the CBAM, from 1 October 2023 until 31 December 2025, the
importer shall submit a CBAM report on a quarterly basis. This report shall include the
information on the goods imported during the previous quarter and should not be submitted
later than one month after the end of that quarter. The reporting calendar during the transitional
period is outlined below:


The report shall include the information referred to in Article 35 of the Regulation:

- the total quantity of each type of CBAM good;
- the actual total embedded emissions;
- the total indirect emissions;
- the carbon price due in a country of origin for the embedded emissions in the imported
    goods (including its relevant precursors where applicable), taking into account any rebate
    or other form of compensation available.

#### 27. I was unable to submit the first CBAM report within the

```
submission deadline due to technical errors. What should I do?
[updated 24 /10]
```
- If a reporting declarant is unable to submit a CBAM report within the submission deadline
    due to technical errors, they may contact their NCA to request delayed submission
    (following the steps indicated in the subsequent Question 28).
- Note that the functionality for reporting declarants to request delayed submission
    directly in the CBAM Transitional Registry (“request delayed submission (technical
    error)”), is no longer available as of 1st October 2024.
- For more detailed information on the request delay functionality, you may consult the
    “CBAM – Request Delayed Submission Process for declarants” document published on
    the CBAM website under the “Where to report” section.

#### 28. I failed to submit a CBAM report within the submission deadline.

What will happen now?

- Non-submission of a CBAM report within the reporting period is a violation of the
    Implementing Regulation. If a CBAM report is not submitted, penalties can be applied.
- If a reporting declarant fails to submit a CBAM report within the submission deadline, the
    NCA will make a submission request through the CBAM Transitional Registry. If the


```
reporting declarant is not registered, the NCA will communicate with the declarant
outside of the registry.
```
- Alternatively, to submit a CBAM report after the deadline, declarants should contact the
    competent authority of the Member State where they are established. This is done via
    the request functionality in the CBAM Transitional Registry. If declarants are not
    registered, they should contact the NCA via the contacts points indicated in the
    “Provisional list of NCAs for the Carbon Border Adjustment Mechanism” document
    published on the Commission CBAM website under the “where to report” section.
- The NCA will provide the reporting declarant with a reference number, which will allow
    the declarant to use the "Request delayed submission (Requested by NCA)" functionality
    in the CBAM Transitional Registry. The declarant will then have 30 days to submit the
    report.
- For more detailed information on the request delay button, you may consult the “CBAM
    - Request Delayed Submission Process for declarants” document published on the
    Commission CBAM website under the “Guidance” section.

#### 29. I import very small quantities of CBAM goods. Do these products

fall within the scope of the CBAM Regulation?

- Small quantities of imported goods falling in the scope of the CBAM may be automatically
    treated as exempt from the CBAM Regulation provided that the _de minimis_ exemption
    applies. In such case, there is no reporting obligation.
- The _de minimis_ exemption applies to consignments in which the total intrinsic value of
    the CBAM goods does not exceed EUR 150. Therefore, the overall value of the total CBAM
    goods in one consignment has to be considered, and if that value is above EUR 150, then
    the _de minimis_ exemption does not apply. To illustrate, consider the following two cases:
       o Case 1: In my consignment, I have X non-CBAM goods, each of a nominal value of
          Y EUR. They are not relevant for the application of the _de minimis_ exemption. I
          also have one transport container of Portland cement identified by its CN code
          (2523 21 00) for which the value does not exceed 150. The _de minimis_ exemption
          applies.
       o Case 2: In my consignment, I have X non-CBAM goods, each of a nominal value of
          Y EUR. They are not relevant for the application of the de _minimis_ exemption. I
          also carry one tonne of white Portland cement (CN code 2523 21 00) and one
          tonne of other Portland cement (CN code 2523 29 00). The value of each CBAM
          good is EUR 120. The total value of the CBAM goods in my consignment is above
          EUR 150 and therefore the _de minimis_ exemption does not apply.

#### 30. What is considered a ‘consignment’?

- A single 'consignment' means products that are either:
    o (a) sent simultaneously from one exporter to one consignee; or


```
o (b) covered by a single transport document covering their shipment from the
exporter to the consignee or, in the absence of such document, by a single invoice.
```
- Goods dispatched by the same consignor to the same consignee that were ordered and
    shipped separately, even if arriving on the same day but as separate parcels to the postal
    operator or the express carrier at the destination, should be considered as separate
    consignments. In the same vein, goods covered by the one order placed by the same
    person, but dispatched separately, should be considered as separate consignments. Such
    definition, however, should apply without prejudice to the provisions governing customs
    controls (Article 46 UCC). Customs authorities may carry out any control they deem
    necessary to ensure compliance with the customs rules.
- It should be remembered, however, that according to Art. 27 of the CBAM Regulation,
    the Commission shall take action to address practices of circumvention, which includes
    the artificial splitting of shipments into consignments the value of which does not exceed
    the de minimis threshold of 150€ (see Art. 27(2b) CBAM Regulation).

#### 31. I am a natural person and have purchased a CBAM good online

```
for my personal use. I later realised that the good was imported into
the EU. Do I need to comply with the CBAM reporting obligations?
```
- The CBAM mostly applies to basic materials and basic material goods such as steel or
    cement, and only to a limited number of finished products. If the total intrinsic value of
    the CBAM goods in the consignment does not exceed EUR 150, the de minimis exemption
    applies.
- Secondly, individuals usually purchase goods from a seller established in the EU, who will
    import the goods through a courier. The courier would usually lodge the customs
    declaration in the name of the seller, who is considered the ‘reporting declarant’ for
    CBAM purposes. In such case, individuals will not appear anywhere in the customs
    declaration and the CBAM Regulation does not apply to them. Note, however, that if it
    results from the customs declaration that the natural person is the importer and that the
    customs representation through the courier is direct, the natural person is responsible
    for complying with the CBAM reporting obligations.

#### 32. I have not imported CBAM goods during a given reporting

quarter. Must I submit a CBAM report?

- If you have not imported (meaning released for free circulation) any CBAM goods during
    a given quarter, then you should not submit any CBAM report for this given quarter.


#### 33. Is it mandatory to report the associated operators/installations of

the CBAM goods declared?

- As a general rule, it is mandatory for reporting declarants to report information on the
    operators/installations where the CBAM goods were produced.
- By derogation from this rule, reporting declarants may decide not to provide this
    information for imports occurring until 30 June 2024 if the embedded emissions were
    determined using other methods pursuant to Art. 4(3) of Implementing Regulation (EU)
    2023/1773, including default values made available and published by the Commission.
- It is not mandatory to add the operators/installations to the installation/operator registry
    available within the CBAM Transitional Registry. This is an optional functionality designed
    to ease the burden in the case of multiple reporting. Therefore, data on
    operators/installations can be filled in directly in the CBAM report without being
    previously recorded in the installation/operator registry.

#### 34. What should I do if the operator who produced the goods is no

longer in existence at the time of import?

- The Implementing Regulation does not contain a derogation for goods produced by
    operators that have ceased to exist. Therefore, in principle, the same reporting
    obligations apply as for any other import of CBAM goods.
- However, if a reporting declarant is unable to comply with the reporting obligations
    because the operator no longer exists, the declarant could use emissions data for similar
    or identical goods, and clearly state this as additional information. For the definition of
    similar or identical goods, you can refer to Art. 1(14) and Art. 1(4) of Implementing
    Regulation (EU) 2015/2447.
- Further, for the field on the operator’s name and operator ID, it should also be stated that
    the operator is no longer in existence. The Commission and the NCA may check the
    veracity of these statements during the review process and may launch a correction
    procedure, where considered necessary.

Reporting: responsibilities and procedures

#### 35. What is the role of the European Commission during the

transitional period?
The Commission will have the following tasks during the transitional period:

- Manage the CBAM Transitional Registry.
- Review CBAM reports communicated by reporting declarants, and communicate to the
    NCAs a list of reports for which it has reasons to believe they are not compliant with the
    CBAM rules.


- Monitor the implementation of CBAM, progress, and risks of circumvention, as well as
    analyse the impact of CBAM on exports, downstream products, trade flows and least
    developed countries (LDCs).
- Prepare secondary legislation in the form of implementing acts:
    o In mid-2023 on the transitional period (art. 35), reporting obligations and
       reporting infrastructure.
    o In mid-2024 on the authorisation of declarants (art. 5 and 17), and the CBAM
       registry (art. 14).
    o In mid-2025 implementing acts on indirect emissions (annex IV), verification (art.
       8), accreditation of verifiers (art. 18) carbon price paid (art. 9), information for
       customs (art. 25), continental shell (art. 2), average ETS price (art. 21), CBAM
       declaration (art. 6), methodology (art. 7) and free allocations (art. 31).
- Prepare secondary legislation in the form of delegated acts during mid-2025 for the
    accreditation of verifiers (art. 18) and the selling and repurchasing of certificates (art. 20).
    If necessary, the Commission will also prepare delegated acts on exempted countries,
    rules on electricity and anti-circumvention.
- Set up the Common Central Platform where the sale, repurchase of certificates will take
    place in the definitive period.

#### 36. What is a national competent authority (NCA)?

- Each Member State has designated a national competent authority (NCA), which will carry
    out the functions and duties as defined in Regulation (EU) 2023/956. In short, NCAs are
    responsible for checking the quality of the CBAM quarterly report (with support from the
    Commission) and engage, where needed, in a dialogue with reporting declarants. NCAs
    ultimately ensure compliance with CBAM rules and they may impose penalties. Finally,
    from 2025 onwards, for the definitive period, NCAs will grant the status of ‘authorised
    CBAM declarant’.
- The list of NCAs is published and continuously updated on the dedicated CBAM webpage
    of the Commission: Carbon Border Adjustment Mechanism (europa.eu). The competent
    NCA is the NCA of the Member State of establishment of the reporting declarant.

#### 37. Do importers of CBAM goods need to be ‘authorised’ in order to

import CBAM goods during the transitional period?

- Importers of CBAM goods do not need to be authorised during the transitional period in
    order to import these goods into the EU. Customs will inform importers of CBAM goods
    of their reporting obligations at the moment of import.

#### 38. Are there verification obligations during the transitional period?

- No, verification by an external independent body will only be mandatory from 2026 for
    reporting based on actual values. Secondary legislation for the definitive period will follow


```
in the coming years which will define the rules for verification of emissions based on the
data collected during the transitional period from EU importers.
```
#### 39. Which embedded emissions need to be reported by each CBAM

sector? [updated 24 / 10 ]

- The following table provides an overview of the specific emissions and greenhouse gases
    covered and how direct and indirect emissions are determined for each sector falling
    under the CBAM scope. Each sector’s particularities have been taken into account when
    designing the methods for reporting and calculating embedded emissions in these goods
    while mirroring the EU Emissions Trading System:

**Issue CBAM good
Cement Fertilisers Iron/Steel Aluminium Hydrogen Electricity
Reporting
metrics** (per) Tonne of good^ (per) MWh^

**Greenhouse
gases covered**

```
Only
CO 2
```
```
CO 2 (plus
nitrous
oxide for
some
fertiliser
goods)
```
```
Only CO 2
```
```
CO 2 (plus
perfluorocar
bons (PFCs)
for some
aluminium
goods)
```
```
Only CO 2 Only CO 2
```
**Emission
coverage
during
transitional
period**

```
Direct and indirect Only direct
```
**Emission
coverage
during
definitive
period**

```
Direct and indirect Only direct, subject to review Only direct
```
**Determination
of direct
embedded
emissions**

```
Based on actual emissions, but estimations (including default
values) could be used for up to 100% of the specific direct
embedded emissions for imports until 30 June 2024 (i.e. CBAM
reports due until 31 July 2024). For imports until 31 December
2025, estimations (including default values) can be used for up to
20% of the total specific embedded emissions of complex goods.
```
Based on
default
values,
unless
several
cumulative
conditions
are met
**Determination
of indirect
embedded
emissions**

```
Based on actual electricity consumption and default emission
factors for electricity, unless conditions are met (i.e. direct
technical connection or power purchase agreement). Estimations
(including default values) could be used for up to 100% of the
```
```
Not
applicable
```

```
specific indirect embedded emissions for imports until 30 June
2024.
```
#### 40. What information should reporting declarants request from

```
producers in third countries to ensure they can submit the quarterly
CBAM report? [updated 24/10]
```
- The CBAM declarant must submit in the CBAM report the information contained in Annex
    I to the Implementing Regulation.
- In order to ensure that they possesses all the required information, the reporting
    declarant should request from the producer the information contained in Annex IV of the
    aforementioned Implementing Regulation. The Commission services have compiled this
    information into an optional communication template (in Excel format) to facilitate the
    communication of information to between operators and importers. This template is
    available on the Commission webpage.

#### 41. I am an installation operator outside the EU. How can I best share

data with EU reporting declarants? [added 24/10]

- Installation operators outside the EU may use the aforementioned communication
    template (Question 40 ) to share all required information for CBAM reporting with the
    reporting declarants.
- Furthermore, a new portal section of the CBAM Registry will allow installation operators
    outside the EU to upload and share their installations and emissions data with reporting
    declarants in a streamlined manner, instead of submitting it to each declarant separately.
    The portal will allow operators to ensure the confidential treatment of business-sensitive
    data. Reporting declarants will then be able to automatically populate their CBAM reports
    with this emissions data in order to comply with their reporting obligation. Registration
    for installation operators will open from 1 January 2025.

#### 42. What documents in original shall be provided in the quarterly

CBAM report?

- No document in original needs to be provided. The reporting declarant must only submit
    the required information for the quarterly CBAM report through the CBAM Transitional
    Registry.
- According to the principle of transparency outlined in Annex III section A.2 of the
    Implementing Regulation, complete and transparent records shall be kept at the
    installation of all data relevant for determining embedded emissions of the goods
    produced, including necessary supporting documents, for at least 4 years after the


```
reporting period. Those records may be disclosed to the reporting declarant. Such records
may be requested by EU Member States in case of a review of the quarterly CBAM report.
```
#### 43. I am both an importer and an indirect customs representative

```
filing CBAM reports for another importer. Do I file a single CBAM
report or two separate CBAM reports?
```
- Reporting declarants can act both as importer (company A, importing steel) and as
    indirect customs representative (for company B, importing aluminium). In such case, the
    reporting declarants must still submit one single quarterly CBAM report containing all the
    CBAM goods for which they have carried out the customs declaration.

#### 44. What is the effective ‘carbon price’ due that I need to report on?

- As indicated in the CBAM Regulation, a carbon price is the monetary amount paid in a
    third country, under a carbon emissions reduction scheme, which can adopt various forms
    such as a tax, levy, fee or emission allowances under a greenhouse gas emissions trading
    system, calculated on greenhouse gases covered by such a measure, and released during
    the production of goods.
- During the transitional period, reporting declarants must report the effective carbon price
    due in the jurisdiction where the CBAM good was produced. During the definitive period,
    the disclosure of this information will give importers a rebate, to avoid double pricing of
    embedded emissions.

#### 45. Who will check the accuracy of submitted data and reports?

- During the transitional period, and in line with Articles 11 of the Implementing Regulation,
    the Commission will conduct a first screening of the CBAM reports, and communicate to
    the competent national authority a list of incomplete or suspicious reports (i.e. when the
    Commission has reasons to believe they have failed to comply with the CBAM Regulation).
    It is then up to the competent national authority to decide whether to initiate a review as
    well as a potential correction procedure, which may ultimately lead to penalties.

#### 46. Is it possible to correct a CBAM report that has already been

submitted?

- Article 9(1) of the Implementing Regulation provides that a CBAM report that has already
    been submitted may still be corrected until two months after the end of the reporting
    quarter.
- Furthermore, in line with Article 9(3) of the Implementing Regulation, the reporting
    declarant may request, and provide justification for this request, to correct the CBAM
    report after this deadline. Declarants can do so by creating a request to the NCA in the
    CBAM Transitional Registry (under the functionality “Requests”). The NCA will then assess
    that request and where appropriate allow the reporting declarant to resubmit a CBAM


```
report or to correct it after the deadline. The resubmission of the corrected CBAM report
or the correction, as applicable, shall then be made no later than a month following the
approval by the competent authority.
```
- For the first two quarterly reports, the Implementing Regulation allowed for a longer
    period for corrections up until the deadline for submitting the third quarterly report. This
    meant that the reports due by 31 January and 30 April could be subsequently corrected
    until 31 July 2024.

#### 47. I want to correct a CBAM report. Should I correct individual

```
pieces of information immediately or rather collect items for
correction and submit a consolidated correction report later?
```
- There is no limitation with respect to how often a report can be modified within the
    allowed time period.
- Since the Commission has started analysing the reports beginning of February 2024 , for
    example to produce aggregated statistics, declarants are encouraged to update the
    information as soon as it is available, even if further modifications are expected
    afterwards.

#### 48. Should the report be in English only or is it possible to report in

other languages?

- Reporting is possible in all 24 EU languages.

Reporting: CBAM Transitional Registry

#### 49. What is the CBAM Transitional Registry?

- 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 standardised and secured
    electronic database containing common data elements for reporting in the transitional
    period, and to provide for access, case handling and confidentiality. The CBAM
    Transitional Registry is the basis for the development and establishment of the CBAM
    Registry pursuant to Article 14 of Regulation (EU) 2023/956.
- Reporting declarants may connect to the CBAM Transitional Registry through this link:
    https://cbam.ec.europa.eu/declarant

#### 50. What will the CBAM Transitional Registry be used for?

- The CBAM Transitional Registry shall enable communication between the Commission,
    the competent authorities, customs authorities of the Member States and 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 and collection during the
    transitional period.

#### 51. Is the CBAM Transitional Registry the same as the EU Customs

trader portal?

- The CBAM Transitional Registry for reporting declarants runs independently of the EU
    Customs Trader Portal (EUCTP). However existing importers that will be also acting as
    CBAM Declarants may be able to use their existing user account if the EU Member State
    allows it. Depending on the Member State, specific access to the CBAM module may need
    to be requested.

#### 52. Will the data shared in the CBAM Transitional Registry be dealt

with confidentiality? [updated 24 / 10 ]

- According to Article 14 of the CBAM Regulation, the information contained in the CBAM
    registry “shall be confidential, with the exception of the names, addresses and contact
    information of the operators and the location of installations in third countries”. Article
    13 of the CBAM Regulation and Article 15 of the Implementing Regulation laying down
    reporting obligations for the transitional period include an obligation of professional
    secrecy to information acquired by the competent national authority.
- In the optional Communication template which operators and importers may use to
    exchange information during the transitional period, operators of installations have the
    possibility to decide whether they want to share the full, detailed information (optional)
    or only the synthesis tabs necessary to submit the CBAM declaration. There is a degree of
    flexibility allowing operators not to disclose the data they may consider sensitive. On the
    basis of this experience, the Commission will also reflect on the information that has to
    be disclosed in the reports and by the external verifiers in the definitive regime.
- The Commission is working to provide, from January 2025, a separate access for operators
    to the Registry to allow submitting information directly through the Registry (see
    Question 41 ). Operators may then decide which information may be disclosed to which
    reporting declarants.

#### 53. How can I register as a declarant and access the CBAM

Transitional Registry?

- When they intend to become reporting declarant for CBAM purposes, economic
    operators must contact the national competent authority (NCA) of the Member State
    where they are established. The provisional list of NCAs is published and continuously
    updated on the dedicated CBAM webpage of the Commission: Carbon Border Adjustment
    Mechanism (europa.eu).


- In each Member State, the NCA is also responsible for providing reporting declarants with
    access to the CBAM Transitional Registry. In some cases, a new CBAM specific account
    with new login credentials will be required. In other cases, existing accounts for accessing
    custom systems may be used. In the case of Spain, for instance, access to the CBAM
    Transitional Registry is granted exclusively via the customs domain. Please contact your
    NCA for further details on the login credentials in your case.
- Where the reporting declarant uses a “CBAM service provider”, it is possible to request
    from the NCA, in UUMDS, the creation of all user profiles (importers and “CBAM service
    providers”) at the same time. Once the user profiles are created in UUMDS, the importer-
    employer (EO) can delegate the CBAM declarant access to the provider-employee (EMPL).

#### 54. I am an importer based in Switzerland, or in the EEA (Norway,

```
Iceland, Liechtenstein). How can I access the CBAM Transitional
Registry?
```
- No CBAM reporting obligation applies to CBAM goods imported into Switzerland or the
    EEA. Importers based in these countries cannot gain access to the CBAM Transitional
    Registry.
- However, CBAM goods imported into the EU Customs Union fall under the scope of the
    CBAM Regulation and must be reported on by a reporting declarant. If an importer of
    CBAM goods into the EU is based in Switzerland or in the EEA, the reporting declarant for
    CBAM purposes must be an indirect customs representative hired by the importer. The
    reporting declarant will be the one receiving access credentials to the Transitional CBAM
    Registry.

#### 55. What CBAM Transitional Registry environments are available?

- There is a _production_ and a c _onformance_ CBAM registry environment available for CBAM
    reporting declarants.
- The conformance environment can be used as test environment for familiarisation with
    the CBAM quarterly report form and the user interface of the CBAM Registry.
- A separate registration is required (same email may be used) in each environment for
    security reasons. For both environments, it is the respective NCA that provides reporting
    declarants with the access details.
- Link to the _production_ CBAM Transitional Registry: https://cbam.ec.europa.eu/declarant
- Link to the conformance CBAM Transitional Registry:
    https://conformance.cbam.ec.europa.eu/declarant


#### 56. In a company which is a reporting declarant, who can request

access to the Transitional Registry?

- Any physical person that can prove he/she represents the legal person can contact the
    NCA of the Member State where that legal person is established to request access to the
    CBAM Registry as CBAM reporting declarant. The NCA is responsible for verifying the
    legitimacy of the requests and grant CBAM Declarant access permissions. The owner of
    the account that will be granted CBAM Declarant access by the NCA is responsible to keep
    the account confidential and delegate the access to additional accounts (employees) of
    the company.

#### 57. Who can fill in the CBAM report in the CBAM Transitional

Registry for the reporting declarant?

- Multiple Transitional Registry user accounts can be linked to the same EORI number as
    long as these accounts are from employees of the responsible reporting declarant (i.e.
    the importer or indirect customs representative). However, only one user will be able to
    edit a particular CBAM quarterly report in the CBAM Transitional Registry at a given time.
- The reporting declarant can delegate access to the Transitional Registry to a “CBAM
    Service Provider”, who can fill in the CBAM report in the name and on behalf of the
    reporting declarant. The delegation in such cases follows the delegation model “Employer
    - Employee”, where “Employer” is either the importer or an indirect customs
    representative and “Employee” is the “CBAM Service Provider”. Note that in this case
    both the importer-employer (EO) and the provider-employee (EMPL) users will need to
    be configured by the Member States in UUM&DS and the importer will be responsible to
    delegate (via UUM&DS) the CBAM Declarant access to the “CBAM Service Provider”. This
    means that when the “CBAM Service Provider” connects to the CBAM Registry as
    employee, the service provider is using the EORI of the importer that has delegated the
    access.

#### 58. Can companies that are not directly subject to the CBAM also

have access to the CBAM Transitional Registry?

- No, the access to the CBAM Transitional Registry is limited to reporting declarants,
    competent authorities in the Member States, customs authorities and the European
    Commission.

#### 59. How should I fill in the data in the CBAM Transitional Registry?

- The quarterly reports need to be filled in per importer, per CN code and per installation.
    There are two ways to fill in the data in the CBAM Transitional Registry:
       o Reporting declarants can manually fill in the data directly within the interface in
          the CBAM Transitional Registry.


```
o Alternatively, reporting declarants can use an XML structure to upload CBAM
quarterly reports. Once an XML file is uploaded successfully, a new draft quarterly
report will be created and can be submitted via the CBAM Registry user interface.
A supporting XLS file, which can be used to fill in the quarterly report using XML,
was published on the Commission’s CBAM website.
```
- There are mandatory and optional fields. In the CBAM Transitional Registry, mandatory
    fields are marked with an asterisk (*). Mandatory fields will also be indicated in the
    supporting XLS file.
- Detailed information on how to fill in the report, and how to use the XSD file, can be found
    in the CBAM Transitional Registry user manual for Declarants.
- A draft report can be saved even without all the mandatory elements provided. However,
    to submit the report all mandatory elements need to be provided.

#### 60. What information should I enter in the fields “applicable

reporting methodology” and “other source indication”?

- In the field “Applicable reporting methodology”, reporting declarants are asked to
    provide additional information about the monitoring and reporting methods used. In the
    case where actual data for indirect and direct emission is used for determining the specific
    embedded emissions, for instance, declarants may specify whether the methodology was
    calculation-based (standard or mass balance) or measurement-based.
- In the field “Other source indication”, declarants are required to provide additional details
    about the source of the emission factor. This may include providing a web link to publicly
    available data or other relevant sources.

Methodology for calculating embedded emissions in CBAM goods

in the transitional period

#### 61. What is the relevant time period for calculating embedded

emissions? Can data from previous years be used?

- The default reporting period, i.e. the reference period for operators for determining
    embedded emissions, is a calendar year. However, it may be justified to use other periods
    (such as a fiscal year) provided that they ensure similar coverage and cover at least 3
    months. More details can be found in the Guidance documents under Section 4.3.4 (for
    EU-importers)/ Section 4.3.3 (for non-EU installations).
- If operators monitor their emissions on the basis of a calendar year, then they need to
    start monitoring emissions according to the CBAM methodology already in 2024 so that
    all required data are available for goods produced in 2024 and imported in 2025.
- For the CBAM report due in the first quarter of the year, the data of the previous year
    should be used. In cases where such data are not yet available until the end of
    January/February, data of the year before could be used.


- Concerning stock items, see the question “How to deal with stock items for which there
    is no emission data available?”.

#### 62. What are simple and complex goods?

- There are two types of CBAM goods, simple and complex ones. **“** Simple goods” are
    produced from input materials that are considered to have zero embedded emissions
    under the CBAM reporting methodology. Therefore, the embedded emissions of simple
    CBAM goods are based entirely on the emissions occurring during their production.
- For “complex goods”, it is necessary to include the embedded emissions of relevant
    precursors, themselves in the scope of CBAM, if used in the production process. Relevant
    precursor materials refer to those raw materials used in the production of complex CBAM
    goods that are CBAM goods themselves. In the cement sector, a typical example for a
    precursor is cement clinker, which is the main constituent of Portland cement.

#### 63. What are direct and indirect emissions?

- Direct emissions cover the emissions generated during the production processes of CBAM
    goods, including from the production of heating and cooling, irrespective of the location
    of the production of the heating and cooling. This means that when the production of
    heating and cooling takes place outside the installations, the resulting emissions are
    counted as direct emissions.
- Indirect emissions cover the production of electricity that is consumed during the
    production of CBAM goods.
- The embedded direct and indirect emissions of relevant precursors are also taken into
    account when determining the specific embedded direct and indirect emissions of CBAM
    goods.
- During the transitional phase, for monitoring purposes, importers are required to report
    both direct and indirect emissions for all goods falling under the scope of CBAM. During
    the definite phase starting on 1 January 2026, the CBAM scope is limited to direct
    emissions for iron/steel, aluminium and hydrogen, while importers of cement and
    fertilisers will have to declare both direct and indirect emissions.

#### 64. What is the “bubble approach” and how does it work?

- If an installation produces a complex good and its precursor and where this precursor is
    wholly used to produce the complex good, a joint (single) production process system
    boundary may be defined within the installation (see further explanations in the guidance
    documents).


#### 65. If an imported CBAM good was produced using precursors from

```
the EU (e.g. pig iron) – would this have to be considered in the
calculation?
```
- Yes, relevant precursors produced in the EU also need to be accounted for in the
    determination of the embedded emissions.
- Note, however, that if a precursor stems from EU production, the carbon price already
    paid in the EU may also be reflected in the CBAM report. (Find more details on the report
    of the effective carbon price paid in the Guidance document for non-EU installations
    Section 6.10.).

#### 66. Can the absorption rule be applied for the calculation of embedded

emissions of composite goods?

- No. The absorption rule is a rule used to determine the origin of a good. The absorption
    rule allows keeping the originating status of intermediate products, which are used for
    subsequent manufacturing operations of originating goods and to disregard the part of
    all former non-originating inputs contained in intermediate products, provided that
    certain conditions are fulfilled. The calculation of embedded emissions in CBAM goods
    follows completely different rules.

#### 67. Will the European Commission formally or informally verify the

“equivalence” of alternative methods?

- The transitional period is a learning phase for everyone, including for Commission services
    and NCAs. If the alternative methods do not meet the standards included in Article 4(2)
    of the Implementing Regulation, and especially for imports after 30 June 2024, then such
    calculation method may be rejected. The national competent authority would start a
    dialogue with the reporting declarant to obtain more accurate data.

#### 68. How are indirect emissions for the production of CBAM goods

determined? [updated 24 / 10 ]

- Indirect emissions are determined by multiplying the electricity consumed to produce a
    CBAM good with a relevant emission factor. The emission factor could be based on the
    electricity grid or represent an actual emission factor. The emission factor based on the
    country’s electricity grid is made available within the CBAM transitional registry.

#### 69. Which emission factors for electricity should be used to

determine indirect emissions?

- For the transitional period, the default emission factors for electricity are based on data
    from the International Energy Agency (IEA) covering a 5-year average. They are provided
    per country by the Commission in the CBAM Transitional Registry.


- Alternatively, any other emission factor of the country of origin grid may be used if it is
    based on publicly available data. Both the emission factor for electricity or the CO 2
    emission factor may be used.
- Actual emission factors for electricity may be used in the case of a direct technical link
    between the electricity-generating source and the installation producing the CBAM good
    or in the case of a power purchase agreement between the electricity producer and
    consumer.

#### 70. Can market-based certificates (Guarantee of Origin, Renewable

```
Energy Certificates, etc.) be used to justify the use of actual emission
factors?
```
- During the transitional period, the general rule for the emission factor for electricity is to
    use default values which will be provided by the Commission. However, actual emission
    factors for electricity can be used if the relevant conditions are met (i.e., existence of a
    direct technical link or a power purchase agreement, as explained above).
- Market-based specific emission factors, determined for example by Guarantees of Origin
    or Green Certificates cannot be used to justify the use of actual emission factors.
- Further information can be found in Section D.2 of Annex III to the CBAM Implementing
    Regulation and in the guidance document for non-EU installations, Section 6.7.3.2.

#### 71. Should emissions from on-site transportation be included in the

calculation?

- Emissions resulting from transport on conveyor belts, in pipelines and using other
    stationary equipment are included. Emissions resulting from the use of mobile machinery
    (trucks, forklifts etc.) are excluded. These are the same rules as in the EU ETS.

#### 72. Can carbon capture and use (CCU) / carbon capture and storage

```
(CCS) be used to reduce emissions for the purpose of determining
embedded emissions?
```
- Carbon capture and use/storage (CCUS) are techniques that become increasingly
    available on the markets to reduce carbon dioxide emissions. Such emission reductions
    can be taken into account when determining embedded emissions in CBAM goods,
    provided that certain criteria are met. These conditions are spelled out in Annex III,
    Section B.8.2 to the Implementing Regulation (Section 6.5.6.2 of the guidance provides
    more explanations). The conditions are essentially that the captured carbon dioxide is
    used to produce products in which it is permanently chemically bound or that the
    captured carbon dioxide is transferred to a long-term geological storage site.


#### 73. Is enhanced oil recovery (EOR) eligible for deduction in the

calculation of embedded emissions?

- Enhanced oil recovery (EOR) is primarily a technology utilized to increase the extraction
    of oil. The CO2 injected in the process could theoretically be considered for deduction in
    the calculation of embedded emissions if the oil extraction site provides for a long-term
    geological storage site and provided that certain criteria are met. The conditions, identical
    to those for carbon capture and storage (CCS), are spelled out in Annex III, Section B.8.2
    to the Implementing Regulation (Section 6.5.6.2 of the guidance provides more
    explanations).

#### 74. Are emission factors from life-cycle assessments (LCA) / life-cycle

inventory databases accepted?

- No, emission factors from life-cycle assessments (LCA)/life-cycle inventory databases are
    not accepted for calculating embedded emissions in the CBAM report. Note, however,
    that until 30 June 2024, i.e. reports due until 31 July 2024, for each import of goods for
    which the reporting declarant does not have all the information, the reporting declarant
    may use other methods for determining the emissions. In this limited time, emission
    factors from life-cycle assessments (LCA)/life-cycle inventory database may be used.
    Moreover, if the embedded emissions are determined using one of the eligible
    monitoring and reporting methods described in Article 4(2) of Implementing Regulation
    (EU) 2023/ 1773 and that method uses emission factors from life-cycle assessments, this
    is also possible until the end of 2024.
- As is explained in the guidance document for non-EU operators, section 6.2.1 and Table
    6 - 1, the concept of embedded emissions is narrower than the scope of life-cycle
    assessments (LCA) and product carbon footprints (PCF). The use of emission factors from
    LCA databases therefore significantly over-estimate the embedded emissions. This is
    counter the design of the CBAM which aims at mirroring the emissions covered by the EU
    ETS. In the definitive phase, importers would be required to surrender too many CBAM
    certificates if they used these emission factors.
- However, it cannot be excluded that the providers of LCA databases develop CBAM-
    compatible datasets in the future. Operators of installations producing CBAM goods
    would be able to use such databases, provided the database documentation provides
    evidence that the system boundaries underlying the database values are suitable for the
    CBAM, as operators are responsible for reporting correct data.

#### 75. My supplier is not sending me the necessary information before

the report is due. What should I do? [updated 24 /10]

- A good cooperation between third-country producers and reporting declarants is crucial.
    The Commission has published guidance and templates to help producers determine the
    embedded emissions of the CBAM goods they produce in non-EU countries.


- Ultimately, the reporting declarants bear the responsibility for ensuring the completeness
    and correctness of the CBAM reports. Reporting declarants are liable and may be subject
    to penalties where they fail to comply with the CBAM reporting obligation and where they
    have not taken the necessary steps to comply with the obligation to submit a complete
    and accurate CBAM report, following the correction procedure.
- For imports as from 1 July 2024, reporting declarants are required to report actual
    emissions for each CBAM good imported into the EU. If the declarant is not able to receive
    actual emission data from the supplier and chooses to report default values (outside the
    quantitative limit explained in Question 76 ), the CBAM report will be
    incorrect/incomplete.
- Reporting declarants must undertake all possible efforts to obtain actual emission data
    from their supplier(s) or producer(s) of CBAM goods. Where declarants eventually fail to
    get data on actual emissions, they shall select, in the field "Type of determination", the
    new option "Actual data not available". This option exists for both direct and indirect
    embedded emissions. Note that if this option is chosen, the CBAM report will be
    considered incorrect/incomplete.
- More importantly, if the option "Actual data not available" is chosen, reporting declarants
    are expected to also follow these steps:
    (1) Use the "Additional Information" field to provide justifications on why the actual
    emissions data is missing.
    ( 2 ) In the tab “Supplementary”, upload supporting documents attesting unsuccessful
    efforts and steps taken to obtain data from suppliers and/or producers."
- Note that where the option "Actual data not available" is chosen, subsequent fields in the
    Emissions tab will become non-editable (i.e. for direct embedded emissions: the field
    "type of reporting methodology"; for indirect embedded emissions: the fields "Source of
    emission factor" and "Source of electricity") and numeric fields will be automatically filled
    with "0".
- Declarants who have already submitted a CBAM report using a "workaround" to indicate
    that actual data is not available are not required to resubmit these reports.
- NCAs are responsible for assessing whether reporting declarants have taken the
    necessary steps to comply with the obligation to submit complete and accurate CBAM
    reports. In that context, thoroughly justified difficulties in terms of getting the necessary
    data on actual emission values from the producer of the CBAM goods might be taken into
    account.
- When deciding on penalties, NCAs may take into account the means and resources that
    reporting declarants have effectively allocated to unsuccessful efforts to collect the data,
    including assessing the adequacy of these means and resources to the economic size of
    the reporting declarant and the total amount of imports of CBAM goods and their
    embedded emissions. NCAs may also take into account the repetition of these actions


```
and follow-ups with third-country producers or suppliers, the time period concerned and
their duration.
```
- The reporting declarants should always demonstrate that they undertook all efforts which
    can reasonably be expected from them to retrieve from the operator the necessary data
    on actual embedded emissions, also in view of their internal operational capacities and
    the operators' ability to determine actual emissions.

#### 76. What are the default values? How does this work? [updated

24 / 10 ]

- For imports until 30 June 2024 (i.e. CBAM reports due until 31 July 2024), for each import
    of goods for which the reporting declarant does not have all the information, the
    reporting declarant could use other methods for determining the emissions, including
    default values made available and published by the Commission (see the TAXUD CBAM
    website). The use of default values for the purpose of reporting during the transitional
    period was thus possible for the first three reporting periods, without quantitative limits.
- In addition, estimated values (including default values) can be used when determining
    direct emissions during the whole transitional period for input materials or subprocesses
    with a relatively minor contribution (i.e. <20%) to the total embedded emissions of
    complex goods (see Article 5 of the CBAM Implementing Regulation). For determining
    these 20%, indirect emissions are only relevant to calculate what the 100% total
    embedded emissions entails.
- In other words, this means that for imports until 30 June 2024 , 100% of the total
    embedded emissions could be determined using default values. For the remaining
    transitional period (i.e. for imports from 1 July 2024 to 31 December 2025), estimated
    values may be used when determining direct emissions but a quantitative limit is applied:
    for complex goods, up to 20% of the total embedded emissions, considering the entire
    production chain, may be then determined using estimations (using default values
    provided by the Commission would qualify as ‘estimation’). When reporting declarants
    make use of this flexibility to use estimated values (including default values) within the
    20% limit, they should follow these steps in the Transitional Registry:
    (1) In the field “Type of determination” for Direct embedded emissions, select “Actual
    data”.
    (2) In the field “Type of applicable reporting methodology”, select “Commission rules”
    (3) In the field “Additional Information”, provide details on the applicable reporting
    methodology and the use of estimated values within the 20% limit.
- By the end of the transitional period in 2025, the Commission will assess the default
    values based on the data collected.
- During the transitional period, there will be only global default values (for each CN code
    under the CBAM scope). During the definitive period then, default values by country or
    even by region will be made available.


- During the definitive period, authorised CBAM declarants will be able to use default
    values, without quantitative limits, in cases where actual emissions data is not available.
    However, it will likely be more favourable for importers to provide the calculation of
    embedded emissions.

#### 77. How do you determine default values?

- The EU’s Joint Research Centre (JRC) published on 29 September 2023 estimations of GHG
    emission intensities for goods from four energy-intensive industries – iron and steel,
    fertilisers, aluminium, and cement in the EU and in its main trading partners. This work
    provides scientific support to the implementation of the mechanism, as envisaged by the
    CBAM Regulation.
- The JRC report provides the values, disaggregating between direct and indirect emissions.
    The GHG emission estimations include carbon dioxide, nitrous oxide (for some fertiliser
    goods) and perfluorocarbons (for aluminium goods) linked to the production of the goods
    listed in Annex I to the CBAM Regulation. The estimated values of the GHG emission
    intensities (i.e. of the specific embedded emissions) served as an input to for the setting
    of the default values for the transitional period.

#### 78. Until which point in time will EU importers be allowed to use

alternative monitoring and reporting methods?

- In accordance with the Implementing Regulation for the transitional period, there are
    certain flexibilities: for imports until 31 December 2024 reporting declarants can use
    other methods that lead to similar coverage and accuracy using (a) a carbon pricing
    scheme, (b) a compulsory emission monitoring scheme or (c) an emission monitoring
    scheme at the installation (Article 4(2)).
- For imports until 30 June 2024 (i.e. CBAM reports due until 31 July 2024), any other
    reference method, including default values, could be used if the reporting declarant does
    not have all necessary information (see Article 4(3) of the Implementing Regulation).
    Accordingly, reporting declarants may decide, until that date, to bring forward additional
    methods of their choosing. These methods will then be assessed by Commission services
    for the purpose of adjusting the CBAM reporting methodology for the definitive phase.

#### 79. How should emissions resulting from the use of biomass be

accounted for?

- The CBAM methodology follows the same rules as the EU ETS.
- If biomass is used as a process input (e.g. where charcoal is used as a reducing agent in a
    blast furnace or for producing electrodes), emissions from the biomass use are not
    accounted for (‘zero-rating’).
- If biomass (solid, liquid or gaseous) is used as a fuel (i.e. for energy purposes), emissions
    are accounted for unless the biomass fulfils the relevant sustainability and greenhouse


```
gas savings criteria of the Renewable Energy Directive (EU) 2018/2001. The applicable
criteria depend on the type of biomass used.
```
- Annex D of the guidance document for installation operators outside the EU provides
    further details.

#### 80. How should decimal places and rounding be handled in

calculations?

- All "significant" digits (in accordance with the metering uncertainty) should be kept
    throughout the complete calculation.

#### 81. Should the gross weight or the net weight of the imported CBAM

goods to be used for the calculation of the embedded emissions?

- Goods subject to CBAM that are imported into the customs territory of the Union are
    measured in net weight. Thus, also for the calculation of embedded emissions of CBAM
    goods, net weight should be used.

#### 82. How to deal with stock items for which there is no emission data

available?

- The embedded emissions of such stock items could, for imports until 30 June 2024 , be
    estimated using the default values published by the European Commission.
- For imports after 30 June 2024, actual data needs to be reported. In the case of lacking
    data for old spare parts or stock items, data for similar or identical goods could be
    submitted.

#### 83. If a facility is used simultaneously by multiple production

```
processes, how do you attribute the emissions from that facility to
each production process?
```
- All inputs, outputs and corresponding emissions in an installation should be attributed to
    a production process, unless they relate to any non-CBAM good.
- Overall, the relevant emissions of an installation should be 100% covered by production
    processes for CBAM goods and any non-CBAM goods, where applicable.
- For an installation with several relevant production processes, where shared equipment,
    shared ‘source streams’ or shared emission sources are relevant, inputs, outputs and
    emissions should be attributed to the different production processes with an appropriate
    share. For example, if an installation produces purified water and 60% of that water is
    used to produce a CBAM good, then 60% of the direct and indirect emissions related to
    the water purification should be attributed to the production of the CBAM good.


#### 84. Should saleable off-spec products be considered for the

determination of the activity level?

- If the off-spec product is saleable, it should be included in the activity level, provided it
    complies with the CN codes referring to the CBAM goods category of the production
    process (as listed in Annex II of Implementing Regulation (EU) 2023/1773).

Cement

#### 85. Is cement defined as a complex good in the scope of the CBAM?

- Yes. Cement is defined as a complex good in the scope of CBAM, because clinker is a
    precursor to cement and clinker itself is in the scope of CBAM.

Fertilisers

#### 86. Are the exothermic chemical reactions involved in fertiliser

production accounted for as direct emissions?

- If a reaction leads to the generation of CO2, e.g. through the oxidation of organic
    chemicals, and the CO2 is emitted, it is accounted for as direct emissions.
- Emissions from the conversion of natural gas to hydrogen also count as direct emissions.

#### 87. Can CO2 bound in urea be counted as negative emissions?

- No. Under the EU ETS, the CO 2 bound in urea does not count as negative emissions.
    Therefore, no discounts for CO 2 bound in urea apply for the purpose of reporting
    emissions under CBAM. This also means that the CO 2 generated in ammonia production
    and transferred to urea productions counts as emission under the ammonia production.

Electricity as CBAM good

#### 88. Who is the CBAM reporting declarant for electricity imports?

- In general, the CBAM reporting declarant is the person who submits the customs
    declaration. As is the case for other CBAM goods, importers established outside of the EU
    must appoint an indirect representative to fulfil the CBAM reporting obligations. There is
    also the possibility to appoint service providers for CBAM reporting purposes, but this
    does not lift importers (or indirect representatives, where applicable) from liability.
- During the definitive period, under Article 5(4) of the CBAM Regulation, where
    transmission capacity for the import of electricity is allocated through explicit capacity
    allocation, the person to whom capacity has been allocated for import and who
    nominates that capacity for import shall be regarded as an authorised CBAM declarant in
    the Member State where the person has declared the importation of electricity in the
    customs declaration.


#### 89. What is the difference between the emission factor for

electricity and the CO 2 emission factor? [updated 24 / 10 ]

- The emission factor for electricity represents the weighted average emission factor of all
    electricity-generating sources (including nuclear and renewable sources) in a geographic
    area (e.g. third country, group of third countries or region within a third country). By
    contrast, the CO 2 emission factor represents the weighted average emission factor of
    those electricity-generating sources that are based on the combustion of fossil fuels. This
    means that the CO 2 emission factor is always larger than the emission factor for electricity
    for the same geographic area,
- During the transitional period, the use of a CO 2 emission factor for electricity is the default
    method to determine the specific direct embedded emissions for electricity as a CBAM
    good. By contrast, the emission factor for electricity is used for the default method to
    determine the specific indirect emissions for CBAM goods other than electricity.

#### 90. Which CO 2 emission factors should be used?

- Default values for imported electricity are determined for a third country, group of third
    countries or region within a third country, based on the best data available to the
    Commission. For the transitional period, the default values are CO 2 emission factors per
    country based on data from the International Energy Agency (IEA) covering a 5-year
    average. They are provided by the Commission in the CBAM Transitional Registry.
- When there is no specific default value available, the CO 2 emission factor in the EU shall
    be used. It is also based on IEA data and provided via the CBAM Transitional Registry.
- When a reporting declarant submits sufficient evidence based on official and public
    information to demonstrate that the applicable CO 2 emission factor is lower than the
    values in accordance with the above points, the reporting declarant may determine the
    CO 2 emission factor based on the method defined in the Implementing Regulation.

#### 91. What are the requirements to report actual embedded

emissions of electricity, the so called “conditionality”?

- The actual emissions data of a specific electricity-producing installation may be used, if
    the criteria in the CBAM Regulation (Annex IV (5)) are met, the so called ‘conditionality’).
- The following conditions shall be met, bearing in mind that the criteria are cumulative.
    o The amount of electricity for which the use of actual embedded emissions is
       claimed is covered by a power purchase agreement between the authorised
       CBAM declarant and a producer of electricity located in a third country;
    o The installation producing electricity is either directly connected to the Union
       transmission system or it can be demonstrated that at the time of export there
       was no physical network congestion at any point in the network between the
       installation and the Union transmission system;


```
o The installation producing electricity does not emit more than 550 grammes of
CO 2 of fossil fuel origin per kWh of electricity;
o The amount of electricity for which the use of actual embedded emissions is
claimed has been firmly nominated to the allocated interconnection capacity by
all responsible transmission system operators in the country of origin, the country
of destination and, if relevant, each country of transit, and the nominated capacity
and the production of electricity by the installation refer to the same period of
time, which shall not be longer than one hour.
```
#### 92. Is transit through non-EU countries considered for reporting on

electricity in the CBAM?

- For electricity as a CBAM good, the relevant third country is the country where the
    electricity has been produced. No emission factor for the transit country shall be
    considered in the CBAM report.

#### 93. Which are the system boundaries to determine the embedded

emissions of electricity?

- Only the direct CO 2 emissions during the production of electricity are considered for the
    reporting. For example, no upstream emissions related to the production and installation
    of wind turbines are considered.

Hydrogen

#### 94. What is the connection between hydrogen as a CBAM good and

the Renewable Energy Directive (EU) 2018/2001 (‘RED II’))?

- The Implementing Regulation provides that "Where the produced hydrogen has been
    certified to comply with Commission Delegated Regulation (EU) 2023/1184(1), an
    emission factor of zero for the electricity may be used." (Annex II, Section 3.6). This means
    that a certification of hydrogen as being an "RFNBO" (renewable fuel of non-biological
    origin) under the Renewable Energy Directive can be used for demonstrating zero indirect
    emissions, no double certification is needed.
- In the absence of such certification, the indirect emissions need to be determined in line
    with Annex III of the Implementing Regulation.

Iron and steel

#### 95. When calculating the embedded emission of steel products, are

```
auxiliary processes such as lime kilns or coke oven plants plants
included in the boundary calculation?
```
- System boundaries for each aggregated goods category can be found in Annex III to
    Implementing Regulation (EU) 2023/1773.


- Lime kilns and coke oven plants are not included in the system boundaries for iron and
    steel production. This is because the outputs of those plants (i.e. lime and coke) are not
    CBAM goods themselves. Consequently, lime and coke are also not considered precursors
    for the calculation of the specific embedded emissions.

#### 96. Do iron ore pellets fall within the scope of CBAM?

- Yes. Iron ore pellets fall under CN code 2601 12 00 ‘Agglomerated iron ores and
    concentrates, other than roasted iron pyrites’. They are considered a precursor ("sintered
    ore") in the production of pig iron or Direct Reduced Iron (DRI).

#### 97. Can we divide a steel site into more than one installation?

- The division of sites into different installations is possible. The division of installations into
    separate production processes is even obligatory where different production routes exist
    within one installation.
- Moreover, dividing installations is in particular useful for more detailed, more transparent
    monitoring. For example, it may be useful to consider the coke ovens and a lime
    production as separate installations, as they would not count to the embedded emissions
    of the steel produced.
- According to the monitoring rules of Implementing Regulation (EU) 2023/1773, a division
    of installations should not lead to different results of the final embedded emissions of
    steel products, as precursors are taken fully into account by the CBAM methodology.

#### 98. What should be filled in the field "steel mill identification

number" in the CBAM report?

- The "steel mill identification number", also known as "heat number", in principle indicates
    the mill/furnace where the steel product came from. In case there are many different
    heat numbers, we suggest leaving a comment. However if there are only a few heat
    numbers, they can all be filled in the field.
-^ Note that, while we encourage you to provide this information, the "steel mill
    identification number" is an optional field.

Aluminium/Steel

#### 99. Should the specific embedded emissions of aluminium/steel

goods be determined separately for different alloy grades?

- Specific embedded emissions are generally determined per aggregated goods category,
    unless different production routes are used in an installation. The aggregated goods
    categories may cover goods with different CN codes. Within the same CN code, the
    content of alloying elements or the share of input scrap may vary. Nevertheless,
    embedded emissions during the transitional period can be reported per aggregated goods
    category.


- Operators may voluntarily choose a more disaggregated determination of specific
    embedded emissions for certain goods or groups of goods.

Customs

#### 100. Can an importer use different customs representatives for the

customs declaration and the CBAM reporting?

- As regards to the reporting requirements applicable during the transitional period, the
    CBAM Regulation (Article 5) foresees the possibility for importers of CBAM goods to
    appoint direct or indirect customs representatives within the meaning of Article 18 of the
    Union Customs Code (see to that effect Regulation No 952/2013):
       o In the case of direct representation, the EU-established importer would be subject
          to the CBAM obligations, while the direct customs representative submits the
          customs declaration in the name of and on behalf of the importer.
       o If an EU-established importer appoints an indirect customs representative, and
          the latter agrees, the reporting obligations shall apply to such indirect customs
          representative.
       o Where the importer is not established in an EU Member State, the reporting
          obligations shall apply to the indirect customs representative in any case.
- There is no possibility for an importer to have several indirect customs representatives
    for CBAM goods covered by the same customs declaration.
- For an importer established in an EU Member State, it would be possible to use a direct
    customs representative to carry out customs obligations, and to hire a service provider to
    enter CBAM reporting data in the CBAM Transitional Registry. For this purpose, the
    importer would delegate access to the Transitional Registry to this service provider, who
    would fill in the CBAM report in the name and on behalf of the importer. The delegation
    in such cases follows the delegation model “Employer - Employee”, where “Employer” is
    either the importer or an indirect customs representative and “Employee” is the service
    provider. Note that in this case both the importer-employer (EO) and the provider-
    employee (EMPL) users will need to be configured by the Member States in UUM&DS and
    the importer will be responsible to delegate (via UUM&DS) the CBAM Declarant access to
    the Service Provider. This means that when the “CBAM Service Provider” connects to the
    CBAM Registry as employee, the EORI of the importer that has delegated the access is
    being used.
    When the “CBAM service provider” thus gains access to the Registry using the EORI
    number of the importer, and when the CBAM report for that importer is submitted, the
    importer would in any case remain the reporting declarant and therefore be legally liable
    for CBAM obligations.
- For an importer established outside the EU, the indirect customs representative will be
    responsible for both the customs declaration and the CBAM declaration.


#### 101. What happens if an indirect customs representative does not

agree to carry out CBAM reporting obligations?

- This is only possible in cases where the importer is established within the EU. Where on
    the contrary the importer is not established in the EU, the importer must appoint an
    indirect customs representative who has to fulfil the CBAM reporting obligations.
- Art 8.3 of the Implementing Regulation provides that in cases where indirect customs
    representatives do not agree to carry out CBAM reporting obligations, they shall notify
    the importer of the obligation to carry out the reporting.
- To facilitate CBAM implementation, the text in the box below is an indicative and non-
    binding template that indirect customs representatives may use as a basis to inform
    importers of their decision to not carry out the abovementioned reporting obligations for
    CBAM purposes.

```
Notification template
From indirect customs representatives to importers
```
From: Name and address of the indirect customs representative
To: Name and address of the importer
Date: Date

Dear Madam, Sir,

Following the adoption of Regulation (EU) 2023/956 of the European Parliament and of the
Council of 10 May 2023 establishing a Carbon Border Adjustment Mechanism (CBAM),
CBAM has started to apply with a transitional period as from 1 October 2023 until 31
December 2025. The rules applicable to CBAM reporting obligations during this transitional
period are laid down by Commission Implementing Regulation (EU) 2023/1773 of 17 August
2023.

Pursuant to Articles 32 of the Regulation and 8(3) of the Commission Implementing
Regulation, indirect customs representatives which do not agree with carrying out the CBAM
reporting obligations shall notify importers of their obligation to comply with this Regulation.
This notification shall include the information referred to in Article 33(1) of this Regulation.

I notify you my decision not to carry out the CBAM reporting obligations provided in Articles
33 and 35 of the CBAM Regulation. I inform you that it is your obligation, as an importer, to
submit a report (“CBAM report”) containing information on the goods that you import into the


EU during a given quarter of a calendar year, no later than one month after the end of that
quarter. This report must be submitted to the CBAM Transitional Registry
(https://cbam.ec.europa.eu/declarant).

I invite you to contact the National Competent Authority for CBAM purposes (NCA) of the
Member State where you are established for further information on CBAM-related reporting
obligations. You may also find relevant information on CBAM on the European Commission’s
dedicated webpage (see: https://taxation-customs.ec.europa.eu/carbon-border-adjustment-
mechanism_en).

Yours faithfully,

#### 102. Can a direct customs representative be a CBAM reporting

declarant for companies established in the territory of the EU?

- EU importers can indeed appoint direct or indirect customs representatives. However, as
    regards CBAM reporting (under the CBAM Regulation and the Implementing Regulation),
    the obligations lie either on the importer or on their indirect representatives where the
    latter so agree (please see Art. 32 of Regulation (EU) 2023/956 for the transitional period).
- Even in the case where the importer appoints a direct customs representative, that
    importer remains liable for CBAM reporting obligations. In other words, the importer
    remains the declarant for CBAM purposes.
- Nothing prevents importers from appointing service providers who may assist them in
    preparing and submitting their CBAM reports in practice, but the responsibility for
    complying with the CBAM reporting obligations, even in such cases, lies on the importers
    or, where the case may be, on the indirect representatives.

#### 103. My company is registered in one EU Member State but imports

```
CBAM goods through multiple Member States. Should I compile all
these imports into one single quarterly report?
```
- During the transitional period, the CBAM declarant is responsible for submitting quarterly
    CBAM reports containing information on embedded emissions of all imported CBAM
    goods. CBAM goods are attributed to a CBAM declarant through the EORI number
    provided to the customs authorities. In the given scenario, there is only one company with
    one EORI number involved. The quarterly CBAM report should therefore compile the
    information on embedded emissions of all CBAM goods imported by this company, even
    if the goods were imported in different Member States.
- Please note that importers may decide to appoint an indirect customs representative
    who, if they agree to carry out the reporting obligation, will have to provide their own
    EORI number during the importation of CBAM goods, and to undertake the CBAM


```
obligations in the stead of the importer for those goods imported by the indirect customs
representative.
```
#### 104. Which is the relevant NCA in case an importer is a branch of a

company registered abroad, and both share the same EORI number?

- If the parent company is a legal person with headquarters in a non-EU country and has
    several entities in different EU Member States, none of which are ‘persons’ as defined by
    Article 3(18) of Regulation (EU) 2023/956, that parent company will need an EORI
    number. Since economic operators and other persons may have only one EORI number,
    although the parent company has entities in several Member States, they may apply for
    and use only one EORI number assigned by one of these Member States.
- If the parent company has an entity (e.g. registered office) in another EU Member State
    that meets the definition of a ‘person’ under Article 3(18) of Regulation (EU) 2023/956,
    that entity would also have an EORI number and the respective Member State would be
    considered the Member State of establishment for that respective entity. In such cases,
    both the parent company and that entity will each be assigned an EORI number. The
    parent company will be assigned an EORI number by the authorities of the EU Member
    State where it is established. In this case, in principle, there are different NCAs responsible
    for the parent company and the subsidiary.

#### 105. Must goods transiting in the EU be reported under CBAM?

- No. If goods are declared for temporary admission, for example under Article 95 of
    Council regulation (EC) No 1186/2009, they do not fall under the scope of the CBAM. Only
    goods released for free circulation into the EU are subject to the CBAM.
- Similarly, the CBAM does not apply in respect to samples of non-EU origin (e.g. sent for
    testing), which are declared for temporary admission and not released for free circulation.

#### 106. Will the CBAM reporting obligation apply to CBAM goods that

```
have entered free circulation within the EU due to non-compliance
with a customs procedure other than import (e.g., temporary
admission), and for which all duties and taxes have already been paid
through the said non-compliance procedure?
```
- The release of the goods for free circulation requires that the CBAM requirements have
    been fulfilled. Therefore, the controls on whether or not those requirements have been
    fulfilled should precede the release of the goods for free circulation.
- In case of non-compliance, Article 198(1)(b) UCC would apply ( _i.e. “the customs_
    _authorities shall take any necessary measures, including confiscation and sale, or_
    _destruction, to dispose of goods where the goods cannot be released because they are_
    _subject to prohibitions or restrictions”_ ), because the goods are subject to CBAM
    requirements which have not been fulfilled.


- In such a case, Article 198(2) UCC would apply as well ( _i.e. “non-Union goods which have_
    _been abandoned to the State, seized or confiscated shall be deemed to be placed under_
    _the customs warehousing procedure”_ ).

#### 107. Do I need to report on CBAM goods that are placed under the

inward processing regime?

- CBAM becomes due only for goods that are released for free circulation in the EU. Thus,
    in the case of CBAM goods that are placed under a custom suspensive regime in view of
    their future export or in view of their processing, there is no CBAM obligation.
- Note, however, that if a CBAM good leaves the inward processing regime to be placed on
    the EU market, then there is a CBAM obligation. In this case, the bill of discharge should
    be uploaded as a supporting document when submitting the CBAM report.
- A CBAM reporting obligation also arises in the specific case where a CBAM good that was
    placed under inward processing is processed into a product that itself is no longer a CBAM
    good, and this final good is finally released for free circulation in the EU (see Article 6 of
    the Implementing Regulation). In this specific case, the CBAM report would contain
    information on the quantities and embedded emissions of CBAM goods placed under
    inward processing (Article 6(f) and (g) of the CBAM Regulation), but not on the quantities
    and embedded emissions of the final goods released for free circulation, because in the
    example, these goods are not CBAM goods themselves (i.e. Article 6(a) and (b) do not
    apply).

#### 108. There is a tariff suspension on the CBAM good that I have

imported. Am I exempt from the CBAM?

- EU legislation provides for some tariff suspension, such as through Council Regulation (EU)
    2023/2890 of 19 December 2023 amending Regulation (EU) 2021/2278 suspending the
    Common Customs Tariff duties referred to in Article 56(2), point (c), of Regulation (EU) No
    952/2013 on certain agricultural and industrial products.
- Such tariff suspension has no effect on the CBAM obligations (including reporting
    requirements), which still apply even in the case of a tariff suspension.

#### 109. What happens if indirect customs representatives agree to act as

```
reporting declarants only for some goods but not for others? Do they
need to submit two different customs declarations, one for the goods
for which they act as reporting declarant and one for which they do
not?
```
- Yes, this is correct. Indirect customs representatives, who agree to act as reporting declarants
    only for some goods but not for others, would need to submit two separate customs


```
declarations, one for the goods for which they act as reporting declarants and one for the
goods for which they do not.
```
#### 110. Can an indirect customs representative holding an “Entry into the

```
Declarants Records” (EIDR authorisation) also refuse to act as
reporting declarant if acting on behalf of an EU-importer for customs
purposes?
```
- Art. 2(1b) of the Implementing Regulation provides that a person holding an authorisation to
    import through an “Entry into the Declarants Records” (EIDR authorisation) can act as
    reporting declarant.
- The general provisions of Art. 8(3) of the Implementing Regulation apply to this case as well.
    Thus, yes indeed, a person holding an EIDR authorisation can also refuse to act as reporting
    declarant.

Definitive period

#### 111. How will the CBAM work in practice during the definitive period?

- The CBAM will mirror the ETS in the sense that the system is based on the purchase of
    certificates by importers. The price of the certificates will be calculated depending on the
    weekly average auction price of EU ETS allowances expressed in € per tonne of CO 2
    equivalents emitted, and it will be made publicly available weekly by the Commission.
    Importers of goods will have to, either individually or through a representative, register
    to take part in the CBAM and buy CBAM certificates.
- The certificates surrendered by the CBAM declarant shall correspond to the amount of
    embedded emissions of the relevant goods expressed in tonnes of CO2. In addition, there
    is a possibility to purchase certificates along the year.
- CBAM certificates will be sold by Member States through a common central platform to
    authorised CBAM declarants established in that Member State. Only _authorised_ CBAM
    declarants are allowed to purchase certificates. These certificates shall be surrendered
    via the CBAM registry by 31 May each year, 2027 the first time, for the embedded
    emissions of imports that occurred in year 2026.
- The reporting for embedded emissions is expected to take place under similar conditions
    than during the transitional period, i.e. exclusively through an online portal, the CBAM
    registry.


#### 112. What obligations will importers of CBAM goods have during the

definitive period?

- During the definitive period, only authorised CBAM declarants may import goods into the
    Union (Article 4 of the CBAM Regulation). The authorised CBAM declarant is, according
    to Article 5 of the CBAM Regulation, as below:
       o if the importer is not established in a Member State: the indirect customs
          representative;
       o if the importer is established in a Member State: the importer, or, subject to
          agreement, the indirect customs representative.
- It follows that if the importer is not established in a Member State and the indirect
    customs representative does not have the status of authorised CBAM declarant, the
    concerned CBAM goods cannot be imported in the Union.
- During the definitive period, authorised CBAM declarants will have the obligation to buy
    and surrender CBAM certificates corresponding to the total embedded emissions in the
    imported CBAM goods. Authorised CBAM declarants will also have the obligation to
    submit annual CBAM reports.

#### 113. How can I become an “authorised CBAM declarant”? [added

24 / 10 ]

- From January 2025 onwards, CBAM declarants will be able to apply for the ‘authorised
    CBAM declarant’ status via the CBAM Registry. Their application will be processed by the
    National Competent Authority of the EU Member State where they are established. This
    status will become mandatory as of 1 January 2026 for the import of CBAM goods in the
    EU customs territory.

#### 114. After 2026, are you going to prohibit the import of CBAM items if

the EU importers is not an authorised CBAM declarant?

- Yes. Article 25 of the CBAM Regulation provides that “customs authorities shall not allow
    the importation of goods by any other person than an authorised CBAM declarant”.

#### 115. How can the CBAM report be submitted during the definitive

period?

- The CBAM report shall be submitted through the CBAM Registry by the authorised CBAM
    declarant. Note that for the definitive period, the ‘CBAM Transitional Registry’ will be
    replaced by the ‘CBAM Registry’.


#### 116. How will I get access to the CBAM Registry in the definitive

period?

- Once an importer’s application has been authorised by the competent authority, they will
    be considered an authorised CBAM declarant. Each CBAM declarant will be assigned a
    CBAM account number by the Commission, which will then allow access to the CBAM
    registry.
- The access management in the definitive period will also be performed via the EU-wide
    UUM&DS. This means that declarants will have the ability to access the CBAM Definitive
    system using either Option 1 (CBAM Domain) or Option 2 (Customs Domain), depending
    on the choice made by the national authorities.
- New UUMDS profiles will be required for the definitive registry. NCAs will need to assign
    these new profiles to existing declarants to ensure their access to the definitive system.
- In the definitive period, third-country operators will also be able to access the CBAM
    Registry. Third-country operators will use the Commission’s DG DIGIT's EU-Access
    platform to access the CBAM portal. The Commission will validate access requests from
    third-country operators and grant access where appropriate. If access to the platform
    needs to be revoked, the Commission will consult Member States.

#### 117. What will be the role of the European Commission during the

definitive period?

- Like during the transitional period, the Commission will continue managing the CBAM
    Registry, reviewing CBAM reports communicated by reporting declarants and
    communicating any potential issues with NCAs, as well as monitoring the implementation
    of CBAM and risks of circumvention.
- In addition, the Commission will manage the central platform for the selling of CBAM
    certificates to importers. Economic operators will purchase and may also surrender CBAM
    certificates they have purchased on this platform.

#### 118. Why are indirect emissions only included in the CBAM for cement

and fertilisers?

- Indirect emissions are not included in the scope of CBAM for those goods, where EU
    Member States can grant indirect cost compensation. This compensation applies to
    indirect emissions costs incurred from greenhouse gas emission costs passed on in
    electricity prices.
- However, the Commission will have to assess the possibility to extend the scope of CBAM
    to indirect emissions of other goods by the end of the transitional phase.


#### 119. Will the EU expand the scope of the CBAM?

- By the end of the transitional period of the CBAM (end 2025), the Commission will
    undertake a full review of the implementation of the CBAM. Using data collected during
    that period, the review will, amongst others, look carefully into the possibility of
    extending CBAM to other goods and sectors covered by the EU ETS at risk of carbon
    leakage (see Article 30(2) of the CBAM Regulation). An extension of the CBAM scope
    requires a legislative proposal from the Commission followed by an amendment of the
    CBAM Regulation to be adopted by the European Parliament and Council.

#### 120. How will a CBAM declarant become ‘authorised’ and what is the

timeline for its authorisation during the definitive period?

- The NCA in the Member State in which the applicant is established shall grant the status
    of authorised CBAM declarant, when the applicant meets the following criteria:
       o has not been involved in a serious infringement or in repeated infringements of
          customs legislation, taxation rules, market abuse rules or the CBAM Regulation;
       o demonstrates its financial and operational capacity;
       o is established in the Member State where the application has been submitted;
       o has been assigned an EORI number.
- A consultation procedure is required before granting the authorisation, and it should not
    exceed 15 working days. During the transitional period, the European Commission will
    adopt secondary legislation with further details on the authorisation procedure (see
    Article 17(10) of the CBAM Regulation).

#### 121. How can EU importers ensure that they receive the information

```
they need from their non-EU exporters to be able to use the new
system correctly? [updated 24/10]
```
- Non-EU producers should provide the information on embedded emissions for goods
    subject to CBAM to the EU-registered importers of their goods. In cases where this
    information is not available, EU importers will be able to use default values to determine
    the embedded emissions which must be reported in the CBAM declaration and the
    number of certificates they need to surrender. However, it will likely be more favourable
    for importers to provide the calculation of embedded emissions.

#### 122. How will the reliability of the reported information be ensured?

- The Commission, in collaboration with Member States authorities, will continuously
    monitor reported emissions and corresponding trade, to identify practices of
    circumvention and non-compliance with the CBAM Regulation and its secondary
    legislation. In addition, verifications will be carried out during the definitive period, and
    the report derived from them shall include information on the quantification of emissions
    and how these emissions are attributed to the different types of goods.


- During the definitive period, declared embedded emissions should be verified by a
    verifier, accredited in accordance with specific accreditation rules (to be defined by the
    Commission during the transitional period), who will prepare a verification report. In line
    with this, CBAM declarations will be accompanied by copies of emissions verification
    reports.
- Penalties will be imposed when a CBAM declarant introduces goods into the customs
    territory of the Union without complying with the obligations established in the
    Regulation.

#### 123. How will the accreditation of verifiers work?

- The European Commission will work during the transitional period on supplementary
    legislation that will establish the rules on accreditation and verification.
- Such legislation will encompass an implementing act, in accordance with Articles 8 and 18
    of the CBAM Regulation, for the verification principles and the alignment of the
    verification scopes of the EU ETS and the CBAM, and secondly a delegated act in
    accordance with Article 18 of the CBAM Regulation which will specify the conditions for
    accreditation of verifiers.

#### 124. How will I be able to find accredited CBAM verifiers?

- The accreditation of CBAM verifiers will be the task of National Accreditation Bodies
    (NABs) in the EU Member States. This has not yet taken place, since relevant
    supplementary legislation setting out the qualification of verifiers and the methodology
    to be followed is yet to be adopted (see the answer above).

#### 125. How will free allocation be accounted for in the calculation of the

CBAM obligation to be paid?

- Rules will be developed by the European Commission in that regard following the
    empowerment of Article 31 (2) of the CBAM Regulation.
- The CBAM obligation to be paid by importers will be reduced by the corresponding free
    allocation that an EU producer would receive for the production of the same goods. This
    will ensure that products produced in the EU and in third countries are treated equally.
- This adjustment for free allocation will include a definition of CBAM benchmarks, which
    in turn will be based on a combination of the EU ETS benchmarks. A combination is
    needed because there are only a limited number of ETS product benchmarks available
    and because these are not defined per CN codes.
- The gradual phase-out of ETS free allowances in CBAM sectors from 2026 to 2034 will be
    mirrored by a corresponding increase in the CBAM obligation. This is because the CBAM
    adjustment for free allocation will gradually decrease and thereby the CBAM obligation
    will increase.
- The emissions subject to CBAM will be calculated as follows:


```
emissions subject to CBAM = embedded emissions – CBAM benchmark × CBAM factor
```
- For example, if the embedded emissions of a good amount to 1. 2 t CO2 eq/t good and
    the corresponding CBAM benchmark is 1 t CO2 eq/t good, then the emissions subject to
    CBAM in 2026 (with a CBAM factor of 97.5%) would amount to: 1.2 – 1 × 0.975 = 0.2 25
    t CO2 eq/t good, equivalent to around 19% of the embedded emissions. In 2030 (CBAM
    factor 51.5%), the emissions subject to CBAM would amount to 0.685 t CO2 eq/t good
    (i.e. around 57% of the embedded emissions) and in 2034 (CBAM factor 0%) to
    1.2 t CO2 eq/t (i.e. 100% of the embedded emissions). From 2034 onwards, there will be
    no adjustment for free allocation and the full CBAM liability would apply for imports of
    this good.
- It follows from this calculation that no CBAM obligation will apply in a given year if the
    embedded emissions of a good are lower than the CBAM benchmark multiplied with the
    CBAM factor. In the given example for 2026, no CBAM obligation would thus be due if the
    embedded emissions were equal to or lower than 0.975 t CO2 eq/t.
- As there is generally no free allocation for electricity generation in the EU ETS, there will
    in principle no free allocation adjustments to the CBAM liability for electricity imports.
    Thus, the entire embedded emissions in the electricity production will require a
    corresponding purchase of CBAM certificates from 2026 onwards.

#### 126. How will the CBAM benchmarks be defined? [added 24/10]

- The CBAM benchmarks will be based on a combination of the EU ETS benchmarks. A
    combination is needed because there are only a limited number of ETS product
    benchmarks available and because these are not defined per CN codes. Analytical work
    on defining the CBAM benchmarks has started. The CBAM benchmarks are not necessarily
    fixed numbers, as in some cases installation-specific data might be required.
- While in some cases there could be a CBAM benchmark per CN code, it may also be
    possible that CBAM benchmarks are set per groups of CN codes (e.g. per aggregated
    goods category), if the respective production processes are similar. On the other hand,
    there could also be different CBAM benchmarks for the same CN code, for example in the
    case of goods made of primary versus secondary steel.
- The overall objective is developing a methodology that mirrors the EU ETS free allocation
    rules, while limiting the burden for stakeholders.

#### 127. How will the carbon price paid in a third country be discounted

from the CBAM?

- An authorised CBAM declarant should be allowed to claim a reduction in the number of
    CBAM certificates to be surrendered corresponding to the carbon price already effectively
    paid in the country of origin for the declared embedded emissions of CBAM goods.
- The CBAM Regulation defines a ‘carbon price’ fairly broadly, as the “monetary amount
    paid in a third country, under a carbon emissions reduction scheme, in the form of a tax, levy or fee or in the form of emission allowances under a greenhouse gas emissions trading system.

- Only the carbon price that has been “ _effectively paid_ in the country of origin” will count
    for a reduction of the number of CBAM certificates. Should the authorised CBAM
    declarant benefit from any rebate or other form of compensation, the benefit will be
    taken into account to establish the carbon price _effectively_ paid.
- The Commission will prepare, before the end of the transition period in 2025, an
    implementing act setting out additional details for the calculation of the carbon price
    effectively paid in the country of origin (see Article 9(4) of the CBAM Regulation).

#### 128. Will CBAM generate revenues and, if so, how will they be used?

- CBAM is not designed to generate budgetary revenues. Generally, the potential
    evolution of revenues will depend on the future level of the ETS carbon price, the
    embedded emissions in the imported CBAM products, and the carbon price effectively
    paid in third countries. Future CBAM revenues would however only represent an ancillary
    effect of the policy as the introduction of CBAM is expected to lead to a reduction in
    embedded CO2 emissions and will incentivize trading partners to consider the revenue
    generation dimension of domestic carbon pricing policies.
- Should, however, revenues be generated particularly in the first years following the
    introduction, they are set to become an own resource for the EU’s budget following the
    EU’s interinstitutional agreement LI 433/28.


