Key information for importers: CBAM registration

21 December 2023

Do you recognise CBAM (abbreviation for Carbon Border Adjustment Mechanism) or is it an entirely new term to you? It is at least fair to ask whether it has affected you or will affect you. Ritra Cargo recently participated in a Webinar on this subject. We’d like to bring you up to speed on the ins and outs of CBAM goods: products that release relative high levels of CO2 during manufacture.

Is CBAM something you (will) have to deal with?

CBAM stands for Carbon Border Adjustment Mechanism. In other words: the mechanism for carbon border correction. CBAM applies to businesses that produce goods which release relatively high levels of CO2 during production. Dutch Customs and the NEa (Dutch Emissions Authority) have been appointed by the European Commission as regulators.

Customs has clearly informed the businesses concerned in previous statements. If you as a business (will) have to deal with CBAM, then we have almost certainly already approached you by way of a letter. Are you unsure whether you ship CBAM goods? Then contact Customs.

For the record, we’ve listed the raw materials for you below:

• Cement
• Artificial fertilizer
• (Cast) iron and steel
• Electricity
• Aluminium
• Hydrogen

This and other information can of course also be found on the Customs website.

What should you do if you ship CBAM goods?

The CBAM is part of the European Union’s ‘Green Deal’ and relates to the import of emissions-intensive goods produced outside the European Union. And that’s quite complicated, which is why you need some time to adjust. Until December 2025, thankfully. A transition period applies from October 2023 to 1 January 2026.

During this period, the European Commission is only asking businesses to submit quarterly reports, giving the commission a better understanding of your data. Only from 2026 will you as an importer have to purchase CO2 certificates for these goods and will you be required to meet certain obligations.

Schedules of the Transitional Period (Source: Webinar and presentation of the Dutch Customs and the NEa).

What is the purpose?

As indicated earlier, CBAM is a European Commission initiative. It is part of the ‘Fit for 55’ package and the ‘Green Deal’. The border duty is designed to ensure businesses become more aware and embrace more sustainable production methods. And if that does not work, they then will have to pay compensation via emission rights. The ultimate goal is reduce CO2 emissions by 55% by 2030.

It is important to be aware that the responsibility is on you as a shipper, business or importer to ensure correct administration of the scheme.

Would you like to find out more about CBAM?

For further information on this, we recommend you contact Customs. You can also find a great deal of information on the Customs website under FAQs. The webinar we participated in was organised by Customs and the NEa. Watch or download the webinar here.