CBAM (Carbon Border Adjustment Mechanism) is a new EU measure in effect since 1 October 2023. Its purpose is to impose an emission charge on selected goods imported from outside the European Union whose production involves high CO₂ emissions. CBAM aims to create a level playing field between EU producers and importers from countries not covered by the EU ETS system.
What is the CBAM mechanism?
CBAM is part of the EU’s climate policy and seeks to prevent so-called carbon leakage. It aligns the CO₂ emission costs borne by EU producers with those of imported goods whose production is not subject to equivalent climate regulations.
The mechanism is being implemented gradually. From 1 October 2023, a transitional period began and will last until the end of 2025. During this period, importers are not yet required to purchase CBAM certificates but must report the embedded emissions in imported products.
Which goods are covered by CBAM?
CBAM applies to six categories of high-emission goods listed in Annex I to the CBAM Regulation:
The list is based on the customs classification of goods. Accurate classification in the Combined Nomenclature (CN) and linking it to greenhouse gas emissions are essential for correctly identifying the scope of obligations under the new carbon border tax.
Additionally, certain non-EU countries are exempt from CBAM, making the determination of customs origin particularly important for proper implementation of the adjustment mechanism.
Who is affected by CBAM?
CBAM obligations apply to all importers – both those importing goods for their own use and businesses placing goods on the EU market for further distribution or processing. Importers must register in the CBAM system maintained by the European Commission and hold an account to manage CO₂ emissions reporting.
For non-EU importers, these obligations are assumed by indirect customs representatives, provided they agree to undertake them.
What obligations apply to importers of CBAM-covered goods?
Importers of goods subject to CBAM must fulfil several requirements to ensure compliance with EU regulations.
During the transitional period (until 31 December 2025), importers’ obligations are limited to quarterly reporting.
Each importer of CBAM-covered goods must submit a quarterly report to the European Commission containing information on the imported goods, including:
How can we assist?
We offer comprehensive advisory services covering CBAM compliance, integrated with customs, VAT, and excise duty advice. Our support includes:
CBAM obligations identification
CBAM obligations identification
• Verification of goods and transactions/movements covered by CBAM
• Accurate customs classification (CN) and determination of customs origin, including verification
• Accurate customs classification (CN) and determination of customs origin, including verification
CBAM procedures implementation
CBAM procedures implementation
• Development of internal CBAM instructions
• Assistance in preparing for registration in the CBAM system
• Assistance in preparing for registration in the CBAM system
Communication and representation
Communication and representation
• Assistance in liaising with customs agencies and representatives
• Representation before tax and customs authorities
• Representation before tax and customs authorities
Reporting support
Reporting support
• Preparation for registration in the CBAM transitional register
• Analysis of supplier data and information for CBAM reporting suitability
• Support in preparing quarterly CBAM reports
• Analysis of supplier data and information for CBAM reporting suitability
• Support in preparing quarterly CBAM reports
Ongoing advisory
Ongoing advisory
• Review and renegotiation of commercial contracts in the context of CBAM
• Drafting standard clauses for contracts/orders reflecting CBAM compliance requirements
• Customs and tax advisory related to cross-border movement of goods into the EU
• Drafting standard clauses for contracts/orders reflecting CBAM compliance requirements
• Customs and tax advisory related to cross-border movement of goods into the EU
Feel free to contact us
Tomasz Michalik
Partner | Tax adviser | Head of the VAT Practice E: tomasz.michalik@mddp.pl T: (+48) 501 733 720
Katarzyna Trzaska-Matusiak
Manager | Tax adviser E: katarzyna.trzaska-matusiak@mddp.pl T: (+48) 510 085 090