The Carbon Border Adjustment Mechanism (CBAM)

In this Newsletter:

• What is CBAM?
• How does CBAM affect my imports from outside the EU?
• What do you need to do now?
• HS codes affected
• What can we do for you?

More information

The Carbon Border Adjustment Mechanism (CBAM) came into EU law 10th May 2023, and since the 1st October 2023, Importer’s of certain products have to arrange quarterly reporting to the EU for carbon emissions on carbon intensive goods.

The aim of CBAM regulation (EU) 2023/956 is to put the EU in the forefront of global efforts to reduce carbon emissions in the fight to eliminate climate change. The EU has set a target to have a net reduction of greenhouse gas emissions of 55% by 2030 (in comparison to 1990 levels).

CBAM is applied to actual embedded emissions of imported goods into the EU, and is being phased in gradually to a select number of goods in the industries of iron/ steel, aluminium, cement, fertilisers, hydrogen and electricity generation.

The transitional period for quarterly reporting commenced 1st October 2023. The reporting stage is to facilitate communication between manufacturers outside of the EU, measuring the embedded emissions in their products and passing this

information on. Importers will start to pay the CBAM financial adjustment from 1st January 2026.

EU returned goods are not required to be reported in this transitional period.

The CBAM regulation applies to certain HS codes against the 6 industries mentioned above. More precise details can be found at Carbon Border Adjustment Mechanism - European Commission (europa.eu) or apply to us if you have a specific concern by email to info@hawthornlogistics.ie.

If your Company is affected by CBAM, you should be in contact with your suppliers to understand the level of embedded emissions per tonne of CO2e in the imported products, and make arrangements to register to complete the CBAM Transitional Registry.

What do you need to do now?

Don’t panic! If you have not already commenced with the CBAM transitional reporting process, your Company needs to assign someone this responsibility. At Hawthorn Logistics, we can offer support and guidance.

Here is a short summary of the affected HS codes.

Articles of Cement 2507, 2523

Fertilisers 2808, 2814, 2834, 3102, 3105

Electricity (electrical energy) 2716

Articles of Iron and Steel 2601 (iron ores) 7202, 7204, 7301—7311, 7318, 7326

Articles of Aluminium 7601, 7603—7614, 7616

Hydrogen 2804

What can we do for you?

Hawthorn can assist with quarterly reporting if required. Contact us at info@hawthornlogistics.ie for more information

More information:

Please visit https://hawthornlogistics.ie/compliance for updated Compliance information Also https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism

Hawthorn Logistics Solutions Ltd., Unit 1 Northwest Business Park, Ballycoolin, Dublin D15 NYH4, Ireland. Tel (01) 8991101. Email info@hawthornlogistics.ie