{{item.title}}
{{item.text}}
{{item.title}}
{{item.text}}
Oliver Hulliger
Director Customs & International Trade, PwC Switzerland
The European Commission recently adopted an additional regulation for CBAM, which clarifies the obligations and information sought from importers of CBAM goods.
On 17 August 2023, the European Commission adopted the Implementing Regulation for the Carbon Border Adjustment Mechanism (CBAM). The approved Implementing Regulation and accompanying guidance:
If you are active in the cement, iron, steel, aluminium, fertiliser, electricity or hydrogen industries (or in the value chain of these products), you should begin to assess how CBAM will impact you. Whilst you may not have a direct reporting obligation, you should expect to receive information requests from those impacted.
PwC will host a webcast on 4 September to further discuss how CBAM may impact you and your industry. We will release an invite for this event early next week on LinkedIn. Once available, please complete the registration form to receive an invitation to our webcast.
An important part of the ‘Fit for 55 package’ is the European Union CBAM. The CBAM is a levy on the importation of certain goods (cement, iron, steel, aluminium, fertiliser, electricity and hydrogen) as well as some precursors and a limited number of downstream products into the EU and is aimed at better reflecting the embedded carbon emissions resulting from the production of the goods alongside the EU ETS. We note that the government of Poland recently commenced procedures in the European Court of Justice to have CBAM annulled. Whilst this matter is still on-going, CBAM will (as it currently stands) still apply from 1 October 2023.
We are still in the process of analysing the newly approved Implementing Regulation (and its volume of accompanying guidance), however, we have identified some key themes:
The CBAM reporting obligation commences from 1 October 2023. Companies should therefore start assessing whether (and how) they are affected by the CBAM. In our experience, many companies will likely inadvertently fall within the scope of the CBAM, even though they would not immediately expect this considering the nature of their core business. For example, when production takes place in the EU, there could be a few imports per year of spare parts for machines that could trigger the CBAM obligations (financial, reporting or otherwise). It is our expectation that many importers and suppliers will need to urgently prepare in order to gather the information required to enable the CBAM reports to be prepared, especially once the default values concession ends on 31 July 2024.
#social#
Simeon L. Probst
Partner, Customs & International Trade, PwC Switzerland
Tel: +41 58 792 53 51
Oliver Hulliger
Director, Customs & International Trade, PwC Switzerland
Tel: +41 58 792 56 96