CBAM: Customs (& Agents) Consideration

Navigating CBAM Reporting and Customs Representation: Key Insights

The Carbon Border Adjustment Mechanism (CBAM) introduces new regulations that impact customs declarations and reporting. Here’s what you need to know about using different customs representatives and managing your CBAM obligations.

• Can Importers Use Different Representatives for Customs and CBAM Reporting?

• Transitional Period Restrictions on Indirect Representatives

• Indirect Customs Representatives and Reporting Agreements

• Direct Customs Representatives and CBAM Reporting

• Handling Multiple Imports Across EU Member States

• EORI Numbers and National Competent Authorities (NCA)

• Reporting Requirements for Transiting Goods and Customs Procedures

• Inward Processing Regime and Tariff Suspensions

• Handling Reporting for Partial Goods

• EIDR Authorization and Reporting Refusal

Can Importers Use Different Representatives for Customs and CBAM Reporting?

Under the CBAM Regulation (Article 5), importers can appoint different representatives for customs declarations and CBAM reporting during the transitional period. An EU-established importer using a direct customs representative remains liable for CBAM obligations, while the direct representative handles customs declarations. Alternatively, if an importer appoints an indirect customs representative, that representative can assume the reporting obligations, provided they agree. However, for importers outside the EU, the indirect representative is responsible for both customs and CBAM reporting.

Transitional Period Restrictions on Indirect Representatives

During the transitional period, importers cannot use multiple indirect customs representatives for the same customs declaration of CBAM goods. An importer based in the EU can employ a direct representative for customs duties and hire a separate service provider for CBAM reporting. This service provider would use the importer’s EORI number to access the CBAM Transitional Registry. Despite this, the importer remains legally responsible for all CBAM obligations.

Indirect Customs Representatives and Reporting Agreements

If an indirect customs representative declines to handle CBAM reporting, they must notify the importer of their obligation to comply. Importers must then take on the reporting responsibility themselves. A notification template is available for indirect representatives to communicate their decision and inform importers about their reporting duties.

Direct Customs Representatives and CBAM Reporting

Even if an EU importer uses a direct customs representative, the importer retains ultimate responsibility for CBAM reporting. Direct representatives can assist in the customs process but cannot shift the reporting obligations entirely. Importers can also engage service providers to prepare and submit CBAM reports, but the responsibility for compliance remains with the importer.

Handling Multiple Imports Across EU Member States

For a company registered in one EU Member State but importing CBAM goods through multiple states, a single quarterly report should be compiled. The report must cover all imports and embedded emissions across Member States under one EORI number. Indirect customs representatives involved must provide their EORI number and assume CBAM reporting obligations if agreed.

EORI Numbers and National Competent Authorities (NCA)

A company with an entity in an EU Member State that qualifies as a 'person' will receive a separate EORI number for that entity. Different NCAs may then be responsible for the parent company and its subsidiaries based on their respective EORI numbers.

Reporting Requirements for Transiting Goods and Customs Procedures

Goods in transit or under temporary admission do not fall under CBAM obligations. CBAM applies only to goods released for free circulation in the EU. In cases of non-compliance with customs procedures, such as temporary admission, Article 198 of the Union Customs Code (UCC) may apply, leading to potential confiscation or warehousing of goods.

Inward Processing Regime and Tariff Suspensions

CBAM obligations apply when CBAM goods are released for free circulation, not during inward processing. If processed goods are released onto the EU market, CBAM reporting is required. Tariff suspensions do not exempt goods from CBAM reporting requirements; the obligations remain irrespective of any tariff relief.

Handling Reporting for Partial Goods

Indirect customs representatives who agree to report for some goods but not others must submit separate customs declarations for each category of goods. This ensures accurate reporting and compliance with CBAM regulations.

EIDR Authorization and Reporting Refusal

Individuals with an “Entry into the Declarants Records” (EIDR) authorization can refuse to act as CBAM reporting declarants if they choose. The provisions of Article 8(3) of the Implementing Regulation apply, allowing such refusal.

For comprehensive guidance, consult the European Commission’s CBAM webpage and engage with your National Competent Authority to ensure compliance with all reporting and customs obligations.