cbam declarant
The European Union (EU) has introduced the Carbon Border Adjustment Mechanism (CBAM) as part of its commitment to fighting climate change and ensuring sustainable practices. CBAM ensures that imported goods into the EU reflect the carbon emissions produced during their manufacturing process, levelling the playing field for environmental standards worldwide. As CBAM regulations take effect, businesses importing goods into the EU need to act promptly to achieve authorized CBAM declarant status. This status is vital for market access and legal compliance starting January 1, 2026.
Why Becoming an Authorized CBAM Declarant is Crucial
By 2026, only businesses with CBAM declarant authorization will be able to import CBAM-covered goods into the EU. Obtaining this status is essential for several reasons:
- Ensuring Legal Compliance: Businesses must meet the EU’s strict environmental rules to avoid legal issues and penalties.
- Maintaining Uninterrupted Market Access: Authorized CBAM declarants can continue importing regulated goods such as steel, aluminum, cement, and fertilizers without disruptions.
- Improving Brand Reputation: Demonstrating compliance with sustainability measures reflects positively on your brand and builds trust with customers.
Achieving authorized CBAM declarant status not only secures market access but also positions businesses as leaders in sustainability practices.
Steps to Becoming an Authorized CBAM Declarant
Becoming a CBAM (Carbon Border Adjustment Mechanism) declarant is crucial for businesses importing goods into the EU. Here’s a detailed guide to help you go through the process effectively.
- Submit an Application:
The application must be completed electronically via the CBAM registry. It should include company details, an EORI number, and estimated import volumes. If the applicant is based outside the EU, they must also provide their address in the third country and the Member State where they are submitting the application. - Application Processing:
The competent authority in the relevant Member State will assess the application within 120 calendar days. This period may be extended if additional information is required. The authority will check whether the applicant:- Has no serious or repeated infringements related to customs, taxation, or financial regulations in the past three to five years.
- Has sufficient financial standing to meet obligations.
- Maintains an administrative system capable of handling CBAM declarations and certificates.
- Compliance Checks and Additional Requests:
If necessary, the competent authority may request:- Adjustments to the submitted information.
- Supporting documents such as financial records or a criminal background check.
If an application does not meet the necessary conditions, it may be refused, and the applicant has the right to appeal.
- Authorisation and Monitoring:
Once approved, the declarant is assigned a CBAM account and authorisation status. The competent authority will periodically reassess compliance. If the declarant no longer meets the requirements, authorisation may be revoked, but obligations related to previously imported goods must still be fulfilled.
The Risks of Not Becoming Authorized
Failure to obtain authorised CBAM declarant status will prevent companies from importing CBAM-regulated goods into the EU, disrupting trade and causing a loss of market access.
Furthermore, repeated or serious non-compliance with CBAM reporting obligations can lead to the revocation of authorised status. This would completely halt operations related to CBAM-covered goods, resulting in significant financial setbacks.
Securing CBAM declarant status and maintaining compliance is essential to ensure uninterrupted access to the EU market and safeguard business operations. Prioritising adherence to these regulations supports long-term stability and competitiveness.
How Carbon Complete Can Help
At Carbon Complete, we specialize in guiding businesses through CBAM compliance, offering expertise in carbon reporting & training, reduction strategies, and international environmental standards. Our team provides the reporting and support needed to meet CBAM obligations while keeping operations running smoothly.
