CBAM Exemption for Most Importers Gets Final EU Approval
The Council of the European Union on Sept. 29 adopted a revised carbon border adjustment mechanism that's expected to exempt 90% of European importers from the new rules, representing the final hurdle before the rules can take effect.
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The change, first unveiled by the European Commission in a May proposal (see 2505230008 and 2506180053) and approved by the European Parliament earlier this month (see 2509100057), "seeks to provide simplification and cost-efficient compliance improvements to the CBAM," the council said. The exemption excludes companies that import small quantities of goods covered by the carbon tax -- less than 50 metric tons of those goods per year.
Beginning in 2026, importers of CBAM goods will also be allowed to enter their products "under several conditions" while awaiting registration under CBAM. Other measures in the package include simplifying "the authorisation procedure, the data collection processes, the calculation of emissions, verification rules, and the financial liability calculation of authorised CBAM declarants," the council said. The regulation also adjusts penalties and rules "regarding indirect customs representatives."
The rules will be published in the EU’s official journal in the coming days and will take effect three days after publication, the council said. Traders must pay taxes beginning in 2026 (see 2310020037 and 2410170036).