Andersen´s VAT & Customs practice in Europe analyzed the impacts of the European Commission's Carbon Border Adjustment Mechanism (CBAM ) on EU imports.
The CBAM is a tax on carbon-intensive goods imported into the European Union from non-EU nations where carbon costs are lower or nonexistent, such as cement, iron, steel, aluminium, fertilizers, and electricity.
As of 2023, a mandatory reporting system will be in place with the aim of supporting a seamless implementation and simplifying communication with third countries. Importers will begin making the necessary financial adjustments (which will go toward supporting the EU budget) after a transitional phase, which is most likely starting in 2025.
Less than 3 months remain for companies to evaluate the effects and put measures in place to comply with the reporting requirements starting on January 1, 2023. Now is the moment to evaluate their supply chain and determine how CBAM may affect their imports.
