EU: New regulation for CBAM declarants

The European Commission has issued an implementing regulation outlining the conditions and procedures concerning the status of an authorised CBAM (Carbon Border Adjustment Mechanism) declarant. This regulation provides detailed clarification and operational guidance for the implementation of Regulation (EU) 2023/956.

Regulation (EU) 2023/956 establishes the framework governing the submission of applications to become authorised CBAM declarants and specifies the associated criteria and procedural requirements for granting such authorisation. Importers must submit an application in order to lawfully import goods listed in Annex I of Regulation (EU) 2023/956 into the customs territory of the European Union.

To obtain this authorisation, an applicant is required to submit the application prior to the initial importation of relevant goods. The application must be lodged with the competent authority of the Member State in which the applicant is established, using the standardised format available through the CBAM registry.

In order to ensure that only legitimate and trustworthy importers are granted CBAM declarant status, the competent authorities are required to verify that applicants have not committed serious or repeated breaches of applicable legislation within a reasonable period prior to the application, nor have been involved in economic criminal activities within the five years preceding submission. Additionally, applicants must demonstrate a satisfactory financial rating.

For applicants that have not operated as a legal entity during the two financial years immediately preceding the application year, the competent authority is obliged to request a financial guarantee as part of the assessment process.

This regulation is scheduled to take effect on 28 March 2025. Its timing is intended to facilitate the efficient authorisation of CBAM declarants in tandem with the ongoing development of the CBAM registry’s IT infrastructure, which is expected to be fully operational by 1 January 2026.