CBAM Compliance: How to Become an Authorised Declarant
The European Commission has introduced Commission Implementing Regulation (EU) 2025/486 of 17 March 2025, laying down rules for the application of Regulation (EU) 2023/956 as regards the conditions and procedures related to the status of authorised CBAM declarants. This regulation is essential for importers intending to bring goods covered by the Carbon Border Adjustment Mechanism (CBAM) into the European Union (EU).
Understanding CBAM and the Need for Authorisation
CBAM is a policy aimed at ensuring that imported goods reflect the carbon emissions associated with their production. The objective is to prevent carbon leakage, ensuring that EU efforts to reduce greenhouse gas emissions are not undermined by the importation of carbon-intensive products. Starting from 1 January 2025, only entities that have been granted authorised CBAM declarant status—whether importers or indirect customs representatives—are permitted to import CBAM-covered goods into the EU.
Eligibility Criteria for Authorisation
To qualify for the authorised CBAM declarant status, applicants must meet the following criteria:
- Compliance Record: Demonstrated adherence to customs and tax regulations over the past five years, ensuring no serious or repeated infringements.
- Financial Stability: Proof of sufficient financial capacity to fulfil CBAM obligations, including the procurement of CBAM certificates.
Application Process
The application procedure involves several key steps:
- Submission of Application: Importers based in an EU Member State must submit their application to the competent national authority before importing CBAM-covered goods. If the importer is not based in the EU, an indirect customs representative must apply on their behalf.
- Required Information: The application must include essential details, including contact information, the nature of the business, and evidence of compliance with customs and tax regulations over the preceding five years.
- Assessment by Authorities: The competent national authority will evaluate the application, focusing on the applicant’s compliance history and financial stability.
Consequences of Non-Compliance
Failure to obtain authorised CBAM declarant status will prevent the importer from bringing CBAM-covered goods into the EU. Additionally, any serious or repeated non-compliance with CBAM reporting obligations can result in the revocation of the authorised status, effectively halting the importer’s operations concerning CBAM goods.
Entry into Force and Application
This Regulation enters into force the day after its publication in the Official Journal of the European Union and will apply from 28 March 2025. This transition period is designed to allow for the smooth authorisation of CBAM declarants in parallel with the development of the IT system for the CBAM registry, ensuring that the registry becomes fully operational by 1 January 2026. The Regulation is binding in its entirety and directly applicable in all Member States.
Source: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32025R0486&qid=1742283085853
Need Support with CBAM Compliance?
At Customs Support Group, we are equipped to help businesses navigate the complexities of CBAM compliance. Our expert team is ready to support you in all matters related to CBAM. Reach out to us today for assistance and ensure a smooth transition into the new regulatory framework. Contact us now for professional guidance and support!
