The new CBAM obligations for importers
As from this week (1st October 2023) we have seen the start of the first reporting period of the new obligation for importers under the Carbon Border Adjustment Mechanism (CBAM). This would affect importers of cement, fertilizers, aluminium, iron, steel, hydrogen and electricity.
Importers of these goods are at first required to submit a report to the Customs authorities, during a transitional phase which sees no financial obligations. This report is to be submitted on a quarterly basis, and should include information on the quantity of the imported goods, direct and indirect emissions from those goods, and related carbon costs due in the country of origin taking into account any rebate or other form of compensation available.
A report for a quarter of a calendar year shall be submitted no later than one month after the end of that quarter. However, from 1st January 2026, these importers will have to start paying for CBAM certificates which they will have to surrender according to the level of embedded carbon in the products they imported in the reporting period.
Such certificates will have to be bought and the cost for such certificates will be established by the EU. The system will eventually be extended to other products after the new system and its global impacts are assessed.
The Malta Resources Authority (MRA) is the local competent authority for the Carbon Border Adjustment Mechanism (CBAM). The MRA may be contacted for more information at: cbam@mra.org.mt.
It is recommended that importers of these goods consult their professional advisors to avoid any penalties for defaulting.
If you require further guidance or details in relation to this process, please do not hesitate to contact us so that we may assist you.
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Paul Giglio Tax & Assurance Partner - Birkirkara
