CBAM Definitive RegimeNow in Effect
The definitive regime is now active as of January 1, 2026. Financial obligations through CBAM certificate purchases are mandatory. Ensure full compliance with quarterly reporting and annual declaration requirements to avoid penalties.
CBAM Reporting
Carbon Border Adjustment Mechanism compliance
What is CBAM?
The Carbon Border Adjustment Mechanism (CBAM) is the EU's tool to put a fair price on carbon emitted during the production of carbon‑intensive goods entering the EU and to encourage cleaner industrial production in non‑EU countries.
The transitional phase (October 2023 - December 31, 2025) has concluded. As of January 1, 2026, the definitive regime is in effect with mandatory financial obligations through the purchase of CBAM certificates. All importers must now comply with quarterly reporting and annual declaration requirements to avoid penalties.
Covered Sectors:
- Cement
- Iron and Steel
- Aluminium
- Fertilisers
- Electricity
- Hydrogen
CBAM Reporting Example: Steel Imports
A concrete scenario demonstrating the financial impact and compliance requirements under the definitive regime
Scenario
A German automotive manufacturer imports 500 tonnes of hot-rolled steel from Turkey monthly for vehicle production.
Requirements Under the Definitive Regime (Jan 2026)
Embedded Emissions Declaration
Report actual CO₂ emissions from the Turkish steel mill (e.g., 1.8 tonnes CO₂/tonne steel = 900 tonnes CO₂/month)
Purchase CBAM Certificates
Buy certificates matching the embedded emissions at the EU ETS carbon price (~€70-90/tonne CO₂)
Deduct Foreign Carbon Costs
If Turkey had a carbon tax, that amount is subtracted from certificates owed
Financial Impact
Business Incentive
This cost structure incentivizes the importer to either:
- Source from lower-carbon suppliers with cleaner production methods to reduce certificate costs
- Shift to EU-based steel producers already paying the ETS price, avoiding CBAM costs entirely
- Work with suppliers to implement lower-carbon production processes and reduce emissions
Our CBAM Reporting Capabilities
Comprehensive support for all aspects of CBAM compliance
Quarterly Reporting
Automated collection and submission of embedded emissions data for all your CBAM‑covered imports
Emissions Tracking
Monitor direct and indirect emissions with integration to your customs declaration data
Compliance Support
Ongoing support for the definitive CBAM regime with forecasting and certificate requirement analysis
CBAM Compliance Assessment
The definitive regime is now in effect. Get your comprehensive Health Check to ensure full compliance with all CBAM requirements. Identify gaps, mitigate risks, and maintain ongoing compliance.
Comprehensive Assessment
Evaluate your current CBAM compliance status across all affected product categories. Identify gaps in emissions data collection, supplier engagement, and reporting processes.
Risk Identification
Pinpoint potential compliance risks and financial exposure from missing or inaccurate emissions data. Receive prioritized recommendations to address critical gaps.
Actionable Roadmap
Get a clear, step-by-step implementation plan tailored to your business. Maintain full compliance with the definitive regime requirements with confidence and clarity.
Cost Optimization
Forecast potential CBAM certificate costs and identify opportunities to reduce financial impact through improved data quality and supplier collaboration.
What's Included in Your Health Check:
Typical turnaround: 5-7 business days
Why Choose MyCustomsInfo® for CBAM?
- Integrated with Customs Data: CBAM reporting directly linked to your import declarations for seamless compliance
- Default Value Support: Automatic application of EU default emissions values when supplier data is unavailable
- Quarterly Deadline Management: Never miss a reporting deadline with automated reminders and submission tracking
- Audit Trail: Complete documentation and data retention for customs authority verification
Our CBAM Process
CBAM Implementation Timeline
We are here: Definitive Regime Active as of January 1, 2026
October 2023 - December 31, 2025: Transitional Phase (COMPLETED)
Quarterly reporting obligation only. No financial obligations. Focus on data collection and process establishment. This phase has concluded.
January 1, 2026 onwards: Definitive Regime (NOW ACTIVE)
Importers must surrender CBAM certificates equivalent to embedded emissions. Annual declarations required. Financial obligations are now mandatory. Penalties apply for non-compliance.
2026-2034: Phase‑in Period
Gradual phase‑out of free EU ETS allowances, with full CBAM obligations reached by 2034.
Ensure Full CBAM Compliance
The definitive regime is now in effect. Financial obligations through CBAM certificate purchases are mandatory. Get your compliance assessment to maintain full adherence to all requirements.
Standard turnaround: 5-7 business days. Contact us for comprehensive compliance support and ongoing assistance with CBAM requirements.