Carbon tax border adjustment mechanism

• Electricity (example: electrical energy)
• Cement (e.g. Portland cement, aluminous cement)
• Fertilisers (e.g. nitric acid, anhydrous ammonia, mineral fertilisers)
• Cast iron, iron and steel (e.g. iron or steel tubes, welded sections)
• Aluminium (example: aluminium bars, aluminium sheets, aluminium tanks)
• Chemicals (e.g. hydrogen)

Imports of processed products made from these goods are also subject to the MACF.

However, the following are excluded :

•  Imported goods of negligible value, in accordance with certain values specified by CBAM regulations ;
• Goods contained in the personal baggage of travellers from third countries, as long as they remain below the values specified by CBAM regulations ;
• Goods intended for military activities.

As a result, importing industrial companies will be forced to manage significant administrative burdens linked to their import declarations and the carbon content of the goods in question.

• Iceland
• Liechtenstein
• Norway
• Switzerland
• Büsingen
• Helgoland
• Livigno
• Ceuta
• Melilla

• From October 1st 2023 to December 31st 2025 – Transitional period : During this transitional period, the regulations provide for a reduction in the number of déclarations or ‘blank declaration’. Importers are mainely required to provide quarterly information on the goods imported and the associated carbin emission, via the ‘CBAM report’, on the dedicated European platform (Registre MACF). No financial contribution is due during this transitional period.
• January 1st 2026 – Final period: From this date, the European CBAM regulation became effective. Goods imported from this year onwards will have to be declared annually under the CBAM and accompanied by CBAM certificates.

• May 31st 2027: First full annual CBAM declaration, for the period from January 1st to December 31st 2026.

The CBAM regulations require operators and/or the CBAM registrant to:

• Produce a quarterly report during the transitional period, with no financial obligations for operators.
• To make an annual declaration for the so-called definitive period, due by May 31st of the year following that in which imports of goods subject to CBAM took place, from January 1st 2026. The annual declaration will be accompanied by a refund of CBAM certificates, purchased by operators and corresponding to the carbon emissions declared.

These two periods, which call for different obligations, must be anticipated and prepared for carefully in order to avoid the application of penalties for non-compliance in this area.

Fine for failure to surrender CBAM certificates :

With effect from the definitive period, authorised CBAM declarants will have to return the CBAM certificates corresponding to the intrinsic emissions of the goods they imported in respect of the previous calendar year by May 31st each year at the latest.
Any failure to comply with this obligation will result in a fine being imposed on the authorised CBAM declarant for each certificate not returned. This fine will increase in line with the European consumer price index.
Note that this fine does not suspend the return of certificates.

Non-compliance with CBAM obligations in connection with the introduction of goods

Any person other than an authorised CBAM declarant who introduces goods into the territory of the European Union without complying with the obligations of the European CBAM Regulation is liable to a fine of between three and five times the amount of the fine applicable for failure to return CBAM certificates.

In France, in the event of non-payment of the fine on the due date, the DGEC may recover it using any means provided for under national law.