Carbon Border Adjustment Mechanism(CBAM)Questions and AnswersLast updated on 19 July 2024.Document last updated on 19 July 2024:Overview of Changes(compared to version from28 February 2024)Answers updated16,18,19,26,27,35,38,48,56,60,74,87,96,99,104,106,110,114,121,123Questions added24,30,34,65,72,103,109,116,125OutlineGeneral......71.Why is the EU putting in place a Carbon Border Adjustment Mechanism?...............................7.2.What is the current stage of implementation of CBAM?.............................3.How does the CBAMwork?.84.How does CBAM interact with the EU Emissions Trading System (ETS)?............................85.How is the CBAM compatible with other ETS systems outside the EU?............................96.Which sectors does the new mechanism cover and why were they chosen?..............................97.To which goods does the CBAM Regulation apply?...108.How will the CBAM tackle carbon leakage of finished or semi-finished products?...............109.Does the CBAM apply to 'second hand'goods?.................10.Does the CBAMapplyto returned goods?1o11.Does the CBAM apply to packaging?.1112.Does the CBAMapply to military goods?..1113.Does the CBAM apply to goods produced in EU outermost regions,such as Mayotte or LaReunion?..14.Which third countries fall under the scope of the CBAM?.115.Do l need to report the import of CBAM goods originating from the UK?...............................1.216.What happens during the transitional period?[updated 19/07].......................................1.217.Are there penalties for non-compliance with the CBAM Regulation?...................................1318.Where can I find detailed information on how to carry out the reporting of embeddedemissions??[updated19/07刃…19.Is it mandatory to use the communication template Excel file?[updated 19/07].....................1320.Who is liable in cases where incorrect or insufficient information is submitted?......................1.4121.Who can I contact if I have further,more specific questions?...............1.4Reporting:general issues...............1422.Who is responsible for the reporting?.................23.Can an importer have several indirect customs representatives,and vice versa?.....................1524.What is an EORI number and what is the role of EORI numbers for the CBAM reporting?[added19/07刃1525.Will companies be allowed to report at centralised level if subsidiaries in the different MemberStates have different Economic Operators Registration and Identification(EORI)numbers?...........1626.What are the reporting obligations?By when do I need to submit a report?[updated 19/07]1627.I was unable to submit the first CBAM report within the submission deadline due to technicalerrors.What should I do?[updated 19/7]..1728.I failed to submit a CBAM report within the submission deadline.What will happen now?.....1829.I import very small quantities of CBAM goods.Do these products fall within the scope of theCBAM Regulation?…30.What is considered a 'consignment'?[added 19/07]..........1931.I am a natural person and have purchased a CBAM good online for my personal use.I laterrealised that the good was imported into the EU.Do I need to comply with the CBAM reporting32.I have not imported CBAM goods during a given reporting quarter.Must I submit a CBAM33.Is it mandatory to report the associated operators/installations of the CBAM goods declared?2034.What should I do if the operator who produced the goods is no longer in existence at the timeReporting:responsibilities and procedures.......135.What is the role of the European Commission during the transitional period?[updated 19/07]2136.What is a national competent authority (NCA)?.............2137.Do importers of CBAM goods need to be 'authorised'in order to import CBAM goods during38.Are there verification obligations during the transitional period?[updated 19/07]................2239.Which embedded emissions need to be reported by each CBAM sector?...............................2240.What information should reporting declarants request from producers in third countries toensure they can submit the quarterly CBAM report?.......................2341.What documents in original shall be provided in the quarterly CBAM report?.........................232