Carbon Border Adjustment Mechanism(CBAM)Questions and AnswersLast updated on 31 January 20241.OutlineGenera1.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 CBAM work?...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.Does the CBAM apply to 'second hand'goods?.................109.Does the CBAM apply to returned goods'?.1010.How will the CBAM tackle carbon leakage of finished or semi-finished products?...................1011.Does the CBAM apply to packaging?....1112.Does the CBAM apply to goods produced in EU outermost regions,such as Mayotte or LaReunion?.....13.Which third countries fall under the scope of the CBAM?............................1.114.Do I need to report the import of CBAM goods originating from the UK?...............................1115.What happens during the transitional period?.1.116.Are there penalties for non-compliance with the CBAM Regulation?...................................1217.Where can I find detailed information on how to carry out the reporting of embedded18.Is it mandatory to use the communication template Excel file?..............................1.219.Who is liable in cases where incorrect or insufficient information is submitted?......................1320.I am an importer based in Switzerland,or in the EEA(Norway,Iceland,Liechtenstein).How can21.Who can I contact if I have further,more specific questions?....................................131 Compared to the previous version,the main changes concern questions 11,12,20,24,26,28,30,50,86,88,89,and 109.1Reporting:general issues..22.Who is responsible for the reporting?..........23.Can an importer have several indirect customs representatives,and vice-versa?....................1424.Will companies be allowed to report at centralised level if subsidiaries in the different MemberStates have different Economic Operators Registration and ldentification(EORI)numbers?...........1425.What are the reporting obligations?By when do I need to submit a report?.........................1526.I was unable to submit the first CBAM report within the submission deadline due to technical27.I import very small quantities of CBAM goods.Do these products fall within the scope of the28.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 reporting29.I have not imported CBAM goods during a given reporting quarter.Must I submit a CBAM1730.Is it mandatory to report the associated operators/installations of the CBAM goods declared?17Reporting:responsibilities and procedures..31.What is the role of the European Commission during the transitional period?......................1732.What is a national competent authority (NCA)?........1833.Do importers of CBAM goods need to be 'authorised'in order to import CBAM goods duringthe transitional period?..........34.Are there verification obligations during the transitional period?.1835.Which embedded emissions need to be reported by each CBAM sector?...........................1836.What information should reporting declarants request from producers in third countries toensure they can submit the quarterly CBAM report?.........37.What documents in original shall be provided in the quarterly CBAM report?.....................2038.I am both an importer and an indirect customs representative filing CBAM reports for anotherimporter.Do I file a single CBAM report or two separate CBAM reports?.............................2039.What is the effective'carbon price'due that I need to report on?...........................................2o40.Who will check the accuracy of submitted data and reports?.........................2o41.Is it possible to correct a CBAM report that has already been submitted?....142.Should the report be in English only or is it possible to report in other languages?..................21Reporting:CBAM Transitional Registry.................2143.What is the CBAM Transitional Registry?.........................44.What will the CBAM Transitional Registry be used for?.......................................212