Technical issues prompt EU CBAM reporting extension

1st February 2024

Technical issues have forced the European Commission to grant a one-month extension to its first Carbon Border Adjustment Mechanism (CBAM) reporting period.

Steel market participants are among those who will be granted extra time if they encounter the issue, which is affecting several EU customs systems, including the CBAM Transitional Registry and Import Control System 2 (ICS2).

MEPS market analyst Jonathan Carruthers-Green suggested that the extension could be open to “misuse”, however.

Reporting declarants – individuals responsible for reporting the embedded carbon emissions of goods imported into the EU – were due to submit their reports, covering the October 1 to December 31 period, by January 31.

After being made aware that many had been unable to complete the process due to software issues, the Commission said that it was now offering “a proactive approach to help businesses who have experienced problems”.

The Commission said that technical teams were “working around the clock” to rectify the issues. It also announced the additional 30 days for individuals encountering difficulties submitting their CBAM report.

MEPS market analyst Jonathan Carruthers-Green said: “To be eligible for the 30-day extension, declarants must confirm they have encountered technical issues when submitting their reports. This process involves accessing a new feature on the Transition Registry called ‘request delayed submission’.

“By accessing this feature declarants can avoid any penalties associated with late submission.”

The Commission confirmed that no penalties will be imposed on reporting declarants who have experienced difficulties in submitting their first CBAM report.

However, reporting declarants who do not encounter any major technical issue are still encouraged to submit their CBAM report by the end of the reporting period.

Carruthers-Green suggested that the extension could be open to misuse. He said: “While designed for genuine cases, this could be misused by individuals making false claims of technical difficulties to gain an extension.”

MEPS International has previously produced a CBAM webinar answering frequently asked questions about the new emissions-based import regulations. The MEPS website also hosts an EU CBAM Q&A article, which was recently updated to include new guidance published by the Commission.

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