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CBAM Regulation Update: What Exporters Must Prepare Before 2026
2025-07-10
CBAM Knowledge
CBAM Regulation Update: What Exporters Must Prepare Before 2026
I. De Minimis Exemption for Low-Volume Imports

A 50-ton annual net mass threshold is set for four categories—steel, aluminum, fertilizer, and cement. Importers whose total annual imports stay within this limit are exempt from all CBAM obligations, including reporting and certificate purchases.
To ensure fairness, the European Commission will assess each year by April 30 that this exemption covers no more than 1% of total embedded emissions. If the new calculated threshold deviates from the current one by over 15 tons (e.g., 50 to 68 tons), it will be adjusted through delegated legislation. To prevent circumvention, all CN-coded goods' weights are totaled—splitting shipments does not avoid compliance.
Electricity and hydrogen are excluded due to their distinct trade and emission characteristics. If a customs agent agrees to assume CBAM responsibility, their imports are counted under the principal importer’s volume.
If an unauthorized importer exceeds the threshold, penalties are based on the total annual embedded emissions calculated using default values. After paying the fine, further declarations may be waived. A 10% tolerance is allowed—if excess is within 5 tons (i.e., total ≤55 tons), a fine reduction can be requested.

II. Streamlined Reporting and Emissions Accounting

The annual reporting deadline is extended from May 31 to September 30, starting with 2027 for 2026 data. Authorized declarants can delegate submissions to EU entities with EORI numbers, while retaining legal responsibility.
In cases where emissions data from the country of origin is unreliable, the default value will now be based on the average intensity of the top 10 highest-emitting countries—replacing the previous single-country reference. Companies can submit proof to apply for lower regional values (e.g., renewable energy use). If default values are used, no third-party verification is required.

Key adjustments to emission accounting
III. Anti-Circumvention Measures and Oversight Reinforcement

To combat avoidance, authorities may invalidate "non-genuine arrangements," such as the same group using multiple importers to split orders or short-term supply chain shifts without valid commercial reasons. Such behavior is classified as a serious violation, subject to high fines or loss of CBAM authorization.
Customs will share data—including EORI numbers, product weight, and origin—with regulators in real time. Alerts are triggered when import volumes reach 90% of the threshold (i.e., 45 tons).
Only verifiers authorized by national accreditation bodies (NABs) may access the CBAM registry. If errors by verifiers cause reporting inconsistencies, they will bear joint liability with the declarant.

Conclusion

This revision aims to ease administrative burdens while upholding environmental targets. Key preparation areas for businesses include: cost analysis, pre-verification planning, annual tracking, contract review, and transitional authorization applications—especially ahead of the 2026 enforcement.

Note

The proposal requires formal approval from the EU Council and Parliament, expected by September 2025. A provisional agreement was reached on June 18.
For final requirements, please refer to the official EU documents.

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