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In brief

The EU Carbon Border Adjustment Mechanism (CBAM) Regulation entered into force on 17 May 2023 and will take effect from 1 October this year with a transitional phase that lasts until the end of 2025.

In preparation for its introduction, on 13 June 2023, the European Commission published a first call for feedback on the rules governing the implementation of the CBAM during its transitional phase.

In view of the limited time available for third-country operators to prepare to meet their compliance obligations, the draft Implementing Regulation details the reporting obligations and information sought from EU importers of goods within the scope of the CBAM, as well as the provisional methodology for calculating embedded emissions released during the production process of such goods.

The draft of the Implementing Regulation includes temporary derogations to the calculation methods for reporting embedded emissions, which allow importers to use different calculation methods. The establishment of a CBAM Transitional Registry is anticipated, providing an electronic database for collecting information reported during the transitional period. The draft Regulation also provides further clarification on the data to be included in CBAM reports, additional topics related to customs assessments and applicable penalties for failing to submit CBAM reports (or submitting incorrect reports).

The EU Commission has opened a public consultation process in which stakeholders will be able to provide feedback on the measures proposed in the draft Implementing Regulation until 11 July 2023.

It is expected that the EU Commission will formally adopt the Implementing Regulation later this summer after a vote in the CBAM Committee, composed of representatives from the EU Member States.

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Oliver Pendred is a partner in Baker McKenzie's tax practice in London. He is a chartered accountant and chartered tax adviser providing corporate and international tax advice to multinational clients. Prior to joining Baker McKenzie, he was a director at a Big Four accounting firm.


Ana Royuela is a partner in Baker McKenzie’s Tax Practice Group in Barcelona. She regularly handles complex tax matters, as well as tax controversies and litigation. Ms. Royuela has spoken at local and international conferences and client seminars on topics related to her field. She has contributed articles on indirect taxation and tax proceedings to various economic journals, including BNA International Indirect Taxes Journal and lectured on public tax administration. She joined the Firm in 1999.


Albert Arenas is an Associate in Baker McKenzie, Barcelona office.

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