In latest CBAM news, the European Commission has acknowledged significant technical difficulties impacting businesses for the EU Carbon Border Adjustment Mechanism (CBAM) reporting. These issues stem from a technical malfunction affecting several EU customs systems, including ICS2 and the CBAM Registry.
To support declarants facing challenges in CBAM reporting, the Commission has introduced measures to facilitate the process. Starting from February 1, a new feature in the Transitional Registry will allow affected businesses to “request delayed submission”. This provision grants an additional 30 days for submitting their quarterly CBAM report.
The Commission has assured that no penalties will apply for those struggling to submit their first CBAM report. Delayed submissions will be justified as long as they are completed promptly after resolving the technical issues. Moreover, before any penalties, National Competent Authorities (NCAs) will offer a correction procedure. This will enable businesses to justify delays and rectify any inaccuracies in their reports.
Reporting declarants not severely affected by these technical issues must adhere to the original reporting deadlines. According to the CBAM Implementing Regulation, they can modify and correct their first three CBAM reports until July 31, 2024.
The Commission reports that the system has been functioning well recently with successful data and report submissions. Technical teams are working to resolve any lingering issues. This approach by the European Commission aims to mitigate the impact of these technical difficulties on businesses and ensure smooth compliance with the EU’s carbon reporting requirements.
Despite these challenges, our recommendation for exporters to the EU is to adhere to the original timeline, ensuring that they provide data for CBAM reporting to their EU declarants promptly.
