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CBAM could cost importers, warns Customs Support Group

[ April 2, 2026   //   ]

Customs Support Group is warning importers that they could incur additional costs as a result of THE EU’s Carbon Border Adjustment Mechanism (CBAM) which came into operation on 1 January. It has already led to significant challenges for importers of iron, steel, aluminium, cement and fertilisers.

Companies importing more than 50 tonnes of CBAM goods annually needed to apply for authorised CBAM declarant status by 31 March if they wish to continue importing into the EU.

Following a three-year transition period, during which companies were able to set up reporting structures and test notification processes, the reported emissions are now mandatorily allocated to the imported goods.

CSG has identified issues that can result in significant additional costs, compliance risks and extra administrative effort.

Many companies treat CBAM as a purely technical reporting task, while in reality it requires coordinated ownership across customs, procurement, sustainability and finance. Without clear responsibilities and integrated data flows, companies face inconsistent reporting, delays and increased risk of errors.

Correctly assigning customs tariff codes is crucial to determining whether CBAM obligations apply. Errors in classification lead to incorrect reporting, delays and additional effort and companies should regularly check and coordinate origin, classification and CBAM relevance.

Companies that have not yet submitted their application for authorised CBAM declarant status may experience delays, penalties, or even temporary inability to import CBAM goods.

CBAM will also now directly affect import costs through the purchase of certificates.

Incorrect or incomplete reports can result not only in rework and manual corrections, but also financial penalties aligned with EU ETS levels. Beyond fines, companies may face increased scrutiny, delays and ongoing administrative burdens.

CSG chief executive John Wegman said: “CBAM is not a theoretical reporting project, but an operational stress test for customs, supply chain and data processes. It is not the rules themselves, but their implementation that determines whether companies manage risks or incur unnecessary costs.”

CSG is offering regular free webinars on how to efficiently implement data structures, supply chain communication and CBAM reporting. Dates and topics are available at www.customssupport.com/resources/webinars.

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