Carbon Border Adjustment Mechanism: Companies granted a 30-day extension for report submission.

Technical difficulties have prevented some companies from submitting data and reports related to the EU’s Carbon Border Adjustment Mechanism (CBAM) and the Import Control System 2 (ICS2).

This is due to an incident involving a technical component affecting multiple EU customs systems, including the ICS2, and the operation of the CBAM registry. In order to provide a proactive approach to assist companies that have encountered issues, the Commission has put in place solutions to report declarants.

To facilitate reporting for declarants who may have encountered difficulties in reporting and who have not yet submitted their quarterly CBAM report, or will not be able to submit it by the January 31, 2024 deadline, a new functionality will be made available from February 1st in the transitional registry, allowing them to “request a deferred submission”, with an additional 30-day period to submit their CBAM report.

In accordance with the guidance provided to the competent national authorities (CNAs), no penalties will be imposed on declarants who have had difficulties submitting their first CBAM report.

The late submission of a CBAM report due to system errors would, by definition, be considered justified as long as the submission occurs promptly once the technical errors are overcome. In any case, CNAs will not impose penalties before the opening of a correction procedure, which will allow declarants to provide justifications and correct any potential inaccuracies in their CBAM report.

Declarants who do not encounter any major technical problems are still encouraged to submit their CBAM report before the end of the reference period. In accordance with Implementing Regulation 2023/1773 governing the transitional period, they can subsequently modify and correct their first three CBAM reports until 31 July 2024.

While the system has functioned well in the preceding days with data and numerous reports submitted successfully, technical teams are working 24/7 to resolve the remaining issues.

Find out everything about the CBAM on the Ministry of Ecological Transition website.

Source: European Commission