Starting October 1, 2023, the EU Carbon Border Adjustment Mechanism (CBAM) applies to import of product groups to the EU from non-EU countries (including the Middle East). Many producers in the Middle East, primarily in aluminum, fertilizer and steel industries, are impacted by EU CBAM starting October 1.
- In the CBAM transitional period starting October 1, 2023, there are requirements for quarterly reporting of embedded greenhouse gas (GHG) emissions of products imported to the EU, with the first reporting to be submitted by January 31, 2024.
- While the report would be submitted by the importer or indirect customs representative, the data for reporting should be provided by the non-EU producers in a specified form. In case of failure to report correctly, penalties would apply even during the transitional period.