This solution is due to technical problems with the associated registry
Companies that experience difficulties submitting their first Cross-Border Carbon Adjustment Mechanism (CBAM) report due to technical issues with the relevant registry will receive a one-month extension. It says about this in a communication from the European Commission.
Now, during the transitional phase, importers must submit declarations for the fourth quarter of 2023 by January 31, 2024.
Shortly before this period expired, the EC provided the opportunity to extend it. The corresponding request can be submitted through the CBAM Transitional Registration. To this end, from February 1st, a new function will be available in the registry that will allow you to request a 30-day delay in submitting the report.
The option is available if the report was not submitted before February 1 of the current year.
The EC's clarification is related to technical problems in submitting reports through the CBAM Transitional Registry. According to the institution, the incident affected several EU customs systems, in particular ICS2, and registration functions. On January 29th, access to the latter was limited due to technical work. The European Commission is working to resolve the problems.
As explained by the European Commission, in accordance with the instructions provided to competent national authorities, declarants who encounter difficulties in submitting their first CBAM report will not be subject to sanctions. Delays due to system errors will, by definition, be considered justifiable if shipping occurs promptly after issues have been resolved.
The EC recommends that declarants who have not experienced technical problems comply with the established deadlines. In accordance with the implementing regulations governing the transition period, they may subsequently amend and correct their first three CBAM reports until 31 July 2024.
However, notes Companies reporting CO2 IQ have difficulty registering, operating the system and entering data into the CBAM register, making it difficult to submit the necessary data in a timely manner. Therefore, in Germany, registration only became possible from mid-January. A preliminary statement from the German Emissions Trading Office (DEHSt), as the competent national authority, explains that delay in preparing the reports will not lead to sanctions or other adverse consequences in that country.
Let us remember that CBAM can radically change trade flows. In particular, the introduction of the mechanism has placed China, for which Europe is one of the main export markets, in a difficult position. Some European producers believe that CBAM could lead to higher costs that would harm the region's attractiveness.
