Commercial Information Circular

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref. : S/F (C) to EIC 230/2/11

18 September 2023

Dear Sirs,

Commercial Information Circular No. 646/2023

European Union (EU)* : Reporting obligations for the Carbon Border Adjustment Mechanism during the transitional period

Further to the Commercial Information Circular No. 339/2023 of 16 May 2023, the European Commission published an Implementing Regulation (EU) 2023/1773 which lays down the rules for the application of the Carbon Border Adjustment Mechanism (CBAM) as regards reporting obligations during the transitional period from 1 October 2023 until 31 December 2025. The Implementing Regulation is available at: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:JOL_2023_228_R_0006.

2.In gist, importers of goods covered by CBAM or their customs representatives in the EU are obliged to report the information listed in Annex I of this Implementing Regulation, which includes, among others, quantity, type, country of origin, production installation and routes, as well as specific embedded direct and indirect emissions of the goods. The amount of the specific embedded direct and indirect emissions shall be determined in accordance with the methodology set out in Annex III of this Implementing Regulation.

3.For each quarter from 1 October 2023 until 31 December 2025, the reporting declarant shall submit the CBAM reports to the CBAM Transitional Registry (which is an electronic database) no later than one month after the end of that quarter (i.e. the first report will have to be submitted by 31 January 2024). In cases where the reporting declarant has not taken the necessary steps to comply fully with the reporting obligations, penalties shall be applied in the range between EUR 10 and EUR 50 per tonne of unreported emissions (which shall increase in accordance with the European index of consumer prices). This Implementing Regulation entered into force on 16 September 2023.

4.For enquiries concerning the content of this circular, please contact the undersigned at 2398 5684.

Yours faithfully,

(Miss Tracy MAK)
for Director-General of Trade and Industry

* The EU comprises of 27 member countries, namely, Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.