23 May 2025

EP ENDORSES CBAM SIMPLIFICATION PROPOSAL: CLECAT CONCERNS ON REPRESENTATION REMAIN

The European Parliament has voted in favour of the European Commission’s proposed simplifications to the EU Carbon Border Adjustment Mechanism (CBAM), part of the broader “Omnibus I” package presented in February 2025. The aim of the revisions is to streamline the CBAM process, particularly for small and medium-sized enterprises and occasional importers, reducing compliance burdens without undermining environmental goals.

MEPs adopted the Commission proposal with only minor technical amendments, confirming strong support for its core elements. A key feature of the adopted text is the introduction of a de minimis threshold of 50 tonnes, which is expected to exempt about 90% of importers, mostly SMEs and individuals, from CBAM obligations. Despite this broad exemption, the CBAM’s environmental impact is expected to remain intact, with the mechanism continuing to cover 99% of emissions from the import of key sectors such as iron, steel, aluminium, cement, and fertilisers.

The Parliament’s endorsement also covers procedural simplifications. These include a more streamlined authorisation process for CBAM declarants, improved emissions calculation methods, and clearer rules on financial liabilities, alongside strengthened anti-abuse provisions. Rapporteur Antonio Decaro underlined Parliament’s commitment to maintaining CBAM’s core objectives while offering legal clarity and operational simplicity for stakeholders.

While CLECAT welcomes the overall direction of the Commission proposal, as outlined in its 2024 position, significant concerns remain.  Among them is the lack of flexibility in representation roles. Under the current proposal, indirect customs representatives are automatically forced to assume the CBAM declarant role when acting on behalf of non-EU importers. This deprives these operators of a fair, business-driven choice and imposes an unwarranted legal and financial burden on European logistics service providers.

CLECAT continues to advocate for a separate CBAM representation framework, distinct from customs law. We propose the introduction of an "Authorised Representative" model, aligned with product legislation practices, which would allow companies to designate a specific person or entity to handle CBAM obligations. This would not only offer clarity and fairness but also ensure that customs intermediaries are not unintentionally drawn into the scope of CBAM.

As the legislative file now moves into trilogue negotiations between the European Parliament, the Council, and the Commission, CLECAT urges the co-legislators to address representation issues. We believe that establishing a more balanced framework will be critical to ensuring that the CBAM remains a targeted environmental tool and not an unintended burden on the logistics sector.