I. Confirm the trade terms and the declaration entity

The legal declarant is the authorized declarant within the EU. If the contract adopts DDP (Delivered Duty Paid) and the exporter is responsible for European customs clearance, non-EU entities cannot register directly and must entrust an indirect customs representative within the EU to perform the duties on their behalf. This representative assumes joint liability and usually requires guarantees or agreement arrangements. If conditions permit, it is preferable to change to DAP or CIF, where the buyer is responsible for customs clearance; if the terms cannot be changed, a written agreement should clearly define the data provision time limit, penalty sharing, and guarantee arrangements.

II. Complete the carbon data terms of the supply chain

EU importers are responsible for the accuracy of the declaration data and usually require suppliers to provide verified carbon data. Export enterprises should set up safeguards in two contracts: the upstream contract should include mandatory carbon data disclosure obligations and stipulate the liability for compensation in case of loss due to the upstream party's failure to provide data; the EU customer contract should include a data boundary clause, clearly defining the responsibility in case of rule changes or force majeure causing deviations.

III. Make good use of the 50-ton exemption to avoid anti-avoidance determination

Goods below the exemption threshold are exempt from obligations, but the anti-avoidance rule prohibits artificially splitting orders to reduce the weight per batch or adjusting specifications to change the tariff number to evade jurisdiction. Once anti-avoidance is determined, there will be full tax refund, fines, and even key customs inspections; in daily operations, it is necessary to monitor the cumulative shipment volume throughout the year and retain written evidence of the real commercial splitting.

IV. Set carbon price adjustment clauses in long-term contracts

From 2027, the certificate price will fluctuate based on the weekly average price of the EU ETS, and the fluctuation of the carbon price will directly be transmitted as costs. Long-term contracts should set a carbon price adjustment mechanism: when the price exceeds the agreed benchmark value, renegotiate the unit price, or the buyer should bear the excess portion corresponding to the carbon cost.

V. Progress preparations according to time nodes

Start certificate purchase in February 2027 and submit the first annual declaration by September 30. Currently, it is necessary to complete product classification verification, establish an emission data system, connect with the verification agency, and adjust the contract terms. We provide CBAM compliance gap assessment, emission data sorting and declaration preparation support. If you need an assessment of your readiness, you can contact us for consultation.