The European Commission’s updated CBAM Questions and Answers clarifies that goods manufactured before the EU’s definitive Carbon Border Adjustment Mechanism regime began can still fall within CBAM scope if they enter EU free circulation during 2026. The Commission states that the decisive factor is the customs release date, not the production date or the date of a sales contract.
The clarification is aimed at importers holding pre-2026 inventories of steel, aluminium, fertilisers and cement. It also covers situations where production occurred earlier but import clearance took place in 2026.
Customs release as the trigger for CBAM applicability
Under the Commission’s guidance, goods produced in 2025 but imported into the EU in 2026 are subject to CBAM. The key event is the acceptance by an EU customs authority of the customs declaration releasing the goods for free circulation.
The Commission’s clarification addresses inventories accumulated before the definitive CBAM regime entered into force on 1 January 2026. Manufacturing, purchasing, or signing a sales contract before that date does not, by itself, exempt goods later released into EU free circulation during the definitive regime.
Importers holding materials in warehouses, ports, consignment stocks or other inventory locations are directed to assess exposure using customs movements. This approach is intended to reflect that economic ownership, invoicing and physical production can differ from the customs event that determines whether CBAM applies.
The distinction is particularly relevant for trading companies and distributors where goods may remain in storage for several months before import clearance. In those cases, customs timing becomes central to determining whether CBAM obligations arise.
Embedded emissions reporting uses the 2026 reporting period
The Commission has set a specific rule for goods imported during 2026 regarding embedded emissions reporting. Embedded emissions must be determined using the legally prescribed 2026 reporting period, even if goods were physically manufactured in an earlier year.
The Commission says this framework reduces administrative burden linked to proving the actual production year of each imported item. At the same time, it states that emissions data relating to production before 1 January 2026 cannot be submitted as actual verified production-year emissions for these imports.
The Commission explains that no CBAM verification regime or accredited CBAM verifiers were available for those earlier production periods. As a result, importers cannot treat pre-2026 production-year figures as actual verified values for shipments released into free circulation during 2026.
Verified emissions and default values for older stocks
Pre-2026 inventories do not automatically require assessment using default values. Where appropriate actual verified emissions for the 2026 reporting period are available for the relevant installation and goods, those values can be used to support the CBAM declaration.
If acceptable verified emissions corresponding to the required reporting period are not available, the importer must apply applicable default values. The Commission highlights that this difference can have financial consequences for companies importing older stocks.
An example provided by the Commission is that an importer bringing steel produced in late 2025 into EU free circulation during 2026 cannot simply use historical 2025 emissions figures as verified CBAM actual values for that shipment. Instead, the importer must follow the specific 2026 reporting-period framework.
The Commission notes uncertainty may arise where a producer has ceased operations, changed production technology, modified its energy mix, or cannot provide a suitable verified dataset for 2026. These factors can affect whether verified emissions aligned with the required reporting period are available.
Commercial contracts signed before CBAM can still trigger liabilities
The customs-timing rule also affects commercial agreements concluded before the definitive regime began. An EU buyer that purchased materials in 2025 may still face a CBAM liability when goods are released into free circulation in 2026.
The Commission indicates that contracts negotiated before the regime started may not clearly allocate whether carbon costs fall on the exporter, an intermediary trader or the EU importer. Disputes could arise where prices were fixed without a carbon-cost adjustment but customs release occurs after 1 January 2026.
The guidance therefore points importers to assess CBAM exposure at shipment and customs-entry level. It also links compliance expectations to ensuring contractual provisions address allocation of carbon-related costs.
Implications for regional suppliers and trade flows
The clarification reinforces record-keeping needs for suppliers in Serbia, Türkiye, Ukraine and other neighbouring markets. Importers are expected to maintain records connecting production, sales, inventory movements and customs declarations.
The Commission also states that pre-2026 production does not create a general exemption from CBAM. Goods manufactured or exported before the definitive regime began may still fall within scope if they remained outside EU free circulation until 2026.
The distinction is also relevant when interpreting trade flows. Increased production or exports in late 2025 cannot automatically be treated as successful front-loading ahead of CBAM if goods were not released into EU free circulation before the regime became applicable.
For importers, the Commission’s guidance ties CBAM applicability to the customs release event and requires a specific approach to embedded-emissions reporting for 2026 imports, regardless of when goods were physically produced.