The European Union’s Carbon Border Adjustment Mechanism (CBAM) is a key initiative designed to prevent carbon leakage by ensuring that EU-based companies do not relocate carbon-intensive production abroad to take advantage of less stringent environmental regulations. CBAM aims to uphold climate action by requiring the reporting of carbon emissions generated during the production of certain imported goods – including steel, which falls within its scope.
For companies importing steel into the EU, CBAM obligations include providing emissions data to the relevant authorities. Typically, this responsibility falls on the importer or their indirect customs representative. However, Datum has taken proactive steps to simplify this process for its customers that use our DDP shipping service.
Datum can supply steel to EU customers under Delivery Duty Paid (DDP) Incoterms, meaning that Datum serves as the importer of record. Consequently, Datum assumes full responsibility for all CBAM-related submissions, ensuring compliance with EU regulations. This approach allows customers receiving orders on DDP terms to avoid any direct obligations under CBAM.
By covering CBAM compliance and handling the associated reporting, Datum eliminates administrative burdens for its customers, allowing them to focus on their core operations without concern for regulatory compliance. This commitment underscores Datum’s dedication to customer service and sustainability, reinforcing its role as a reliable partner in the evolving regulatory landscape.
For more information on Datum’s approach to CBAM compliance, customers can reach out to their Datum representative.