The European Commission has clarified that CBAM applicability for goods entering EU free circulation in 2026 depends on the customs release date. This is the acceptance by an EU customs authority of the customs declaration releasing goods for free circulation. The production date and the date of the sales contract do not, by themselves, determine whether imports fall within scope.
The clarification is set out in the Commission’s updated CBAM Questions and Answers. It is relevant for importers holding pre-2026 inventories of steel, aluminium, fertilisers and cement. The guidance also covers cases where goods were produced in 2025 but imported during 2026.
Customs release as the trigger for CBAM applicability
The Commission’s guidance 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 automatically exempt goods later released into EU free circulation during the definitive period. The decisive factor remains the customs release event.
Importers holding materials in warehouses, ports, consignment stocks, or other inventory locations are directed to assess exposure by examining customs movements. This approach relies on customs-related documentation rather than depending exclusively on production records or procurement dates. The timing of economic ownership, invoicing, and physical production can differ from the customs event that determines CBAM applicability.
The distinction is described as particularly important for trading companies and distributors whose goods may remain in storage for several months before import clearance. In such cases, the relevant timing for CBAM purposes is tied to when customs authorities accept the declaration releasing the goods for free circulation. The Commission’s clarification therefore links compliance assessment to customs processing rather than earlier commercial or operational milestones.
Embedded emissions reporting uses the 2026 reporting period
The Commission has established a specific reporting-period rule for goods imported during 2026. Embedded emissions must be determined using the legally prescribed 2026 reporting period even when goods were physically manufactured in an earlier year. The Commission states that this method reduces administrative burden related to proving the actual production year for each imported item.
At the same time, 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 emissions as verified actual values under the framework applicable to 2026 imports.
Verified emissions and default values for older stocks
The Commission indicates that 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 support the CBAM declaration. This applies even if the underlying physical production occurred earlier than 2026.
If acceptable verified emissions corresponding to the required reporting period are unavailable, importers must apply applicable default values. The guidance highlights potential financial consequences for companies importing older stocks because they cannot rely on historical figures from earlier years as verified CBAM actual values for shipments released in 2026.
An example provided in the guidance is steel produced in late 2025 and brought into EU free circulation during 2026. In that situation, an importer cannot simply use a mill’s historical 2025 emissions figures as verified actual values for that shipment. Uncertainty may arise if a producer has ceased operations, changed production technology, modified its energy mix, or cannot provide an appropriate verified dataset covering the required reporting period.
Pre-regime contracts and carbon-cost allocation risks
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 those goods are released into free circulation in 2026. This means contractual arrangements made before the regime started may not align with CBAM exposure triggered later through customs release.
The Commission notes that contracts negotiated before implementation may not clearly specify whether carbon costs fall on the exporter, intermediary trader, or EU importer. Disputes could emerge where prices were fixed without a carbon-cost adjustment but customs release occurs after 1 January 2026. Importers are therefore expected to assess CBAM exposure at shipment and customs-entry level.
The guidance also points to ensuring contractual provisions address allocation of carbon-related costs. This requirement follows from the separation between commercial contracting timelines and the customs event that determines whether CBAM applies. For importers dealing with stored inventory and delayed clearance, aligning documentation with customs processing becomes part of managing compliance risk.
Implications for suppliers and trade flows in neighbouring markets
The clarification reinforces record-keeping needs for suppliers in Serbia, Türkiye, Ukraine, and other neighbouring markets. Importers are directed to maintain records connecting production, sales, inventory movements, and customs declarations so that customs-related timing can be demonstrated. The guidance 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 because increased production or exports in late 2025 cannot automatically be treated as front-loading ahead of CBAM if release into EU free circulation did not occur before applicability began.
For importers, the Commission’s guidance links 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. This framework applies where goods enter EU free circulation during 2026 even if they originate from inventories accumulated before the definitive regime started.