Are there penalties for non-compliance with the CBAM Regulation?

CBAM Regulations were enforced from 1st October 2023 by the European Union. The introduction of these regulations are attempt to address the global problem of climate change.

Under these regulations, reporting of Specific Embedded Emissions in CBAM goods has been made mandatory in a quarterly fashion.

Failure to report these Specific Embedded Emissions shall attract penalties ranging from EUR 10 to EUR 50 per tonne of unreported emissions.

The identified National Comptent Authorities shall be tasked with the responsibility of leving penalties where:

• Reporting Declarant doesnt comply with the obligation to report the Specific Embedded Emissions (SEE)
• Reporting Declarant has not taken the necessary steps to correct the CBAM Report which is incorrect or incomplete even after the competant authority has initiated the correction procedure.