Article 1 — Amendments to Regulation (EU) 2023/956

Regulation (EU) 2023/956 is amended as follows: (1) Article 2 is amended as follows: (a) paragraph 3 is replaced by the following: 3. By way of derogation from paragraphs 1 and 2, this Regulation shall not apply to goods to be moved or used in the context of military activities pursuant to Article 1, point (49), of Commission Delegated Regulation (EU) 2015/2446. (b) the following paragraph is inserted: 3a. This Regulation shall not apply to: (a) electricity generated on the continental shelf or in the exclusive economic zone of a Member State or of a country or territory listed in points 1 and 2 of Annex III; (b) hydrogen originating on the continental shelf or in the exclusive economic zone of a Member State or of a country or territory listed in point 1 of Annex III. ; (2) the following article is inserted: Article 2a De minimis exemption 1. An importer, including any importer with the status of an authorised CBAM declarant, shall be exempted from the obligations under this Regulation, where the net mass of the imported goods in a given calendar year does not cumulatively exceed the single mass-based threshold laid down in point 1 of Annex VII (the single mass-based threshold). That threshold shall apply to the total net mass of goods under all CN codes aggregated per importer and per calendar year. In such a case, the importer, including an importer with the status of an authorised CBAM declarant, shall declare that exemption in the relevant customs declaration. 2. Where, within the relevant calendar year, an importer, including any importer with the status of an authorised CBAM declarant, exceeds the single mass-based threshold, the importer or the authorised CBAM declarant shall be subject to all obligations under this Regulation in respect of all emissions embedded in all goods imported in that calendar year. 3. By 30 April of each calendar year, the Commission shall assess, on the basis of the import data for the preceding 12 calendar months, whether the single mass-based threshold ensures that paragraph 1 of this Article applies to no more than 1 % of the emissions embedded in the imported goods and processed products. The Commission shall adopt delegated acts in accordance with Article 28 to amend the single mass-based threshold by using the methodology set out in point 2 of Annex VII, where the value of the resulting threshold deviates from the applicable threshold by more than 15 tonnes. The amended single mass-based threshold shall apply from 1 January of the following calendar year. 4. This Article shall not apply to imports of electricity or hydrogen. ; (3) Article 3 is amended as follows: (a) point (15) is replaced by the following: (15) importer means either the person lodging a customs declaration for release for free circulation of goods or a bill of discharge in accordance with Article 175(5) of Delegated Regulation (EU) 2015/2446 in its own name and on its own behalf or, where the customs declaration is lodged by an indirect customs representative in accordance with Article 18 of Regulation (EU) No 952/2013, the person on whose behalf such a declaration is lodged; ; (b) point (31) is replaced by the following: (31) operator means any person that operates or controls an installation in a third country, including a parent company that controls an installation in a third country; ; (4) Article 5 is amended as follows: (a) paragraph 1 is replaced by the following: 1. Any importer established in a Member State shall, prior to importing goods into the customs territory of the Union, apply for the status of authorised CBAM declarant (application for an authorisation). ; (b) the following paragraphs are inserted: 1a. An indirect customs representative shall obtain the status of authorised CBAM declarant prior to importing goods into the customs territory of the Union. An indirect customs representative shall act as an authorised CBAM declarant where the indirect customs representative is appointed by an importer in accordance with Article 18 of Regulation (EU) No 952/2013 and agrees to act as authorised CBAM declarant, irrespective of whether the importer is exempted from the obligations under this Regulation pursuant to Article 2a of this Regulation. 1b. Where Article 2a applies, the importer shall submit the application for an authorisation in cases where that importer expects to exceed the single mass-based threshold. ; (c) paragraph 2 is replaced by the following: 2. Where an importer is not established in a Member State, the indirect customs representative shall obtain the status of authorised CBAM declarant, irrespective of whether the importer is exempted from the obligations under this Regulation pursuant to Article 2a. ; (d) the following paragraph is inserted: 2a. Where an indirect customs representative acts as an authorised CBAM declarant on behalf of an importer, the indirect customs representative shall be subject to the obligations applicable to the importer pursuant to this Regulation, in respect of the goods imported on behalf of that importer by that indirect customs representative. ; (e) paragraph 5 is amended as follows: (i) point (g) is replaced by the following: (g) estimated quantity of imports of goods into the customs territory of the Union by type of goods and information on the Member States of import, for the calendar year during which the application is submitted, and for the following calendar year; ; (ii) the following point is inserted: (ga) the number of the authorised economic operator (AEO) certificate, if the applicant has been granted the status of an authorised economic operator in accordance with Article 38 of Regulation (EU) No 952/2013; ; (f) the following paragraph is inserted: 7a. An authorised CBAM declarant may delegate the submission of CBAM declarations as referred to in Article 6 to a person acting on behalf and in the name of that authorised CBAM declarant. The authorised CBAM declarant shall remain responsible for compliance with the obligations applicable to it under this Regulation. ; (5) Article 6 is amended as follows: (a) paragraphs 1 and 2 are replaced by the following: 1. By 30 September of each year, and for the first time in 2027 for the year 2026, each authorised CBAM declarant shall use the CBAM registry referred to in Article 14 to submit a CBAM declaration for the preceding calendar year. 2. The CBAM declaration shall contain the following information: (a) the total quantity of each type of goods imported during the preceding calendar year, expressed in megawatt-hours for electricity and in tonnes for other goods, including the imported goods below the single mass-based threshold; (b) the total embedded emissions in the goods referred to in point (a) of this paragraph, expressed in tonnes of CO2e emissions per megawatt-hour of electricity or, for other goods, in tonnes of CO2e emissions per tonne of each type of goods, calculated in accordance with Article 7 and, where the embedded emissions are determined on the basis of actual emissions, verified in accordance with Article 8; (c) the total number of CBAM certificates to be surrendered, corresponding to the total embedded emissions referred to in point (b) of this paragraph after the reduction that is due on the account of the carbon price paid in a third country in accordance with Article 9 and the adjustment necessary to reflect the extent to which EU ETS allowances are allocated free of charge in accordance with Article 31; (d) where applicable, copies of verification reports, issued by accredited verifiers, under Article 8 and Annex VI. ; (b) paragraph 6 is replaced by the following: 6. The Commission is empowered to adopt implementing acts concerning the standard format of the CBAM declaration, including detailed information for each installation and country of origin or other third country and type of goods to be reported, which supports the totals referred to in paragraph 2 of this Article, in particular as regards embedded emissions, the carbon price paid, the default carbon price for the purpose of Article 9(4), the procedure for submitting the CBAM declaration via the CBAM registry, and the arrangements for surrendering the CBAM certificates referred to in paragraph 2, point (c), of this Article, in accordance with Article 22(1), in particular as regards the process and the selection by the authorised CBAM declarant of certificates to be surrendered. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2). ; (6) Article 7 is amended as follows: (a) paragraph 2 is replaced by the following: 2. Embedded emissions in goods other than electricity shall be determined: (a) based on the actual emissions in accordance with the methods set out in points 2 and 3 of Annex IV; or (b) by reference to default values in accordance with the methods set out in point 4.1 of Annex IV. ; (b) paragraph 5 is replaced by the following: 5. The authorised CBAM declarant shall keep records of the information required to calculate the embedded emissions in accordance with the requirements laid down in Annex V. Those records shall be sufficiently detailed to enable verifiers accredited pursuant to Article 18, where applicable, to verify the embedded emissions in accordance with Article 8 and Annex VI and to enable the Commission and the competent authority to review the CBAM declaration in accordance with Article 19(2). ; (c) in paragraph 7, point (a) is replaced by the following: (a) the application of the elements of the calculation methods set out in Annex IV, including determining system boundaries of production processes, which shall be aligned with those covered by the EU ETS, and relevant input materials (precursors), emission factors, installation-specific values of actual emissions and default values and their respective application to individual goods, as well as lay down methods to ensure the reliability of data on the basis of which the default values shall be determined, including the level of detail of the data, and including further specification of goods that are to be considered as simple goods and complex goods for the purpose of point 1 of Annex IV. Those implementing acts shall also specify the elements of evidence demonstrating that the criteria required to justify the use of actual emissions for imported electricity and for electricity consumed in the production processes of goods for the purposes of paragraphs 2, 3 and 4 that are listed in points 5 and 6 of Annex IV are met; and ; (7) in Article 8, paragraph 1 is replaced by the following: 1. Where the embedded emissions are determined on the basis of actual emissions, the authorised CBAM declarant shall ensure that the total embedded emissions declared in the CBAM declaration submitted pursuant to Article 6 are verified by a verifier accredited pursuant to Article 18, based on the verification principles set out in Annex VI. ; (8) Article 9 is replaced by the following: Article 9 Carbon price paid in a third country 1. Where the embedded emissions are determined on the basis of actual emissions, an authorised CBAM declarant may claim in the CBAM declaration a reduction in the number of CBAM certificates to be surrendered in order to take into account the carbon price paid in a third country for the declared embedded emissions. The reduction may be claimed only if the carbon price has been effectively paid in a third country. In such a case, any rebate or other form of compensation available in that country that would have resulted in a reduction of that carbon price shall be taken into account. 2. The authorised CBAM declarant shall keep records of the documentation required to demonstrate that the declared embedded emissions were subject to a carbon price in a third country that has been effectively paid as referred to in paragraph 1. The authorised CBAM declarant shall in particular keep evidence related to any rebate or other form of compensation available, in particular the references to the relevant legislation of that country. The information contained in that documentation shall be certified by a person that is independent from the authorised CBAM declarant and from the authorities of the third country. The name and contact information of that independent person shall appear on the documentation. The authorised CBAM declarant shall also keep evidence of the actual payment of the carbon price. 3. The authorised CBAM declarant shall keep the records referred to in paragraph 2 until the end of the fourth year after the year during which the CBAM declaration has been or should have been submitted. 4. By way of derogation from paragraphs 1, 2 and 3, an authorised CBAM declarant may claim, in the CBAM declaration, a reduction in the number of CBAM certificates to be surrendered in order to take into account the carbon price paid for the declared embedded emissions, by reference to yearly default carbon prices. In such a case, any rebate or other form of compensation available in that country that would have resulted in a reduction of that default carbon price shall be taken into account. The reduction may be claimed only where a carbon price was set by the rules applicable in the third country and a yearly default carbon price can be determined, including on a conservative basis, for that third country. Where the embedded emissions are determined on the basis of default values, a reduction may be claimed only by a reference to yearly default carbon prices. As from 2027, the Commission may, for third countries where carbon pricing rules are in place, determine and make available, in the CBAM registry referred to in Article 14, the default carbon prices for those third countries and publish the methodology for their calculation. The Commission shall do so on the basis of the best available data from reliable, publicly available information and information provided by those third countries. The Commission shall take into account any rebate or other form of compensation available in the relevant third country that would have resulted in a reduction of the default carbon price. 5. The Commission is empowered to adopt implementing acts concerning the conversion of the yearly average carbon price effectively paid in accordance with paragraph 1 of this Article and of the yearly default carbon prices determined in accordance with paragraph 4 of this Article into a corresponding reduction of the number of CBAM certificates to be surrendered. Those acts shall also govern the conversion of the carbon price expressed in foreign currency into euro at the yearly average exchange rate, the evidence required of the actual payment of the carbon price, examples of any relevant rebate or other form of compensation referred to in paragraph 1 of this Article, the qualifications of the independent person referred to in paragraph 2 of this Article and the conditions to ascertain that person’s independence. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2). ; (9) Article 10 is replaced by the following: Article 10 Registration of operators and of installations in third countries 1. The Commission shall, upon request by an operator of an installation located in a third country, register the information on that operator and on its installation in the CBAM registry referred to in Article 14. 2. The request for registration referred to in paragraph 1 shall contain the following information to be included in the CBAM registry upon registration: (a) the name, address, corporate or activity registration number and contact information of the operator, and, if applicable, of its controlling entities including the parent company of that operator, together with the supporting documents; (b) the location of each installation including the complete address and geographical coordinates expressed in longitude and latitude, including six decimals; (c) the main economic activity of the installation. 3. The Commission shall notify the operator of the registration in the CBAM registry. The registration shall be valid for a period of five years from the date of its notification to the operator of the installation. 4. The operator shall inform the Commission without delay of any changes in the information referred to in paragraph 2 arising after the registration, and the Commission shall update the relevant information in the CBAM registry. 5. The operator shall: (a) determine the embedded emissions calculated in accordance with the methods set out in Annex IV, by type of goods produced at the installation referred to in paragraph 1 of this Article; (b) ensure that the embedded emissions referred to in point (a) of this paragraph are verified in accordance with the verification principles set out in Annex VI by a verifier accredited pursuant to Article 18; (c) keep a copy of the verification report as well as records of the information required to calculate the embedded emissions in goods in accordance with the requirements laid down in Annex V for a period of four years after the verification has been performed, and, where applicable, a copy of the documentation required to demonstrate that the declared embedded emissions were subject to a carbon price in a third country that has been effectively paid, until the end of the fourth year after the year during which the independent person has certified the information contained in that documentation in accordance with Article 9(2); (d) determine, where applicable, the carbon price paid in a third country in accordance with Article 9, and upload accompanying documentation and evidence. 6. The records referred to in paragraph 5, point (c), of this Article shall be sufficiently detailed to enable the verification of the embedded emissions in accordance with Article 8 and Annex VI, and to enable the review, in accordance with Article 19, of the CBAM declaration made by an authorised CBAM declarant to whom the relevant information was disclosed in accordance with paragraph 7 of this Article. 7. An operator may disclose the information on the verification of embedded emissions and the carbon price paid in a third country referred to in paragraph 5 of this Article to an authorised CBAM declarant. The authorised CBAM declarant shall be entitled to use that disclosed information in order to fulfil the obligation referred to in Article 8. 8. The operator may, at any time, ask to be deregistered from the CBAM registry. The Commission shall, upon such request, and after notifying the competent authorities, deregister the operator and delete the information on that operator and on its installation from the CBAM registry, provided that such information is not necessary for the review of CBAM declarations that have been submitted. The Commission may, after having given the operator concerned the possibility to be heard and having consulted with the relevant competent authorities, also deregister the information if the Commission finds that the information on that operator is no longer accurate. The Commission shall inform the competent authorities of such deregistration. ; (10) the following article is inserted: Article 10a Registration of accredited verifiers 1. Where an accreditation is granted in accordance with Article 18, the verifier shall submit a request for registration in the CBAM registry to the competent authority of the Member State in which the national accreditation body is established. The verifier shall submit the request for registration within two months of the date on which the accreditation was granted, but not before 1 September 2026. The competent authority shall register the information on the accredited verifier in the CBAM registry. 2. The request for registration in the CBAM registry referred in paragraph 1 shall at least contain the following information: (a) the name, and unique accreditation identification of the verifier; (b) any scope of accreditation relevant for CBAM; (c) the country of establishment of the verifier; (d) the effective date of accreditation and expiry date of accreditation certificates relevant for CBAM; (e) any information on administrative measures imposed on the verifier relevant for CBAM; (f) copy of the accreditation certificate relevant for CBAM. The information referred to in the first subparagraph shall be included in the CBAM registry upon the registration of the verifier. 3. The competent authority shall notify the verifier of the registration in the CBAM registry. The competent authority shall also notify, through the CBAM registry, the Commission and the other competent authorities of the registration. 4. The verifier shall notify the competent authority of any changes to the information referred to in paragraph 2 arising after the registration in the CBAM registry. The competent authority shall ensure that the CBAM registry is updated accordingly. 5. For the purpose of Article 10(5), point (b), the verifier shall use the CBAM registry to verify the embedded emissions. 6. The competent authority shall deregister a verifier from the CBAM registry where that verifier is no longer accredited pursuant Article 18 or where the verifier has not complied with the obligation laid down in paragraph 4 of this Article. The competent authority shall notify the Commission and the other competent authorities of the deregistration. The competent authority shall delete the information on that accredited verifier from the CBAM registry provided that such information is not necessary for the review of CBAM declarations that have been submitted. ; (11) Article 11 is amended as follows: (a) in paragraph 1, the first subparagraph is replaced by the following: Each Member State shall designate the competent authority to carry out the functions and duties under this Regulation, inform the Commission thereof and ensure that the competent authority has all the powers necessary to perform those functions and duties. ; (b) the following paragraph is added: 3. For the purpose of the report referred to in Article 30(6), the competent authorities shall provide, at the request of the Commission and on the basis of the questionnaire, relevant information on the implementation of this Regulation. ; (12) Article 14 is amended as follows: (a) paragraphs 3 and 4 are replaced by the following: 3. The CBAM registry shall contain, in a separate section of the registry, the information about the operators and installations in third countries registered in accordance with Article 10(2) and the information about the accredited verifiers registered in accordance with Article 10a. 4. The information in the CBAM registry referred to in paragraphs 2 and 3 shall be confidential, with the exception of the names, addresses, corporate or activity registration numbers, contact information of the operators, the location of installations in third countries and the information on accredited verifiers referred to in Article 10a(2). An operator may choose not to have its name, address, corporate or activity registration number, contact information and the location of its installations made accessible to the public. The public information in the CBAM registry shall be made accessible by the Commission in an interoperable format. ; (b) paragraph 6 is replaced by the following: 6. The Commission shall adopt implementing acts concerning the infrastructure and specific processes and procedures of the CBAM registry, including the risk analysis referred to in Article 15, the electronic databases containing the information referred to in paragraphs 2 and 3 of this Article, the procedures and the technical credentials for the delegation referred to in Article 5(7a), the data of the accounts in the CBAM registry referred to in Article 16, the transmission to the CBAM registry of the information on the sale and repurchase of CBAM certificates referred to in Article 20, the cross-check of information referred to in Article 25(3) and the information referred to in Article 25a(3). Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2). ; (13) Article 17 is amended as follows: (a) in paragraph 1, the second subparagraph is replaced by the following subparagraph: Before granting the status of authorised CBAM declarant, the competent authority may consult relevant competent authorities or the Commission via the CBAM registry on the fulfilment of the criteria set out in paragraph 2. The consultation shall not exceed 15 calendar days. ; (b) paragraph 5 is replaced by the following: 5. For the purpose of complying with the criteria set out in paragraph 2, point (b), of this Article, the competent authority shall require the provision of a guarantee if the applicant was not established throughout the two financial years preceding the year when the application in accordance with Article 5(1) was submitted. The competent authority shall fix the amount of such guarantee at the amount, calculated as the aggregate value of the number of CBAM certificates that the authorised CBAM declarant would have to surrender in accordance with Article 22 in respect of the imports of goods reported in accordance with Article 5(5), point (g), taking into account the adjustment necessary to reflect the extent to which EU ETS allowances are allocated free of charge in accordance with Article 31. The guarantee provided shall be a bank guarantee, payable at first demand, by a financial institution operating in the Union or another form of guarantee which provides equivalent assurance. ; (c) paragraph 7 is replaced by the following: 7. The competent authority shall release the guarantee immediately after 30 September of the second year in which the authorised CBAM declarant has surrendered CBAM certificates in accordance with Article 22. ; (d) the following paragraph is inserted: 7a. By way of derogation from Article 4, where an importer or an indirect customs representative has submitted an application in accordance with Article 5 by 31 March 2026, such an importer or indirect customs representative may provisionally continue to import goods until the competent authority takes a decision under this Article. Where the competent authority refuses to grant the authorisation in accordance with paragraph 3 of this Article, the competent authority shall establish, within one month of the date of the decision, the emissions embedded in the goods imported between 1 January 2026 and the date of that decision on the basis of the information communicated in accordance with Article 25(3) and by reference to default values in accordance with the methods set out in Annex IV, and on the basis of any other relevant information. Those established emissions shall be used for the calculation of penalties in accordance with Article 26(2a). ; (e) in paragraph 8, the second subparagraph is replaced by the following: Before revoking the status of authorised CBAM declarant, the competent authority shall give the authorised CBAM declarant the possibility to be heard. The competent authority may consult relevant competent authorities or the Commission via the CBAM registry on the conditions and criteria for the revocation. The consultation shall not exceed 15 calendar days. ; (f) in paragraph 10, point (e) is replaced by the following: (e) the specific deadlines, scope and format of the consultation procedure referred to in paragraphs 1 and 8 of this Article. ; (14) Article 18 is amended as follows: (a) paragraph 1 is deleted; (b) paragraph 2 is replaced by the following: 2. A national accreditation body may, on request, accredit a legal person to be a verifier for the purpose of this Regulation where it considers, on the basis of the documentation submitted to it, that such person has the capacity to apply the verification principles referred to in Annex VI when performing the tasks of verification of the embedded emissions pursuant to Articles 8 and 10. Where the legal person is accredited in accordance with Implementing Regulation (EU) 2018/2067 for a relevant group of activities, the national accreditation body shall take such accreditation into account for the assessment of the qualifications of an accredited verifier that are necessary to perform the verification for the purpose of this Regulation. ; (15) in Article 19(3), the second subparagraph is replaced by the following: The Commission shall also facilitate the exchange of information with competent authorities about fraudulent activities, the conclusions reached pursuant to Article 25a and the penalties imposed in accordance with Article 26. ; (16) Article 20 is amended as follows: (a) paragraph 1 is replaced by the following: 1. From 1 February 2027, a Member State shall sell CBAM certificates on a common central platform to authorised CBAM declarants established in that Member State. ; (b) paragraph 3 is replaced by the following: 3. The information on the sale and repurchase of CBAM certificates in the common central platform shall be transferred to the CBAM registry at the end of each working day. ; (c) the following paragraph is inserted: 5a. The costs incurred in connection with the establishment, operation and management of the common central platform shall be financed by fees payable by authorised CBAM declarants. For the duration of the first joint public procurement contract for the establishment, operation and management of the common central platform, those costs shall initially be borne by the general budget of the Union. To that end, the revenues generated by the fees shall constitute internal assigned revenue in accordance with Article 21(3), point (a), of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council. Those revenues shall be assigned to cover the costs of the establishment, operation and management of the common central platform. Any revenue remaining after covering those costs shall be assigned to the Union budget. For the duration of the subsequent joint procurement contracts for the operation and management of the common central platform, the Commission shall adopt a delegated act in accordance with Article 28, supplementing this Regulation, in order to determine that the fees payable by authorised CBAM declarants shall directly finance the costs of the operation and management of the common central platform. (d) paragraph 6 is replaced by the following: 6. The Commission is empowered to adopt delegated acts in accordance with Article 28 supplementing this Regulation by further specifying the timing, administration, structure and level of fees and other aspects related to the management of the sale and repurchase of CBAM certificates, as well as the organisation and use of the common central platform, seeking coherence with the procedures laid down in Commission Delegated Regulation (EU) 2023/2830. The delegated acts shall ensure that the organisation and use of the common central platform is cost-efficient, that the level of fees is set so as to strictly cover the relevant costs and that undue administrative costs are avoided. (17) Article 21 is amended as follows: (a) in paragraph 1, the first subparagraph is replaced by the following: 1. The Commission shall calculate the price of CBAM certificates as the average of the closing prices of EU ETS allowances on the auction platform, in accordance with the procedures laid down in Delegated Regulation (EU) 2023/2830, for each calendar week. ; (b) the following paragraph is inserted: 1a. By way of derogation from paragraph 1, the Commission shall calculate the price of CBAM certificates that corresponds to the embedded emissions declared in respect of the year 2026 in accordance with Article 6(2), point (b), as the quarterly average of the closing prices of EU ETS allowances on the auction platform, in accordance with the procedures laid down in Delegated Regulation (EU) 2023/2830, of the quarter of importation of the goods in which those emissions are embedded. ; (c) paragraph 3 is replaced by the following: 3. The Commission is empowered to adopt implementing acts on the application of the methodology provided for in paragraphs 1 and 1a of this Article to calculate the price of CBAM certificates and the practical arrangements for the publication of that price. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2). ; (18) Article 22 is amended as follows: (a) paragraph 1 is replaced by the following: 1. By 30 September of each year, and for the first time in 2027 for the year 2026, the authorised CBAM declarant shall surrender via the CBAM registry a number of CBAM certificates that corresponds to the embedded emissions declared in accordance with Article 6(2), point (c), and verified in accordance with Article 8, for the calendar year preceding the surrender. The Commission shall remove surrendered CBAM certificates from the CBAM registry. The authorised CBAM declarant shall ensure that the required number of CBAM certificates is available on its account in the CBAM registry. ; (b) paragraph 2 is replaced by the following: 2. From 2027, the authorised CBAM declarant shall ensure that the number of CBAM certificates on its account in the CBAM registry at the end of each quarter corresponds to at least 50 % of the embedded emissions in all goods it has imported since the beginning of the calendar year determined by reference to either of the following: (a) default values in accordance with the methods set out in Annex IV without the mark-up as referred to in point 4.1 of that Annex; or (b) the number of CBAM certificates surrendered in accordance with paragraph 1 for the calendar year preceding the year of the surrender, provided that the customs declaration for the import of goods refers to the same goods by CN code and countries of origin as the CBAM declaration submitted in the calendar year preceding the current year. For the purpose of this paragraph, the adjustment for free allocation referred to in Article 31 shall be taken into account. ; (c) the following paragraph is inserted: 2a. The authorised CBAM declarant shall comply with the obligation laid down in paragraph 2 by the end of the quarter following that in which the single mass-based threshold is exceeded. ; (19) Article 23 is amended as follows: (a) in paragraph 1, the second subparagraph is replaced by the following: The Commission shall repurchase the excess CBAM certificates through the common central platform referred to in Article 20 on behalf of the Member State where the authorised CBAM declarant is established. The authorised CBAM declarant shall submit the repurchase request by 31 October of each year during which CBAM certificates were surrendered. ; (b) paragraph 2 is replaced by the following: 2. The number of CBAM certificates subject to repurchase as referred to in paragraph 1 shall be limited to the total number of CBAM certificates that the authorised CBAM declarant had an obligation to purchase pursuant to Article 22(2) during the calendar year of the purchase of the CBAM certificates. Where an authorised CBAM declarant who has been purchasing CBAM certificates in a calendar year on the basis of an expectation of exceeding the single mass-based threshold does not exceed such a threshold, all those CBAM certificates shall be repurchased upon request of the authorised CBAM declarant pursuant to paragraph 1 of this Article. ; (c) the following paragraph is inserted: 2a. By way of derogation from paragraph 2, CBAM certificates purchased in 2027 in respect of the embedded emissions for the year 2026 may only be repurchased in 2027. ; (20) Article 24 is replaced by the following: Article 24 Cancellation of CBAM certificates 1. On 1 November of each year, the Commission shall cancel any CBAM certificates that were purchased during the year before the previous calendar year and that remained in the account of an authorised CBAM declarant in the CBAM registry. Those CBAM certificates shall be cancelled without any compensation. 2. By way of derogation from paragraph 1, on 1 November 2027, the Commission shall cancel any CBAM certificates purchased in respect of the embedded emissions for the year 2026. Those CBAM certificates shall be cancelled without any compensation. 3. Where the number of CBAM certificates to be surrendered is contested in a pending dispute in a Member State, the Commission shall suspend the cancellation of the CBAM certificates to the extent corresponding to the disputed amount. The competent authority of the Member State where the authorised CBAM declarant is established shall communicate without delay any relevant information to the Commission. ; (21) in Article 25 paragraphs 1 to 4 are replaced by the following: 1. Without prejudice to Article 2a, the customs authorities shall not allow the importation of goods by any person other than an authorised CBAM declarant. 2. The customs authorities shall periodically and automatically, in particular by means of the surveillance mechanism established pursuant to Article 56(5) of Regulation (EU) No 952/2013, communicate to the Commission specific information on the goods declared for importation. That information shall include the EORI number or the form of identification declared in accordance with Article 6(2) of Delegated Regulation (EU) 2015/2446, of the importer or of the authorised CBAM declarant as well as the CBAM account number of the authorised CBAM declarant, the eight-digit CN code of the goods, the quantity, the country of origin, the date of the customs declaration and the customs procedure. Where the importer has no EORI number, the customs authorities shall also communicate the name, address and, where available, contact information of the importer to the Commission. 3. The Commission shall communicate the information referred to in paragraph 2 of this Article periodically to the competent authority of the Member State where the authorised CBAM declarant or the importer is established and shall, for each CBAM declarant, cross-check that information with the data in the CBAM registry pursuant to Article 14. 4. The customs authorities may communicate, in accordance with Article 12(1) of Regulation (EU) No 952/2013, confidential information acquired by the customs authorities in the course of performing their duties, or provided to the customs authorities on a confidential basis, to the Commission and to the competent authority of the Member State that has granted the status of the authorised CBAM declarant or to the competent authority of the Member State where the authorised CBAM declarant or importer is established. ; (22) the following article is inserted: Article 25a Monitoring and enforcement of the single mass-based threshold 1. The Commission shall monitor the imports of goods for the purpose of monitoring the compliance with the single mass-based threshold. The competent authorities of the Member State where the importer is established may also monitor the compliance with the single mass-based threshold. The Commission shall periodically and automatically exchange with competent authorities the information necessary for the monitoring of importers via the CBAM registry. Such information shall include a list of importers that exceed 90 % of the single mass-based threshold. 2. Where the Commission considers, based on a preliminary assessment and the information that the customs authorities have communicated to the Commission pursuant to Article 25(2), that an importer has exceeded the single mass-based threshold, it shall communicate that information as well as the basis for its preliminary assessment to the competent authority of the Member State where the importer is established. The competent authority may request that the importer or the Commission provides documentary evidence necessary to assess whether the importer has exceeded the single mass-based threshold. Where the documentary evidence is insufficient to assess whether the importer has exceeded that threshold, the competent authorities may request additional documentary evidence from the customs authorities if such evidence is available. 3. Where the competent authority concludes that an importer that is not an authorised CBAM declarant has exceeded the single mass-based threshold, it shall without undue delay adopt a decision to that effect. The decision shall state the reasons on which it is based and shall include information on the right to appeal. The competent authority shall inform the importer of the obligations applicable under this Regulation including, where applicable, the obligation to obtain the status of an authorised CBAM declarant in accordance with Article 5 prior to importing any further goods. The competent authority shall also notify the customs authorities and the Commission of that decision via the CBAM registry. Where an importer is represented by one or more indirect customs representatives and exceeds the single mass-based threshold, the competent authority shall inform the indirect customs representatives appointed thereof in accordance with Article 5(1a) or 5(2). The submission of an appeal against a decision determining that the importer has exceeded the single mass-based threshold shall not have suspensive effect. 4. For the purpose of determining whether an importer has exceeded the single mass-based threshold, a competent authority shall disregard a practice, arrangement or a series thereof which has been put into place for the main purpose or one of the main purposes of falling below the single mass-based threshold and which is non-genuine. A practice, arrangement or a series thereof shall be regarded as non-genuine where, taking into account all relevant facts and circumstances, it cannot be considered to have been put in place for valid commercial reasons related to the economic activity of the importer. For the purposes of Article 17(2), point (a), and Article 26(2a), where the competent authority concludes that the importer has engaged in a practice, arrangement, or a series thereof, that is regarded to be non-genuine, the importer shall be considered to have been involved in a serious infringement of this Regulation. 5. For the purpose of the monitoring under this Article, the Commission shall periodically, at least once per calendar year or whenever necessary, identify specific risk factors and points for attention, based on a risk analysis in relation to the single mass-based threshold, taking into account information contained in the CBAM registry, data communicated by customs authorities in accordance with Article 25 and other relevant information sources, including irregularities identified as a result of the controls carried out in accordance with Article 15(1). Those risk factors and points for attention shall be communicated to the competent authorities and, where relevant, the customs authorities. ; (23) Article 26 is amended as follows: (a) paragraph 1 is replaced by the following: 1. An authorised CBAM declarant who fails to surrender, by 30 September of each year, the number of CBAM certificates that corresponds to the emissions embedded in goods imported during the preceding calendar year shall be held liable for the payment of a penalty. Such a penalty shall be identical to the excess emissions penalty set out in Article 16(3) of Directive 2003/87/EC and increased pursuant to Article 16(4) of that Directive, applicable in the year of importation of the goods. Such a penalty shall apply for each CBAM certificate that the authorised CBAM declarant has not surrendered. ; (b) the following paragraph is inserted: 1a By way of derogation from paragraph 1 of this Article, where an authorised CBAM declarant fails to surrender the correct number of CBAM certificates as a result of incorrect information provided by a third party, namely an operator, a verifier or an independent person certifying the carbon price documentation referred to in Article 9(2), the competent authority may reduce the penalty referred to in paragraph 1 of this Article. The penalty thus imposed shall be effective, proportionate and dissuasive and shall take into account in particular the duration, gravity, scope, intentional nature or repetition of the non-compliance or the level of cooperation of the authorised CBAM declarant with the competent authority. ; (c) the following paragraph is inserted: 2a. Paragraph 2 shall also apply to importers other than authorised CBAM declarants, where they exceed the single mass-based threshold. For that purpose, the entirety of the emissions embedded in the goods imported by such an importer in the relevant calendar year shall be taken into account. The payment of the penalty shall release the importer from the obligation to submit a CBAM declaration and to surrender CBAM certificates in respect of those imports. By way of derogation from the first subparagraph of this paragraph, the competent authority may reduce the penalty provided in paragraph 2 of this Article where an importer exceeded the single mass-based threshold by no more than 10 % of that threshold or in cases referred to in Article 17(7a). Such a penalty shall be effective, proportionate and dissuasive and shall not be lower than the penalty provided in paragraph 1. The payment of the penalty shall release the importer from the obligation to submit a CBAM declaration and to surrender CBAM certificates in respect of those imports. ; (d) paragraph 3 is replaced with the following: 3. The payment of the penalty in accordance with paragraphs 1 and 1a shall not release the authorised CBAM declarant from the obligation to surrender the outstanding number of CBAM certificates in a given year. ; (e) the following paragraph is inserted: 4a. For the purposes of paragraphs 1 and 2 of this Article, the competent authority shall calculate the total number of CBAM certificates that should have been surrendered, based on the net mass of the imported goods and by reference to the embedded emissions determined by default values in accordance with the methods set out in Annex IV and taking into account the adjustment for free allocation as referred to in Article 31. ; (24) in Article 27(2), point (b) is replaced by the following: (b) artificially splitting imports, including via non-genuine arrangements, to avoid exceeding the single mass-based threshold. ; (25) Article 28 is amended as follows: (a) paragraphs 2 and 3 are replaced by the following: 2. The power to adopt delegated acts referred to in Articles 2(10) and (11), Article 2a(3), Article 18(3), Article 20(5a) and (6) and Article 27(6) shall be conferred on the Commission for a period of five years from 20 October 2025. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for further periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period. 3. The delegation of power referred to in Article 2(10) and (11), Article 2a(3), Article 18(3), Article 20(5a) and (6) and Article 27(6) may be revoked at any time by the European Parliament or by the Council. ; (b) paragraph 7 is replaced by the following: 7. A delegated act adopted pursuant to Article 2(10) and (11), Article 2a(3), Article 18(3), Article 20(5a) and (6) or Article 27(6) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. ; (26) Article 30(6), second subparagraph, point (b), is amended as follows: (a) point (i) is replaced by the following: (i) the governance system, including an assessment of the implementation and administration of the guarantees and the authorisation of CBAM declarants by Member States; ; (b) the following point is added: (v) the application of the single mass-based threshold, including the possibility of increasing that threshold and of introducing a supplementary consignment-based threshold. ; (27) Article 36(2) is amended as follows: (a) point (b) is replaced by the following: Article 2(2) and Articles 2a, 4, 6 to 9, 10a, 15, 19 and 21, Article 22(1) and 22(3) and Articles 23 to 27 and 31 shall apply from 1 January 2026. ; (b) the following points are added: (c) Article 22(2) shall apply from 1 January 2027; (d) Article 20(1), (3), (4) and (5) shall apply from 1 February 2027. ; (28) in Annex I, the CN code 25070080 – Other kaolinic clays is replaced by ex25070080 – Other kaolinic clays except non-calcined kaolinic clays; (29) in Annex II, the following table is added: Electricity CN codeGreenhouse gas 27160000 – Electrical energyCarbon dioxide (30) Annex IV is amended in accordance with Annex I to this Regulation; (31) in point 2 of Annex V, the following point is added: (e) information and the method used to calculate the embedded emissions. ; (32) in point 2, point (k), of Annex VI, point (iii) is replaced by the following: (iii) the identification of the installations where the input material (precursor) has been produced and the actual emissions from the production of that material; ; (33) a new Annex VII as set out in Annex II to this Regulation is added.