Challenges of International Imports into Spain: Navigating CBAM and Environmental Regulations

The headline alone can generate confusion in the reader or even ignorance. Even for all of us who make up the ecosystem of the international transport In itself, it is complex and we master some terminology, but nowhere near the deep knowledge that requires such a change.

International trade, and more specifically, Imports into Spain have become a real challenge for importers in our country over the last year and a half.. The entry of Brexit marked the turning point for concepts such as incotermsindirect representation, established company, customs clearance and more and more, became directly part of the usual glossary of those companies that had commercial exchanges with the United Kingdom.

Additionally, logistics chains changed completely with COVID19, and together with Brexit, the field of international transportation began to face different complexities. However, the inflection point have been all the changes that have been promoted in the field of imports and related to the controls promoted by both the EU and Spain, aimed at, without a doubt, the more than necessary protection of our planet and care of the environment.

We face a great challenge for importers who will have to assume the CBAM for all the previous controls – processes that are no less cumbersome and complex – and which also involve a cost.

Regulations such as the tax on non-reusable plastic packaging, the management of electrical or electronic waste with reference to the ROHS WEEE, fluorinated gases and the most recent CBAM (Carbon Border Adjustment Mechanism), since October 2023, represent an increase in applications, controls, certifications, fees and documents, which, obviously, challenge importers. To their daily chores they will have to add high-level advice o to contracting external services that ensure correct management and execution, clearly impacting commercial agreements with suppliers from third countries, beyond the seas.

If we stick solely and exclusively to the Carbon Border Adjustment Mechanism (CBAM) – whose transitional application period began in October 2023 -, to put it simply, it aims to protect the interests of the EU and companies in its area against those in other regions of the world in which the objectives and commitments regarding decarbonization They are less ambitious and more lax.

He CBAM (Carbon Border Adjustment Mechanism)since October 2023, represents an increase in applications, controls, certifications, fees and documents, which challenge importers.

Given this situation, imports of products such as cements, iron, aluminum, hydrogen, electricity and fertilizers They will be subject to control in the European Union regarding sustainability in their production process. However, it is important to highlight that this control cannot be comparable to that of other countries where these products are not required to meet the same requirements in terms of decarbonization and, therefore, will involve a lower cost and higher pollution, paradox.

Obviously, this control is not trivial, and therefore it was not difficult to reach the conclusion that the reporting mechanisms would not be trivial either. Let’s take as an example a small or medium importer (the majority in our country), whose human team is entirely dedicated to the daily management of the company. How are you going to deal with this new regulation, when possibly not even your trusted manager is aware of the complexity it entails?

To begin with, this regulation will require a quarterly report that details the emissions produced by the imported products mentioned above. Until now, at least in this transitional period, there are some default values ​​for each product, however, the declaration excel It represents an excess of complexity that can only be solved by almost a mathematician, since one of the ways to carry out these calculations requires formulas: let’s get an idea of ​​the magnitude. Surely, however, we will soon see applications and software on the market that facilitate the calculation for subsequent reporting.

Logistics chains completely changed with COVID19, and together with Brexit, the field of international transportation began to face different complexities.

Well, having stated the scenario, it is necessary to indicate that On January 1, 2026, importers must deliver greenhouse gas emissions certificates related to the purchase and import of these products, due to contamination during the production process and will entail a cost for the importer or to buy these same products within the scope of the Union.

All of us who make up the sector (customs agents, independent professionals and freight forwarders, international air, sea and land freight transport companies) we have taken the lead with the firm intention of promoting and disseminating all this information in order to anticipate and try to explain to our clients what this new framework entails.

We face, once again, a great challenge for importers who will have to assume the CBAM in addition to all the previous controls – processes that are no less cumbersome and complex – and which also involve a cost.

Nobody doubts the need to commit to the environment, but it is important to take into account throughout these regulatory processes the complexities and balances that those Spanish companies that import from other countries face, since honestly, it is worthy at least of a World Circus.

***Pedro Tierno, Head of Airfreight & Customs Cluster de DB Schenker Iberia

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2024-03-01 01:37:06
#balance #Spanish #company #CO2 #tax #border