System to protect steel from imports “will be very difficult to implement”, steel industry association warns

Implementation of the call limit adjustment mechanism (CBAM)“This regulation, which will protect the Community’s steel, cement, aluminium, fertilizer, hydrogen and electricity production from the competition of third countries that are lax on environmental issues, in order to prevent the relocation of factories, is “difficult to manage and will not be easy to implement,” he said yesterday. Andrés BarceloHe is the director general of Unesid, the Spanish steel industry association.

Barceló stated that the European Union (for informational purposes only) has begun to implement the mechanism that is supposed to equalize the conditions of competition through taxation on imports that do not carry the same costs in their countries of origin. The fact that it comes down to European manufacturers is that “steel is becoming increasingly easier to produce outside the European Union,” he said.

The border adjustment came into force for statistical purposes only on 1 October during a transition period that will last until January 2026; From this date, additional fees will be gradually and increasingly applied to imports that do not carry the same penalties in terms of carbon emissions. in Europe. Progress will reach 2034 100% of environmental costs circumvented by third country producers. This process of tightening conditions will develop with the gradual reduction between 2026 and 2034 of the program for granting free emission rights currently received by the industry, where greenhouse gas emissions are intense and otherwise face the risk of factory displacement. It guarantees competitive conditions comparable to its competitors in Türkiye, China, Singapore and other countries.

Unesid warned importers about the complexity of the procedures and the multitude of documents they must submit to the competent authority under their control; As learned on Friday, these documents had not yet been provided by the Ministry of Energy Transition in Spain. It was stated that neither department specifically was also disclosed for follow-up by the General Directorate of Customs.

The measure affects all non-EU countries except Iceland, Liechtenstein, Norway and Switzerland because these countries have preferential agreements with the EU. AB. Unesid reported that the United States tried to exclude but failed.

The steel industry association emphasized that the procedure would be easier to formalize if it were more complex in the case of basic products such as steel coils and converted products, given that the importer must declare the quantity imported, the price and the carbon footprint of the facility. where it is produced and also that of the factory or factories that produce the steel before converting it. Importers who do not provide this information will be fined as of January, when the first quarterly declaration is due. Starting from 2026, notifications will be annual.

So called ““environmental tax” Some products, such as scrap metal, ferroalloys, cables, wire, metal fabrics, nails (though not screws), chains, springs and stoves, will be exempt, Unesid reported.

The commission must publish 18 implementing regulations on the mechanism by 2026. Although there was no mention of it yesterday, the so-called border regulation does not meet the demands of the industry, which is demanding a similar compensation system to compensate for the cost difference in European exports to third countries resulting from European environmental policy.

Source: Informacion

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