From October, firms exporting goods containing steel and certain other products will have new reporting requirements under the EU’s Carbon Border Adjustment Mechanism, a new policy that imposes a charge on ‘high carbon’ imports into the EU.
The first phase of implementation covers a limited number of iron and steel products, fertilisers, cement and aluminium, but any company which then includes these materials in their goods – for example nuts and screws – will now have to declare them.
According to a survey commissioned by the British Chambers of Commerce (BCC), 84 per cent of exporting manufacturers do not know about these new requirements despite their imminent introduction.
William Bain, Head of Trade Policy at the BCC, explained:
“It is a serious worry that more than four out of five manufacturers who export have no knowledge of the EU’s new Carbon Border Adjustment Mechanism. It is just the start of a series of changes, that will gradually ratchet up over the next three years, to deter the use of cheaper but higher-carbon steel, and other goods with highly embedded climate damaging emissions, being imported into the EU.
“It is likely manufacturers that export will have to think about allocating dedicated staff resources just to deal with these reporting requirements. So, they need to start thinking about this now, and working out what their response will be, but there are very few trusted sources of information.
“The BCC and Chambers will be working hard to pull together as much guidance as we can to help businesses get to grips with this onslaught of changes.”
The BCC survey also found that 43 per cent of manufacturers are still unaware of the new UKCA mark, the UK’s post-EU alternative to the CE safety mark.
Despite these challenges, research shows exporting remains a huge opportunity for manufacturers, and those who sell overseas tend to be more successful, innovative and resilient as a result.