Customs representation arrangements are becoming an important element of Carbon Border Adjustment Mechanism (CBAM) compliance, as appointing a customs broker does not automatically determine who assumes responsibility for the carbon-border obligations associated with imported goods.
Under the amended regulation, an indirect customs representative appointed by an EU importer may agree to act as an authorised CBAM declarant. Where the importer is established outside a Member State, the indirect representative is required to obtain authorised declarant status. A representative acting in this capacity assumes the applicable obligations for goods imported on behalf of the client.
Contractual Terms and Statutory Responsibility
The distinction between customs clearance and CBAM compliance makes the CBAM representation contract an important part of the commercial relationship. Agreements need to establish which entity will act as the authorised declarant and how the parties will manage the information and resources required to fulfil the mandate.
For a CBAM indirect customs representative, the scope of the engagement extends to access to supplier emissions information, arrangements for independent verification and funding for CBAM certificates. These requirements can affect both the operational procedures and financial terms agreed between the representative and the importer.
Contractual provisions should specify the responsible entity and establish procedures for dealing with missing, incomplete or corrected information. Although commercial indemnities can allocate costs between the parties, they do not replace the statutory requirements governing CBAM obligations.
Liability and Non-EU Importers
The allocation of authorised declarant liability is particularly relevant to the non-EU importer CBAM framework, where an indirect customs representative may be required to assume authorised declarant status rather than simply provide clearance services.
The applicable rules determine the statutory position, while contractual provisions govern the allocation of commercial costs between counterparties. The two should therefore be distinguished when assessing the consequences of accepting a CBAM mandate.
The decision to provide representation services consequently involves more than conventional customs clearance. Customs broker responsibilities may include maintaining the procedures, supplier-data access and financial arrangements needed to support the obligations accepted under the mandate.
