S H E A R M A N & S T E R L I N G L L P | 4 7
CONCLUDING REMARKS
Unlike the June 3 draft envisaging a
centralized system at the EU level,
the July 14 proposal delegates
Implementation and enforcement of
the CBAM to the national authorities of
Member States—including on matters
such as CBAM registration and the review
of importers' annual CBAM declarations.
As an Impact Assessment Report
accompanying the July 14 proposal
notes, this decentralized approach to
implementation and enforcement of the
CBAM "may entail a long lead time to
a fully harmonized implementation of
the rules."4 We will continue to monitor
developments in this area.
Jennifer Younan
Partner
Paris
T +33 1 53 89 48 04
jennifer.younan@shearman.com
Chloé Vialard
Associate
Singapore
T +65 6230 3854
chloe.vialard@shearman.com
Elise Edson
Counsel
Paris
T +33 1 53 89 70 00
elise.edson@shearman.com
Alex Bevan
Partner
Abu Dhabi/Dubai
T +971 2 410 8121
abevan@shearman.com
1. Proposal for a Regulation of the European Parliament and of the Council
establishing a carbon border adjustment mechanism, July 14, 2021, available
at https://ec.europa.eu/info/sites/default/files/carbon_border_adjustment_
mechanism_0.pdf.
2. CBAM registration is subject to several requirements, including the absence of any
serious or repeated infringements of customs, tax and market abuse rules during the
preceding five years (July 14 proposal, Article 5(3)).
3. An importer's annual CBAM declaration shall be subject to review by the
competent national authority (July 14 proposal, Articles 19(1)–(3).
4. Impact Assessment Report accompanying the document Proposal for a
regulation of the European Parliament and of the Council establishing a carbon
border adjustment mechanism, SWD(2021) 643 final, p. 28.
