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Compliance Alert

Urgent: The '20% Rule' Trap Closing July 2024

Oct 24, 2025
8 min read
Compliance

Did you rely on the Commission's default values for your last quarterly report? That safety net is gone. As of July 1, 2024, the rules have changed drastically.

Critical Warning

If your reports for Q3 2024 onwards rely on default values for more than 20% of your complex goods' embedded emissions, you are flagging yourself for non-compliance.

The 20% Hard Limit

For complex goods (like steel screws, aluminum structures, or pre-fabricated cement products), you must now obtain actual emission data from your suppliers for at least 80% of the embedded emissions. This isn't a suggestion—it's a regulatory requirement.

What Counts as "Complex Goods"?

Complex goods are products that contain multiple input materials that themselves fall under CBAM categories. Examples include:

  • Steel screws (steel + manufacturing emissions)
  • Aluminum window frames (aluminum + processing)
  • Pre-cast concrete panels (cement + aggregates + steel rebar)
  • Fertilizer blends (multiple nitrogen compounds)

The Penalty Structure

Reports failing this check are considered "incorrect/incomplete," exposing you to penalties ranging from €10 to €50 per tonne of unreported emissions.

Compliant Approach

  • 80%+ actual supplier data
  • Documented data collection attempts
  • Default values only for remaining 20%

Non-Compliant Approach

  • Over 20% default values used
  • No documentation of collection efforts
  • Penalties: €10-50/tonne

Your Action Plan

You need to engage your non-EU suppliers today using the official Communication Template. If they can't provide data, you must document your attempts to avoid fines.

  1. Audit your current data sources - Identify which suppliers are providing actual data vs. where you're using defaults
  2. Send the EU Communication Template - Use the official format that suppliers recognize
  3. Document everything - Keep records of all outreach attempts, even if suppliers don't respond
  4. Use supplier portals - Tools like Import Safe-Pass automate this collection process

Related Tool

Use the CBAM calculator to assess your current compliance position and estimate potential exposure.

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