1. Overview & Statutory Legal Framework
Under Regulation (EU) 2023/956 Article 6, Commission Implementing Regulation (EU) 2025/2547 (Calculation Methodology), and Commission Implementing Regulation (EU) 2025/2546 (Verification Principles), authorized declarants importing covered goods (Iron & Steel, Aluminium, Cement, Fertilisers, Hydrogen, and Electricity) into the European Union must report:
Total quantity of each type of goods imported in Metric Tonnes (M_g).
Total specific embedded direct emissions (SEE_{g,dir}) expressed in tCO_2e per metric tonne.
Total specific embedded indirect emissions (SEE_{g,indir}) from electricity consumed during production.
Total embedded precursor emissions (SEE_{prec}) for complex goods.
Statutory carbon price effectively paid in the country of origin under Article 9.
Carbonatoz automates this complex statutory reconciliation through a guided 4-step declaration wizard.
2. CBAM Covered Goods Classification & Scope Matrix
Identify whether your manufactured products qualify as Simple Goods or Complex Goods:
| Product Sector | Example 8-Digit CN Code | Product Description | Goods Classification | Precursor Data Required? |
|---|---|---|---|---|
| Iron & Steel | 7201 10 11 | Non-alloy pig iron | Simple Good | No (Direct production emissions only) |
| Iron & Steel | 7206 10 00 | Iron and non-alloy steel ingots | Simple Good | No |
| Iron & Steel | 7208 37 00 | Flat-rolled products of iron / non-alloy steel | Complex Good | Yes (Crude steel, pig iron, sinter ore) |
| Iron & Steel | 7304 11 00 | Seamless line pipe for oil/gas pipelines | Complex Good | Yes (Steel billets, hot-rolled bar) |
| Aluminium | 7601 10 00 | Unwrought aluminium (not alloyed) | Simple Good | No (Electrolytic smelting direct/indirect) |
| Aluminium | 7606 12 20 | Aluminium plates, sheets and strip (alloyed) | Complex Good | Yes (Primary aluminium ingots, alloying metals) |
| Fertilisers | 2808 00 00 | Nitric acid | Simple Good | No (Direct ammonia oxidation N_2O) |
| Fertilisers | 3102 10 10 | Urea containing > 45% nitrogen | Complex Good | Yes (Anhydrous ammonia precursor) |
3. Step-by-Step Procedure: Creating a Quarterly CBAM Declaration
Follow these exact operational steps to prepare and finalize a quarterly CBAM filing:
Initiate Quarterly Declaration Filing
In the main sidebar, select CBAM ComplianceDeclarations.
Click the + New Quarterly Declaration button in the header toolbar.
Select the target Reporting Year (e.g.
2026) and Filing Quarter (e.g. Q2 (April 1 – June 30)).Enter your Reporting Declarant EORI Number (e.g.
NL123456789012) and select the manufacturing Installation ID.Add Goods Line Items & Map Production Routes
Click + Add Goods Line Item.
Type or select the statutory 8-digit CN Code (e.g.
7208 37 00 - Hot-Rolled Coils).Enter the total Net Mass Exported to the European Union (e.g.
12450.50 Metric Tonnes).Select the specific statutory Production Route:
Blast Furnace — Basic Oxygen Furnace (BF-BOF)
Electric Arc Furnace (EAF) — Scrap Based
Direct Reduced Iron — Electric Arc Furnace (DRI-EAF)
Reconcile Precursors & Electricity Allocations
If the good is classified as a Complex Good, the wizard opens the Precursor Allocation sub-drawer.
Click Link Precursor Batch to pull verified carbon passports from upstream suppliers or internal crude steel units.
Confirm the mass balance consumption ratio (e.g.
1.08 MT Crude Steel consumed per 1.00 MT Hot-Rolled Coil).Under Electricity & Indirect Emissions, confirm whether to apply the facility-specific PPA factor or the statutory Country Grid Emission Factor (0.71\ tCO_2e/MWh).
Input Article 9 Origin Country Carbon Price Credits
If carbon tax, ETS allowances, or energy surcharges were paid in the country of manufacture, toggle Claim Article 9 Carbon Price Deduction.
Enter the statutory rate paid in local currency (e.g.
₹400 per MT coal cess in India).Enter the currency exchange rate to Euro (€).
The platform calculates the net deductible Euro credit per tonne of embedded emissions:
Deduction (€/t) = (Carbon Price Paid (€/t) / Total Specific Embedded Emissions (tCO_2e/t))
Run Pre-Validation Rule Engine & Lock Declaration
Click Run Statutory Pre-Validation.
The engine evaluates the dataset against 42 automated validation checks:
Verifies that zero unapproved default benchmark values are present.
Confirms mass balance integrity across precursor flows (M_{prec} \ge M_g).
Validates that all supporting lab test sheets and verifier credentials are attached.
If validation passes with zero errors, click Lock & Request Verifier Review.
In accordance with Invariant INV-04, locking the declaration freezes all underlying monthly activity records to prevent retroactive data tampering.
4. Technical Note: Embedded Emission Calculation Formulas
5. Troubleshooting Common Declaration Errors
| Validation Issue | Description | Root Cause & Resolution |
|---|---|---|
| Precursor Mass Deficit | Mass Balance Discrepancy | The sum of precursor masses linked (M_i) is less than the finished good net mass (AL_g). Review your bill of materials (BOM) and attach missing raw steel or pig iron batches. |
| Unapproved Default Factor | Definitive Regime Factor Restriction | Standard default values are not permitted for Tier 3 simple goods during the definitive CBAM regime. Upload primary laboratory emission factors under GHG AccountingFactor Overrides. |
| Invalid EORI Format | Declarant Identifier Validation | The declarant EORI number does not match the ISO 2-letter country code + alphanumeric format. Ensure no spaces or hyphens exist in the EORI string. |