1. Statutory Context: Simple vs. Complex Goods
Under EU CBAM (Regulation EU 2023/956, Article 3(3) and 3(4)):
- Simple Goods: Goods produced exclusively from input materials and fuels having zero embedded emissions (e.g. sintered ore, crude pig iron from mined ore).
- Complex Goods: Goods encompassing input materials (precursors) that have their own embedded greenhouse gas emissions (e.g., steel coils, hot-rolled bars, seamless pipes, aluminium extruded shapes).
2. Step-by-Step CN Code Mapping
Step 2.1: Open Goods Management
Navigate to CBAM ComplianceGoods & Products.
Click + Add Covered Product.
Step 2.2: Enter 8-Digit Combined Nomenclature (CN) Code
Enter or search the 8-digit CN Code (e.g.
7208 37 00 - Flat-rolled products of iron or non-alloy steel).The platform automatically verifies:
Whether the code is covered under CBAM Annex I.
Whether Scope 2 indirect emissions are mandatory for this product category.
Applicable default baseline factors.
Step 2.3: Select Production Process Route
Select the manufacturing route:
Steel:
blast_furnace_bof, electric_arc_furnace, direct_reduced_iron_eaf.Aluminium:
primary_smelting_electrolysis, secondary_remelting.Cement:
clinker_dry_kiln, cement_blending.Define the product physical boundary (Mass balance accounting unit).
(For Complex Goods) Check Requires Precursor Linkage and select the required upstream materials (e.g. Pig Iron CN 7201, Crude Steel CN 7206).
Step 2.4: Save & Activate Product
Click Save Product Configuration.
The SKU is now available in the Quarterly Declaration Wizard for line item export allocation.