MaCF: ready for the start!
A step is now taken for the MACF in its transitional phase with the end of the use of default values for quarterly reports. In 2024, let us review together the information transmitted by the European Commission during the summer!
The MACF (Carbon Adjustment Mechanism at the Frontiers) is entering a new stage in the early third quarter of 2024. Although we are still in the transitional period with the obligation to collect data only without taxation per se, the methods of reporting these data are restricted. Indeed, until 31 July, importers who did not have the opportunity to report actual product emissions had the option of using default values from EU published averages to report all data in quarterly reports.
Since 1 AugustThis practice is no longer permitted. Until31 December 2024Three alternative methods can be used if foreign manufacturers are still unable to transmit real data. These methods are as follows:
- onecarbon pricing systemsuch as, for example, the quota system in Europe which has established a carbon price in the territory of the Union (ETS);
- amandatory emission monitoring in the manufacturer's country,
- oneemission monitoring system at installation levelthe supplier (which may include verification by an auditor).
The default values can be used up to 20% only for complex goods. This refers to goods for which emissions on precursors are to be reported, in other words, when the finished product « consumption » materials entering the MACF field themselves.
During the summer, the European Commission updated twice theFAQ* on its MACF site. The details are easily identifiable because the text added is highlighted in this document entitledCarbon Border Adjustment Mechanism (CBAM) Questions and Answers.
The most important information to be taken in connection with the end of 100% use of default values concerns question 74, which deals with the problem of manufacturers not returning actual emissions from their production: the Commission confirms once again thatimporters need to cooperate with their suppliers to obtain emission data. In the event that importers are still unable to obtain information from their suppliers, they will be in breach and will not be able to file correct reports for the third quarter (report to be filed on October 31 for emissions of imported products between July 1 and September 30).
In order to avoid penalties for incorrect or incomplete reporting, the authorities ask the reporting importers to justify efforts to collect accurate data from their suppliers. Such proofs may consist of documents (copy of e-mail exchanges, letters sent to suppliers, etc.) deposited on the European portal as annexes to the quarterly reports.
*Frequently Asked Questions
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Source(s): europa.eu
Editor(s): L. SPRIET