Assofermet, the association representing Italian companies active in the trading, distribution and processing of steel, has urged the European Commission to raise the de minimis exemption threshold under the Carbon Border Adjustment Mechanism (CBAM) from 50 to 500 metric tons per importer per year, in view of the planned extension of the mechanism to downstream steel and aluminum products. The aim is to reduce administrative burdens on businesses, particularly operators importing relatively small volumes of finished products.
The request was formally submitted in a letter addressed to European Commission President Ursula von der Leyen and the Directorate-Generals for Taxation and Customs Union (TAXUD) and Climate Action (CLIMA), with a copy also sent to the Italian government.
According to the association, the amendments approved by the European Parliament on September 15 envisage bringing approximately 500 additional product categories within the scope of CBAM, covering finished and semi-finished steel and aluminum products, including hardware, tools, machinery components and metal fittings for the construction sector.
The expansion of the mechanism would therefore affect a growing number of small and medium-sized enterprises (SMEs), distributors and importers, potentially imposing additional administrative requirements even on companies purchasing relatively limited volumes. Assofermet also points out that, in the case of manufactured goods, the total weight of a product may differ significantly from the weight of the materials actually covered by CBAM, making the application of a uniform threshold potentially disproportionate.
To support its position, the association refers to previous analyses by the European Commission indicating that a 500 mt threshold would exempt approximately 97 percent of importers while still covering 96.43 percent of the embedded emissions in the sectors originally included in the mechanism.
Assofermet is therefore calling for a new impact assessment that takes into account the specific characteristics of downstream products, import volumes and the associated administrative costs, while also considering the introduction of differentiated thresholds by product category. The proposal also calls for appropriate monitoring mechanisms and anti-circumvention measures to ensure a more proportionate application of CBAM without undermining its environmental objectives.
Author: SteelOrbis Editorial Team
