Chamber publishes papers to help manufacturers with post-Brexit changes
Two new papers designed to help manufacturers who export to the EU deal with significant changes arising from Brexit have been published by Greater Birmingham Chambers of Commerce.
The Chamber has released two papers on the implications of the Carbon Border Adjustment Mechanism (CBAM) and the Border Target Operating Model.
The introduction of the Carbon Border Adjustment Mechanism, which came into effect this week, will act as a tariff on carbon intensive products such as aluminium, cement, electricity, fertilisers, hydrogen, iron and steel.
The mechanism is in a transitional stage. The transitional period is from 1 October 2023 to 31 December 2025, with full implementation from 1 January 2026, at which point importers will start paying adjustments. Between 2030 and 2032, the mechanism is expected to be fully implemented. At this point, all goods covered by the EU Emissions Trading System will be included in the CBAM.
Meanwhile, the Border Target Operating Model (BTOM) sets out a new approach to importing into Great Britain, which is set to be introduced from January 2024. Significantly to businesses will be the introduction of the introduction of health certificates of medium risk animal products, plants, plant products & high-risk food, and feed of non-animal origin from the EU.
Cameron Uppal (pictured) said: “It is essential that businesses are aware of the implications of CBAM and the Border Target Operating Model.
“Given the heavy manufacturing make-up of Greater Birmingham businesses it is essential that businesses grasp what these changes mean - if not, manufacturers that export to the EU will be caught cold on some significant changes when exporting.
“The important thing is that businesses are prepared when it comes to these changes- whether that means dealing with new reporting requirements or ensuring that they have the necessary export health certificates ready.”
Read the CBAM paper.
Read the Border Target Operating Model paper.
