56 2024 TSMA the production country of origin, including documentation of carbon fees (taxes) or emissions allowance trading. Any offset certificates, such as carbon credits or renewable energy certificates, are excluded from waiving the CBAM certificate’s duty. Using iron & steel (e.g., stainless steel or screws) and aluminum as basic production materials for consuming products in the sporting goods industry is widespread. Therefore, it is apparent that applying CBAM will significantly change Taiwan’s manufacturing and trade practices in the sporting goods industry, particularly those primarily engaged in manufacturing, processing, and contract productions. Those sporting goods will be subject to CBAM control instead of the previous free trade and flow model. Although the carbon fee scheme is expected to apply soon in Taiwan, many non-regulatory-controlled emitters are concerned that future exportation will be under high burden risks of carbon costs for exploring the European market, potentially making them less competitive in product pricing. Simultaneously, as a trade-dependant nation, trader plays an essential role in Taiwan to generate revenues in triangular trades, which now face serious challenges. Although Taiwan is the first nation to adopt its carbon border adjustment design in the CCRA, it can not apply for imported products now without implementing a domestic carbon pricing instrument first. The global community continues to watch the development of the EU’s CBAM application during the transitional phase. Many industries are assessing which major economic markets will adopt Carbon Border Adjustments (CBA) in the future. Whether it is for energy-intensive industries or sports products, the development of the EU’s CBAM should be concerned with the following vital points: 1) Impacts on the Exporters: the EU’s importers of sports equipment industry products may face higher carbon adjustment costs due to CBAM, potentially affecting Taiwan’s product competitiveness in the European market; 2) Trade Practices’ Impacts: traditional triangular trade may need to adapt to the changing trade landscape under the CBAM system due to disclosing production details fully; 3) Global Carbon Trade Development: other major trade economies may also apply CBA financially to affect international trade dynamics and market access. For consumer sports equipment and products subject to the CBAM regulation, the producers shall promptly complete detailed statistics of carbon emissions inventory and carbon footprints following the CBAM principle of traceability back to the country of origin for any precursor materials. Considering the current landscape of the sporting goods industry in Taiwan, the operation scale of manufacturers and original equipment manufacturers (OEMs) is varying. Due to regulatory and supply-chain
RkJQdWJsaXNoZXIy MjIwMjA1