59 Taiwan Sporting Goods Manufacturers Association starting in 2026, each insufficient CBAM certificate will be subject to a penalty of three to five times the EU ETS’s statutory price, equivalent to EUR 300 to EUR 500. For the European importers, the inability of producers or traders to provide complete CBAM declaration reports or failure to make corrections within a specified timeframe could lead to an unwillingness to import foreign goods to lower potential financial risks in business operations. In reality, non-tariff trade barriers in CBAM spanning multiple aspects create an unfair trade competitive situation for suppliers from Taiwan or other nations. The survival impacts on marketing strategy and declaration preparation for CBAM-covered products imported into Europe for trading companies, processing manufacturers, or OEMs. Given the potential trade barriers described above, it will also affect existing business operators in Taiwan, whether domestic manufacturers, processing manufacturers, or those operating in export trade zones classified as “foreign territories,” such as bonded factories, bonded warehouses, and free trade zones. Simultaneously, from the operational perspectives of traditional triangular trade, trading firms (e.g., exporters) will face challenges in maintaining information confidentiality. The basic triangular trade model involves a European buyer (or importof impacted businesses to mitigate potential losses and operational risks stemming from unfavorable trade positions or conditions. All WTO member countries should not be restricted or prohibited from trade beyond tariffs due to “non-tariff measures.” However, the CBAM imposes complex import and export procedures, including certification requirements for embedded carbon emissions information and origin label information disclosure from all manufacturing processes. The European importers who fail to surrender completed information may face significant fines. During the transitional period from October 2023 to the end of 2025, the penalty for each tonne of non-reported embedded carbon emissions will be between EUR 10 and EUR 50 for European importers. After the permanent system enters into force https://www.freepik.com/
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