● EU REGULATION — DEFINITIVE REGIME LIVE

CBAM obligations, flagged before the swap is signed — not after the border.

The EU Carbon Border Adjustment Mechanism entered its definitive regime on 1 January 2026. For carbon-intensive materials crossing into the EU, Michael's ARCO module checks CBAM obligation automatically, against the covered goods list and your declarant authorisation.

See the pipeline

Why It's Not Optional

The stakes of getting CBAM wrong

Regime status
Live since Jan 2026

The definitive CBAM regime is now in force. This is no longer a transitional reporting exercise.

Covered goods
6 categories

Cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. Each ties to specific HS codes.

Annual de minimis
50 tonnes

Per importer per calendar year. Cumulative net mass across covered goods other than electricity and hydrogen (2025 Omnibus simplification). If you cross it at any point in the year, every import that year is in scope.

A pre-screen, not a ruling. ARCO screens swaps against published regulatory and sanctions lists and gates the workflow on the result. It is not a legal determination, a regulatory filing, or a substitute for your compliance function's formal sign-off.

How ARCO Handles It

The CBAM pre-screen pipeline, automated

CBAM has no public REST API. The registry is a web portal that needs EU Login authentication. ARCO works around this with a three-step check at onboarding and at swap time.

01

Declarant authorisation on file

At counterparty onboarding, ARCO needs the upload of a valid CBAM declarant authorisation certificate.

SOURCE: CBAM REGISTRY (EU LOGIN PORTAL)
02

Goods code match

At swap gating, ARCO verifies the commodity's HS/CN code against the static CBAM-covered goods list.

CATEGORIES: HS 2523, 72/73, 76, 31, 2716, 2804.10
03

Threshold & obligation flagged

ARCO keeps a cumulative count of the covered-goods volume the importer transacts on the platform in the calendar year. It checks the count against the 50 tonnes per-importer annual de minimis. It flags any resulting CBAM declaration obligation in the document generator. The count covers platform-transacted volume only. ARCO cannot see imports made outside the platform. Your compliance team adds those to establish the importer's true annual CBAM position.

EXPIRY: 72 HOURS

What You'll See

Three possible outcomes, every time

CLEARED

Platform-tracked volume under the annual de minimis for the importer's calendar year. Or a valid declarant authorisation on file, with the obligation flagged.

PENDING

Goods code match found. The declarant authorisation is not yet verified. Or the threshold calculation needs manual review.

BLOCKED

Covered goods above threshold with no valid CBAM declarant authorisation on file.

Coverage Detail

What ARCO checks, and how current it is

CheckWhat's verifiedRefresh cycle
Declarant authorisationValid CBAM authorisation certificate on fileAt onboarding + renewal tracking
CN code matchGoods code against static CBAM-covered listOn publication (static list)
Threshold checkAnnual de minimis: 50 tonnes per importer per calendar year, cumulative net mass. ARCO counts platform-transacted volume only. It cannot see imports outside the platform.Per swap, with regulatory change monitoring
Regime updatesScope expansion or threshold changes (e.g. 2025 Omnibus Simplification)EC DG TAXUD feed monitoring

Related Compliance

CBAM is one of several gates every swap runs through

Know your CBAM obligation before you sign.

Request a walkthrough and see a CBAM check run in the demo.