Does the CBAM apply to ‘returned goods’?
Returned goods are goods defined in Article 203 of the Union Customs Code (Regulation (EU) No 952/2013). They are goods that are released for free circulation and benefit from duty exemption because they were Union goods before, either because they have originally been exported as Union goods or because they were previously released for free circulation, and because they fulfil certain conditions (e.g. they are released for free circulation within three years after they were previously exported). The conditions under which those goods qualify as returned goods are laid down in the customs legislation, and competent customs authorities assess whether these conditions are fulfilled when the goods are declared for release for free circulation in the EU.
During the transitional period, CBAM reporting obligations do not apply to returned goods as defined in Article 203 of the Union Customs Code. As a result, the embedded emissions of these goods do not need to be included in the quarterly CBAM report. However, for returned goods as defined in Article 205 of the Union Customs Code, the reporting obligations are not waived. Article 205 applies to returned goods which were originally re-exported after having been placed under inward processing.
During the definitive period, reporting declarants will have to report returned goods as defined in Article 203 of the Union Customs Code in their annual CBAM declaration, however they must input ‘zero’ for the total embedded emissions corresponding to those goods. For returned goods as defined in Article 205 of the Union Customs Code, the declarant must report the embedded emissions like for any other import of CBAM goods.
The above provisions on “returned goods” only apply to goods of non-EU origin. Conversely, for goods which are of EU origin (according to the rules of origin) when they are returned to the Union, no CBAM applies.
Source: EC’s Questions and Answers on CBAM