EU CBAM & Stainless Steel Washers: What Importers Need to Know (2026)
The EU Carbon Border Adjustment Mechanism (CBAM) entered its definitive, financially binding phase on 1 January 2026. If you are an EU-based distributor, OEM buyer, or procurement manager importing stainless steel washers from outside the EU, you may already be asking: does CBAM apply to our fastener purchases, and what does our supplier need to provide? This guide gives a careful, factual answer — including the parts that are still pending.
Key point upfront: CBAM is an EU import mechanism — the obligation falls on the EU importer, not on the non-EU manufacturer. But EU importers need embedded-emissions data from their suppliers, which is why this regulation matters to your supply chain relationship.
1. What CBAM Is
CBAM — the Carbon Border Adjustment Mechanism, introduced under EU Regulation 2023/956 — places a carbon price on the greenhouse-gas emissions embedded in certain carbon-intensive goods imported into the EU. Its purpose is to prevent "carbon leakage": the risk that EU manufacturers, subject to the EU Emissions Trading System (EU ETS), would be undercut by imports from countries with less stringent carbon-pricing regimes. In effect, CBAM extends a carbon cost to imported goods that is comparable to what an EU producer would pay under the ETS.
CBAM is not a factory certification, an ISO standard, or a product approval — it is a regulatory import obligation that EU importers must comply with. A non-EU manufacturer cannot become "CBAM certified"; the mechanism is designed to operate through the EU importer, who is accountable to EU customs authorities.
The sectors initially covered by CBAM are: cement, iron & steel, aluminium, fertilizers, electricity, and hydrogen.
2. The CBAM Timeline: From Reporting to Payment
| Phase | Period | Obligation for EU importers |
|---|---|---|
| Transitional (reporting only) | 1 Oct 2023 – 31 Dec 2025 | Quarterly reporting of embedded emissions for covered goods — no CBAM certificate purchase required. Importers had to report but faced no carbon payment. |
| Definitive (full obligations) | 1 Jan 2026 onwards | EU importers must be registered as authorised CBAM declarants, submit annual CBAM declarations covering embedded emissions, and purchase and surrender CBAM certificates proportional to the carbon embedded in their imports. Financial exposure now applies. |
| Omnibus simplification | In effect 20 Oct 2025 | A 50-tonne cumulative net mass de minimis exemption was introduced, relieving the large majority of smaller EU importers from CBAM obligations while still covering the bulk of embedded emissions. See Section 4. |
Note: CBAM rules continue to evolve. The European Commission has published implementing regulations and guidance; importers should monitor the official CBAM registry and consult with a customs or regulatory adviser for updates applicable to their specific situation.
3. Are Stainless Steel Washers (CN 7318) in Scope?
Yes. This is the question washer buyers ask first, and the answer is no longer conditional.
Stainless steel washers are classified under CN 7318 — the Combined Nomenclature heading for screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel. That heading is listed in CBAM Annex I to Regulation (EU) 2023/956.
In scope, with financial obligations from 1 January 2026. EU importers of CBAM-covered goods such as fasteners under CN 7318 must hold and surrender CBAM certificates for the emissions embedded in those goods for all imports made from 1 January 2026 onwards. No further amendment to Annex I is needed for washers — the obligation is already in force.
What changed, and what did not
Two separate things are easy to confuse:
- CN 7318 fasteners — already in Annex I, reported through the transitional period, and financially liable since 1 January 2026. Nothing is pending.
- A proposed extension to roughly 180 further downstream product categories — published by the Commission on 17 December 2025 and proposed to apply from 1 January 2028, subject to adoption by the Parliament and Council. That proposal concerns other goods; it does not govern whether washers are covered, because washers already are.
Two further points that catch importers out
- Only direct emissions count from 2026. Indirect (electricity-related) emissions were reported during the transitional period but are excluded from the definitive-period calculation for iron and steel goods.
- The manufacture of the fastener itself sits outside the system boundary. What counts is the embedded carbon of the steel precursors — pig iron or scrap, and billet production. The Commission has confirmed this; some questions on the exact boundary, such as wire preparation, remain the subject of industry representations.
Confirm the position for your own tariff lines with a customs adviser or through the Commission’s official CBAM portal — the rules are being refined, and this article states the position as at 10 September 2026.
4. The 50-Tonne De Minimis — Most Smaller Importers Are Exempt
One of the most significant practical changes introduced by the Omnibus simplification package (effective 20 October 2025) is a de minimis exemption based on cumulative net mass. The rule:
- An EU importer that brings 50 tonnes or less of CBAM-covered goods (cumulative net mass across all covered CN codes) into the EU in a calendar year is exempt from CBAM reporting and certificate-surrender obligations.
- If an importer exceeds the 50-tonne threshold, all of its covered CBAM imports for that year are in scope — not just the quantity above 50 tonnes. The threshold is binary: below it, nothing; above it, everything.
- Hydrogen and electricity are excluded from this de minimis.
- The European Commission estimated this exemption covers approximately 90% of EU importers by number, while still capturing around 99% of embedded emissions — because the exempt importers are collectively small in volume.
For EU washer and fastener buyers, this exemption is practically significant. A distributor or OEM buyer importing tens of thousands of boxes of M8 flat washers per year may still fall well below 50 net tonnes of washers — a metric-tonne is 1,000 kg, and 50 metric tonnes of stainless washers represents a substantial volume. However, buyers who consolidate diverse steel product lines, or who import washers at very high volumes, should calculate their total covered CBAM goods tonnage rather than assuming the exemption applies.
5. Who Reports and Who Pays: Importer vs Supplier
| Obligation | EU Importer (authorised CBAM declarant) | Non-EU Manufacturer (e.g. HUIHUI) |
|---|---|---|
| Register as CBAM declarant | Yes — required before importing covered goods | No — no direct CBAM registration |
| Submit annual CBAM declaration | Yes — covering embedded emissions of all covered imports above de minimis | No |
| Purchase & surrender CBAM certificates | Yes — proportional to embedded emissions declared | No — the carbon cost is borne by the importer |
| Provide embedded-emissions data | Must obtain this data for the declaration | Yes — the manufacturer must supply the product/installation emissions information the importer needs |
| Provide material documentation (MTC, grade traceability) | May hold on file for audit | Yes — material test certificates and grade records support both CBAM data and general supply-chain compliance |
The practical consequence: the financial and regulatory burden of CBAM sits entirely with the EU importer. The non-EU manufacturer has no direct CBAM payment obligation. But because the importer's declaration must be based on actual embedded-emissions data for the goods, and that data originates at the production facility, a compliant supply chain requires the manufacturer to be able to provide it. An EU importer who cannot obtain credible embedded-emissions data from their supplier may be forced to use default values set by the European Commission — which are typically set conservatively high and may result in a higher certificate cost than the actual emissions would warrant.
6. What Data to Ask Your Supplier For
If your CBAM-covered imports exceed the 50-tonne de minimis, the CBAM declaration requires embedded-emissions data in a specific form. When approaching your stainless washer supplier, request the following:
Production route documentation
Whether the steel was produced via electric arc furnace (EAF) using recycled scrap or via blast furnace / basic oxygen furnace (BOF) from virgin ore. This distinction is foundational to the embedded-carbon calculation: EAF-route steel, which is the dominant production method for stainless, typically has a substantially lower embedded-carbon footprint than BOF-route steel, because EAF relies primarily on electricity rather than coking coal. However, the actual figure depends on the carbon intensity of the electricity grid at the production site.
Embedded-emissions or product carbon footprint data
Product-level or installation-level embedded greenhouse-gas emissions, expressed in tonnes of CO2-equivalent per tonne of product, covering both direct emissions from the production process and, where applicable, indirect emissions from electricity consumption. If the manufacturer has a third-party verified product carbon footprint (PCF) or life-cycle assessment (LCA), that documentation is preferable to unverified self-declaration. The exact calculation methodology required for CBAM is specified in the relevant EU implementing regulations — ensure the data you receive conforms to those requirements.
Material traceability records
EN 10204 3.1 Mill Test Certificates (MTCs) tracing each delivery back to the steel melt, including grade, composition, and production records. While MTCs are not themselves a CBAM input, they establish the documented chain of custody and material identity that supports both CBAM data credibility and general import compliance. See our related guide on what an MTC is and what it contains.
7. How HUIHUI Supports EU Customers on CBAM
HUIHUI produces 304, 316 and 316L stainless steel washers to DIN and ASME standards in the Jiaxing fastener cluster. Our ISO 9001:2015 quality system covers documented, traceable production from incoming coil through final shipment. On CBAM-relevant documentation, here is what we can provide and how to request it:
- EN 10204 3.1 Mill Test Certificates — tracing heat number, chemical composition, and mechanical properties for 304, 316, and 316L orders. Specify at the RFQ or purchase-order stage.
- Grade and heat traceability — production and incoming-inspection records linking delivered washers to the coil melt and mill certificate.
- Production-route information — documentation of the steelmaking route used for the raw material (EAF vs BOF) as available from our material suppliers.
- Embedded-emissions / product carbon footprint data — on request, we will work to supply the embedded-emissions information importers need for their CBAM declarations, in a form consistent with EU implementing regulation requirements. As CBAM extends to downstream products, this is an area where supply chain documentation standards are actively developing.
A note on stainless steel and embedded carbon: stainless steel is commonly produced via the EAF route using recycled-content feedstock, which can result in a lower embedded-carbon figure compared to primary blast-furnace steel. We are not able to state a specific figure here — actual embedded-carbon values depend on documented data from the specific mill and the grid's carbon intensity — but this production-route advantage is worth exploring with your supplier and factoring into your CBAM analysis.
FAQ
Are stainless steel washers (CN 7318) already subject to CBAM charges in 2026?
Yes. Washers fall under CN 7318, which is listed in CBAM Annex I to Regulation (EU) 2023/956, and EU importers must hold and surrender CBAM certificates for the embedded emissions of goods imported from 1 January 2026 onwards. No further amendment to Annex I is required for washers. A separate Commission proposal of 17 December 2025 would extend CBAM to roughly 180 additional downstream product categories from 1 January 2028, but that concerns other goods and does not change the position for fasteners. From 2026 only direct emissions are counted, and imports below the 50-tonne annual net-mass threshold remain outside CBAM.
Who is responsible for CBAM reporting and paying for CBAM certificates — the EU importer or the Chinese manufacturer?
The EU importer is responsible. Under CBAM, it is the authorised CBAM declarant — the EU-based entity importing the goods — that must register, submit the annual CBAM declaration, and purchase and surrender CBAM certificates covering the embedded emissions of the goods it imported. The non-EU manufacturer (such as HUIHUI) has no direct CBAM obligation. However, the importer needs embedded-emissions data for the goods in order to make their declaration — and that data must come from the manufacturer. So while the financial and regulatory burden sits with the EU importer, there is a practical data-sharing requirement that flows back to the supplier.
What is the 50-tonne de minimis and does it affect most washer importers?
The CBAM de minimis exemption (introduced via the Omnibus simplification package, effective 20 October 2025) exempts importers who bring 50 tonnes or less of CBAM-covered goods (cumulative net mass) into the EU per year from CBAM reporting and payment obligations. The threshold is assessed across all covered CBAM goods an importer brings in — not just one product. If an importer exceeds the 50-tonne threshold, all of its covered CBAM imports are in scope, not just the quantity above 50 tonnes. The European Commission estimated this exemption would relieve approximately 90% of EU importers by number while still capturing around 99% of total embedded emissions. Many SME washer and fastener buyers will fall below this threshold, but larger distributors or OEM buyers bringing in significant annual tonnages may not — they should calculate their total covered-goods import tonnage carefully.
What embedded-emissions data should I request from my washer supplier for CBAM purposes?
CBAM declarations require the embedded (or embodied) greenhouse-gas emissions of the imported goods, expressed in tonnes of CO2-equivalent per tonne of product. To obtain this, EU importers should request from their supplier: (1) product-level or installation-level embedded-emissions data covering the direct and, where applicable, indirect emissions from the production process; (2) documentation of the production route — for stainless steel, whether the material was produced via electric arc furnace (EAF) using recycled scrap or via blast furnace/basic oxygen furnace (BOF) from virgin ore, since this significantly affects the embedded-carbon figure; (3) any third-party verified product carbon footprint (PCF) or life-cycle assessment (LCA) data if available. The exact format and methodology for CBAM embedded-emissions calculation is specified in EU implementing regulations — consult those requirements or a CBAM adviser to ensure the data you receive is in the right form for your declaration.
Does stainless steel typically have lower embedded carbon than ordinary carbon steel?
It depends heavily on the production route, not the steel type alone. Stainless steel produced via electric arc furnace (EAF) — which is commonly used for stainless because scrap metal is a suitable feedstock — can have significantly lower embedded carbon per tonne than steel produced via the blast furnace / basic oxygen furnace route, because EAF primarily uses electricity rather than coking coal as its energy source. However, the actual embedded-carbon figure varies by facility, the carbon intensity of the electricity grid used, and how much recycled scrap was used. These are documented numbers that must be obtained from the specific producer, not assumed. HUIHUI can provide information on the production route of its raw material and, on request, work to supply the documented data needed for CBAM reporting.
Disclaimer: This article is general background information for procurement and trade professionals. It is not legal, customs, or regulatory advice. CBAM rules, implementing regulations, and the list of covered goods (Annex I) are subject to change. CN 7318 is listed in CBAM Annex I and carries certificate obligations for imports made from 1 January 2026; the position stated here is as at 10 September 2026. Importers should confirm current requirements with a qualified customs adviser, CBAM consultant, or their national competent authority before making compliance decisions.
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Whether you need EN 10204 3.1 MTCs, production-route information, or embedded-emissions data for CBAM reporting, include your documentation requirements in your RFQ and we will respond within one business day.
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