SKDM covers the iron and steel, aluminum, cement, fertilizer, electricity and hydrogen sectors. The scope includes various user products (downstream products) where primary products are used as inputs and the production processes are not complex in order to prevent trade diversion. In addition, certain inputs (precursors) used in the production of products within the scope of SKDM are included in the scope. Within this framework, products within the scope of SKDM will be subject to obligations imposed by the legislation both in cases where they are directly imported to the EU and in cases where they are used as inputs during the production phase of other SKDM products. While determining the scope of SKDM, which is designed as an equivalent mechanism of ETS to be implemented at the import stage, sectors and product groups where carbon emission measurement can be made relatively easily on a product basis were selected from among sectors with a high risk of production shifting outside the EU.
The legislative text regarding the Border Carbon Adjustment Mechanism was adopted by the EU Council on 25 April 2023. The text was signed by the European Parliament and the EU Presidency on 10 May 2023. The Regulation Text on the Establishment of the European Union Border Carbon Adjustment Mechanism was published in the EU Official Gazette dated 16 May 2023 and numbered L130. The GTIPs within the scope of SKDM included in the relevant legislation text are presented in List-1.
List 1: List of GTIPs within the scope of SKDM
Cement
2507.00.80 Other kaolin clays
2523.10.00 Cement; Clinker
2523.21.00 Cement; Portland; White
2523.29.00 Cement; Portland; Other
2523.30.00 Cement; alum
2523.90.00 Other Cements Hardening Under Water
Electrical Energy
2716.00.00 Electrical Energy
Chemicals
2804.10.00 Hydrogen
Fertilizer
2808.00.00 Nitric Acid; Sulfonitric Acids
2814 Pure Ammonia or Aqueous Solutions of Ammonia
2834.21.00 Potassium Nitrate
3102 Nitrogenous Mineral or Chemical Fertilizers
3105 Mineral or Chemical Fertilizers Containing Two or Three of Nitrogen, Phosphorus and Potassium (Except HS Code 3105.60.00)
Iron - Steel
72 Iron and Steel
(Except the following HS Codes)
7202.2 Ferro-silico
7202.3 Ferro-silico-manganese
7202.50.00 Ferro-silico-chromium
7202.70.00 Ferro-molybdenum
7202.80.00 Ferro-tungsten and ferro-silico- tungsten
7202.91.00 Ferro-titanium and ferro-silico-titanium
7202.92.00 Ferro-vanadium
7202.93.00 Ferro-niobium
7202.99 Other ferro-alloys
7202.99.10 Ferro-phosphorus
7202.99.30 Ferro-silico-magnesium
7202.99.80 Other ferro-alloys
7204 Waste and scrap of cast iron, iron or steel, or ingots obtained by their remelting
2601.12.00 Iron ores and concentrated iron ores (excluding roasted iron pyrites) (agglomerated)
7301 Sheet pilings of iron or steel; Iron or Steel Welded Profiles
7302 Railway and Tramway Line Material of Iron or Steel (Rail, Switch Tongues, Switch Hubs, Tensioners
7303.00 Cast Iron Thin and Thick Tubes and Hollow Profiles
7304 Iron (Except Cast Iron) and Steel Thin and Thick Tubes and Hollow Profiles (Seamless)
7305 Other Iron or Steel Thin and Thick Tubes (Welded, Riveted) (Circular Sections)
7306 Other Iron or Steel Thin and Thick Tubes and Hollow Profiles
7307 Iron or Steel Pipe Fittings (Couplings, Elbows and Sleeves, etc.)
7308 Iron or Steel Building and Construction Parts, Iron or Steel Prepared for Use in Construction
7309.00 Iron or Steel Tanks, Cisterns, Tubs, etc. Containers (Volume > 300 Lt and Mechanical or Thermal Equipment
7310 Iron or Steel Tanks, Cisterns, Tubs, etc. Containers (Volume <= 300 Lt and Mechanical or Thermal Equipment
7311.00 Iron or Steel Compressed or Liquidized Gas Containers
7318 Iron or Steel Screws, Bolts, Nuts, Laths, Hooks, Rivets, Pins, Wedges, Washers (Including Spring Washers) and Other Articles
7326 Other Articles of Iron or Steel
Aluminum
7601 Unwrought Aluminium
7603 Aluminium Powders and Flakes
7604 Aluminium Rods and Profiles
7605 Aluminium Wires
7606 Aluminium Sheets, Plates, Strips (Thickness 0.2 mm. )
7607 Sheets and Strips of Aluminum (Thickness <= 0.2 mm)
7608 Thin and Thick Tubes of Aluminum
7609.00.00 Aluminum Pipe Fittings (Couplings, Elbows, Sleeves, etc.)
7610 Construction of aluminum (excluding prefabricated structures in 94.06), construction