What changes for Norway and Iceland under Carbon Border Adjustment Mechanism (CBAM) from 1 January 2027, and what is code Y423?

Nothing changes today: goods originating in Norway, Iceland or Switzerland are exempt. Norway and Iceland aim to incorporate CBAM into the European Economic Area (EEA) Agreement from 1 January 2027. From then, customs tariff (TARIC) code Y423 should mark goods already released for free circulation in an EEA European Free Trade Association (EFTA) State.

Where things stand

The Commission's Questions and Answers (Q&A) 7.18 say that in view of the 2026 definitive phase there is no difference in treatment of Norway and Iceland compared to Switzerland: goods originating in any of the three are and will be exempted from CBAM. The basis is Article 2(4) of the CBAM Regulation, which says the Regulation shall not apply to goods originating in the third countries and territories in point 1 of Annex III.

What is planned from 1 January 2027

• Norway and Iceland aim to incorporate the CBAM Regulation into the EEA Agreement as of 1 January 2027.
• After that, they will apply the CBAM Regulation to CBAM goods at their external borders and will decide origin under the Union Customs Code non-preferential rules.
• Third-country CBAM goods that were previously released for free circulation and subject to CBAM in the EEA EFTA States would not be subject to CBAM again when imported into the European Union (EU).
• From 1 January 2027, TARIC code Y423, goods that have already been released for free circulation within the customs territory of an EEA EFTA State, should be used for such goods.

What the Q&A says stays exempt

Goods that originate in Norway or Iceland stay exempt: Q&A 7.18 says goods originating in Norway, Iceland or Switzerland are and will be exempted. Our reading: third-country goods that only pass through, such as Indian steel unloaded in Oslo, are covered today, as our page on Norwegian aluminium explains. What the 2027 incorporation would add, if it goes ahead as the two countries aim, is that goods already released for free circulation and subject to CBAM there would not be charged a second time on entering the EU.

What to ask your buyer

• Will the goods be released for free circulation in an EEA EFTA State first?
• If yes, has CBAM been applied to them there, and what proof will the EU declaration carry?
• Which code will the EU declaration carry: Y423 for goods already released there?

What Senseible does here

Senseible does not file customs or CBAM declarations and does not decide origin or who the declarant is. It reads an Indian plant's fuel invoices and electricity bills into dated, fingerprinted installation records, the plant-side data an EU buyer asks for.

• Goods from Norway, Iceland and Switzerland
• Is Norwegian aluminium subject to CBAM?
• Customs codes Y128 to Y137
• Senseible for CBAM

Sources: European Commission, CBAM Questions and Answers, last updated 15 October 2026, question 7.18

Last reviewed 2026-11-05. The 2027 incorporation is described as an aim in the Q&A. Re-check the EEA Joint Committee decision and TARIC before January 2027. The section on what the Q&A says stays exempt is partly our own reading.