Are returned goods under the Union Customs Code covered by Carbon Border Adjustment Mechanism (CBAM), and do they count towards the 50 tonne threshold?
Returned goods of non-EU origin under Article 203 of the Union Customs Code are subject to CBAM: they go in the annual declaration with embedded emissions reported as zero, and count towards the 50 tonne threshold. Article 205 goods report emissions as normal imports. Returned goods of EU origin are outside CBAM.
Article 203 goods
The Commission's Questions and Answers (Q&A) 7.19 say returned goods are goods meeting the conditions of Article 203 of the Union Customs Code, and that they benefit from relief from import duty on release for free circulation. In the definitive period, returned goods of non-EU origin under Article 203 are subject to CBAM. Under Article 6(5) of Regulation (EU) 2023/956 they must be included in the annual CBAM declaration, with the total embedded emissions reported as zero.
The 50 tonne test
Returned goods must also be taken into account when assessing whether the importer exceeds the 50 tonne threshold, even if the embedded emissions to be declared are zero. A buyer that thought a few returned lots did not count may find it has passed the limit.
Article 205 goods and EU origin
- For returned goods as defined in Article 205 of the Union Customs Code, the declarant must report embedded emissions in the same way as for any other import of CBAM goods.
- These provisions apply only to goods of non-EU origin. Where returned goods are of EU origin under the origin rules, CBAM does not apply.
What it means for an Indian exporter
Our reading: the case that matters is Indian-origin goods released for free circulation in the EU, exported out of the EU customs territory and then re-imported. They are of non-EU origin, so under Article 203 they would be declared with zero embedded emissions and still count towards the threshold. Goods rejected and sent back to India are not an EU import, so this page does not apply to them.
A buyer's year, example numbers
- Ordinary imports: 40 tonnes
- Article 203 returned goods of non-EU origin: 15 tonnes
- Counted for the threshold: 40 + 15 = 55 tonnes, over 50
- Embedded emissions declared for the 15 tonnes: 0
Example numbers only. The 50 tonne figure is the Q&A's single mass-based annual threshold.
What Senseible does here
Senseible does not file customs or CBAM declarations and does not decide origin or who the declarant is.
- Returned goods and relief for exporters
- How the 50 tonne threshold is counted
- Check your EU buyer is an authorised declarant
- Senseible for CBAM
Last reviewed 2026-11-05. The last section is our own reading. Re-read Q&A 7.19 if the Commission updates it.