USTR seeks comments on EU CBAM and proposed downstream expansion
USTR opens a comment docket on EU CBAM's effect on U.S. producers, workers, and trade, plus proposed expansion to downstream steel- and aluminum-intensive products. Deadline November 9, 2026.
USTR requested public comments on the effect of the European Union's Carbon Border Adjustment Mechanism (CBAM) on U.S. producers, workers, and trade, and on EU proposals to expand CBAM to downstream steel- and aluminum-intensive products. FR Doc. 2026-20615 (91 FR 64450) was published October 8, 2026. Action: request for comments. Deadline: November 9, 2026. Docket USTR-2026-0661 on regulations.gov.
Comments due November 9, 2026 (11:59 p.m. ET) on docket USTR-2026-0661. CBAM is already in full EU implementation as of January 1, 2026. USTR also wants input on proposed expansion to downstream steel- and aluminum-intensive products.
What CBAM does (as USTR describes it)
CBAM requires EU importers of covered products in aluminum, cement, electricity, fertilizer, hydrogen, and iron and steel to declare embedded greenhouse-gas emissions and purchase CBAM certificates. Certificate prices are based on EU Emissions Trading System (ETS) allowance auction prices. The EU began full implementation of CBAM on January 1, 2026. The EU is considering legislative proposals to expand coverage to downstream steel- and aluminum-intensive products. This notice does not publish certificate prices, a full covered HS list, or a definitive expansion product list; do not invent them.
Docket: USTR-2026-0661 (regulations.gov)
Deadline: November 9, 2026, 11:59 p.m. ET
Contact: Timothy Wedding, (202) 395-6072
Covered sectors (current): aluminum, cement, electricity, fertilizer, hydrogen, iron and steel
Full EU CBAM implementation began January 1, 2026
What USTR wants comments on
- Current and potential impacts on U.S. producers (including SMEs), workers, U.S. direct and indirect exports, and overall U.S. trade with the EU.
- Potential impact of expansion proposals to downstream steel- and aluminum-intensive products.
- Information to inform U.S. engagement with the EU on CBAM design and scope.
CBAM is an EU border carbon cost on EU importers, not a U.S. customs duty. It is not recovered through U.S. duty drawback. U.S. exporters of covered products to the EU may still need emission data and certificate-cost assumptions in landed-cost models for EU customers. Exporters who also import into the United States should keep CBAM compliance separate from U.S. AD/CVD and drawback tracks (see AD/CVD drawback exclusion).
Action items
- File comments by November 9, 2026 on docket USTR-2026-0661 if CBAM or the proposed downstream expansion affects your EU sales.
- Inventory EU-bound products in the covered sectors and whether they sit upstream of possible downstream steel/aluminum expansions.
- Separate compliance tracks: CBAM for EU customers vs. U.S. import duty and drawback eligibility on inbound entries.
- FR Doc. 2026-20615 (91 FR 64450): USTR request for comments on EU CBAM and proposed downstream steel/aluminum expansion. Docket USTR-2026-0661. Deadline Nov 9, 2026.
- CBAM requires EU importers in aluminum, cement, electricity, fertilizer, hydrogen, and iron and steel to declare embedded GHG emissions and buy certificates priced off EU ETS auctions. Full implementation began Jan 1, 2026.
- EU is considering expansion to downstream steel- and aluminum-intensive products. USTR wants impact data on U.S. producers (incl. SMEs), workers, exports, and U.S.-EU trade.
- Contact: Timothy Wedding, (202) 395-6072.
- CBAM is not a U.S. customs duty and is not U.S. drawback-eligible. Keep emission-data readiness for EU customers separate from U.S. import drawback analysis.
- Request for Comments on the Effect of the European Union's Carbon Border Adjustment Mechanism and the Proposals To Expand Coverage on U.S. Trade (91 FR 64450; FR Doc. 2026-20615) · Office of the United States Trade Representative
This article is for general information and is not legal or tax advice. Drawback eligibility depends on your specific facts, and final refunds are determined by CBP at liquidation. Consult a licensed customs broker or attorney for your situation.