CBAM 2028 – will neodymium magnets and NdFeB products be subject to the carbon tax?
CBAM (Carbon Border Adjustment Mechanism) is an EU mechanism for imposing a carbon tax on imported goods, being one of the key elements of the EU's climate policy. According to an opinion issued in April 2026 by the European Parliament's INTA committee, this mechanism will soon cover new downstream products. This decision directly translates into customs regulations and import costs of neodymium magnets (NdFeB) and products containing them.
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Current state of legislation (April 2026)
The European Commission's proposal to expand the CBAM mechanism has met with strong support. The Committee on International Trade (INTA) issued an official opinion on April 1, 2026, calling for accelerated work on implementing anti-circumvention mechanisms. It is expected that the final list covering approximately 180 new products will be adopted and enter into force on January 1, 2028, forcing European importers to strictly report CO₂ emissions.
Will neodymium magnets be subject to CBAM?
The issue of taxing neodymium magnets is two-track and depends solely on the form in which the component crosses the customs borders of the European Union:
- Pure neodymium magnets (CN code 8505 11 00): According to the analysis of current legislative drafts, pure permanent magnets themselves will most likely NOT be subject to the CBAM mechanism. This is due to the fact that their customs code was not included in the main list of carbon-intensive goods.
- Magnets embedded in downstream products: The situation changes dramatically when the magnet is part of a larger system. If an NdFeB magnet is located inside a finished product covered by the regulation (e.g., an electric motor or industrial pump), the importer will be required to account for CO₂ emissions generated by the steel and aluminum in the entire device.
Examples of downstream products covered by the mechanism
| Category | Example CN codes | Importance for magnets |
|---|---|---|
| Electric motors and generators | 8501 | Main industrial application for NdFeB |
| Transformers and inductors | 8504 | Frequent presence of advanced magnetic circuits |
| Washing machines, refrigerators, household appliances | 8450, 8418 | Consumer goods (white goods sector) |
| Pumps, compressors, machinery | 8413, 8414 | Broadly understood industrial automation |
| Vehicle parts | 8708 | Drive motors and sensors in EV vehicles |
How to prepare for the changes in 2028?
The upcoming customs regulations require importers to review their current strategies. It is crucial to initiate audits in supply chains and seek suppliers offering transparent carbon footprint reporting. It is worth using the support of experts and specialized engineers who will help assess customs risk, select optimal material solutions, and minimize future financial burdens resulting from the CBAM mechanism.
Frequently asked questions
According to the current legal status and the opinion of the INTA committee – no. Pure permanent magnets will most likely not be included in the list of CN codes directly subject to the carbon tax, which is a great relief for direct distributors.
The mechanism will act indirectly. The fee will be charged when the magnet is factory-mounted into a finished product from the so-called downstream list (e.g., an assembled electric motor), which uses record-keeping metals such as steel or aluminum.
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czwartek 2026-04-09T12:00:00