CBAM and Egypt

Egypt is one of the main suppliers of nitrogen fertilisers to the European Union. Egyptian producers also ship aluminium and steel to the EU single market across the Mediterranean. Fertilisers are one of the six sectors under the EU's carbon charge at the border, the Carbon Border Adjustment Mechanism (CBAM). Under CBAM, the importer pays for the emissions from producing the imported goods. EU factories already pay for their own emissions in the same way. This means Egyptian producers are covered by the definitive phase, which has applied since 1 January 2026.

Egyptian producers have three advantages. Production is gas-based and the shipping distance to Rotterdam is short. Egypt also has an established trade relationship with the EU under the Association Agreement. If your own EU company has authorised CBAM declarant status, you control the import yourself. You can then use these advantages in the prices and terms you agree with European buyers.

The rules in the definitive phase

Six sectors fall within scope today: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. Under Article 25 of the CBAM Regulation, customs authorities only allow an authorised CBAM declarant to import CBAM goods. The declarant buys its certificates from the competent authority in the EU Member State where it is established. An importer needs this status when it imports more than 50 tonnes of CBAM goods a year. For electricity and hydrogen, the status is needed from the first unit. An importer from outside the EU can also work through an indirect customs representative with authorised CBAM declarant status, who is then always the declarant.

The first annual declaration covers calendar year 2026 and falls due by 30 September 2027. Certificate sales open on 1 February 2027 through the common central platform. Since 1 January 2026, EU import declarations have a CBAM code in the additional reference field. All 2027 dates, including the first quarterly certificate check on 31 March 2027, are in our guide to the authorised CBAM declarant for non-EU exporters.

Fertiliser buyers ask for verified emissions data

The emissions figures for fertilisers are among the most closely watched under CBAM. Buyers across the EU now switch their orders to producers who can document these figures. If you collect verified data for each installation now, your own EU company can file the CBAM declarations. European buyers then get a price that already includes the CBAM costs. Your commercial position is much stronger than when you sell to any buyer who takes on the paperwork.

For a first figure on your nitrogen fertilisers, enter your yearly tonnes in the CBAM cost calculator for Egypt. It shows the certificate cost per year, based on the EU default value or the verified data of your installation.

Benefits of a Dutch entity for Egyptian producers

If you sell through European buyers, you depend on them. They need authorised declarant status, and they pass the carbon costs back to you in their price. If you import through your own Dutch BV, you set the terms. Your BV buys certificates directly at the EU carbon price and uses your own verified emissions figures. It invoices European customers as a European supplier under EU VAT rules.

For large volumes of fertilisers and metals, the Article 23 licence is very useful. With this licence, your BV declares the import VAT later, in its periodic VAT return. Your company then keeps more cash for every shipment you import through Rotterdam. Rotterdam is the logical port of entry for goods shipped from the Mediterranean to northwestern Europe.

Structuring the ownership chain

The Netherlands and Egypt have a double tax treaty. Under the Dutch participation exemption, dividends and capital gains from qualifying subsidiaries are free of Dutch corporate tax for the parent company. Before the notary drafts the deed, you plan the shareholding chain with us. The group structure and the payment of profits to your parent company are then correct from the date of incorporation.

Setting up in the Netherlands

A Dutch BV is incorporated by notarial deed and registered with the Chamber of Commerce (KvK). Incorporation is done from abroad by power of attorney, with the parent company holding the shares. After registration the BV obtains its VAT number and EORI number and applies for the Article 23 licence and the CBAM authorisation. The same BV is then also your base for European contracts and other EU compliance duties. You can read more about these duties on the EU market entry page.

Further reading: an EU entity for CBAM and fiscal representation and Article 23. For other EU compliance duties, see EU market entry.

Frequently asked questions

Can an Egyptian company import CBAM goods into the EU directly?

Only an authorised CBAM declarant may import CBAM goods. The declarant buys its certificates from the competent authority in the EU Member State where it is established. An Egyptian company therefore has three options. It can sell to an EU buyer with this status. It can import through an indirect customs representative with authorised CBAM declarant status, who is then always the declarant. It can also set up its own EU company, such as a Dutch BV.

Why is CBAM so important for Egyptian fertilisers?

Fertilisers are one of the six CBAM sectors, and the EU imports a large share of its nitrogen fertilisers from Egypt. If you document your embedded emissions and file your own declarations, your price for European buyers already includes the CBAM costs.

Does the Netherlands have a tax treaty with Egypt?

Yes. The Netherlands and Egypt have a double tax treaty. Under the Dutch participation exemption, qualifying dividends and capital gains are free of Dutch corporate tax for the parent company.

How fast can a Dutch BV be set up?

A Dutch BV is set up remotely by power of attorney, usually within one week once all documents are complete. After registration the BV obtains its VAT and EORI numbers and applies for the Article 23 licence and the CBAM authorisation.