CBAM and South Africa

South Africa has large mineral resources and the industry to process them. As a result, two areas of EU regulation apply to its exports. Iron and steel, aluminium and cement are covered by the Carbon Border Adjustment Mechanism (CBAM). The definitive phase of CBAM has applied since 1 January 2026. Platinum group metals and chromium are covered by another EU policy, the critical raw materials agenda. South Africa has a very strong global position in both.

South Africa is one of the non-EU countries with a Strategic Project under the Critical Raw Materials Act. The European Union and South Africa have also set up a Clean Trade and Investment Partnership.

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 begin on 1 February 2027 through the common central platform. 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.

One Dutch entity for CBAM and critical raw materials

For CBAM goods, your Dutch BV can apply for authorised declarant status itself. It imports in its own name and buys certificates at the EU carbon price. If you invest in lower-carbon processing, you can show your verified figures directly to European buyers. You set your own price, outside a distributor's pricing.

Before you invest in lower-carbon processing, test the effect in the CBAM cost calculator for South Africa. Enter the emissions per tonne you expect for your iron, steel or aluminium and compare the yearly bill with the default value.

For critical raw materials, the same entity has another role. It is the European party that signs long-term supply contracts (offtake agreements) with European manufacturers that use these materials. Your group can also use it to arrange European financing and joint ventures. You can read more in the guide to a European entity for critical raw materials.

For both kinds of goods, the Article 23 licence is 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.

Structure and tax

The Netherlands and South Africa have had a double tax treaty for a long time. For 2026, South Africa is also outside the Dutch list of low-tax jurisdictions for the conditional withholding tax (Regulation on low-tax and non-cooperative jurisdictions, 2026). Our team checks the current list for your structure. The Dutch participation exemption is well known among South African groups with several operating subsidiaries. A Dutch holding company is a well-established structure to hold African shareholdings together in one European company.

Setting up in the Netherlands

A Dutch BV is incorporated by notarial deed and registered with the Chamber of Commerce. Incorporation is done from abroad by power of attorney, with the parent company owning the shares. After registration the BV obtains its VAT number and EORI number and applies for the Article 23 licence and the CBAM authorisation.

Further reading: an EU entity for CBAM, a European entity for critical raw materials and fiscal representation and Article 23.

Frequently asked questions

Which South African exports fall under CBAM?

Iron and steel, aluminium and cement are all among the six CBAM sectors covered since 1 January 2026. Ferrochrome, the alloy of iron and chromium used to make stainless steel, counts as iron and steel under CBAM. Platinum group metals, chrome ore and chromium metal are outside CBAM. They are part of the European Union's critical raw materials agenda.

Is South Africa part of the EU critical raw materials framework?

Yes. South Africa has a Strategic Project under the Critical Raw Materials Act. The European Union and South Africa have also set up a Clean Trade and Investment Partnership.

Does the Netherlands have a tax treaty with South Africa?

Yes. The Netherlands and South Africa have had a double tax treaty for a long time. For 2026, South Africa is also outside the Dutch list of low-tax jurisdictions for the conditional withholding tax.

Why do South African groups use Dutch holding companies?

The Netherlands has the participation exemption, a large network of tax treaties and mature company law. A Dutch holding is therefore a well-established structure to hold operating subsidiaries together in one European company.