CN 7325Covered by CBAMIron & Steel

CN 7325 under CBAM — Castings

Where the emissions in CN 7325 come from

Foundry emissions come from the melt — cupola furnaces burning coke, or induction furnaces drawing grid power — plus pig iron and scrap charges, where pig iron is an emission-intensive precursor. The spread between a coke cupola and a scrap-fed induction shop is wide, and defaults ignore it entirely. The EU default value for this heading is deliberately conservative; a foundry’s real charge mix and furnace type are exactly what verified actuals capture.

Why we don’t print a default value here

The EU publishes and updates specific default values per goods category separately — quoting a stale number would mislead you. What never changes: defaults are set deliberately high, and the markup escalates from 10% in 2026 to 30% by 2028 for steel and aluminium (free-allowance phase-out runs to 2034). Use the CBAM calculator for a current, product-specific estimate.

What to do

Exporting under CN 7325? Three moves, in order.

01
Identify your production route and precursors
Characterise your melt: cupola (coke consumption) or induction (metered power), and the charge mix — the pig-iron share is a precursor with significant embedded emissions, while scrap changes the story.
02
Collect the data you already have
Coke purchase records or furnace electricity bills, charge-mix registers, pig-iron purchase invoices, moulding and fettling shop energy data, despatch weights.
03
File verified actuals, not defaults
Have the numbers computed to the EU CBAM methodology and verified, then hand your EU buyer’s Authorised Declarant a filing they can use. Verified actuals typically cut the CBAM cost by up to ~40% versus default values — and the default markup only gets worse, escalating from 10% in 2026 to 30% by 2028 for steel and aluminium.

Free this quarter: We cover your first report (April–June 2026) so an inflated EU default never costs you an order. Continue only if you choose to. Free for the April–June 2026 quarter — start your report by 30 September 2026.

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Frequently asked

CN 7325 and CBAM, in plain English

Is CN 7325 covered by CBAM?

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Yes. CN 7325 — cast articles of iron or steel, including municipal and engineering castings — is a covered good under the EU Carbon Border Adjustment Mechanism. Any consignment under this heading imported into the EU has carried reporting obligations since the transitional phase (1 October 2023 – 31 December 2025), and since the definitive phase began on 1 January 2026 the EU importer must buy CBAM certificates against its embedded emissions. Manhole covers, gully gratings and counterweights shipped to EU utilities import under this heading.

How much CBAM cost does CN 7325 face in 2026?

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CBAM certificates track the EU ETS carbon price — roughly €70–80 per tonne of CO₂ in 2026 — so the bill is your embedded emissions multiplied by that price. For Indian BF-route steel products the difference between bases is dramatic: default-basis costs run roughly €250–270 per tonne of product, versus roughly €65–170 per tonne on verified actuals — about €80,000–€180,000 on a single 1,000-tonne consignment. The exact figure depends on your route and product mix, which is why the first step is a proper calculation, not a guess.

Cupola vs induction furnace — does it change our CBAM outcome?

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Materially, and in both directions. A coke-fired cupola’s direct emissions are measured from coke consumption; an induction furnace’s footprint runs through grid electricity as indirect emissions. Layer in the charge mix — pig iron carries heavy precursor emissions, scrap does not carry ore-route emissions the same way — and two foundries making identical covers can have genuinely different real numbers. Defaults erase the difference; verified actuals monetise it.

Municipal casting tenders in the EU are won on price alone. Where does CBAM enter?

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In the importer’s landed cost, which sets the price your castings can be resold at. Since 1 January 2026 the certificate cost — at roughly €70–80 per tonne of CO₂ embedded — sits on every tonne, at its worst on defaults. Foundries that hand their EU buyers verified actuals keep their landed price down without touching their own margin, which in a price-only market is the entire game.

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