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Module 8 of 9 · S3 · Verification, carbon price paid and the free allocation adjustment

13.The formulas

Free allocation adjustment = SEFA × imported mass

With actual data:

  • Process part: SFA = CBAM factor × CSCF × BM* (BM* from Column A).
  • Simple good: SEFA = SFA.
  • Complex good: SEFA = SFA + Σ mi × SEFAi (mi = precursor mass per tonne).
  • A bought precursor without verified SEFA uses the Column B value for its country and default route.

With default values: SEFA = CBAM factor × CSCF × BM (BM from Column B, which includes precursors).

For goods imported in 2026, use the 2026 factors.

Sources: FAA Art 2-3, Annex 2 Eq. 1, Annex 3 Eq. 2-4, 3.1, 3.3(2), 4, 5.1; MA Art 7(1).