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Ellsworth Adhesives
CBAM Compliance support
Ellsworth Adhesives, a global distributor of industrial materials, serves industries such as electronics, aerospace, medical, and defense across the Americas, Europe and Asia.
When a component of their adhesive machinery, the Fisnar dispensing consumable (steel, imported from China), was found to fall under the EU’s Carbon Border Adjustment Mechanism (CBAM) regulations, Ellsworth faced compliance challenges after enforcement action from Swedish authorities.
As an existing Valpak customer, Ellsworth sought their expertise to navigate the complexities of CBAM compliance, aligning with their sustainability goals and avoiding future penalties.
Stainless Steel Tips
Ellsworth Adhesives’ Fisnar dispensing consumable was subject to the EU’s CBAM regulations, an obligation they were initially unaware of. A compliance letter from the Swedish Tax Authority prompted immediate action to meet reporting deadlines and address regulatory requirements.
Benchtop robot
Valpak conducted a detailed analysis to assess Ellsworth’s CBAM obligations. The assessment covered:
- Commodity codes for the imported goods
- Weight and material composition (steel)
- Manufacturing origins (imported from China to Sweden).
Through close collaboration, Valpak supported Ellsworth via:
- CBAM obligations analysis: Identifying scope and specific requirements
- Regulatory navigation: Engaging with Swedish customs and environmental authorities
- Compliance reporting: Submitting reports through the EU CBAM portal
Valpak’s engagement involved daily communication initially, transitioning to milestone-based check-ins to ensure progress.
Ellsworth HQ
Key achievements:
- Achieved full compliance with Swedish CBAM regulations, avoiding penalties
- Enhanced Ellsworth’s reputation as a sustainability-focused, compliant business
- Established a compliance framework for future regulatory requirements
Business benefits:
- Competitive advantage: Early compliance distinguishes Ellsworth in a market where CBAM uptake is ~30-40%
- Supply chain insights: Enhanced emissions data visibility for future optimisation
- Penalty avoidance: Timely action prevented enforcement repercussions
Quantifiable results
While direct emissions reductions were not achieved in this phase, compliance positioned Ellsworth to:
- Monitor and manage supply chain emissions
- Strategise for long-term sustainability improvements
- Reduce potential tax liabilities associated with emissions.
Carbon Footprint
Future plans
Ellsworth Adhesives plans to expand compliance efforts to other EU nations and explore further sustainability initiatives. Valpak remains a trusted partner for ongoing and future regulatory support.
Valpak has proven to be an invaluable partner in helping us negotiate the complexities of CBAM (Carbon Border Adjustment Mechanism) reporting. Navigating the complicated requirements of CBAM was a daunting task, but Valpak’s expertise made the process seamless and efficient. Their team were able to remove the burden of an intricate reporting process by completing it on our behalf and ensuring our compliance with the regulations.