Muvtons Castors saves millions with accurate product selection and CBAM reporting

The Sustainability Cloud provided an efficient and timely CBAM reporting tool to Muvtons Castors and converted its challenges into future business opportunities.

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Industry: Manufacturers
TSC Solution used: TSC NetZero (CBAM solution)

Company size: 200+ employees

  • Challenges
  • Lack of knowledge about HSN codes: Muvtons Castors exports castors that are wheels made of steel and other materials that are not CBAM products. However, the company was confused about different categories of CBAM reporting products. The company assumed that it needed to submit emissions data for all the products and needed practical guidance on the Harmonized System of Nomenclature (HSN) codes required for CBAM compliance.
  • Eliminating precursor data: Muvtons Castors lacked precursors’ data to ensure accurate reporting. Its third-party suppliers declined to share the report as they assumed they did not fall under the direct CBAM reporting. Precursors’ data collection is very difficult as it involves a lot of complexities and dealing with entities where the reporting company has no control.
  • Complex production routes: There are different types of CBAM products that have various production routes used to make one piece of castors. Due to to this, the company faced major challenges related to making a distinction between production routes, data collection, and segregating became a significant challenge.
  • Timely compliances: Muvtons Castors was faced with a major challenge to submit the CBAM report on time. But they lacked adequate infrastructure to achieve the objective of timely compliance.
  • Outcome
  • Muvtons was able to differentiate and segregate CBAM products with the help of different product HSN codes with the EU’s CN codes to determine CBAM applicability. Muvtons initiated CBAM reporting after TSC NetZero analysed Muvtons’ products and identified the correct CN codes (Combined Nomenclature codes) required for CBAM compliance.
  • Sustainability officers at Muvtons got a clear understanding of how precursor data is collected. They started preparing for precursor data collection and how to convince them for relevant data gathering.
  • The Sustainability Cloud assisted in segregating different products and identifying different production routes for them. With this distinction, data collection for each complex product became easier. Digital data collection infrastructure for different production routes and constant collaboration between different suppliers of different items was achieved with the help of efficient tool and methods deployed by the TSC.
  • With assistance from TSC NetZero, the company was able to conduct live-tracking and monitoring of emissions data and build facilities for a robust sustainability framework. Live monitoring means early detection of reporting challenges and inconsistencies to be resolved.

Accurate CBAM product analysis saves resources, money and decades-old business 

Muvtons Castors is a leading manufacturer of high-quality wheels and castors. With an established trade relationship with the European Union, Muvtons faced new challenges with the implementation of the EU’s newly implemented Carbon Border Adjustment Mechanism (CBAM). One of the primary challenges was identifying CBAM products as per varying CN codes given by the EU. They lacked an understanding of how to segregate CBAM products from non-CBAM products in their castors. Initially, they were under the impression that emissions from all items used to make a product have to be quantified. Due to this looming challenge pertaining to the lack of timely product analysis, their operations in the EU were facing existential threats. 

However, a timely and exact diagnosis of the persistent challenge by The Sustainability Cloud helped them in saving misuses of resources, inefficient monetary expenditures and their decades-old business with the EU. Our team of compliance experts provided step-by-step practical guidance. The first step was to eliminate the knowledge deficit and educate people about specific CBAM reporting rules. The second step was to identify different products and match them against the CN codes provided by the EU. The last step was to train people at the Muvtons Castors about how to adapt to CBAM reporting.

Streamlining precursors data collection system

When Muvtons Castors was asked by its importers to submit the quarterly emissions data report under the CBAM, it was clueless about where and how to initiate it. This is because the company had no idea about the precursors’ data collection. It lacked systems to collaborate with different suppliers of precursors for the final production of Castors. Moreover, third-party suppliers (also known as vendors) were neither ready with the relevant data nor were they convinced to share the emissions data for their goods being supplied to the exporter. The root cause of the problem was that third-party suppliers assumed they were not required to submit their data as they had no direct export business to the EU. 

The Sustainability Cloud’s advanced technical assistance and expertise in CBAM reporting helped eliminate precursors’ data collection challenges. Awareness training and workshops were conducted for the Muvtons’ workforce to understand the complexities of precursors’ data collection. After TSC provided the consultancy and specifically tailored CBAM data-gathering solutions, the company was in a position to navigate the challenges and establish a stronger supply chain network for third-party data collection.

Given CBAM’s complex reporting structure, faced challenges in identifying and segregating our products against the EU’s CN codes. However, The Sustainability Cloud helped us with knowledge-sharing regarding the CBAM and assisted in setting up the digital system required for automated CBAM reporting.

Ompal Singh
General Manager, Muvtons Castors

Eliminating complex production routes challenges

Muvtons Catsors are single products that have a composition of multiple CBAM products and non-CBAM products. Hence, the products had multiple production routes for various products and precursors used to make one Castors. In addition to these, people are Muvtons lacked the knowledge to identify and segregate different CBAM products used in one Castors. With distinct production routes, data collection and segregation became a significant challenge. This meant increased emissions data in the final CBAM report as emissions for non-CBAM product was also taken into account. 

However, the TSC team helped them identify and segregate CBAM products, their production routes and production processes. This meant the segregation of different setups for different data collection for various routes. Emissions from the four production routes were assessed and categorised, enabling a clear and organised data flow for CBAM reporting. Eventually, all the required data was compiled in the CBAM reporting template with the help of top CBAM reporting solutions by The Sustainability Cloud.

Quarterly CBAM reporting compliance deadline turns into business expansion opportunity

Muvtons Castors had no existing system and required resources to allow data collection for timely report submission. Not having a digital data collection system, lack of automated precursor data gathering, and lack of complete knowledge of compliance requirements caused delays in quarterly CBAM reporting. The company found itself in a situation where it could potentially lose some customers and revenue besides facing the immediate threat to business expansion in the EU.

However, The Sustainability Cloud developed a robust plan with effective strategies to help the Muvtons Castors turn the reporting compliance deadline crisis into a business expansion opportunity. Three steps were followed to achieve the compliance deadline objectives. First, it conducted a thorough study of the entire production methods of the company, then it installed a quick digital data collection system, and finally, adequate information gap analysis was done. The Sustainability Cloud’s past experience in CBAM reporting acted as a catalyst for this success, as it knew exactly how and what to do. Eventually, the business was able to not just adhere to compliance deadlines but also expand in the EU.