UK CBAM guidance
UK CBAM: the practical guide for importers
The UK Carbon Border Adjustment Mechanism is a new tax starting on 1 January 2027. It affects selected imported goods in five carbon-intensive sectors.
Last updated: 13 August 2026
What is UK CBAM?
UK CBAM is intended to put a comparable carbon price on certain imported goods and UK-made goods. It applies to specific commodity codes in aluminium, cement, fertiliser, hydrogen, iron and steel. The tax is separate from customs duty and VAT.
The person liable is usually the person named on the import declaration where customs duty is due. A customs broker can help with declarations and records, but the commercial importer should confirm who is legally the liable person for each flow.
Who needs to pay attention now?
Any business importing potentially in-scope goods should create a clean baseline of its commodity codes, values, weights, suppliers and countries of origin. You do not need to wait until the registration threshold is reached to begin record keeping: HMRC says records are required for CBAM goods imported from 1 January 2027.
The key rules at a glance
| Question | Practical answer |
|---|---|
| When does it begin? | 1 January 2027. |
| Which products? | Only specified 8-digit commodity codes in the five sectors. Check the current official list. |
| When might registration be needed? | When the value of qualifying CBAM goods reaches £50,000 under the 30-day forecast or 12-month look-back tests. |
| What emissions are included? | Direct emissions and relevant precursor emissions. |
| What is reported? | Imports, net weight, emissions intensity, origin and any qualifying overseas carbon price, among other information. |
A sensible first-month plan
- Get a 12-month export of your import declarations or broker data.
- Map the 8-digit commodity codes against HMRC’s in-scope lists.
- Ring-fence values for in-scope imports and test the £50,000 rule.
- Ask affected suppliers whether they can provide emissions data verified by a qualifying verifier.
- Agree with your broker how data and responsibility will be handed over.
Example: a manufacturer importing aluminium sheet should not assume every aluminium-related line is covered. First check the exact 8-digit code, then record the imported value and weight for each potentially in-scope declaration.