UK CBAM in plain English: carbon on imported steel and aluminium from 1st January 2027

From 1st January 2027, the UK will add a carbon charge to some imported goods. It's called CBAM, the Carbon Border Adjustment Mechanism. The idea is simple: UK manufacturers already pay for their carbon, so imports should pay a similar price. HMRC CBAM policy summary

Which goods are covered

Five types of goods: iron and steel, aluminium, cement, fertiliser and hydrogen. It goes further than raw materials. Steel screws, bolts, nuts and washers are in, and so are aluminium sheet, tubes, foil and many other finished items. Scrap metal is out. If you buy any of these from outside the UK, it's worth checking the commodity codes on your import paperwork.

Who pays

The importer pays: the business named on the customs declaration, or the one it's made on behalf of. You only need to register if your covered imports reach £50,000 or more. HMRC sets out two tests: whether you expect to import £50,000 or more in the next 30 days, or whether you've imported that much over the past 12 months. HMRC: when to register

How the charge is worked out

The charge is based on how much carbon went into making the goods. You can use real, independently checked figures from your overseas supplier. If you don't have them, you use the government's default figures, which are likely to be less favourable.

Key dates

• 1st January 2027: CBAM applies to goods imported from this date.
• 31st January 2028: the deadline to register for anyone who becomes liable during 2027.
• 31st May 2028: the first return and payment, covering the whole of 2027.

What to do now

• List the steel, aluminium and other covered goods you import, and roughly what they're worth each year.
• Ask your overseas suppliers whether they can give you checked emissions figures.
• Start keeping import records now. HMRC expects them to be kept for six years.
• Talk to your customs agent about who will handle CBAM.

If you'd like help working out whether CBAM affects you, get in touch. We'll show you the numbers and options, with no hard sell.