What does CBAM stand for?
CBAM stands for Carbon Border Adjustment Mechanism. It puts a carbon price on imports of carbon-intensive goods, so they carry a cost comparable to goods made locally under an emissions trading scheme. The UK and the EU run separate schemes with different rules.
Who needs to comply with CBAM?
The importer of the goods. Under UK CBAM, you must register once the value of CBAM goods you import goes over, or is expected to go over, £50,000 in a rolling 12 months. Under EU CBAM, the threshold is 50 tonnes net mass a year. UK CBAM covers five sectors (iron and steel, aluminium, cement, fertiliser and hydrogen); EU CBAM also covers electricity.
How it relates to classification
CBAM scope is set by commodity code, not by industry. Empty steel or aluminium cans, aluminium foil, screws and bolts can all be in scope, while kitchen and household articles of steel (7323) or aluminium (7615) are not. The commodity code decides whether a product is a CBAM good, and UK importers must keep the eight-digit code for every CBAM good for six years.
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Frequently asked questions
UK CBAM applies to goods imported from 1 January 2027. HMRC's registration service opens by 1 January 2028, and the first return and payment, covering 2027, are due by 31 May 2028.
No. The UK scheme uses a £50,000 value threshold, excludes electricity and is paid as a tax to HMRC. The EU scheme uses a 50-tonne mass threshold and requires importers to buy and surrender CBAM certificates.
Check each product's commodity code against HMRC's list of goods in scope. TTVerified flags CBAM goods automatically on every expert-backed code it classifies.