UK CBAM: what changes on 1 January 2027

What it is and when it starts

The UK Government confirmed on 30 October 2024 that it would introduce its own CBAM on 1 January 2027. The primary legislation was introduced in the Finance Bill 2025-2026, and the implementing rules have been in preparation since then.

The UK CBAM puts a carbon price on certain goods imported into the United Kingdom from sectors at risk of carbon leakage. In other words, it aims to ensure that a product made abroad under weaker climate requirements gains no cost advantage over one made at home.

Between 10 February and 24 March 2026, HMRC consulted on the draft secondary legislation that will accompany the tax. That consultation is closed and HMRC is analysing the responses, so technical details may be adjusted before 1 January.

Which products are covered and who feels it

The sectors affected are aluminium, cement, fertiliser, hydrogen, and iron and steel. HMRC says the text is also of interest to downstream producers that use those goods in their supply chains, for example anyone who makes parts or structures from steel or aluminium.

The consultation is aimed mainly at UK importers. In practice, that means the British buyer is the one who has to register and declare, but the exporter feels it in the negotiation: the buyer will want to know how much of the added cost can be passed on and what information they need from you.

The tax does not depend on the country you export from. It applies to goods imported into the United Kingdom, so it is the same for a company exporting from Spain as for one from Mexico, Peru, Chile, Colombia or Türkiye. What does change is your product's tariff code: you need to check whether it is among the covered goods.

What the rules provide: registration, declaration and records

The draft regulations set out the administrative requirements of the tax. Among them are registration to file CBAM returns, the content those returns must have, reimbursement arrangements, the weight of the goods and record keeping.

HMRC also published draft notices that will have force of law so that it is clear how all of the CBAM rules read together. They are working documents: the final text is what appears on GOV.UK and in the legislation as approved.

The practical conclusion is that the UK CBAM demands record keeping and traceability. Anyone exporting covered goods should have the weights, codes and documents of each shipment in order, because their British customer will need them to make declarations.

What to do if you sell to the United Kingdom

1. 01

   Check your tariff code

   Find your product's code and compare it with the covered sectors: aluminium, cement, fertiliser, hydrogen, and iron and steel, including downstream goods.

2. 02

   Talk to your British importer

   Ask who will register with HMRC and what weight, origin and manufacturing-process data they need from you.

3. 03

   Organise the file for each shipment

   Keep invoices, packing lists and weights for every shipment. The rules provide for record keeping.

4. 04

   Review your 2027 price

   Estimate how much your product's cost at destination could rise and negotiate in good time who bears the increase.

How Exporta helps you

With Exporta you can consult the United Kingdom market report for your product, with tariffs, demand and competition, and find importers and distributors with the decision-maker in Buscar clientes.

The export documents (proforma invoice, packing list and document reading) leave the file for each shipment ready, and the CRM sends follow-up emails from your own account. Xport, the Exporta assistant, helps you turn all of that into a work plan.