- The UK HMRC has issued final regulations and guidance for the UK Carbon Border Adjustment Mechanism (CBAM), which will start on January 1, 2027.
- CBAM will apply a carbon price to carbon-intensive imported goods in aluminium, cement, fertiliser, hydrogen, and iron and steel to reduce carbon leakage.
- Importers with imports above a rolling 12-month threshold of £50,000 must register with HMRC, track embedded emissions, and file CBAM returns.
- Enforcement will use existing HMRC powers, with late filing and payment penalties aligned to the UK VAT penalty points system, and fraudulent evasion treated as a criminal offense.
- Importers should prepare record-keeping and emissions data systems during the 2027 transition year before quarterly reporting begins in 2028.
Source: globalimportblog.bakermckenzie.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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