The UK's Carbon Border Adjustment Mechanism (CBAM) will require importers of steel, aluminium, cement, fertiliser, and hydrogen to keep detailed records for six years starting 1 January 2027. Registration opens in 2028 for businesses importing more than £50,000 of these goods annually. Using a customs broker or freight forwarder does not transfer the compliance responsibility. Many small and medium sized businesses will be caught by the £50,000 threshold, which is lower than many expect. HMRC will require annual returns and may impose penalties for poor record keeping. The policy aims to prevent carbon leakage by matching the carbon price domestic producers already pay. Importers should check whether their goods are in scope, confirm who counts as the importer, and set up record keeping systems before 2027. Further guidance on emissions values and reporting methods is expected from HMRC in the coming months.
