UK CBAM covers goods in five sectors from 1 January 2027: aluminium, cement, fertilisers, hydrogen, and iron and steel. The charge falls on imports of the listed commodity codes, whoever imports them. Electricity is not covered. UK-origin goods, goods eligible for returned goods relief, private non-business imports and goods in full-relief temporary admission are outside the charge, and scrap codes are excluded.
Scope under UK CBAM is defined by the goods rather than by the importer, so the first question for any importer is whether a commodity code falls inside one of the five sectors.
The five covered sectors
1. Aluminium 2. Cement 3. Fertilisers 4. Hydrogen 5. Iron and steel
UK CBAM applies to imports of the listed commodity codes in the five sectors, whoever imports them. A manufacturer importing components is in scope only where the component’s commodity code is on the list.
What is relieved or outside scope
| Category | Treatment |
|---|---|
| Electricity | Not a covered sector under UK CBAM |
| UK-origin goods | Outside scope (UK place of origin) |
| Returned goods | Returned goods relief applies |
| Private non-business imports | Not liable for CBAM |
| Temporary admission with full duty relief | Not treated as an import |
| Scrap commodity codes | Excluded from scope |
| Goods below the threshold | Registration is only triggered at £50,000, tested forward over 30 days and backward over 12 months |
Records for goods imported from 1 January 2027 must be kept for six years. The period runs from the later of the date they were created and the end of the accounting period they relate to. The duty covers evidence for exempt goods as well as goods that carry a charge. An importer relying on a relief still has to be able to evidence it.
The electricity divergence
Electricity is the clearest structural difference from EU CBAM, whose Annex I covers six sectors including electricity. An importer of electricity into the EU is inside CBAM at any volume, since electricity and hydrogen are excluded from the EU mass-based de minimis. The same importer bringing electricity into the UK is outside UK CBAM entirely. Anyone mapping exposure across both markets has to treat the sector lists as two separate lists rather than one.
Weight is measured in kilograms and excludes packaging, which matters where a commodity is shipped in heavy containment.
Sources: GOV.UK CBAM guidance collection, Finance Act 2026, Part 5
Mapping commodity codes against two different sector lists is where most exposure assessments start. CBAM solutions covers scope determination for exporters and importers, and the CBAM guide sets out the EU covered-goods position that runs alongside.