Carbon Border Adjustment Mechanism (CBAM)
CBAM is a new reporting and compliance obligation for businesses importing certain carbon-intensive goods into the UK. At BGM Customs, we help businesses understand their obligations, identify affected products and manage the reporting requirements that come with CBAM. Rather than leaving your team to navigate complex emissions data and regulatory requirements alone, we provide practical support that helps you remain compliant while focusing on running your business.
What is CBAM?
The Carbon Border Adjustment Mechanism, or CBAM, is a government policy due to be rolled out in January 2027. It is designed to apply a carbon price to certain imported goods, including iron, steel, aluminium, cement, fertilizers and hydrogen.
The aim of CBAM is to ensure that imported products face similar carbon costs to goods produced domestically. This helps create a more level playing field for UK businesses and reduces the risk of carbon leakage, where production moves overseas to countries with lower carbon costs.
CBAM is particularly relevant to:
- UK importers purchasing goods within the affected sectors
- Manufacturers and downstream businesses using CBAM goods within their supply chains
- Overseas producers exporting CBAM goods to the UK
- Emissions verification and accreditation bodies
- International businesses trading with the UK market
Businesses should begin preparing now. Gathering emissions data, reviewing supply chains and understanding reporting obligations can take significant time and resources. Early preparation helps avoid compliance issues and disruption when the regulations come into force.
“Preparing for CBAM isn't just about meeting a reporting requirement. It's about understanding your supply chain, managing emissions data and ensuring your business is ready for a new era of carbon compliance."
Why CBAM matters
Many businesses are only just becoming aware of CBAM and the impact it may have on their importing activities.
The primary objectives of CBAM are to:
- Reduce carbon leakage by ensuring imported goods face comparable carbon costs
- Encourage lower-carbon production methods across global supply chains
- Support the UK’s climate and sustainability commitments
- Create fairer competition between domestic and overseas producers
- Improve transparency around embedded emissions within imported products
While these objectives are aimed at supporting environmental policy, businesses importing affected goods will be responsible for meeting the associated compliance requirements. This may include accurate product classification, collecting emissions data, maintaining supporting records and fulfilling reporting obligations.
Failing to prepare could result in reporting errors, increased administrative burden and potential compliance issues once the regulations come into effect and increased cost.
How we can help
Many businesses are still trying to understand how CBAM will affect their importing activities and what they need to do to prepare.
You may be asking yourself:
- Do any of our imported goods fall within the scope of CBAM?
- Are our products classified correctly?
- What emissions data do we need from our suppliers?
- How will we collect and manage this information?
- What reporting obligations will apply to our business?
- Are we prepared for the additional administrative requirements?
- How can we ensure our records are accurate and audit-ready?
These are common concerns, and they’re exactly where expert support can help. We work with importers and exporters to understand their obligations, identify potential compliance risks and prepare for future CBAM requirements. If you need reassurance that you’re on the right track or support implementing a reporting process, we can help remove uncertainty and ensure your business is ready for the upcoming changes.
What to expect when working with BGM
Step 1: Initial assessment
We begin by understanding your business, supply chain and imported products. This allows us to determine whether any of your goods fall within the scope of CBAM, identify potential reporting obligations and establish where support may be required.
Step 2: Scope and compliance review
Our specialists assess product classifications, supplier arrangements and reporting obligations. This helps us identify any compliance risks, assess data requirements and create a clear roadmap for meeting your CBAM obligations.
Step 3: Data collection and reporting preparation
We work with your suppliers and internal teams to collect, validate and organise the information required for reporting, helping ensure records are accurate, complete and suitable for compliance purposes.
Step 4: Reporting and implementation support
We assist with preparing CBAM reports, reviewing supporting documentation and maintaining audit-ready records. Where required, we can also support filing requirements and help ensure reporting obligations are met accurately and on time.
Step 5: Ongoing support
CBAM requirements will continue to evolve as legislation develops and supply chains change. Many clients choose ongoing support to ensure they remain compliant, receive regulatory updates and have access to expert guidance whenever questions arise.
Frequently asked questions
Interested? Speak to us about the upcoming rules today
Trust us for expert customs guidance, advice and support - get in touch today for your quote!