UK CBAM for Freight Forwarders: Importer Liability, Customs Controls and Operational Readiness for 2027

Q: If we lodge the customs declaration in our own name, are we the importer for UK CBAM?

On the text of Finance Act 2026 s.146(2)(a), declaring in your own name points to you as the importer, but HMRC guidance does not confirm it. The subsection makes the importer the person in whose name the declaration is made or, if it is made on behalf of another person, the person on whose behalf it is made. Take written advice and seek an HMRC answer before declaring in your own name.

Q: When do my importer clients have to register for UK CBAM, and when is the first payment due?

Clients triggered in 2027 must register by 31 January 2028, and the first UK CBAM return and payment are due on 31 May 2028. HMRC guidance states registration opens on 1 January 2028 and is required at £50,000 of CBAM goods in the previous 12 months, tested on the first day of each month, or when £50,000 is expected within 30 days. SI 2026/830 as made sets the same registration deadline. The client registers, not the forwarder.

CBAM Research Team

Oct 19

28 min read

CBAM Journal Research & Intelligence Team, Sekason Research Limited. Published October 2026.

Data verified: 19 October 2026 · Next review trigger: objection period for SI 2026/802 ends 2 November 2026

Regulatory status assessment as at 19 October 2026

Disclaimer

This report is for information only. It is not legal, tax, financial or regulatory advice, and it does not create an adviser relationship. Readers should consult a qualified adviser before acting. CBAM Journal analysis is labelled as such and is not stated in any official source. Illustrative figures are not forecasts.

Read the complete disclaimer here; https://www.cbamjournal.com/disclaimer

CBAM Journal cover about UK CBAM for freight forwarders, with red panel stating 1 Jan 2027 UK CBAM comes into force.

1. Executive Summary

Under Finance Act 2026 s.146(1), UK CBAM liability for goods imported from 1 January 2027 falls on the importer, and HMRC guidance updated 7 October 2026 says a customer remains the importer when a freight forwarder or customs broker files for them. HMRC published UK CBAM default values and illustrative rates on 16 October 2026, with iron and steel at an illustrative £9.69 per tCO2e that is not binding. The UK CBAM registration threshold is £50,000, and the HMRC and HM Treasury impact note estimates about 10,000 importing businesses with over 80% of otherwise affected importers excluded.

UK CBAM freight forwarders are not made liable as such by any source found. They do carry the data on which each client’s UK CBAM return depends, the contractual exposure when that data is wrong, and a position that HMRC guidance does not address where a forwarder lodges a declaration in its own name or acts as indirect representative. No UK CBAM registration or payment event falls in 2027: registration opens on 1 January 2028 and the first return and payment are due on 31 May 2028, so data capture on every in-scope shipment is the control gap. Mandatory registration for customs intermediaries is a separate HMRC proposal with no published outcome. Status labels used throughout are Enacted, Made, HMRC guidance, Draft notice, Proposal, Commentary and Analysis.

Decision summary

Question	Position as at 19 October 2026
Liability position	Finance Act 2026 s.146(1) places UK CBAM liability on the importer, and HMRC guidance says the customer stays the importer when another person files. No source found makes a forwarder liable as such.
Key deadline	UK CBAM applies to imports from 1 January 2027; first return and payment fall due on 31 May 2028.
Biggest open point	How s.146(2) applies to a forwarder that declares in its own name for a customer, and whether an indirect representative can be pursued. HMRC guidance addresses neither.
First action	Record the named importer on every UK CBAM-goods declaration by 31 December 2026.
What is not law	Customs intermediary registration (proposal), illustrative rates (non-binding) and the default values notice (draft).

2. Regulatory Context

2.1 Statutory and secondary legislation status

FINDING: Five UK CBAM statutory instruments (SIs 2026/802, 809, 830, 994 and 995) are made for the 1 January 2027 start, and the House of Commons approved SI 2026/809 (rate and carbon price relief) on 14 October 2026.
SO WHAT: The rate and relief rules behind every client’s UK CBAM charge are now approved, so client cost modelling can proceed once the official rate is published, subject only to any prayer against SIs 2026/802 and 995 before their objection periods end.
NOW WHAT: Confirm on the Parliament website that no prayer is tabled against SIs 2026/802 or 995 by 13 November 2026.

The Act provides that UK CBAM applies to goods imported on or after 1 January 2027 (s.158(1)). The table shows each instrument as at October 2026.

Instrument	Status	Commencement	Source and date
Finance Act 2026, Part 5 (ss.142–158, Schs 16–19)	Enacted	Imports on or after 1 January 2027	legislation.gov.uk; Royal Assent 18 March 2026 (date per RegFollower)
SI 2026/802 Administrative Provisions	Made; negative procedure	1 January 2027	legislation.gov.uk; made 13 July 2026
SI 2026/809 Rate and Carbon Price Relief	Made; affirmative; approved by the Commons 14 October 2026	1 January 2027	Parliament procedure browser; Delegated Legislation Committee 12 October 2026
SI 2026/830 Transitory Provision	Made	1 January 2027	legislation.gov.uk; made 14 July 2026
SI 2026/994 Interest (Appointed Day) Order	Made	Interest provisions from 1 January 2027	legislation.gov.uk; made 8 September 2026
SI 2026/995 Emissions and Verification	Made	1 January 2027	legislation.gov.uk; made 8 September 2026

Parliament’s procedure browser records that the objection periods for SI 2026/802 and SI 2026/995 end on 2 November and 13 November 2026.

2.2 What HMRC has and has not published

FINDING: HMRC’s UK CBAM importer, scope, registration and records guidance was first published on 16 July 2026 and updated on 25 September, 30 September, 7 October and 16 October 2026, none of it is addressed to customs agents, and no page carries a change log.
SO WHAT: Controls built now rest on guidance that can change without a change log, so system rework falls on the forwarder.
NOW WHAT: Attend HMRC’s carbon price relief webinar on 26 October 2026 (BIFA notice) and re-read the guidance collection by 31 December 2026.

HMRC guidance as at October 2026 covers importers, scope, registration, records, default values and rates. It does not address customs agents or freight forwarders as a group.

Guidance page	First published	Last updated	Relevance to forwarders
Check if you’re classed as the importer	16 July 2026	7 October 2026	Lists freight forwarders and customs brokers; silent on direct and indirect representation
UK CBAM policy summary	10 February 2026	16 October 2026	Registration and return dates; no liability attaches to the tax agent
Imported goods that may not count towards the threshold	16 July 2026	25 September 2026	Special procedures and exclusions
Keeping records	16 July 2026	30 September 2026 (one source records 16 October 2026)	Evidence list; six-year retention
Check which goods are in scope	16 July 2026	30 September 2026	Five sector commodity code pages

The only agent-related page identified is HMRC’s tax agent support page, updated 18 September 2026. HM Treasury’s statement of 16 October 2026 says HMRC will continue to publish guidance.

2.3 Customs intermediary mandatory registration: a separate proposal

FINDING: HMRC’s customs intermediary registration consultation closed on 21 September 2026, and as at 30 September 2026 HMRC had published no outcome, legislation or date, and the page does not mention UK CBAM.
SO WHAT: No registration duty can be planned for 1 January 2027, but the proposed sanctions run to suspension and removal of declaration rights, a business risk separate from UK CBAM liability.
NOW WHAT: Do not plan for a registration deadline until legislation is published, and check the consultation page for HMRC’s response by 31 December 2026.

HMRC has proposed that customs intermediaries register with HMRC under minimum requirements that mirror those introduced for tax advisers in May 2026. The consultation proposes enforcement that escalates from warnings to temporary suspension, financial penalties and, as a last resort, removal or restriction of the ability to submit declarations. HMRC has stated that it intends to provide a transitional period of unspecified length. Strong & Herd reports (10 August 2026) that brokers, agents, freight forwarders and fast parcel operators fall within the proposed definition.

CBAM Journal analysis (not stated in any official source): the proposal would sit on top of UK CBAM importer liability and could not take effect from 1 January 2027 on the evidence found.

3. Compliance Obligations

3.1 Who is liable: the importer rule

FINDING: Finance Act 2026 s.146(1) places UK CBAM liability on the importer for goods imported from 1 January 2027 (s.158(1)), and HMRC guidance updated 7 October 2026 says a customer is still classed as the importer when another person files.
SO WHAT: The charge falls on the client, so a forwarder’s exposure is commercial unless its role makes it the named importer.
NOW WHAT: Record the named importer for every UK CBAM-goods client by 31 December 2026.

The Act provides that the person liable to UK CBAM on the emissions embodied in a CBAM good is the importer. Section 146(2)(a) identifies the importer by the customs declaration: the person in whose name it was made or, if it was made on behalf of another person, the person on whose behalf it was made. HMRC guidance states that where duties are payable the importer is the individual or organisation named on the import declaration, and that “you’ll still be classed as the importer” when someone else completes it (HMRC, 7 October 2026).

HMRC’s policy summary states “no liability will be attached to the tax agent” (HMRC, 16 October 2026). Schedule 17 contains no UK CBAM provision found that makes a customs agent liable. Its joint and several liability rule applies only to persons artificially separated, by direction. Part 5 does not use the words agent or freight forwarder.

3.2 Forwarder role map and the open cases

FINDING: HMRC importer guidance (updated 7 October 2026) lists seven categories of person who may import on a customer’s behalf, including customs brokers and freight forwarders, and does not address indirect representatives. HMRC states the list is not exhaustive.
SO WHAT: A forwarder declaring in its own name, or acting as indirect representative, has a UK CBAM liability position that HMRC guidance does not address, so its exposure cannot be sized.
NOW WHAT: CBAM Journal analysis: do not lodge UK CBAM-goods declarations in the forwarder’s own name without written legal advice by 31 December 2026.

Role	What HMRC guidance states	UK CBAM liability per official sources	Open question	Status
Declarant in own name	Not addressed	s.146(2)(a): the importer is the person in whose name the declaration is made, or the person on whose behalf it is made	How the first limb applies to a forwarder declaring in its own name	Analysis
Direct representative (broker or forwarder declaring for a named customer)	Listed as able to import on a customer’s behalf; customer still classed as importer	Customer is the importer	None identified	Act s.146(2)(a); HMRC guidance silent on representation type
Indirect representative	Not addressed	Not addressed	Whether HMRC can recover from this role	Commentary
Haulier (driver)	Listed as able to import on a customer’s behalf	Customer is the importer	None identified	HMRC guidance
Express or fast parcel operator	Listed	Customer is the importer	None identified	HMRC guidance
Tax agent	Cannot register for UK CBAM for the liable person	No liability attaches	None identified	HMRC guidance
Third-party logistics provider	Not named	SEKO Logistics says generally not the legally liable party	Whether the 3PL declares in its own name	Commentary

Questions to put to HMRC:

1. Whether a forwarder that lodges a customs declaration in its own name is the importer under s.146 for UK CBAM.

2. Whether HMRC can assess or recover UK CBAM, or a penalty, from an indirect representative.

3. Whether the Schedule 18 offences reach an agent that submits a declaration or return.

Clifford Chance reports that EU CBAM uses an indirect customs representative, while UK CBAM allows a tax agent but keeps liability with the importer. Trans.info reports (9 October 2026) that HMRC guidance “does not say whether indirect representatives could share liability”.

CBAM Journal analysis (not stated in any official source): on the text of s.146(2)(a), a forwarder that makes the declaration in its own name could be the person in whose name it is made, and so the importer, whereas a forwarder declaring on behalf of a named principal would not.

3.3 Registration and the £50,000 threshold, as it affects forwarder clients

FINDING: UK CBAM registration is required at £50,000 of CBAM goods imported in the previous 12 months or expected within 30 days, registration opens 1 January 2028, and importers triggered in 2027 register by 31 January 2028.
SO WHAT: The threshold is the importer’s, not the forwarder’s, so a client’s status is unknown in advance and data must be captured on every in-scope shipment.
NOW WHAT: Start a rolling per-importer £50,000 tracker from the first shipment on 1 January 2027.

HMRC guidance states that UK CBAM registration applies from 1 January 2027 under two tests, and that the earliest trigger date governs when both apply (as at October 2026). Finance Act 2026 Sch 17 para 2 is the statutory source. HMRC guidance excludes from the count private-use imports, UK-origin goods, goods re-imported under Returned Goods Relief within three years, temporary admission with full relief, and special customs procedures unless the goods are released into free circulation with duties due.

Read; UK CBAM registration and liability thresholds: a compliance manager’s guide

Tracker field	Test	Update
Rolling 12-month value	CBAM goods imported in the previous 12 months, tested on the first day of each month	Monthly
30-day forward value	CBAM goods expected within the next 30 days	Per booking
Trigger date	Earliest date either test is met	On trigger
Registration deadline	31 January 2028 if triggered in 2027	Once

3.4 Records and evidence

FINDING: HMRC guidance requires UK CBAM records to be kept for six years, and Finance Act 2026 Sch 17 para 39 sets a £500 penalty for failing to keep records.
SO WHAT: Para 40(2)(b) says relying on another person is not a reasonable excuse unless reasonable care was taken, so clients will contract record risk to the forwarder.
NOW WHAT: Set six-year retention and document-holder allocation in client terms by 31 December 2026.

HMRC guidance states that anyone importing UK CBAM goods must keep records in written or electronic form, that manufacturers and suppliers may supply evidence, and that the importer remains responsible for the accuracy of weight (as at October 2026). SI 2026/802 requires UK CBAM records for an accounting period to be preserved for six years from the day after the period ends.

Data field	Source document	Likely holder (CBAM Journal analysis)	Retention
Commodity code and description	Import declaration; commercial invoice	Forwarder and importer	Six years
Tax point date	Import declaration	Forwarder and importer	Six years
Value	Commercial invoice; declaration	Importer and forwarder	Six years
Weight (net mass)	Carrier weight records; bill of lading; packing list	Carrier, forwarder, importer	Six years
Proof of origin	Supplier origin evidence	Supplier and importer	Six years
Verification reports	Accredited verifier report	Supplier and importer	Six years

3.5 Customs declaration controls

FINDING: UK CBAM arises when import duty liability is incurred (s.144(2)), SI 2026/802 reg 5 requires importers to record the 8-digit commodity code, and no source found specifies UK CBAM-specific CDS data elements as at October 2026.
SO WHAT: A code or net-mass error flows into the client’s return and charge, but no source found sets a UK CBAM-specific declaration rule.
NOW WHAT: Audit code and net-mass capture against HMRC’s five sector code pages by 31 December 2026.

The Act ties the UK CBAM import to the time liability to import duty is incurred. The contents list of SI 2026/802 covers registration information, returns, record-keeping and officer assessment of weight, with no heading on customs declarations. No source found sets out additional document codes, procedure codes, or whether a UK CBAM registration number or emissions data must be quoted on the declaration. This report asserts none.

SEKO Logistics advises capturing net weight and emissions data accurately at the customs tax point (24 August 2026). That is an adviser recommendation, not an HMRC requirement. Because s.146(2)(a) identifies the importer by the declaration, the named-importer field is itself a UK CBAM control.

3.6 Special procedures and tax points

FINDING: HMRC guidance states that goods under special customs procedures do not count towards the UK CBAM £50,000 threshold unless released into free circulation with duties due, and that inward processing goods may count on release.
SO WHAT: A wrong tax point or threshold attribution on bonded or processing flows misstates the client’s UK CBAM liability.
NOW WHAT: Map each client flow to a procedure and confirm the discharge event by 31 December 2026.

Procedure	UK CBAM treatment	Counts to threshold	Evidence status
Release for free circulation, duty due	UK CBAM arises when import duty liability is incurred	Yes	HMRC guidance
Customs warehousing	Out of scope until released into free circulation with duties due; tax point on discharge	No until discharge	HMRC guidance (general rule); tax point is CBAM Journal analysis
Inward processing	Counts on release; s.145 charges emissions embodied in a CBAM good processed into a non-CBAM good later imported	Yes, on release	HMRC guidance; Act s.145
Temporary admission, full relief	Excluded	No	HMRC guidance
Returned Goods Relief, within three years	Excluded from threshold count	No	HMRC guidance
Transit; simplified declaration procedures	Not addressed in HMRC guidance	Unknown	Not addressed in HMRC guidance

CBAM Journal analysis (not stated in any official source): transit alone appears to create no import duty liability and so no UK CBAM tax point.

3.7 Emissions data: default values or actual verified emissions

FINDING: UK CBAM default values apply from 1 January 2027 to 31 December 2028 with a 10% markup except fertilisers, and a return using defaults cannot later be amended with actual data.
SO WHAT: The route choice changes which supplier data the forwarder must collect and cannot be reversed on the same return.
NOW WHAT: Ask each client which route it will use by 30 November 2026.

Route	Rule	Consequence	Data the forwarder collects
Default values	HMRC’s policy summary states one default value per good; the draft notice applies from 1 January 2027 to 31 December 2028	A return on defaults cannot be amended with actual data	Commodity code and net mass
Actual verified emissions	SI 2026/995 reg 12 provides for a verifier; commentary reports accredited independent verification	Supplier chain must deliver a verification report	Verification report and supplier evidence

HMRC guidance states defaults may be used for precursors with actual data for the conversion processes, but not actual precursor data with a default for the final good.

Read; Supplier emissions data versus default values before UK CBAM 2027

4. Key Dates and Deadlines

4.1 Chronological timeline

FINDING: UK CBAM first return and payment fall due on 31 May 2028, registration opens on 1 January 2028, and importers triggered in 2027 register by 31 January 2028.
SO WHAT: No UK CBAM registration or payment falls in 2027, so the control gap is data capture.
NOW WHAT: Set recommended internal dates: client data request by 30 November 2026, system fields by 31 December 2026 and first reconciliation by 30 April 2027.

Date	Event	Status	Forwarder consequence
16 October 2026	Default values and illustrative rates published	HMRC guidance; draft notice	Data model can be specified
Before the end of 2026	Official first-quarter 2027 rate due	HM Treasury statement	Hold client cost quotes
1 January 2027	UK CBAM applies to imports; record-keeping and threshold tests start	Enacted	Capture data on every shipment
31 December 2027	First accounting period ends	HMRC guidance	Reconcile the year’s data
1 January 2028	Registration opens	HMRC guidance	Clients begin registering
31 January 2028	Register by, if triggered in 2027	HMRC guidance	Client registration check
31 May 2028	First return and payment	HMRC guidance	Client data needed by then
31 July, 29 September, 30 November 2028; 28 February 2029	Quarterly returns and payments, Q1 to Q4 2028	HMRC guidance	Quarterly reconciliation
31 December 2028	Default values end	Draft notice	Move to actual-route data

4.2 Pending dates

FINDING: HMRC’s official first-quarter 2027 rate is due before the end of 2026, the Commons approved SI 2026/809 on 14 October 2026, and the objection periods for SIs 2026/802 and 995 end on 2 November and 13 November 2026.
SO WHAT: SI 2026/830 as made sets the registration and return dates, so the filing timetable in this report rests on the instrument itself.
NOW WHAT: Cite SI 2026/830 and HMRC for dates and re-check each pending item by 31 December 2026.

Item	Status	Evidence quality
Official first-quarter 2027 rate	Promised before the end of 2026	HM Treasury statement HCWS387
SI 2026/809 approval	Committee met 12 October 2026; Commons approved 14 October 2026	Parliament procedure browser
Objection periods, SIs 2026/802 and 995	2 and 13 November 2026	Parliament procedure browser
Filing dates	31 January 2028 registration; returns due 31 May, 31 July and 29 September 2028 for the first three periods	SI 2026/830 as made
Customs intermediary outcome	No date	HMRC page, updated 30 September 2026

The 31 May 2028 date is set by SI 2026/830 as made and matches HMRC’s stated date.

5. Financial Exposure and Risk

5.1 Rate mechanics and illustrative sector rates

FINDING: HMRC and HM Treasury illustrative UK CBAM rates published on 16 October 2026, based on Q3 2026 UK ETS prices and not binding, are iron and steel £9.69, aluminium £9.79, cement £8.78, fertiliser £1.45 and hydrogen £9.24 per tCO2e.
SO WHAT: Rates move quarterly and no official sector-level liability figure exists, so any client figure is provisional.
NOW WHAT: Quote no UK CBAM cost to clients until HMRC publishes the official first-quarter 2027 rate, due before the end of 2026.

Sector	Illustrative rate (£ per tCO2e, non-binding)	Source and date
Iron and steel	9.69	HMRC and HM Treasury, 16 October 2026
Aluminium	9.79	HMRC and HM Treasury, 16 October 2026
Cement	8.78	HMRC and HM Treasury, 16 October 2026
Fertiliser	1.45	HMRC and HM Treasury, 16 October 2026
Hydrogen	9.24	HMRC and HM Treasury, 16 October 2026

The illustrative UK CBAM document uses a Q3 2026 average UK ETS price of £58.15 per tonne and a 2027 factor of 97.5%. For cement it applies a baseline free allocation of 87.1%: £58.15 × [1 − (87.1% × 97.5%)] computes to about £8.77, and HMRC publishes £8.78. The Act provides that the rate follows UK ETS auction prices of the preceding quarter, reduced by free allocation (s.149). HMRC states the figures are illustrative, create no liability and are not forecasts, and that rates will be published at the beginning of each quarter from 1 January 2027.

Read; UK CBAM liability calculation guide 2027

5.2 Penalties, interest and who bears them

FINDING: Finance Act 2026 Sch 17 para 39 sets £500 for failing to keep records, para 38 sets £500 plus £40 a day for failing to notify changes, and interest applies from 1 January 2027 (SI 2026/994).
SO WHAT: Penalties fall on the liable importer, so the forwarder’s exposure is a contractual claim.
NOW WHAT: Review indemnity and limitation clauses against these amounts by 31 December 2026.

Provision	Failure or rule	Amount	Bears it
Sch 17 para 38	Failing to notify changes to registration information	£500 plus £40 a day	Liable importer
Sch 17 para 39	Failing to keep or preserve a record	£500	Liable importer
Sch 17 para 40(2)(b)	Reliance on another person	Not a reasonable excuse unless reasonable care taken	Liable importer
Sch 17 para 42	Assessed penalty	Recoverable as an amount of UK CBAM due	Liable importer
SI 2026/994	Late payment and repayment interest	Applies from 1 January 2027	Liable importer

UK CBAM penalty time limits under Sch 17 are four years from the failure, and 20 years where the loss was deliberate or results from failure to comply with Part 2 of the Schedule (para 46). No intermediary-specific penalty was found. The table lists provisions with stated amounts; other Schedule 17 penalties are covered under Research Limitations.

Read; UK CBAM penalties: what happens if you miss the deadline or misreport

5.3 Government estimates

FINDING: The government’s impact note estimates about 10,000 importing businesses, with over 80% of otherwise affected importers excluded, business one-off costs of £9m and ongoing costs of £16m a year.
SO WHAT: Most clients may fall outside the UK CBAM charge, so the exposed minority carries concentrated cost.
NOW WHAT: Treat any client expecting £50,000 of CBAM goods within 30 days as having a registration trigger from 1 January 2027, with registration by 31 January 2028.

Item	Estimate	Source and date
Importing businesses	About 10,000	HMRC and HM Treasury impact note, updated 9 September 2026
Importers excluded	Over 80% of otherwise affected importers; over 70% of those are SMEs	Same
Business one-off cost	£9m	Same
Business ongoing cost	£16m a year	Same
Exchequer receipts	+£140m in 2027-28; +£180m in 2028-29	Same

5.4 Carbon price context

FINDING: The UK ETS monthly average of the December 2026 futures contract was £60.17 in September 2026, S&P Global reported a £62 spot price on 29 September 2026, and EU ETS allowances traded at €82.40 on 5 October 2026, shown as context only.
SO WHAT: UK CBAM rates use UK ETS auction prices, not EU ETS prices, so EU price moves do not change UK CBAM cost.
NOW WHAT: Track UK ETS auction clearing prices each quarter, with the first official rate due before the end of 2026.

GOV.UK reports UK ETS monthly averages of the December 2026 futures contract rising from £46.82 in April 2026 to £60.17 in September 2026. S&P Global reported the £62 spot price on 29 September 2026. The UK CBAM rate input is the mean of auction clearing prices in the preceding quarter (SI 2026/809 reg 3, per commentary), not the spot price; the illustrative rates use £58.15. S&P Global reported the EU ETS price of €82.40 on 5 October 2026. EU ETS prices are not an input to any UK CBAM cost.

6. Sector-Specific Impact Analysis

6.1 Scope and code-level screening

FINDING: HMRC covers five sectors under Finance Act 2026 s.143(3) through 10-digit commodity code pages, and scrap heading 7204 is excluded.
SO WHAT: Misclassification changes both the UK CBAM charge and threshold counting.
NOW WHAT: Screen each client’s tariff codes against the sector pages by 30 November 2026.

The five UK CBAM sectors are aluminium, cement, fertilisers, hydrogen, and iron and steel. Under UK CBAM a listed heading covers all its sub-headings, and several ferro-alloys under heading 7202 are excluded. Clifford Chance reports that electricity is excluded from UK CBAM; no primary statement was found. Sources conflict on ceramics and glass, and HMRC’s scope wording lists none. Saffery reports that later inclusion is possible.

Read; UK CBAM commodity codes 2027: scope, exceptions and classification risk

6.2 Default values and rates by sector

FINDING: The illustrative UK CBAM rate for fertiliser is £1.45 against £9.69 for iron and steel, the hydrogen default is 28.378 tCO2e/t, and the rebar coil default is 3.309 tCO2e/t.
SO WHAT: Per tCO2e, aluminium, iron and steel and hydrogen carry the highest illustrative rates, and hydrogen has the highest default intensity.
NOW WHAT: Send the first data request to steel, aluminium and hydrogen clients by 30 November 2026.

Sector	Sample CN code	Default value (tCO2e/t)	Illustrative rate (£ per tCO2e)
Iron and steel	****72131000	****3.309	9.69
Aluminium	****76061130	****4.522	9.79
Cement	****25232900	****1.375	8.78
Fertiliser	****31023090	****2.600	1.45
Hydrogen	****28041000	****28.378	9.24

UK CBAM default values are from HMRC, 16 October 2026; each includes a 10% markup except fertiliser. These are sample rows, not the full code list.

6.3 Third-country supply context

FINDING: The UK–India trade agreement entered into force on 15 July 2026 without a UK CBAM carve-out (trade press).
SO WHAT: Clients importing from carbon-priced countries may hold carbon price evidence that reduces UK CBAM liability, capped at the liability under SI 2026/809.
NOW WHAT: Add a carbon price relief evidence line to the client data request by 30 November 2026.

Commentary only: Khaitan & Co reports that HM Treasury added India’s Carbon Credit Trading Scheme to the indicative list for UK CBAM relief, covering steel, cement and aluminium; fertiliser and hydrogen are not listed in that note.

7. Practical Action Framework

7.1 Readiness checklist by deadline

FINDING: UK CBAM applies from 1 January 2027, registration opens 1 January 2028, and the first return and payment fall due on 31 May 2028.
SO WHAT: Pre-2027 work is operational, while registration and payment steps belong to the client and fall in 2028.
NOW WHAT: Complete the pre-1 January 2027 items by 31 December 2026.

Dates marked as recommended are internal control dates, not regulatory deadlines.

Deadline	Action	Owner	Evidence
By 30 November 2026 (recommended)	Screen codes; ask each client its emissions route; issue the data request	Operations, compliance	Screening log; client replies
By 31 December 2026 (recommended)	Record named importers; audit code and net-mass capture; map procedures; agree retention and contract terms; add system fields	Operations, legal, IT	Importer register; audit note; amended terms
1 January 2027 (regulatory)	UK CBAM applies; rolling £50,000 tracker starts	Operations	Tracker live
By 30 April 2027 (recommended)	First reconciliation of captured data	Compliance	Reconciliation file
By 31 January 2028 (regulatory)	Client registration, if triggered in 2027	Client	HMRC registration
By 31 May 2028 (regulatory)	Client first return and payment	Client	Filed return

7.2 Client data request template

FINDING: HMRC requires UK CBAM records to be kept for six years, and the template below collects ten client fields covering the evidence HMRC lists.
SO WHAT: A single request format avoids rework when clients prepare returns.
NOW WHAT: Issue the data request to every in-scope client by 30 November 2026.

Field	Source	Format	By when
Name, address, EORI, VAT number	Client	Text	30 November 2026
Value and estimated weight of CBAM goods by sector, next 12 months	Client forecast	Number	30 November 2026
Commodity code and description	Client, supplier invoice	Code and text	Each shipment
Tax point date	Declaration	Date	Each shipment
Value	Commercial invoice	£	Each shipment
Net weight	Carrier records; packing list	Tonnes	Each shipment
Proof of origin	Supplier	Document	Each shipment
Emissions route chosen	Client	Default or actual	30 November 2026
Verification report (actual route)	Verifier, supplier	Document	Before the return
Carbon price relief evidence	Client, supplier	Document	30 November 2026

The registration fields follow SI 2026/802 reg 7.

7.3 Contract and escalation controls

FINDING: Finance Act 2026 Sch 17 para 40(2)(b) treats reliance on another person as no reasonable excuse without reasonable care, para 42 makes an assessed penalty recoverable as UK CBAM due, and para 39 sets a £500 record penalty.
SO WHAT: Without clauses the forwarder absorbs client data risk by default.
NOW WHAT: Review standard terms with counsel by 31 December 2026.

Clause topic	Purpose
Client data warranties	Places accuracy of weight, code and origin on the importer, consistent with HMRC guidance
Named-importer confirmation	Fixes who is named on each declaration
Indemnity and liability cap	Allocates penalty and interest exposure under paras 38 to 42
Right to suspend or decline UK CBAM goods	Controls shipments with missing data
Cost recovery	Recovers handling cost of UK CBAM data work
Document retention	Matches the six-year period
Escalation to the client’s finance lead	Routes open data gaps before the return

These topics are CBAM Journal analysis, not HMRC requirements, and are not legal drafting.

7.4 Worked example: how a declaration error becomes the client’s CBAM charge

FINDING: HMRC’s default value for rebar coil (CN 72131000) is 3.309 tCO2e/t and the illustrative UK CBAM rate for iron and steel is £9.69 per tCO2e.
SO WHAT: A net-mass error scales linearly into the client’s charge and may become a claim against the forwarder.
NOW WHAT: Add a net-mass check at declaration before 1 January 2027.

Scenario: a UK steel stockholder imports rebar coils (CN 72131000) from a non-UK supplier. The forwarder lodges each declaration as direct representative in the importer’s name. The importer uses the default-value route for 2027 imports, with no carbon price relief.

Sourced inputs

Input	Value	Source and date
Default value, CN 72131000	3.309 tCO2e/t, including the 10% markup; in force 1 January 2027 to 31 December 2028	HMRC, 16 October 2026
Iron and steel illustrative rate	£9.69 per tCO2e, non-binding	HMRC and HM Treasury, 16 October 2026
Registration threshold	£50,000	Finance Act 2026 Sch 17 para 2; HMRC
Record-keeping penalty	£500	Sch 17 para 39
Dates	Register by 31 January 2028; first return and payment 31 May 2028	HMRC policy summary

Illustrative assumptions

• Illustrative: 250 tonnes per shipment.

• Illustrative: 2 shipments per month, 24 in 2027, 6,000 tonnes in total.

• Illustrative: customs value of £600 per tonne.

• Illustrative: one flat rate for all four 2027 quarters.

• Illustrative: no carbon price relief.

At £600 per tonne, the first 250-tonne shipment, worth £150,000, exceeds the £50,000 threshold.

Calculation. The example applies the formula in s.149(1) and SI 2026/995 reg 4: net mass × default value × rate, less any relief.

Line	Calculation	True mass	Net mass declared 5% low	Difference
1. Net mass (tonnes)	24 shipments × 250 t	****6,000.0	5,700.0	300.0
2. Embedded emissions (tCO2e)	Net mass × 3.309	19,854.0	18,861.3	992.7
3. Illustrative 2027 liability (£)	Emissions × £9.69	192,385****	182,766****	9,619****

A 5% under-declaration on every shipment understates the importer’s illustrative 2027 UK CBAM liability by £9,619. The importer, not the forwarder, is the liable person for UK CBAM under s.146(1) and would carry the correction, with any penalty and interest. The importer would also have to reconstruct weights from carrier records, bills of lading and packing lists held for six years. A failure to keep those records carries a separate UK CBAM penalty of £500 (para 39). Any claim against the forwarder is a contractual question.

These figures are illustrative, not a forecast of any importer’s liability, and will change when HMRC publishes the official first-quarter 2027 rate.

8. Strategic Outlook

8.1 2027–2029 horizon

FINDING: UK CBAM default values end on 31 December 2028, and commentary reports country-specific default values from 2029.
SO WHAT: The cost basis shifts in 2029, so controls should capture data that supports the actual-emissions route.
NOW WHAT: Build actual-route data fields before 31 December 2028.

The horizon runs in three steps.

• 2027: UK CBAM applies from 1 January 2027, default values apply, and the first rate is published before the end of 2026.

• 2028: registration opens on 1 January 2028, the first return and payment fall due on 31 May 2028, and quarterly returns begin, with the first due on 31 July 2028.

• 2029 (commentary): cbamdefaults.com reports country-specific default values and a review of the markup; Clifford Chance reports that indirect emissions are deferred until at least 2029; Saffery puts the earliest date at 2029.

8.2 Policy developments to monitor

FINDING: HM Treasury’s written statement of 16 October 2026 commits to the official first-quarter 2027 rate before the end of 2026 and to further HMRC guidance.
SO WHAT: Each pending item can change scope, rates or sanctions.
NOW WHAT: Review the status tracker quarterly, first by 31 January 2027.

HCWS387 (16 October 2026) states “HMRC will continue to publish guidance”. Four items sit on the watch list. HMRC’s response on customs intermediary registration is awaited. Commentary reports a Treasury power under s.156 to exclude goods from linked-ETS jurisdictions, with no regulations found. Commentary reports that ceramics and glass could be included later. The official rate and the objection periods for SIs 2026/802 and 995 remain open, as set out in 4.2.

9. Executive FAQ

1. If we lodge the customs declaration in our own name, are we the importer for UK CBAM?

On the text of Finance Act 2026 s.146(2)(a), declaring in your own name points to you as the importer, but HMRC guidance does not confirm it. The subsection makes the importer the person in whose name the declaration is made or, if it is made on behalf of another person, the person on whose behalf it is made. Take written advice and seek an HMRC answer before declaring in your own name.

2. Can HMRC pursue a freight forwarder for a client’s UK CBAM charge?

No official source found makes a forwarder liable as such, and none resolves recovery from an indirect representative. Finance Act 2026 s.146(1) makes the importer liable, HMRC guidance states a customer remains the importer when a forwarder or broker files for them, and HMRC’s policy summary states no liability attaches to the tax agent. A forwarder’s exposure is therefore contractual, through client terms.

3. What data do we need from importer clients before 1 January 2027?

Commodity code and description, tax point date, value, weight, proof of origin and verification reports. HMRC guidance lists these as evidence importers keep for six years under UK CBAM, and SI 2026/802 also requires registration details, including EORI and VAT number, and the value and estimated weight of CBAM goods by sector for the next 12 months. Ask each client which emissions route it will use.

4. When do my importer clients have to register for UK CBAM, and when is the first payment due?

Clients triggered in 2027 must register by 31 January 2028, and the first UK CBAM return and payment are due on 31 May 2028. HMRC guidance states registration opens on 1 January 2028 and is required at £50,000 of CBAM goods in the previous 12 months, tested on the first day of each month, or when £50,000 is expected within 30 days. SI 2026/830 as made sets the same registration deadline. The client registers, not the forwarder.

5. How does UK CBAM treat goods in customs warehousing, inward processing or transit?

HMRC guidance states goods under special customs procedures do not count towards the £50,000 UK CBAM threshold unless released into free circulation with duties due. Inward processing goods may count on release, and Finance Act 2026 s.145 charges the emissions embodied in a CBAM good processed under a special procedure into a non-CBAM good that is later imported. HMRC guidance as at October 2026 does not address transit or simplified declaration procedures. Map each flow and confirm its discharge event.

6. Will mandatory registration for customs intermediaries apply to us from 1 January 2027?

No outcome, legislation or implementation date has been published, so no registration duty can be planned for 1 January 2027. HMRC consulted from 23 June to 21 September 2026 on a proposal, and its page, last updated 30 September 2026, does not mention UK CBAM. Check the consultation page for HMRC’s response.

10. References and Sources

10.1 Research Limitations

This report relies on the sources listed after it. The following could not be obtained or verified, and the report does not fill them.

• Legal text and quotations: The text of Finance Act 2026 Schedules 16 and 18, Schedule 17 para 14, the wording of para 42(4) and the regulations of SI 2026/809 was not available. Quotations from legislation.gov.uk and GOV.UK came from extracts and need checking against the pages before being relied on word for word.

• Threshold: The statutory basis of the £50,000 value, and whether imports before the threshold is crossed are chargeable, were not stated in the sources.

• Forwarders: No HMRC guidance addressed to customs agents or forwarders, no CDS data elements, and no treatment of transit, simplified procedures or warehousing tax points were found. Whether Schedule 18 offences reach agents is unknown. BIFA standard trading conditions and BIFA’s December 2025 presentation were not reviewed, and no BIFA, Logistics UK or UKWA position, forwarder quotation or named company case study was found.

• Penalties and payment: Late-return, inaccuracy and failure-to-register penalty amounts, the interest rate and the payment method were not available.

• Rates: No official rate exists. Free allocation percentages other than cement, factors for 2028 to 2030 and the UK ETS price on 19 October 2026 were not available, and the cement rate computes to about £8.77 from HMRC’s stated inputs. Only a partial iron and steel default table was captured.

• Dates: One HMRC page carries conflicting update dates, no page has a change log, and the consultation page may have changed after 30 September 2026. The Royal Assent date of 18 March 2026 and the 26 October 2026 webinar date rest on commentary.

• Estimates and scope: Impact note Exchequer receipts came from a summary extract, and one unexplained entry is omitted. The electricity exclusion rests on one law-firm source, and sources conflict on ceramics and glass.

• EU: The single EU CBAM reference is Clifford Chance commentary, not checked against EU primary sources.

10.2 Disclaimer

10.3 Reference list

Every source referenced appears with its document-level URL in “Sources used in this report” immediately below. Official sources are Finance Act 2026, statutory instruments, GOV.UK and Parliament pages. Law-firm, trade-press and aggregator sources are commentary, and where a date rests on commentary alone the text says so.

Sources used in this report

• legislation.gov.uk | Finance Act 2026, Part 5 | Royal Assent 18 March 2026 (per RegFollower) | https://www.legislation.gov.uk/ukpga/2026/11/part/5

• legislation.gov.uk | Finance Act 2026, s.145 | 2026 | https://www.legislation.gov.uk/ukpga/2026/11/section/145

• legislation.gov.uk | Finance Act 2026, s.146 | 2026 | https://www.legislation.gov.uk/ukpga/2026/11/section/146

• legislation.gov.uk | Finance Act 2026, s.149 | 2026 | https://www.legislation.gov.uk/ukpga/2026/11/section/149

• legislation.gov.uk | Finance Act 2026, Schedule 17 | 2026 | https://www.legislation.gov.uk/ukpga/2026/11/schedule/17

• legislation.gov.uk | Finance Act 2026, Schedule 17 Part 11 | 2026 | https://www.legislation.gov.uk/ukpga/2026/11/schedule/17/part/11

• legislation.gov.uk | SI 2026/802 Administrative Provisions Regulations 2026 (made) | Made 13 July 2026; laid 14 July 2026 | https://www.legislation.gov.uk/uksi/2026/802/made

• legislation.gov.uk | SI 2026/802 contents | 13 July 2026 | https://www.legislation.gov.uk/uksi/2026/802/contents/made

• legislation.gov.uk | SI 2026/809 Calculation of CBAM Rate and Determination of Carbon Price Relief Regulations 2026 | Made 13 July 2026 (per commentary); approved by the Commons 14 October 2026 | https://www.legislation.gov.uk/uksi/2026/809

• legislation.gov.uk | SI 2026/830 Transitory Provision Regulations 2026 | Made 14 July 2026 | https://www.legislation.gov.uk/uksi/2026/830/made

• legislation.gov.uk | SI 2026/994 Interest (Appointed Day) Order 2026 | Made 8 September 2026 | https://www.legislation.gov.uk/uksi/2026/994/made

• legislation.gov.uk | SI 2026/995 Emissions and Verification Regulations 2026 | Made 8 September 2026 | https://www.legislation.gov.uk/uksi/2026/995/made

• HMRC / GOV.UK | Check if you’re classed as the importer for CBAM | 16 July 2026; updated 7 October 2026 | https://www.gov.uk/guidance/check-if-youre-classed-as-the-importer-for-carbon-border-adjustment-mechanism-cbam

• HMRC / GOV.UK | CBAM policy summary | 10 February 2026; updated 16 October 2026 | https://www.gov.uk/government/publications/carbon-border-adjustment-mechanism-cbam-policy-summary/carbon-border-adjustment-mechanism-cbam-policy-summary

• HMRC / GOV.UK | Work out the date you’ll need to register for CBAM | 16 July 2026 | https://www.gov.uk/guidance/work-out-the-date-youll-need-to-register-for-carbon-border-adjustment-mechanism-cbam

• HMRC / GOV.UK | Imported CBAM goods that may not contribute towards the registration threshold | 16 July 2026; updated 25 September 2026 | https://www.gov.uk/guidance/imported-carbon-border-adjustment-cbam-goods-that-may-not-contribute-towards-the-registration-threshold

• HMRC / GOV.UK | Keeping records for CBAM | 16 July 2026; updated 30 September 2026 (one source records 16 October 2026) | https://www.gov.uk/guidance/keeping-records-for-carbon-border-adjustment-mechanism-cbam

• HMRC / GOV.UK | Check which goods are in scope of CBAM (five sector pages) | 16 July 2026; updated 30 September 2026 | https://www.gov.uk/government/publications/check-which-goods-are-in-scope-of-carbon-border-adjustment-mechanism-cbam

• HMRC / GOV.UK | Rates for CBAM | 16 October 2026 | https://www.gov.uk/guidance/rates-for-the-carbon-border-adjustment-mechanism-cbam

• HMRC / HM Treasury | Illustrative CBAM rates and worked example | 16 October 2026 | https://www.gov.uk/government/publications/illustrative-cbam-rates-and-worked-example-for-carbon-border-adjustment-mechanism-cbam/carbon-border-adjustment-mechanism-cbam-illustrative-cbam-rates-and-worked-example

• HMRC / GOV.UK | Check the default values for CBAM | 16 October 2026 | https://www.gov.uk/government/publications/check-the-default-values-for-the-carbon-border-adjustment-mechanism-cbam

• HMRC / GOV.UK | CBAM Default Values Force of Law Notice (Draft) | Updated 16 October 2026 | https://www.gov.uk/government/publications/carbon-border-adjustment-mechanism-force-of-law-notice-and-reference-document/the-carbon-border-adjustment-mechanism-default-values-force-of-law-notice-draft–4

• HMRC / GOV.UK | Consultation: Introduction of mandatory registration for customs intermediaries | 23 June 2026; closed 21 September 2026; updated 30 September 2026 | https://www.gov.uk/government/consultations/introduction-of-mandatory-registration-for-customs-intermediaries

• HMRC / GOV.UK | Customs intermediaries: introduction of mandatory registration (consultation paper) | 22 June 2026 | https://www.gov.uk/government/consultations/introduction-of-mandatory-registration-for-customs-intermediaries/customs-intermediaries-introduction-of-mandatory-registration

• HMRC / HM Treasury | Tax Information and Impact Note: Introduction of CBAM | Published 26 November 2025; updated 9 September 2026 | https://www.gov.uk/government/publications/introduction-of-carbon-border-adjustment-mechanism/carbon-border-adjustment-mechanism

• GOV.UK | UK Emissions Trading Scheme markets | Latest figures September 2026 | https://www.gov.uk/government/publications/uk-emissions-trading-scheme-markets/uk-emissions-trading-scheme-markets

• UK Parliament | Written Statement HCWS387, CBAM October 2026 Rate and Default Emissions Values update (James Murray) | 16 October 2026 | https://questions-statements.parliament.uk/written-statements/detail/2026-10-16/hcws387

• UK Parliament | Second Delegated Legislation Committee, event 28215 (SI 2026/809) | 12 October 2026 | https://committees.parliament.uk/event/28215

• UK Parliament | Procedure browser: SI 2026/809 work package (Commons approval 14 October 2026) | 14 October 2026 | https://api.parliament.uk/procedure-browser/work-packages/mXWmjW3i

• UK Parliament | Procedure browser: SI 2026/802 and SI 2026/995 work packages (objection periods 2 and 13 November 2026) | October 2026 | https://api.parliament.uk/procedure-browser/work-packages/sTohB1UR ; https://api.parliament.uk/procedure-browser/work-packages/NQgzIIPi

• Clifford Chance (commentary) | 2026 UK CBAM primer | September 2026 | https://www.cliffordchance.com/content/dam/cliffordchance/briefings/2026/09/2026-UK-CBAM-primer.pdf

• trans.info (commentary) | UK CBAM 2027 importers | 9 October 2026 | https://trans.info/en/uk-cbam-2027-importers-508066

• SEKO Logistics (commentary) | Client advisory: UK CBAM 2027 | 24 August 2026 | https://www.sekologistics.com/en/resource-hub/news/client-advisory-uk-cbam-2027/

• Strong & Herd (commentary) | HMRC launches consultation for customs intermediaries: the introduction of mandatory registration | 10 August 2026 | https://www.strongandherd.co.uk/hmrc-launches-consultation-for-customs-intermediaries-the-introduction-of-mandatory-registration

• Khaitan & Co (commentary) | ERGO: UK recognition to CCTS | 18 September 2026 | https://www.khaitanco.com/sites/default/files/2026-09/ERGO_UK%20recognition%20to%20CCTS_18%20September%202026.pdf

• Saffery (commentary) | Carbon Border Adjustment Mechanism | Date not stated | https://www.saffery.com/insights/articles/carbon-border-adjustment-mechanism

• cbamguide.com (commentary) | UK CBAM regulation | Stated as of 12 to 13 October 2026 | https://cbamguide.com/learn/uk-cbam/regulation/

• cbamguide.com (commentary) | UK CBAM Emissions and Verification Regulations SI 2026/995 | 9 September 2026 | https://cbamguide.com/news/2026-09-09-uk-cbam-emissions-verification-regulations-si-2026-995/

• cbamdefaults.com (commentary) | UK CBAM default values published | 16 October 2026 | https://cbamdefaults.com/updates/uk-cbam-default-values-published

• RegFollower (commentary) | UK Finance Act 2026 receives Royal Assent | 18 March 2026 | https://regfollower.com/uk-finance-act-2026-receives-royal-assent/

• BIFA (commentary) | UK CBAM HMRC webinar invite | 29 September 2026 | https://bifa.org/2026/09/29/uk-cbam-hmrc-webinar-invite/

• S&P Global (commentary) | UK carbon prices surge on Burnham EU summit pledge | 29 September 2026 | https://www.spglobal.com/energy/en/news-research/latest-news/energy-transition/092926-uk-carbon-prices-surge-on-burnham-eu-summit-pledge

• S&P Global (commentary) | European carbon prices drop to 7-week low as market eyes upcoming policy agenda | 5 October 2026 | https://www.spglobal.com/energy/en/news-research/latest-news/natural-gas/100526-european-carbon-prices-drop-to-7-week-low-as-market-eyes-upcoming-policy-agenda

• SteelOrbis (commentary) | India secures larger duty-free steel export quota under India-UK trade deal | 15 July 2026 | https://www.steelorbis.com/steel-news/latest-news/india-secures-larger-duty-free-steel-export-quota-under-india-uk-trade-deal-1464632.htm