BIAFD to submit government consultation response on UK carbon border adjustment mechanism

BIAFD to submit government consultation response on UK carbon border adjustment mechanism

On March 21, 2024, HM Treasury and HMRC published a twelve-week consultation on the ‘Introduction of a UK carbon border adjustment mechanism (CBAM) from January 2027’. Click here to read more.

The consultation sets out how the government intends to design the UK CBAM to ensure that it’s “effective, deliverable and meets international obligations”.

The UK CBAM will place a carbon price on some of the most carbon intensive industrial goods imported to the UK from the following sectors: aluminium; cement; ceramics; fertilisers; glass; hydrogen; and iron and steel. This will ensure that a carbon price is paid regardless of where the goods are produced.

The consultation annex confirms that the UK plans to include CN Heading 7318 (Fasteners) for inclusion within the scope of the UK CBAM, making it critically important the UK fastener sector takes this opportunity to communicate its views to HM Treasury and HMRC.

Following last year’s Autumn meeting, where CBAM was discussed, BIAFD members will have a second presentation on the subject from customs experts Crowe UK at the Spring meeting on May 9.

BIAFD members will have the opportunity to give their views after the presentation and these will be taken into consideration when the association forms its consultation response. A copy of which will then be circulated to BIAFD members.

The consultation closes on June 13, 2024.

The online response form, which is the preferred method to complete the consultation, can be found here.