Managing Director, HC-Customs Limited · Customs compliance specialist · Brexit formalities · Published 30 October 2026
1. The UK intends to extend CBAM to refined fuels
The Budget on 28 October 2026 said the government intends to expand UK CBAM to include refined products, and HM Treasury and HMRC have published a consultation on adding refinery products such as petrol, diesel and jet fuel.
No start date has been set. The consultation closes at 11:59pm on 20 January 2027. If you import or use refined fuels, this is the point at which to make your case.
2. Country-specific default values from 2029
From 1 January 2027 there will be one set of default emissions values for each CBAM good. In a written statement to Parliament on 16 October 2026, the government committed to introducing default values that vary by country of origin from 2029.
If you plan to rely on default values instead of actual emissions data, your CBAM cost could change in 2029 depending on where your goods come from. Collecting verified emissions data from suppliers now is the safest way to keep costs predictable.
3. What has not changed
- Start date: 1 January 2027.
- Sectors: aluminium, cement, fertilisers, hydrogen, and iron and steel.
- Default values: one set per good from 1 January 2027. HMRC has also published illustrative CBAM rates and a worked example to help with budgeting.
Fertiliser importers: the Budget also suspends import tariffs on fertiliser from 26 November 2026 until 31 December 2027. That is a customs duty saving, separate from CBAM, which still applies.
Key dates
What to do now
- Check whether your 2027 imports of CBAM goods mean you need to register with HMRC.
- Ask your overseas suppliers for actual embedded emissions data, verified where possible.
- Build the illustrative CBAM rates into your 2027 pricing and contracts.
- If you import or use refined fuels, consider responding to the consultation before 20 January 2027.
How HC Customs can help
Know your CBAM exposure before 1 January
We can review your import data to confirm which goods are in scope, assess whether you need to register, and help you gather supplier emissions data.
Frequently asked questions
Did Budget 2026 change the UK CBAM start date?
No. UK CBAM still starts on 1 January 2027 for aluminium, cement, fertilisers, hydrogen, and iron and steel.
Will UK CBAM apply to petrol and diesel?
The government intends to extend CBAM to refined products and has opened a consultation on it. No start date has been set. The consultation closes at 11:59pm on 20 January 2027.
Will UK CBAM default values be different for each country?
Yes, from 2029. Until then there is one set of default values for each CBAM good.
Does the fertiliser tariff suspension remove CBAM on fertiliser?
No. The suspension removes customs duty on fertiliser from 26 November 2026 until 31 December 2027. CBAM is a separate charge and still applies from 1 January 2027.
Sources: CBAM refinery products consultation · CBAM policy summary · Illustrative CBAM rates · Written statement, 16 October 2026 · Tariff suspensions response · Budget 2026
This alert is general information, not legal or tax advice.