Carbon Border Adjustment Mechanism consultation must help "create a level playing field"

Commenting on the Government’s announcement that it’s consulting on a UK Carbon Border Adjustment Mechanism (CBAM), Robert Marchant, National Head of Tax and Partner, VAT and Customs Duty services, at Crowe said:

“While the implementation of UK CBAM is expected by 2027, next year’s consultation must provide more colour about how the regulations will impact UK manufacturers as the demand for industrial production to decarbonise intensifies. 

“The biggest concern for our clients is the delay to the introduction of UK regulations a year later than the EU’s own scheme. Any delay could significantly impact UK businesses by exposing them to competition from cheaper products being dumped domestically to avoid the costs of EU regulations. Moreover, domestic made goods could be prevented from entering the EU as UK businesses may not being fully compliant in time. 
 
“It’s crucial businesses monitor developments over the next 12 months to fully understand and prepare for the potential impact of UK CBAM on their trading profile, but we’re also urging the next government to listen to the concerns of British manufacturers and ensure a level playing with competitors in the EU and across the world."

To discuss this further, please contact Ian Worth, or your usual Crowe contact. All the latest updates and developments on cross-border trade and Customs compliance can be found on our Custom Hub.