To ensure that the UK CBAM only applies to goods that end up on the UK market, the UK proposed that the tax point should generally arise when a CBAM good is released into free circulation. In all cases, UK CBAM rate will be applicable on the date on which the tax point arises.

The UK also set out exceptions to this general rule:

• For any goods not subject to customs controls, it proposed that the tax point should arise when the CBAM good first enters the UK.
• Where an imported CBAM good is processed into a nonCBAM good before it is released into free circulation, the liability will be based on the CBAM good before it was processed.
• For goods that are exported under the outward processing procedure and reimported into the UK as a CBAM good, the CBAM tax point will arise at free circulation but will be based on the processing emissions that took place outside of the UK.
• For CBAM goods that originated outside of the UK and are reimported using the returned goods relief, there will be no UK CBAM liability providing the conditions for applying the relief for customs purposes are met. This means CBAM goods which are reimported into the UK within 3 years in an unaltered state will be out of scope and not incur a CBAM liability.

Source: GOV.UK

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