Legislation – Finance Act 2026

the place of origin of the good is the United Kingdom, determined in accordance with provision applicable in relation to the customs tariff in its standard form (see section 17(1) to (6) of TCTA 2018);

(b)

the good is imported as described in section 144(2) or (3) and returned goods relief is available in respect of the good;

(c)

the good is imported as described in section 144(4) and relief under Article 203 of UCC 2013 (returned goods) is available in respect of the good;

(d)

the good is within section 144(5)(a) and was—

(i)

exported from the United Kingdom as a Union good as a result of its removal from Northern Ireland, and

(ii)

imported into the United Kingdom as described in section 144(5)(a) not more than 3 years later, in the state in which it was exported (see Article 203(5) of UCC 2013);

(e)

the good is imported as described in section 144(5)(b) and returned goods relief would be available in respect of it if liability to import duty were incurred by reference to its importation into the United Kingdom.

(3)

CBAM is not charged on so much of the emissions embodied in a CBAM good (“the chargeable good”) as are attributable to the production of another CBAM good which—

(a)

originated from the United Kingdom, determined in accordance with provision applicable in relation to the customs tariff in its standard form (see section 17(1) to (6) of TCTA 2018), and

(b)

was processed to produce the chargeable good.

(4)

If, but for this subsection, a liability to duty would have been incurred for the purposes of section 144(2) or (3) in circumstances where—

(a)

liability to duty was incurred in accordance with section 4(4)(a) of TCTA 2018,

(b)

liability to duty was incurred by virtue of HMRC accepting a declaration of the good for a temporary admission procedure, and

(c)

full relief was given from the liability to duty incurred,

the liability to duty is treated as not having been incurred on that occasion for the purposes of section 144(2) or (3) (and, accordingly, the good is treated as not having been imported as described in section 144(2) or (3) on that occasion).

(5)

But subsection (4) does not apply if—

(a)

there was no entitlement to make the declaration mentioned in subsection (4)(b), or

(b)

the full relief given, mentioned in subsection (4)(c), was not available.

(6)

The Treasury may by regulations specify other circumstances in which CBAM is not charged on emissions, or certain emissions, embodied in a CBAM good.

(7)

Regulations under subsection (6) may also treat an importation into the United Kingdom, for any purpose of this Part, of a CBAM good in respect of which the regulations apply as not having occurred (including by virtue of provision similar to subsection (4)).

(8)

In this section—

“customs tariff in its standard form” means the customs tariff, as defined in section 8 of TCTA 2018, as it has effect without regard to any provision made under sections 9 to 15 or section 19(4) of that Act;

“returned goods relief” means relief for import duty available—

(a)

by virtue of the UK Reliefs document, and

(b)

by reference to the fact the good is being returned to the United Kingdom, or Great Britain, having previously been exported;

“temporary admission procedure” has the meaning given by paragraph 15 of Schedule 2 to TCTA 2018;

“UK Reliefs document” has the meaning given by regulations under section 19 of TCTA 2018.