Is any country exempt from the UK CBAM?
No. HMRC's policy summary says there are currently no jurisdictions exempt from the UK CBAM, and no international arrangements or agreements are in place. The UK can exempt goods from a country whose emissions trading scheme is linked, directly or indirectly, to the UK ETS. Goods made in India are charged from 1 January 2027.
How an exemption could arise
Only through linking. A country or territory that agrees with the UK to link its trading scheme to the UK ETS, or whose scheme is indirectly linked to it, could have its goods exempted. None qualifies today. The UK CBAM is separate from the EU CBAM and has its own rules.
What does lower the bill for goods from India
- A verified actual figure, if it is below HMRC's default for your commodity code.
- Carbon price relief, where a qualifying carbon price was paid on the emissions and a carbon pricing verification form backs it.
- Nothing at all if your buyer stays below £50,000 of CBAM goods, tested on the past 12 months and the next 30 days.
What to tell a buyer who asks
There is no country route around it. The useful conversation is about your plant's verified figure and when you can supply it.
What Senseible does here
Senseible builds a per-product figure from your fuel and input invoices, so you can see where you stand against HMRC's default. We build the figure from your records and check every figure in-house; for the UK it must then be verified by a verifier accredited for UK CBAM. Have your own verifier? Send it to them.
Sources: HMRC, Carbon Border Adjustment Mechanism (CBAM): Policy summary (updated 2 November 2026)
Last reviewed 2026-11-03.