# Is steel scrap covered by the UK CBAM?

Canonical: https://senseible.earth/answers/uk-cbam-steel-scrap-excluded

No. HMRC's UK CBAM scope lists heading 7204, ferrous waste and scrap and remelting scrap ingots, as excepted, and the policy summary says imported scrap in the aluminium and iron and steel sectors is outside the CBAM from 1 January 2027. Steel made from that scrap is covered.

## In and out

- Out: 7204 ferrous waste and scrap, including remelting scrap ingots.
- Out: imported scrap in the aluminium sector, per HMRC's policy summary.
- In: all of chapter 72 apart from listed exceptions, so ingots, billets and finished steel made from scrap are covered.

## Scrap inside your own figure

Scrap is not a CBAM good, so it is not a precursor. HMRC's technical guidance treats post-consumer scrap fed to an arc furnace as having zero embodied emissions. Your melting fuel and other direct emissions still count, while grid power for an induction or arc furnace is not counted until at least 2029.

## Do not count it as output

Scrap and waste you generate are excluded from your activity level, so they cannot be used to spread emissions over more tonnes.

## What Senseible does here

Senseible reads scrap purchase and sale invoices separately from finished steel, so scrap never inflates your output tonnes. 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.

- [Scrap under the EU CBAM](https://senseible.earth/answers/does-scrap-count-as-zero-emissions-cbam)
- [Check a CN code](https://senseible.earth/answers/check-if-product-cn-code-covered-by-cbam)

Sources: [HMRC, Goods within the iron and steel sector in scope of UK CBAM](https://www.gov.uk/government/publications/check-which-goods-are-in-scope-of-carbon-border-adjustment-mechanism-cbam/goods-within-the-iron-and-steel-sector), [HMRC, Carbon Border Adjustment Mechanism (CBAM): Policy summary (updated 2 November 2026)](https://www.gov.uk/government/publications/carbon-border-adjustment-mechanism-cbam-policy-summary/carbon-border-adjustment-mechanism-cbam-policy-summary), [HMRC, UK CBAM monitoring, reporting and verification technical guidance (October 2026)](https://assets.publishing.service.gov.uk/media/6ad219fe0f7b53973e02680f/CBAM_technical_guidance.pdf)

Last reviewed 2026-11-02.