Who Is the Liable Person for UK CBAM?

Under UK CBAM, the liable person is the "importer of record" — the person or entity named as the importer on the customs declaration. This is the entity that brings the goods into the UK for free circulation and is responsible for paying any customs duties, VAT, and now CBAM charges.

The liable person must register with HMRC for CBAM, file CBAM returns, pay CBAM charges, maintain records, and face penalties for non-compliance. These obligations cannot be transferred to another party, even if the goods are ultimately destined for someone else.

If you use a customs agent or broker to clear goods through customs, you remain the liable person for CBAM purposes. The agent acts on your behalf for customs clearance, but they do not assume CBAM liability. This is a critical distinction that many importers overlook.

Incoterms (International Commercial Terms) define the responsibilities of buyer and seller in an international transaction. For CBAM purposes, the Incoterm determines who arranges and is named as importer on the customs entry, which determines who is the liable person.

Under Delivered Duty Paid (DDP), the seller arranges import clearance and is named as the importer of record. The seller is therefore the CBAM liable person, even though the buyer receives the goods in the UK. Under Free On Board (FOB) or Cost, Insurance and Freight (CIF), the buyer arranges import clearance and is named as the importer. The buyer is the CBAM liable person.

Ex Works (EXW) terms place all import obligations on the buyer. The buyer must arrange clearance and is the importer of record, making them the CBAM liable person. If you purchase on DDP terms from a non-UK supplier, confirm whether that supplier is registered for UK CBAM. If they are not, you may need to restructure the arrangement.

In a group structure with multiple UK entities, each entity that imports CBAM-covered goods is assessed independently. You cannot aggregate imports across group companies, nor can you designate a single group entity as the CBAM liable person for the entire group.

If your UK subsidiary imports goods and sells them to your UK parent company, the subsidiary is the importer of record and the CBAM liable person. The parent company's subsequent purchase from the subsidiary is a domestic transaction and does not trigger CBAM.

However, if goods are imported by one group entity and immediately on-sold to another before the customs entry is finalised, the customs entry may be amended to name the ultimate recipient as importer. This must be done at the time of import, not retrospectively. Tax advisers and customs specialists should be consulted on group structuring to minimise CBAM administrative burden without running afoul of HMRC rules.