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Carbon border adjustment mechanisms put a carbon price on certain imported goods, so imports carry a cost similar to what producers pay inside the EU or UK. Aluminium is one of the covered sectors, and that brings many imported aluminium castings into scope. For a buyer, the practical question is simple: what does my supplier need to give me so my declarations are accurate and my costs are not inflated by default values?
- EU: CBAM's definitive period started on 1 January 2026. Aluminium articles under heading 7616, where many castings are classified, are in scope. Importers above 50 tonnes of CBAM goods a year need authorised declarant status.
- UK: the UK CBAM starts on 1 January 2027 and also covers aluminium.
- Classification decides scope. A casting classified as a machine or vehicle part may fall outside it.
- Supplier data lowers cost risk. Without it, importers must use default emission values.
What CBAM is
The EU Carbon Border Adjustment Mechanism applies a carbon cost to imports of goods from carbon-intensive sectors: aluminium, iron and steel, cement, fertilisers, hydrogen and electricity. Importers buy CBAM certificates that reflect the emissions embedded in the goods they bring in. A transitional period from October 2023 required reporting only; the definitive period with financial obligations began on 1 January 2026.
The UK is introducing its own CBAM from 1 January 2027, covering aluminium among other sectors. It works as a tax on the importer rather than through certificates, but the core question is the same: how much carbon is embedded in the goods?
Are your castings in scope?
CBAM scope is defined by customs code, not by material. EU CBAM lists aluminium goods by CN code, and heading 7616, "other articles of aluminium", is included. Many general-purpose castings, such as brackets, housings and covers sold as aluminium articles, are classified under 7616.
A casting that is classified as a part of a specific machine or vehicle, under chapters such as 84, 85 or 87, may not be in scope, even though it is made of aluminium. Classification depends on what the part is and how it is presented, so confirm it with your customs broker before you assume either way.
Ask your broker to confirm the commodity code of each casting you plan to import. It decides your import duty, whether CBAM applies, and, for UK imports from India, which preferential rate you can claim under the trade agreement.
Key EU obligations for importers
- Threshold: importers whose cumulative imports of CBAM goods stay below 50 tonnes per calendar year are exempt.
- Authorisation: above the threshold, importers must hold authorised CBAM declarant status before importing CBAM goods.
- Annual declaration: imports in one year are declared, and certificates surrendered, in the following year. Check current deadlines with your national CBAM authority.
- Emissions: embedded emissions are calculated using actual values from the producer, verified by an accredited verifier, or default values.
Key UK obligations
- Start date: 1 January 2027, covering aluminium among other sectors.
- Who pays: the importer is liable and self-assesses the tax.
- Threshold: a value-based registration threshold applies. Check HMRC's current guidance for the figure.
- Emissions: as in the EU, liability is based on embedded emissions, using actual or default values, with relief for any carbon price already paid abroad.
What to ask your casting supplier for
Default values are designed to be conservative, so importing with supplier data usually gives a more accurate, and often lower, figure. Ask your supplier early for:
- The production route: melting, casting, trimming and any heat treatment.
- Production quantities for the reporting period, by product.
- Precursor data: which alloy ingot was used, its supplier, and any emissions data that supplier provides.
- Energy use at the plant: electricity and fuel used for melting and holding.
- Installation details: the legal entity, plant address and contact for verification.
Start the conversation before the first shipment. Data that has to be reconstructed after a year of imports is harder to verify.
How we support importers
We will work with your team or CBAM consultant to provide the production data your declarations need, including alloy sources, quantities and energy use for our Satara plant. Tell us at the RFQ stage that your parts are going to the EU or UK, so data collection is set up from the first batch. Our guide to sourcing castings from India covers the rest of the import process, and our pages for UK buyers and European buyers summarise what we offer for each market.
This article is a practical overview, not legal advice. CBAM rules and guidance are still evolving; confirm your obligations with your customs broker or a CBAM adviser.
References
Official sources checked on . These sources explain the rules referenced in this guide. Confirm the classification, applicable rate and current requirements for your specific shipment with your customs adviser.
- European Commission: CBAM definitive regime — Definitive regime from 1 January 2026 and the 50-tonne threshold.
- HMRC: Prepare for UK CBAM — UK implementation from 1 January 2027, with links to scope and importer guidance. Updated 9 September 2026.
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