Carbon Border Adjustment Mechanism (CBAM)

The EU's Carbon Border Adjustment Mechanism entered its definitive phase in 2026 and affects imports of carbon-intensive products such as steel, aluminum, cement, fertilisers and hydrogen.
For UK manufacturers, the focus will increasingly be on providing accurate emissions data and demonstrating low-carbon production processes. Businesses unable to evidence their carbon footprint may find themselves at a competitive disadvantage when selling into the EU.

EU Deforestation Regulation (EUDR)

The EUDR begins applying from 30 December 2026 for many businesses and introduces strict due diligence requirements for products linked to commodities such as timber, coffee, cocoa, soy, palm oil, rubber and cattle products.

Companies exporting affected goods to Europe will need greater visibility of their supply chains and robust traceability systems to demonstrate that products are not linked to deforestation.

New Product Identifier Requirements for eCommerce

From 1 November 2026, many business-to-consumer shipments entering the EU from outside the bloc will require additional product identifier information to be included in customs data.

This is particularly important for online retailers and marketplace sellers. Businesses should ensure SKU, manufacturer and barcode data is accurate and can be transmitted electronically through their logistics and eCommerce systems. Failure to do so could lead to customs delays and additional compliance checks.

Product Safety and Responsible Person Requirements

The EU's General Product Safety Regulation (GPSR) continues to strengthen requirements for consumer products sold into the EU.

UK businesses selling directly to European consumers need to ensure products meet updated safety and traceability requirements and, where necessary, have an EU-based Responsible Person in place. This is especially relevant for eCommerce sellers and consumer goods manufacturers.

VAT in the Digital Age (ViDA)

The EU's VAT in the Digital Age (ViDA) programme will begin introducing new digital reporting and e-invoicing requirements from 2027 onwards.

Although implementation will be phased, businesses trading across Europe should start assessing whether their finance, ERP and invoicing systems are capable of supporting increasingly digital VAT compliance requirements.