Brussels confirms that there will be no Christmas fees, which will lead to the introduction of Brexit-style requirements.
In January, British manufacturers will face a huge amount of Brexit-style paperwork over exports to the EU worth 7 billion pounds after the government failed to achieve the expected exemption from new environmental taxes.
The UK had hoped to achieve emissions reductions by Christmas under the Carbon Boundary Regulation Mechanism (CBAM), but European commissioners have confirmed that this will not happen.
UK Steel says that the tax exemption is unlikely to take effect before Easter, which will lead to the need for detailed documentation for exporters due to a repeat of Brexit, when they are faced with the problem of paperwork for customs and standards of their goods.
The documentation requires exporters to provide detailed data on carbon dioxide emissions generated during the production process.
According to plans announced by Brussels on Wednesday, this will apply to a variety of products made of steel and aluminum, including washing machines and car parts. It will also affect exports of fertilizers, cement and energy resources.
While the UK has privately expressed hope for a deal before Christmas, industry insiders say this has never been a political reality.
The EU lifted the negotiating mandate only in early December, making any deal impossible outside of a high-level political agreement involving all 27 member states, some of which show little interest in the UK.
A source close to the government said that now "it would be wise for businesses to prepare based on the fact that the EU CBAM will come into force" from January, with support and information available from the Ministry of Business and Trade.
Make UK, a manufacturing trade organization, said the paperwork would be "extensive" and would hit businesses hard.
Frank Aaskow, director of energy and climate change policy at UK Steel, said: "This will have a significant negative impact. Of course, a lot of paperwork will be required. This will become a serious burden for small and medium-sized enterprises."
Aaskov said that taxes set at, for example, 13 euros (11 pounds) per ton of "hot-rolled wire," raw materials for construction, fencing and mechanical engineering, would be significant for the steel industry.
"Such steel costs about 650 euros per ton, so it seems like a small cost, but the steel business is ruthless, imports from China are very competitive, and prices of up to 5 euros per ton can
