CBIC Introduces Deferred Customs Duty Facility For Eligible Manufacturer Importers

(MENAFN- KNN India) New Delhi, Mar 2 (KNN) In line with Union Budget 2026–27 announcements, the Central Board of Indirect Taxes and Customs (CBIC) has introduced a new trust-based facilitation measure for compliant manufacturers by enabling deferred payment of Customs import duty to a new category of importers termed 'Eligible Manufacturer Importers' (EMIs).

Under this initiative, EMIs will be permitted to clear imported goods without paying Customs duty at the time of clearance. Instead, the duty may be paid on a monthly basis in accordance with the Deferred Payment of Import Duty Rules, 2016, thereby improving cash flow management and easing working capital pressures for manufacturers.

Validity and Compliance Framework

The facility will be open to compliant manufacturers meeting prescribed Customs, GST, turnover and financial criteria, including eligible AEO-T1 entities. The scheme promotes responsible compliance by encouraging EMIs to upgrade to AEO-T2 or AEO-T3 status, enabling greater facilitation, priority clearances and added benefits.

Application Process and Digital Workflow

Applications can be filed online from March 1, 2026 on the AEO portal under the 'Eligible Manufacturer Importer' tab. After verification by the Directorate of International Customs, approved applicants will be registered to activate deferred duty payment.

Once approved, the EMI's nodal person must obtain an ICEGATE login and select payment flag“D” with OTP authentication to avail the facility, including for multiple Bills of Entry. Deferred duty is payable on the first day of the following month (or by March 31 for March clearances), with the option to pay earlier.

Key Eligibility Conditions

To qualify, applicants must be recognised as importers under the Customs Act and manufacturers (or job-work suppliers) under the CGST Act, hold a valid IEC, meet minimum EXIM filing and GST registration requirements, and have annual turnover above Rs 5 crore (relaxed for MSMEs).

They must show two years of business continuity, full GST compliance, financial solvency certification, and no record of tax defaults, insolvency proceedings, prosecutions or prior suspension for misrepresentation.

Oversight and Monitoring

Reports on utilisation of the deferred payment facility will be available in ICES dashboards for monitoring by jurisdictional Principal Commissioners and Commissioners of Customs. Instances of non-payment may be escalated to DIC, CBIC, which retains the authority to suspend or revoke EMI status if eligibility conditions are violated.

The reform is expected to expedite Customs clearances at ports, airports and inland container depots (ICDs), improve ease of doing business, strengthen compliance culture and promote broader participation in the AEO Programme.

CBIC stated that the measure reinforces its commitment to creating a predictable, efficient and facilitative Customs environment in support of India's manufacturing-led and export-oriented growth strategy.

(KNN Bureau)

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