CBIC Extends Deferred Customs Duty Payment Facility To Eligible Manufacturer Importers

(MENAFN- KNN India) New Delhi, Mar 6 (KNN) The Central Board of Indirect Taxes and Customs (CBIC) has extended the facility of deferred payment of customs import duty to Eligible Manufacturer Importers (EMIs).

The facility will come into effect from 1 April 2026 and will remain available until 31 March 2028.

Under the scheme, eligible manufacturers can defer customs duty payment on imports instead of paying it at clearance. Duties for a given month can be paid by the first day of the following month under the Deferred Payment of Import Duty Rules, 2016, easing working capital pressures and improving liquidity for manufacturers importing raw materials or capital goods.

The facility is intended as a transitional pathway to accreditation under the Authorised Economic Operator (AEO) programme, which offers greater trade facilitation benefits. With lower eligibility thresholds than AEO certification, the EMI framework is accessible to a wider range of manufacturers. Approved EMIs are expected to use the two-year window to upgrade to AEO-T2 or AEO-T3 status for priority customs clearance and additional benefits.

To qualify as an Eligible Manufacturer Importer, an applicant must be recognised as an importer under the Customs Act and either be a manufacturer under the CGST Act, 2017 or supply inputs and capital goods to a job worker under Section 143. The applicant must hold a valid Importer Exporter Code (IEC) and have filed at least 25 EXIM documents in the previous financial year, reduced to 10 for MSMEs.

Applicants must also have at least one active GST registration, an annual turnover above Rs 5 crore, a minimum two-year business track record, full GST compliance, and no cases of tax collected but not remitted under GST, excise or service tax laws.

Applicants must also demonstrate financial solvency through a Chartered Accountant's certificate confirming that the business has not been declared insolvent, liquidated or bankrupt in the past two financial years.

Additionally, the applicant and key managerial personnel must have no record of arrest, conviction or prosecution under Customs, Excise or GST laws. Entities whose earlier EMI approvals were rejected or suspended for submitting false information or forged documents are ineligible.

Applications for EMI approval can be submitted online and after verification by the Directorate of International Customs under CBIC, approved applicants will be registered in the customs automated system to access the deferred payment facility.

Approved EMIs must appoint a nodal person to obtain ICEGATE login credentials and authenticate customs transactions. While filing a Bill of Entry, the importer must select payment flag 'D', after which the nodal person confirms the transaction through OTP authentication.

Under the rules governing the scheme, customs duty for goods cleared between the first and last day of any month must be paid by the first day of the following month, while duties for imports cleared in March must be paid by 31st March. Importers may also choose to pay the duty earlier than the due date if they prefer.

Customs authorities will monitor the utilisation of the facility through reporting systems available in the Indian Customs Electronic Data Interchange System (ICES). Commissioners of Customs will track duty payments to ensure compliance, and any instances of non-payment may lead to suspension or revocation of the EMI status by CBIC.

The government expects the extension of deferred duty payment to eligible manufacturers to speed up customs clearance at ports and logistics hubs, reduce bottlenecks, and strengthen supply chains. The measure will also improve cash flow for businesses, especially MSMEs, while encouraging firms to move toward higher compliance under the AEO programme.

(KNN Bureau)

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