In a move aimed at strengthening liquidity support for domestic industry and expanding the trusted trade ecosystem, the Revenue Department will operationalise a 30-day customs duty deferment scheme for eligible manufacturer-importers beginning next month.
The initiative, first announced in the Union Budget for 2026–27, is expected to ease cash flow pressures and encourage greater participation in the Authorised Economic Operator (AEO) programme.
The proposal, unveiled by Finance Minister Nirmala Sitharaman in the Budget, extends to eligible manufacturer-importers the same duty deferment facility currently available to accredited AEO entities. The government’s objective is to incentivise such importers to eventually obtain full-fledged Tier 3 AEO accreditation, thereby deepening compliance and trust-based trade facilitation mechanisms.
Under the revised framework, eligible manufacturer-importers will be allowed to clear imported consignments immediately upon arrival and make the payment of customs duties within a 30-day window. This relaxation is expected to improve working capital availability and support investment in manufacturing and exports.
Addressing the National Symposium on Customs Reforms–2026, Anupam Prakash, Joint Secretary (Customs), Revenue Department, said the rollout would begin next month. He noted that the enhanced facility would enable eligible businesses to retain capital for longer periods, thereby boosting production and export competitiveness.
Prakash highlighted that approximately 6,000 entities are currently part of the Customs “trusted ecosystem,” of which around 1,500 hold Tier 2 or Tier 3 AEO accreditation. The Budget has already extended the duty deferment period for Tier 2 and Tier 3 AEOs from 15 days to 30 days, bringing greater parity and strengthening the overall compliance-based framework.
The AEO programme is designed to recognise businesses with strong internal controls, regulatory compliance, and secure supply chain practices. Entities granted higher-tier accreditation receive trade facilitation benefits, including faster clearances and reduced inspection requirements.
Officials indicated that the department is also engaging with other government agencies to explore ways to further expand and strengthen the trusted ecosystem model. The broader goal is to shift from transaction-based scrutiny to risk-based facilitation, thereby reducing compliance burdens for verified businesses while maintaining regulatory oversight.
The introduction of the 30-day duty deferment scheme for manufacturer-importers is expected to enhance ease of doing business, particularly for firms engaged in high-volume imports linked to manufacturing and export supply chains.
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