CBIC Extends Deferred Customs Duty Facility to Eligible Manufacturer Importers

The Central Board of Indirect Taxes and Customs (CBIC) has extended the facility of deferred payment of Customs import duty to a new category of taxpayers termed “Eligible Manufacturer Importers” (EMIs), in a move aimed at expediting cargo clearance and improving ease of doing business.

The decision has been formalised through Circular No. 08/2026-Customs issued by the Board under the Ministry of Finance. The facility, notified earlier vide Notification No. 12/2026-Customs (N.T.) dated February 1, 2026, will come into effect from April 1, 2026.

Facility Available Till March 2028

Under the circular, eligible EMIs will be permitted to avail deferred payment of import duty in terms of the proviso to Section 47(1) of the Customs Act, 1962. The benefit will remain available until March 31, 2028.

The Board stated that the extension of this facility is expected to speed up Customs clearances at ports, airports and inland container depots. It also expressed the expectation that approved EMIs would, within this period, secure higher-level Authorised Economic Operator (AEO T2/T3) accreditation, thereby ensuring assured facilitation and priority treatment in Customs processes.

Eligibility Criteria: Strict Financial and GST Compliance

The scheme lays down detailed eligibility conditions covering manufacturing status, GST compliance, financial solvency and legal record.

An applicant must qualify as an importer under Section 2(26) of the Customs Act and must either:

Be a manufacturer as defined under Section 2(72) of the Central Goods and Services Tax Act, 2017; or
Be an importer who sends inputs or capital goods, without payment of tax, to a job worker under Section 143 of the CGST Act.

Key eligibility conditions include:

Possession of a valid Importer Exporter Code (IEC).
Filing of at least 25 Bills of Entry or Shipping Bills in the previous financial year (relaxed to 10 for MSMEs).
At least one active GST registration.
Annual aggregate turnover exceeding ₹5 crore in the last financial year.
Business continuity for at least two financial years.
Filing of all pending GSTR-3B returns.
No instances of GST, Central Excise or Service Tax collected but not deposited.
Financial solvency certified by a Chartered Accountant.
No insolvency, liquidation or bankruptcy proceedings.
No arrests, convictions, or pending prosecutions under Customs, Central Excise, Service Tax or GST laws.

Existing AEO-T1 entities, including MSMEs, may also apply if they meet the prescribed conditions.

Application Process Through AEO Portal

Applications for EMI status can be filed electronically from March 1, 2026 on the AEO India portal under the dedicated “Eligible Manufacturer Importer” tab. After scrutiny and satisfaction of eligibility conditions, the Directorate of International Customs (DIC), CBIC will grant approval.

Once approved, the EMI’s details will be updated in the Customs Automated System, enabling the deferred payment facility without further procedural steps.

Operational Mechanism and Due Dates

To avail the benefit, the EMI must indicate the deferred payment option by selecting flag “D” in the payment method column of the Bill of Entry. Authentication through OTP by a designated nodal person via ICEGATE login is mandatory before clearance.

The due dates for deferred payment are governed by Rule 4 of the Deferred Payment of Import Duty Rules, 2016:

For Bills of Entry returned for payment from the 1st to the last day of any month (other than March), duty must be paid by the 1st day of the following month.
For consignments cleared in March, duty must be paid by March 31 itself.

Importers also have the option to pay the duty earlier than the due date.

Monitoring and Possible Suspension

Commissioners of Customs will monitor utilisation and timely payment through ICES dashboards. Instances of non-payment may be reported to the DIC, which retains the power to suspend or revoke EMI approval if eligibility conditions cease to be satisfied.

A dedicated helpline has also been established by the DIC to address trade queries and grievances.

Boost to Trade Facilitation

The move is being seen as part of the government’s broader trade facilitation strategy. By allowing deferred duty payments, working capital pressure on compliant manufacturers is expected to reduce, while Customs authorities retain safeguards through strict eligibility filters and monitoring mechanisms.

With the facility operational from April 2026, eligible manufacturing importers are likely to witness faster clearances and improved liquidity management, subject to continued adherence to tax and financial compliance norms.

Notification Details

Circular No.08/2026-Customs

Date: 28/02/2026

Click Here To Read Notification