The Office of the Principal Commissioner of Customs (Import), Air Cargo Complex, Mumbai has issued Public Notice No. 03/2026-27 extending the benefit of deferred payment of customs duty to “Eligible Manufacturer Importers” (EMIs).
The facility, which comes into effect from April 1, 2026, is expected to provide substantial liquidity support and operational efficiency to qualified importers.
The extension follows the framework laid down under CBIC Circular No. 08/2026-Customs and Notification No. 12/2026-Customs (N.T.), enabling EMIs to avail deferred payment under the proviso to Section 47(1) of the Customs Act, 1962. As per the notification, the facility will remain available until March 31, 2028, thereby giving eligible businesses a defined window to streamline their import operations and align with higher compliance standards.
The deferred payment mechanism allows importers to clear goods without immediate payment of customs duty, thereby reducing working capital blockage. The scheme will operate under the Deferred Payment of Import Duty Rules, 2016, as amended. Authorities have emphasized that this step will significantly speed up customs clearance at ports, airports, and inland container depots, while also encouraging importers to transition towards higher accreditation levels such as Authorized Economic Operator (AEO) Tier 2 and Tier 3 status.
To qualify as an Eligible Manufacturer Importer, applicants must satisfy a detailed set of eligibility conditions. These include having valid importer status under the Customs Act, manufacturing activity under GST law or job-work arrangements, a valid Import Export Code (IEC), and a minimum customs compliance footprint. Specifically, applicants must have filed at least 25 EXIM documents in the preceding financial year, although this threshold is relaxed to 10 for MSMEs. Additionally, businesses must maintain an annual aggregate turnover exceeding ₹5 crore, possess active GST registrations, and demonstrate at least two years of operational continuity.
Strict compliance requirements have also been built into the eligibility framework. Applicants must have filed all pending GST returns, must not have any history of tax collection without deposit under GST, Central Excise, or Service Tax laws, and must be financially solvent. Further, entities or their key managerial personnel must not have been subject to arrests, convictions, or pending prosecutions under tax laws. This ensures that only compliant and credible businesses benefit from the scheme.
The application process for EMI status has been digitized, with importers required to submit applications through the AEO India portal starting March 1, 2026. Upon approval by the Directorate of International Customs (DIC), CBIC, the system will automatically enable the deferred payment facility within the Customs Automated System, eliminating the need for further procedural steps by the importer.
Operationally, the facility requires the importer to indicate deferred payment intent by selecting the “D” flag in the Bill of Entry. Authentication is carried out through the ICEGATE portal by a designated nodal person using OTP verification. This ensures secure and traceable transactions while allowing multiple Bills of Entry to be authenticated simultaneously, thereby improving efficiency in bulk imports.
The timeline for payment under the deferred system has also been clearly prescribed. For goods cleared during any month (except March), the duty must be paid by the first day of the following month. In the case of goods cleared in March, payment must be made by March 31 itself. Importers also retain the flexibility to make payments before the due date, depending on their financial planning and convenience.
Authorities have also put in place a monitoring mechanism through ICES dashboards, enabling jurisdictional Commissioners to track deferred payments and ensure timely compliance. In cases of default or ineligibility, the DIC has the power to suspend or revoke EMI approval, reinforcing accountability within the system.
The introduction of a dedicated helpline and support infrastructure further underscores the government’s intent to facilitate seamless implementation. Trade stakeholders can raise queries, grievances, or seek clarifications through designated communication channels, ensuring that operational challenges are addressed in a time-bound manner.
The extension of deferred duty payment benefits to Eligible Manufacturer Importers marks a progressive step towards trade facilitation, reduced transaction costs, and improved liquidity management. By linking the scheme with AEO accreditation and robust compliance filters, the government has sought to strike a balance between facilitation and regulatory oversight, thereby strengthening India’s customs ecosystem.
Notification Details
Public Notice No. 03/2026-27
Date: 10/04/2026
