CBIC Introduces Deferred Customs Duty Payment Facility

The Central Board of Indirect Taxes and Customs (CBIC) has introduced a new facilitation measure allowing deferred payment of Customs duty for a new category of importers termed Eligible Manufacturer Importers (EMIs). This decision has been taken in pursuance of the Union Budget 2026–27. The scheme is designed as a trust-based compliance facilitation measure.

Key Features of the EMI Scheme

Deferred Payment Facility

• EMIs can clear imported goods without paying Customs duty at the time of clearance.
• The applicable duty can be paid on a monthly basis under the Deferred Payment of Import Duty Rules, 2016.
• This will help manufacturers manage: Cash flows, working capital requirements and production cycles more efficiently
• Timeline of Implementation: From 1st April, 2026 to 31st March, 2028

Eligibility Criteria: The deferred payment facility will be available to EMIs fulfilling prescribed conditions relating to:

• Customs compliance record
• GST compliance
• Turnover requirements
• Financial standing
• Past track record

Additionally: Existing AEO-T1 entities, including MSMEs, meeting eligibility conditions are also eligible.

Applications submission:  Online through the AEO portal under the “Eligible Manufacturer Importer” tab.

Linkage with AEO Programme: Approved EMIs are expected to progressively upgrade their compliance status under the Authorized Economic Operator (AEO) Programme.

During the scheme’s validity:

• EMIs are encouraged to obtain AEO-T2 or AEO-T3 status.
• Higher AEO status provides:
  • Faster clearances
  •  Enhanced facilitation
  •  Priority treatment

This reform aims to widen participation in the AEO ecosystem and strengthen compliance culture.

Significance of the Reform

1. Ease of Doing Business
   1. Reduces upfront duty burden at import stage.
   2. Simplifies procedural requirements for compliant manufacturers.
2. Boost to Domestic Manufacturing
   1.  Improves liquidity for manufacturers.
   2.  Supports manufacturing-led growth strategy.
3. Export Competitiveness
   1.  Facilitates smoother import of raw materials and capital goods.
   2. Enhances global competitiveness of Indian firms.
4. Compliance Incentivisation
   1.  Encourages transition toward higher AEO certification levels.
   2.  Promotes predictable and efficient Customs administration.