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CBIC Launches Duty Deferment Scheme to Boost 'Make in India' Manufacturing

The Central Board of Indirect Taxes & Customs held an outreach programme in New Delhi on the new Duty Deferment Scheme for manufacturer importers, a key initiative from the Union Budget 2026-27. Officials explained that the scheme allows eligible importers to defer duty payments to a monthly basis, improving liquidity and enabling better import planning. The initiative is designed to reduce cargo dwell time, strengthen domestic manufacturing under the Make in India banner, and is inclusive of MSMEs. Eligibility requires a valid IEC, a minimum number of past import documents, GST compliance, and a clean financial track record, with applications submitted digitally via the AEO portal.

Key Points: CBIC Duty Deferment Scheme for Manufacturer Importers

  • Deferred import duty payment
  • Improves working capital & liquidity
  • Faster cargo clearance & reduced dwell time
  • Supports MSMEs & Make in India
3 min read

CBIC holds outreach programme on Duty Deferment Scheme for manufacturer importers in New Delhi

CBIC holds outreach on new Duty Deferment Scheme to improve liquidity, speed clearance, and support domestic manufacturing under Make in India.

"The scheme adopts a trust-based approach aimed at facilitating faster clearances and reducing dwell time. - Yogendra Garg"

New Delhi, March 28

In pursuance of the key trade facilitation initiative announced in the Union Budget 2026-27, the Central Board of Indirect Taxes & Customs organised a hybrid outreach programme in New Delhi on the Duty Deferment Scheme for Eligible Manufacturer Importers in New Delhi, today, according to a statement by the Ministry of Finance.

Yogendra Garg, Member (Customs), CBIC; Manish Kumar, Chief Commissioner, Delhi Customs; Sanjay Gupta, Chief Commissioner, Delhi Customs (Preventive) Zone; Akhil Kumar Khatri, Chief Commissioner, DIC; representatives from trade bodies, industry, and key stakeholders also participated and deliberated upon the benefits and modalities of the EMI Scheme.

The session included a detailed presentation followed by an interactive segment to address the queries from trade and industry.

Addressing the participants, Yogendra Garg stated that the scheme adopts a trust-based approach aimed at facilitating faster clearances and reducing dwell time. He emphasised that the initiative seeks to minimise the trust deficit and promote a more efficient and collaborative compliance environment. Garg also encouraged stakeholders to avail the benefits of the scheme and provide feedback.

Manish Kumar highlighted that the scheme enhances the commercial viability of manufacturer importers by enabling better import scheduling and more efficient working capital management.

The EMI Scheme enables deferred payment of import duties, allowing eligible manufacturer importers to clear goods without upfront duty payment. Duties are to be paid on a monthly basis.

The scheme is inclusive and extends to MSMEs. It aligns with the Government's Make in India initiative and aims to strengthen domestic manufacturing by improving liquidity and expediting cargo clearance.

Some of the key benefits of the scheme include improved liquidity for manufacturers, faster clearance and reduced dwell time, better import planning and inventory management, strengthened payment discipline, enhanced global competitiveness and improved supply chain efficiency.

The eligibility criteria for this scheme is that the manufacturer importer should have a valid Import-Export Code (IEC).

The other criterion is to have a minimum of 25 Export-Import Bank (EXIM) documents filed in the preceding financial year (10 for MSMEs)

The manufacturer should also be GST compliant with no pending returns and must have a demonstrated financial solvency, along with a clean compliance track record.

Applications can be submitted online through the AEO portal (www.aeoindia.gov.in), operational since March 1 2026. The process is fully digital and does not require any physical interface.

Approved applicants may avail the scheme across all Customs formations from April 1 2026. The scheme will remain valid for a period of two years, up to March 31 2028.

- ANI

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Reader Comments

P
Priya S
Good initiative aligning with Make in India. Faster clearance and reduced dwell time at ports can significantly cut our logistics costs. The trust-based approach is welcome, but hope it doesn't lead to misuse. Compliance track record should be strictly monitored.
M
Manish T
The 25 EXIM document criteria might be a hurdle for some genuine small businesses just starting out. While 10 for MSMEs is better, it still requires a certain scale. Could this be made more flexible? Otherwise, the scheme's benefits are very clear.
S
Sarah B
As someone working in trade compliance, the fully digital process is the biggest win here. No physical interface means less hassle and corruption. Hope the AEO portal is user-friendly. This could really improve India's ease of doing business ranking.
R
Rohit P
Finally, a policy that understands ground realities! Better import planning means we can respond to market demands faster. This directly enhances competitiveness. Kudos to CBIC for this outreach programme to explain the modalities. More such sessions needed in tier-2 cities.
K
Kavya N
The emphasis on GST compliance and clean track record is crucial. It rewards honest businesses. My only concern is the two-year validity. What happens after March 2028? Will it be renewed? Businesses need policy certainty for long-term planning.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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