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New Deferred Customs Duty Scheme for Manufacturers to Boost Cash Flow

The Central Board of Indirect Taxes and Customs has introduced a deferred customs duty payment facility for Eligible Manufacturer Importers, as announced in the Union Budget 2026-27. Under this scheme, approved manufacturers can clear imported goods without paying duty upfront, instead settling it on a monthly basis to improve cash flow management. The facility, available from April 2026 to March 2028, requires applicants to meet specific compliance, turnover, and financial criteria. This reform aims to boost domestic manufacturing, strengthen compliance, and encourage participation in the Authorized Economic Operator programme.

Key Points: Deferred Customs Duty for Eligible Manufacturer Importers from 2026

  • Deferred duty payment for manufacturers
  • Monthly duty payment instead of upfront
  • Available from April 2026 to March 2028
  • Aims to improve cash flow and compliance
  • Part of Union Budget 2026-27 announcements
2 min read

Deferred customs duty payment introduced for Eligible Manufacturer Importers as announced in Budget 2026

CBIC introduces deferred customs duty payment for trusted manufacturers from April 2026 to improve cash flow and ease of doing business.

"This reform is expected to significantly improve ease of doing business, strengthen the compliance culture... and provide a boost to domestic manufacturing. - Ministry of Finance"

New Delhi, March 1

As announced in the Union Budget for 2026-27, the Central Board of Indirect Taxes and Customs has introduced a new facilitation measure for trusted manufacturers by enabling the facility of deferred payment of Customs duty to a new category of importers called Eligible Manufacturer Importers.

CBIC has issued detailed eligibility conditions, application process and operational guidelines through a circular on Saturday in this regard.

Under this initiative, Eligible Manufacturer Importers (EMI) will be able to clear imported goods without paying Customs duty at the time of clearance.

Instead, the applicable duty can be paid on a monthly basis as prescribed under the Deferred Payment of Import Duty Rules, 2016, helping manufacturers better manage cash flows and working capital.

The facility will be available from April 1, 2026 and will remain in force till March 31, 2028.

"The deferred payment facility shall be available to EMI meeting the prescribed criteria related to Customs and GST compliance, turnover, financial standing and past track record. Existing AEO-T1 entities, including MSMEs, that fulfil the eligibility conditions are also eligible to participate," the Ministry of Finance said in a statement.

The EMI scheme is designed as a trust-based facilitation measure, encouraging compliant manufacturers to benefit from simplified procedures while nudging them towards higher levels of compliance.

During the validity period of the scheme, approved Eligible Manufacturer Importers are expected to progressively obtain AEO-T2 or AEO-T3 status, enabling access to enhanced facilitation, faster clearances and priority treatment under the AEO Programme.

Applications under the EMI scheme can be submitted online from March 1, 2026, on the AEO portal.

"This reform is expected to significantly improve ease of doing business, strengthen the compliance culture, promote wider participation in the AEO programme and provide a boost to domestic manufacturing. It reflects CBIC's continued commitment to creating a predictable, efficient and facilitative Customs environment to support India's manufacturing-led and export-oriented growth," the finance ministry said.

- ANI

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Reader Comments

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Priyanka N
Good policy in principle, but the eligibility criteria worry me. "Financial standing and past track record" – will this exclude smaller, newer manufacturers who are compliant but don't have a long history? The focus should be on current compliance, not just size.
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Aman W
Trust-based systems are the way forward. This rewards honest businesses and pushes others to improve compliance. Linking it to the AEO program is smart – it creates a clear path for growth and more benefits. Jai Hind! 🇮🇳
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Sarah B
Working with manufacturers in India, I see how this can boost competitiveness. Aligning with global best practices on deferred duty helps Indian firms compete better in international supply chains. A positive step for 'Make in India'.
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Vikram M
The key will be implementation. CBIC circulars are one thing, but will the ground-level officers at ports and ICDs be trained and empowered to clear goods smoothly under this scheme? That's where previous facilitations have sometimes stumbled.
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Nikhil C
As a small-scale exporter, this is very encouraging. It reduces the immediate financial burden at the time of import. Now I can plan my production cycles better without worrying about duty blocking funds every shipment. Thumbs up! 👍

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