Govt unveils deferred customs duty payment facility for eligible manufacturer importers
New Delhi, March 1
In a bid to significantly improve ease of doing business, 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, it was announced on Sunday.
CBIC has issued detailed eligibility conditions, application process and operational guidelines through a circular dated February 28, in pursuance of the Union Budget 2026-27.
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," said the Ministry of Finance.
The facility will be available from April 1, 2026 and will remain in force till March 31, 2028.
Applications under the EMI scheme can be submitted online from March 1, 2026 on the AEO portal.
The deferred payment facility will be available to EMI meeting 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," said the ministry.
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," the statement further said.
This is expected to strengthen the compliance culture, promote wider participation in the AEO programme and provide a boost to domestic manufacturing.
— IANS
Reader Comments
As someone working in export-import logistics, this is a welcome step. The push for AEO status is key. Trust-based systems work when compliance is rewarded. Faster clearances will reduce port congestion and costs for everyone in the supply chain.
Good initiative, but the devil is in the details. "Prescribed criteria related to Customs and GST compliance" – hope this doesn't exclude smaller manufacturers who might have minor technical defaults in the past. The scheme should be inclusive to truly boost 'Make in India'.
Finally, a policy that understands ground realities! For a small-scale manufacturer like us, duty payment at the time of clearance often means delaying other critical purchases. Monthly payments will smooth out operations significantly. Jai Hind! 🇮🇳
Interesting to see India adopting such facilitative measures. The two-year window (2026-2028) gives businesses time to plan. The linkage to the AEO program is smart—it incentivizes long-term compliance rather than just offering a short-term benefit.
A step in the right direction for ease of doing business. However, the government must ensure the online portal (AEO portal) is robust and user-friendly from day one. We've seen good policies fail due to poor tech implementation. Fingers crossed!
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