Relief in customs duty payment to some importers in India
By yash chouhan 2026-03-03 11:23:49
India introduces deferred customs duty payments for some importers
The Central Board of Indirect Taxes and Customs (CBIC) of India has recently introduced a new facility for credible manufacturers by enabling the facility of deferred payment of customs duty for a new category of importers called 'Eligible Manufacturer Importers' (EMIs).
This facility will be available from April 1 and will be applicable till March 31, 2028.
The decision was taken after the announcement by Finance and Corporate Affairs Minister Nirmala Sitharaman in the budget for the financial year 2026-27.
The reforms are expected to improve ease of doing business, strengthen compliance, promote wider participation in the Authorized Economic Operator (AEO) program and boost domestic manufacturing, a Finance Ministry release said.
CBIC has issued detailed eligibility conditions, application process and operational guidelines in this regard.
Under the initiative, EMI can be paid for 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, thereby helping manufacturers better manage cash flow and working capital.
The deferred payment facility will be available for EMIs meeting the prescribed criteria related to Customs and Goods and Services Tax (GST) compliance, turnover, financial position and past track record. Existing entities including Micro, Small and Medium Enterprises under AEO Tier 1 (T1), who satisfy the eligibility conditions, are also eligible to participate.
The release said the EMI scheme has been designed as a confidence-based convenience measure to encourage compliant manufacturers to benefit from the simplified processes and motivate them towards higher levels of compliance.
During the validity period of the scheme, approved EMIs are expected to progressively attain AEO-T2 or AEO-T3 status, thereby enabling access to enhanced convenience, faster approvals and priority treatment under the AEO programme.
