India allows eligible manufacturers to defer customs duty payments from April 1; aims to boost liquidity and exports

The Central Board of Indirect Taxes and Customs (CBIC) on Sunday introduced a new scheme that will allow certain manufacturers to delay payment of customs duty on imported goods, easing pressure on their working capital.

Under the initiative, a new category called Eligible Manufacturer Importers (EMIs) has been created. These importers will be allowed to clear goods at ports without paying customs duty upfront.

Instead, they can pay the duty later on a monthly basis under the Deferred Payment of Import Duty Rules, 2016.


The Board issued detailed eligibility conditions, application procedures and operational guidelines last month. The facility will be available from April 1, 2026 and will remain in force until March 31, 2028.

To qualify, manufacturers must meet specified criteria related to their compliance record under Customs and GST laws, minimum turnover requirements, financial strength and overall track record. Existing Authorised Economic Operator (AEO)-T1 entities, including MSMEs, can also apply if they meet the prescribed conditions.

The move follows an announcement by Finance Minister Nirmala Sitharaman in the Union Budget for 2026-27 to extend the duty deferral benefit — currently available to higher-tier AEOs — to eligible manufacturer-importers.

By allowing duty payments to be deferred instead of collected at the time of import, the government aims to improve liquidity for manufacturers, encourage investment and production, and bring more companies into the Customs “trusted” framework.