You can pay customs duty via EMI from April
What's the story
The Central Board of Indirect Taxes and Customs (CBIC) has launched a new scheme in India, allowing certain manufacturers to defer customs duty payments on imported goods. The move is aimed at easing the burden on their working capital and boosting domestic production. The facility will be available from April 1, 2026, to March 31, 2028.
Scheme details
New category of Eligible Manufacturer Importers
The CBIC has introduced a new category called Eligible Manufacturer Importers (EMIs) under this initiative. These EMIs will be allowed to clear goods at ports without paying customs duty upfront. Instead, they can pay the duty later on a monthly basis as per the Deferred Payment of Import Duty Rules, 2016. This is expected to ease cash flow for manufacturers and improve their working capital management.
Qualification
Eligibility criteria for manufacturers
To qualify for this scheme, manufacturers must meet certain criteria related to their compliance record under Customs and GST laws, minimum turnover requirements, financial strength, and overall track record. Existing Authorized Economic Operator (AEO)-T1 firms, including MSMEs, can also apply if they meet the prescribed conditions. The move comes after Finance Minister Nirmala Sitharaman announced in the Union Budget for 2026-27 that duty deferral benefits would be extended to eligible manufacturer-importers.
Economic impact
Scheme to boost domestic production and investment
By allowing the duty payments to be deferred instead of collected at the time of import, the government hopes to improve liquidity for manufacturers. This is also expected to encourage more investment and production in India. The scheme is part of CBIC's continued commitment to creating a predictable, efficient, and facilitative Customs environment that supports India's manufacturing-led and export-oriented growth.