Circular No. 08/2026, Dated 28-02-2026
The Government has issued a circular extending the facility of deferred payment of Customs import duty to Eligible Manufacturer Importers (EMI) in terms of Notification No. 12/2026-Customs (N.T.), dated 01-02-2026.
The facility will become operational from 01 April 2026 and will be governed by the Deferred Payment of Import Duty Rules, 2016, as amended.
1. Eligibility Conditions for EMI
The circular prescribes detailed eligibility conditions that must be fulfilled by applicants seeking recognition as Eligible Manufacturer Importers. These include:
- Status as a manufacturer or eligible importer
- Possession of a valid Importer Exporter Code (IEC)
- Compliance with minimum EXIM document filing requirements
- Active GST registration
- Submission of a prescribed manufacturing declaration or compliance with job work provisions
- Meeting the prescribed turnover threshold
- Demonstrating business continuity
- Maintaining a satisfactory GST compliance record
- Demonstrating financial solvency
- Absence of specified legal proceedings or prosecution issues
These conditions are intended to ensure that only compliant and financially sound entities avail the deferred duty payment facility.
2. Application Process
Eligible applicants may submit their applications electronically through the AEO India portal beginning 01 March 2026.
Applications must be filed in the prescribed format along with the required supporting documents. After submission:
- The application will be examined by the designated officer of the Directorate of International Customs (DIC), CBIC.
- Upon approval, the applicant will be enabled in the Customs Automated System to avail the deferred duty payment facility.
3. ICEGATE Access and Transaction Authentication
Approved EMIs are required to obtain an ICEGATE login through an authorised nodal person responsible for Customs-related transactions.
The nodal person will:
- Authenticate Customs transactions on behalf of the importer
- Indicate the use of deferred duty payment by selecting the flag ‘D’ in the Bill of Entry
- Authenticate the request through OTP verification for clearance under the Deferred Payment of Import Duty Rules, 2016
4. Payment Timeline for Deferred Duty
Payment of import duty under the deferred payment facility will follow the timelines prescribed under Rule 4 of the Deferred Payment of Import Duty Rules, 2016.
The due date for payment will be linked to the month in which the Bill of Entry is filed. However, importers may also choose to make payment before the prescribed due date, if desired.
5. Monitoring and Compliance
The utilisation of the deferred duty facility and timely payment of duties will be monitored through ICES reports by the jurisdictional Customs authorities.
This monitoring framework ensures compliance with the deferred payment mechanism while facilitating smoother cash flow management for eligible importers.
6. Objective of the Circular
The extension of the deferred payment facility aims to:
- Ease liquidity and working capital pressures on eligible manufacturer importers
- Streamline import processes and duty payment procedures
- Promote trade facilitation through digital systems such as ICEGATE and the AEO portal
- Strengthen compliance through automated monitoring and regulatory oversight
