In a major boost to trade facilitation and ease of doing business, the Central Board of Indirect Taxes and Customs (CBIC) has proposed extending the deferred payment of import duty facility to compliant importers starting 1 March 2026.
The extension has been notified through Notification No. 13/2026, issued on 1 February 2026, and will remain effective until 31 March 2028.
Deferred Duty Facility to Support Domestic Manufacturers
The deferred payment scheme is aimed at providing greater liquidity and working capital relief, especially to domestic manufacturers who rely on imported raw materials and components.
Under this facility, eligible businesses can pay import duties after clearance instead of paying immediately at the time of import.
Payments will be tracked digitally through dashboards available on the Indian Customs Electronic System (ICES), ensuring transparency and effective monitoring.
Encouraging Authorised Economic Operator (AEO) Certification
A key objective behind this extension is to motivate more businesses to obtain Authorised Economic Operator (AEO) Certification, a globally recognised compliance program managed by CBIC.
The AEO program strengthens trust in the international supply chain and offers multiple trade benefits to certified importers.
Eligibility Requirements for Tier 2 and Tier 3 Importers
To qualify for AEO Tier 2 or Tier 3 status, importers must meet certain compliance benchmarks, such as:
- Minimum three years of business operations
- Proven financial solvency
- No record of major customs violations
Key Benefit: Reduced Checks and Faster Clearance
One of the biggest advantages of AEO certification is the reduction in document verification and physical inspections, leading to faster cargo movement.
To ensure trust-based governance, businesses seeking deferred duty benefits must be approved as an “Eligible Manufacturer Importer” by the Directorate of International Customs, CBIC.
Deferral Period Enhanced from 15 Days to 30 Days
A significant reform introduced through this notification is the enhancement of the duty deferral period:
- Earlier deferral: 15 days
- Revised deferral for Tier 2 & Tier 3 AEOs: 30 days
This change is expected to better align import duty payments with standard monthly accounting and banking cycles.
CBIC Explains the Rationale in Customs Reform FAQs
CBIC’s FAQs on customs reforms highlight that the extended period provides:
- Improved working capital flexibility
- Reduced financial burden at the time of clearance
- Better alignment with business payment cycles
- Ease of doing business without revenue loss
The Board noted that industry feedback strongly supported a longer and more practical 30-day payment window.
Union Budget Push for Faster Customs Processing
The recent Union Budget also emphasized leveraging AEO accreditation for preferential cargo clearance.
With increasing automation in customs processes, trusted importers filing bills of entry will benefit from quicker clearance procedures. In many cases, the system will automatically trigger customs formalities upon arrival of goods, particularly where no additional compliance is required.
Conclusion
The CBIC’s decision to extend and enhance the deferred import duty payment facility marks a significant step toward modernising customs operations. By encouraging wider adoption of AEO certification, the government aims to improve trade efficiency, reduce compliance burdens, and strengthen India’s manufacturing ecosystem.