CBIC Extends Deferred Import Duty Facility To Compliant Businesses From March 2026

On 1 February 2026, the Central Board of Indirect Taxes and Customs (CBIC) proposed extending the deferred payment of import duty facility to compliant businesses from 1 March 2026 through Notification No. 13/2026.

Per the Notification, the facility will be available until 31 March 2028, and payments will be monitored through Indian Customs Electronic System (ICES) dashboards.

The move is aimed at encouraging domestic manufacturers to obtain the Authorised Economic Operator (AEO) Certification. The AEQ program is managed by CBIC in the international supply chain. It requires Tier 2 and Tier 3 importers to meet parameters such as financial solvency, a minimum of three years in business, and no major violations. One of the key benefits of AEO certification is reduced document checks.

To ensure trust-based governance, the “Eligible Manufacturer Importer” must be approved by the Directorate of International Customs, CBIC. The import duty deferral period for Tier 2 and Tier 3 AEOs has been enhanced from 15 days to 30 days.

CBIC's FAQs on Customs reforms clarify the rationale for the extension:

“The extension provides additional working capital flexibility to importers, especially manufacturers. It aligns duty payment with monthly accounting cycles, reduces financial pressure at the time of clearance, and promotes ease of doing business without compromising revenue.

Q6. Was the 15-day period insufficient?

While the 15-day period was useful, feedback from industry indicated that a 30-day cycle would be more practical and better aligned with standard business and banking practices.”

For faster customs processing, the recent Union Budget noted:

“The government agencies will be encouraged to leverage AEO accreditation for preferential treatment in clearing their cargo.”

With automation of customs processes, filing of a bill of entry by a trusted importer and the arrival of goods will automatically notify Customs to complete clearance formalities, especially for imports not requiring additional compliance.

Click here to read the Circular explaining Deferred Payment Facility.