Customs Deferred Payment Scheme Now Covers Manufacturer Importers

Auto-drafted from official sources and under review by CA Rajeev Ranjan. Verify against the original notification before you act.

What Changed

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 08/2026-Customs, dated 28 February 2026, extending the Deferred Payment of Customs Duty scheme to a new category of applicant: the Eligible Manufacturer Importer (EMI).

Previously, deferred payment benefits under customs law allowed approved importers to clear goods first and pay duty later, easing working capital pressure. This circular widens that window by formally bringing manufacturer importers into the eligible fold.

Who Is Affected

This change is directly relevant to:

• Manufacturers who import goods as part of their production process and want to take advantage of duty deferral
• Businesses currently applying for, or planning to apply for, EMI status under the customs deferred payment framework
• CFOs and compliance teams at import-heavy manufacturing firms who manage customs cash flow

If your business imports raw materials, components, or capital goods for in-house manufacturing, this update is worth noting.

The Key Condition: A Clean Tax Declaration

There is one important eligibility hurdle. Applicants must declare that there are no instances of uncollected or undeposited tax under either:

• The Central Excise Act, 1944, or
• Chapter V of the Finance Act (which covers Service Tax)

This is a self-declaration requirement. It signals that CBIC wants only compliant businesses accessing the cash-flow benefit of deferred duty. If your business has any unresolved tax collection or deposit issues under these legacy laws, you will need to address them before applying.

What You Should Do

1. Assess eligibility, Check whether your business qualifies as an Eligible Manufacturer Importer under the criteria set out in the circular.
2. Run an internal compliance check, Review your Central Excise and Service Tax history for any uncollected or undeposited amounts, even from years past. Legacy liabilities can disqualify you.
3. Prepare the declaration, Work with your tax advisor to ensure the declaration is accurate before submission. A false declaration carries serious risk.
4. Read the full circular, Specific procedural steps, timelines, and definitions of 'Eligible Manufacturer Importer' are in the official notification. Refer to it directly for details not covered here.

The Bottom Line

This is a meaningful expansion of the deferred customs duty framework. For manufacturing businesses that regularly import, it can reduce the immediate cash outflow at the port of entry. The trade-off is a clean compliance record under legacy indirect tax laws, so get your house in order before applying.

Source: Official notification