The CBIC has issued Circular No. 08/2026 Customs dated 28 February 2026 to operationalise the extension of the Deferred Payment of Customs Duty facility to a new category called Eligible Manufacturer Importer, or EMI. The facility is intended to reduce cash flow friction and expedite clearance for eligible manufacturing importers by allowing payment of import duty after clearance, as per the Deferred Payment of Import Duty Rules, 2016 (as amended). If your organisation imports raw materials, components, consumables, or capital goods for manufacturing, this circular is a high impact development for working capital planning, customs clearance timelines, and compliance posture.

What is deferred payment of customs duty

Deferred payment is a facilitation mechanism under the proviso to section 47(1) of the Customs Act, 1962, where eligible importers can obtain out of charge for goods and pay the assessed customs duty later, within the prescribed timelines under the Deferred Payment of Import Duty Rules, 2016. Under the circular, EMI category entities will be enabled to use this facility through the customs automated system once approved.

What CBIC has changed through Circular No. 08/2026

1) New eligibility category, EMI

CBIC has extended deferred duty benefits to Eligible Manufacturer Importers, subject to meeting specific criteria and obtaining approval through the Directorate of International Customs, CBIC.

2) Effective date and availability window

Key dates to note,

• Applications has to be filed from 1 March 2026 on the AEO India portal.
• The deferred payment facility for approved EMIs will be available from 1 April 2026.
• The facility is available to EMI till 31 March 2028, with an expectation that approved EMIs will work towards AEO T2 or T3 accreditation in this period.

Who qualifies as an Eligible Manufacturer Importer

The circular provides a detailed set of conditions. The requirements include the following.

A. Importer plus manufacturer, or importer using job work route

You can qualify if,

• You are an importer under the Customs Act and a manufacturer as per section 2(72) of CGST Act, or
• You are an importer sending inputs or capital goods to a job worker under section 143 of the CGST Act without payment of tax, subject to specified ITC 04 and job worker conditions.

B. Minimum customs footprint

• At least 25 EXIM documents, Bills of Entry or Shipping Bills, filed in the previous financial year
• For MSME applicants, this minimum is relaxed to 10 documents

C. GST and turnover thresholds

• At least one active GST registration
• Manufacturing declaration in REG 01 for the relevant GSTIN, or ITC 04 filing compliance for job work route, plus job worker manufacturing declaration requirements
• Aggregate turnover across GSTINs under the same PAN exceeding INR 5 crore in the last financial year
• Business continuity for at least two financial years preceding the application, with specific rules on which GST registration commencement date is relevant

D. Compliance and clean track record filters

The circular expects strong compliance hygiene, including,

• All pending GSTR 3B returns filed for all active GSTINs as on the date of application
• No instances of tax collected but not deposited under GST, Central Excise, or Service Tax laws
• No insolvency, liquidation, or bankruptcy, supported by a prescribed CA certificate
• No arrests, convictions, or pending prosecution as specified under the relevant laws
• No adverse history of rejection or suspension for false information or forged documents

Due dates for payment under deferred payment

The circular reproduces the due date from Rule 4 of the Deferred Payment of Import Duty Rules, 2016.

• Bills of Entry filed from the 1st to the last day of any month other than March, duty is payable by the 1st day of the following month
• Bills of Entry filed from the 1st to 31st day of March, duty is payable by 31st March
• EMI can also pay earlier than the due date at its convenience

Why this matters for manufacturers and importers

1) Working capital optimisation

Manufacturing importers typically pay duty upfront as a condition for clearance. Deferred payment allows duty outflow to be aligned with internal cash cycles, collections, or production schedules, improving liquidity management.

2) Faster clearance and reduced dwell time

CBIC’s stated intent is to expedite clearance at ports, airports, and ICDs by allowing release post assessment and authentication, with payment occurring later within the rules.

3) AEO progression pathway

The circular clearly positions EMI as a stepping stone, expecting EMI entities to obtain AEO T2 or T3 within the availability period, unlocking broader facilitation and priority benefits.

Compliance risks and monitoring

Customs formations can monitor deferred payment usage through ICES reports and dashboards. Non payment instances may be escalated to DIC, and the approval granted to EMI can be suspended or revoked if the entity becomes ineligible at any point.

This makes internal controls non negotiable, particularly,

• daily tracking of Bills of Entry tagged under deferred payment
• reconciliation of due dates and challan payments
• periodic eligibility re validation, especially GST return filing status and solvency indicators

FAQ

Who can apply under EMI

Manufacturing importers meeting the prescribed customs footprint, GST registration, turnover, business continuity, and compliance conditions can apply. Importers using job work under section 143 can also qualify subject to ITC 04 and job worker manufacturing declaration requirements.

When does the deferred payment benefit start

The facility is available to eligible EMIs from 1 April 2026, once approved and enabled in the customs system.

How do we use it at the time of import

Indicate “D” in the Payment Method column in the Bill of Entry and complete OTP based authentication by the nodal person on ICEGATE for clearance under deferred payment rules.

What are the due dates for payment

For most months, pay by the 1st of the following month. For Bills of Entry returned for payment in March, pay by 31st March. Early payment is permitted.

Can Customs suspend the facility

Yes. DIC can suspend or revoke EMI approval if the entity becomes ineligible or in case of non payment issues and related monitoring outcomes.

How Osgan can help

For organisations that want to implement deferred payment correctly, the real work is in eligibility mapping, documentation readiness, filing, and post approval controls so the facility is used safely without triggering suspension risk. We assist with,

• EMI eligibility assessment and gap closure plan
• Application drafting and document collation as per appendices
• CA certificate coordination in prescribed format with UDIN alignment
• ICEGATE nodal person enablement and process walkthrough
• SOP for tracking due dates and monthly compliance to avoid defaults