Import Duty Deferral 2026: The Central Board of Indirect Taxes and Customs (CBIC) has delivered a significant cash-flow advantage to importers. In a move to further ease the financial burden on Indian businesses, the Government has doubled the time limit for deferred duty payments.
Effective February 1, 2026, the benefit of the Deferred Payment of Import Duty Scheme has been upgraded.
Here is what you need to know about the new timeline and the new eligibility criteria.
The Big Change: 15 Days to 30 Days
Previously, trusted entities (like AEO T2/T3) had a deferral window of approximately 15 days to pay their customs duty.
Vide Notification No. 13/2026-Customs (NT), the CBIC has amended the Deferred Payment of Import Duty Regulations, 2016.
- Old Rule: Duty deferral period was 15 days.
- New Rule: The deferral facility is now extended to 30 days.
Impact on Your Business:
This effectively provides an interest-free credit period of one month on your import duty liability. This will significantly free up Working Capital, allowing you to rotate funds more efficiently before settling the government dues.
Are You Eligible? (New Category Added)
Until now, this scheme was primarily exclusive to AEO (Authorized Economic Operator) T2 & T3 status holders. However, the government wants to boost domestic manufacturing.
Vide Notification No. 12/2026-Customs (NT), a new class of importers has been added under Section 47 of the Customs Act, 1962:
- “Eligible Manufacturer Importers”
This means that even if you are not a full AEO T2/T3 entity, if you qualify as an “Eligible Manufacturer Importer” (based on specific criteria linked to manufacturing capacity/track record), you can now apply for this 30-day deferral benefit.
Summary of Benefits
| Feature | Old Status | New Status (Feb 2026) |
| Payment Window | 15 Days | 30 Days (Extended) |
| Eligible Entities | AEO T2, AEO T3, DPD | AEO T2/T3 + Eligible Manufacturer Importers |
| Reference | Reg. 2016 | Notf. 12 & 13/2026-Cus (NT) |
What Should You Do Now?
- Check Your Status: Are you an AEO T2/T3? You automatically get the 30-day benefit.
- Manufacturers: If you are a manufacturer but not an AEO, consult your customs broker or legal advisor to check if you fall under the new “Eligible Manufacturer Importer” definition to claim this benefit.
- Update ERP: Ensure your finance team updates their cash flow projections to account for this delayed payment schedule.
Conclusion
This extension from 15 to 30 days is a clear signal that the government is committed to Ease of Doing Business for manufacturers and compliant importers. By effectively doubling the interest-free credit period for customs duties, the CBIC has provided a powerful tool for better cash flow management.
Importers should immediately review their eligibility – especially under the new “Eligible Manufacturer” category – to ensure they aren’t leaving this financial benefit on the table.
Also Read: Automatic Customs Clearance 2026
