India allows manufacturers to defer customs duty payments
Change
India created an 'Eligible Manufacturer Importers' category that lets qualifying manufacturers clear imports without paying customs duty upfront and instead pay monthly under the Deferred Payment of Import Duty Rules, 2016 starting April 1, 2026.
Why it matters
Manufacturers that lack the required customs and Goods and Services Tax (GST) compliance record, minimum turnover, or financial strength will be excluded and must continue to pay duties at the time of import. Companies must complete the prescribed application and obtain operational clearance before using the facility, adding a compliance step to import processes.
Implications
- — Procurement teams at qualifying manufacturers must apply for Eligible Manufacturer Importer status and obtain Central Board of Indirect Taxes and Customs (CBIC) operational clearance before clearing imports, or their shipments will require upfront customs duty payment.
- — Customs brokers and clearing agents handling imports for qualifying manufacturers must submit the required documentation under the new operational guidelines to clear goods without upfront duty, or they will be unable to process deferred-payment clearances.
Unlock the decision layer.
- Implications: What this forces you to change — operations, exposure, or compliance.
- Who is affected: Which roles, contracts, and obligations are exposed.
- What to watch: Binding deadlines and enforcement dates.
- Real-time alerts: Delivered the moment a binding change is published.
- Ask AI: Ask what this means for your specific role.
No credit card · 14-day trial · Active in seconds
Unlock the decision layer
Source
Economic Times
View on Economic Times