CBIC Introduces Duty Deferral Facility for Eligible Manufacturer Importers

Budget 2026: CBIC Seeks to add a new class of eligible importers as ‘Eligible Manufacturer Importers’ under Section 47 of the Customs Act, 1962 for duty deferral facility.

The Central Government, through the Central Board of Indirect Taxes and Customs under the Ministry of Finance, has issued Notification No. 12/2026-Customs (N.T.) dated 1 February 2026 amending Notification No. 135/2016-Customs (N.T.) to expand the scope of the deferred payment of import duty facility under the proviso to Section 47(1) of the Customs Act, 1962. A new class of importers titled “Eligible Manufacturer Importer” has been inserted after the existing categories. The notification clarifies, through an amendment to the Explanation, that an Eligible Manufacturer Importer means a Manufacturer Importer. This newly added class is expressly permitted to make deferred payment of import duty up to 31 March 2028, thereby extending a time-bound benefit aimed at easing cash-flow pressures for manufacturing entities engaged in imports. The notification comes into force on the date of its publication in the Official Gazette and builds upon the existing deferred payment framework last amended in August 2020.

MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)

Notification No. 12/2026 – Customs (N.T.) | Dated: 1st February, 2026

G.S.R…. (E).— In exercise of the powers conferred by the proviso to sub-section (1) of section 47 of the Customs Act, 1962 (52 of 1962), the Central Government hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 135/2016-Customs (N.T.), dated the 2nd November, 2016, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub­section (i) vide number G.S.R. 1038(E), dated the 2nd November, 2016, namely:—

in the said notification, —

(i) after serial number (ii), the following serial number shall be inserted, namely: —

“(iii) Eligible Manufacturer Importer:

Provided that the class of Eligible Manufacturer Importer shall be permitted to make deferred payment of import duty up to the 31^st March, 2028.”;

(i) in the Explanation, after clause (ii), the following clause shall be inserted, namely:-

“(iii) Eligible Manufacturer Importer means Manufacturer Importer,”

2.This notification shall come into force on the date of its publication in the Official Gazette.

[F. No. 450/04/2026–Cus. IV]

(Anurima Sharma)
Director (Customs)

Note: The principal notification number 135/2016-Customs (N.T.), dated the 2nd November, 2016 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1038(E), dated the 2nd November, 2016 and was last amended by notification number 78/2020-Customs (N.T.), dated the 19th August, 2020, vide number G.S.R. 513(E) dated the 19^th August, 2020.