CBIC Overhauls Customs Duty Deferral Timeline: New Monthly Payment Cycle Introduced for AEOs via Notification 13/2026

In a significant move to enhance the ease of doing business and optimize working capital for trusted importers, the Central Board of Indirect Taxes and Customs (CBIC) has radically restructured the timelines for the Deferred Payment of Import Duty Scheme.

Following the announcements made in Budget 2026, the Ministry of Finance has exercised its powers under the Customs Act, 1962 to promulgate the Deferred Payment of Import Duty (Amendment) Rules, 2026. This amendment, notified via Notification No. 13/2026-Customs (N.T.) dated 1 February 2026, effectively transitions the duty payment cycle from a fortnightly basis to a monthly framework.

This comprehensive guide analyzes the legal nuances of the amendment, the revised schedules under Rule 4, and the compliance implications for the eligible assessee.

The amendment is grounded in the statutory powers conferred upon the Central Government. Specifically, the changes are driven by:

  • Section 47(1) of the Customs Act, 1962: This section governs the clearance of goods for home consumption and provides the proviso that allows the Central Government to permit certain classes of importers to pay duty at a later date (deferred payment).
  • Section 156 of the Customs Act, 1962: This section grants the general rule-making power to the Central Government to carry out the purposes of the Act.

The primary regulation being amended is the Deferred Payment of Import Duty Rules, 2016. The new rules, titled the Deferred Payment of Import Duty (Amendment) Rules, 2026, are set to become operational effective from 1 March 2026.

The Core Amendment: Restructuring Rule 4

The crux of this legal update lies in the substitution of the existing clauses within Rule 4 of the parent rules. Previously, the payment cycle was fragmented, often requiring the assessee to attend to duty payments multiple times within a single month. The amendment streamlines this into a consolidated monthly liability, with a specific exception for the fiscal year-end.

The revised Rule 4 establishes two distinct timelines based on the month of import: