The CBIC has rolled out a trust‑based facilitation measure allowing certain importers to defer customs duty payments. Announced in the Union Budget 2026‑27 , the scheme targets EMIs . The facility aims to improve cash‑flow, promote compliance and boost domestic manufacturing. Key Developments Deferred payment facility effective from 1 April 2026 to 31 March 2028 . Online applications open on 1 March 2026 via the AEO portal (www.aeoindia.gov.in) under the “Eligible Manufacturer Importer” tab. Eligibility linked to customs duty and GST compliance, turnover, financial health and past track record. Existing AEO‑T1 entities, including MSMEs, can apply. During the scheme period, participants are expected to upgrade to AEO‑T2 or AEO‑T3 status. Important Facts The scheme operates under the Deferred Payment of Import Duty Rules, 2016 . Payments are to be made monthly as prescribed, easing working‑capital constraints for manufacturers. CBIC issued detailed guidelines through Circular No. 08/2026‑Customs dated 28 February 2026. UPSC Relevance Understanding this scheme is vital for GS‑III (Economy) and GS‑II (Polity) questions on fiscal policy, trade facilitation, and the role of indirect taxes in promoting manufacturing. The initiative illustrates how the government uses **customs‑related incentives** to improve the **ease of doing business**, a recurring theme in the UPSC syllabus. It also showcases the interplay between **central ministries** (Finance) and **regulatory bodies** (CBIC) in policy implementation. Way Forward Manufacturers should assess eligibility and submit applications promptly to benefit from cash‑flow relief. Stakeholders need to maintain robust customs and GST compliance to qualify for higher AEO tiers. Policy analysts should monitor the scheme’s impact on import volumes, domestic production and overall fiscal health.