Deferral of Customs duty for Manufacturer Importer

The Union Budget 2026 has continued its emphasis on trade facilitation and manufacturing-led growth through targeted customs reforms. In this backdrop, Notification No. 12/2026–Customs (N.T.) dated 1 February 2026 extends the deferred payment of import duty facility for eligible manufacturer importers up to 31 March 2028. Though limited in textual scope, the amendment carries significant implications for working capital management, compliance planning, and operational certainty for manufacturing entities dependent on imports. The measure reflects a calibrated policy approach that balances liquidity support for industry with revenue safeguards under the Customs Act, 1962.