The central government has announced significant changes to the customs clearance rules in the Budget 2026-27. These reforms are aimed at helping businessmen and manufacturers receive their raw materials and goods without unnecessary delays. Previously, shipments would often remain stuck at ports for clearance, increasing costs for companies. The new system introduces a list of ‘trusted importers’ who will face fewer checks and enjoy faster processes.
What are the new rules for Duty Payment?
The government has relaxed the timing for paying customs duty for verified businesses. Trusted importers can now clear their goods immediately and pay the taxes later. This facility helps in better cash flow management for the companies. The key updates effective from March 1, 2026, are:
- Extended Time: The duty deferral period has been increased from 15 days to 30 days for Tier-2 and Tier-3 Authorised Economic Operators (AEOs).
- Monthly Payment Cycle: Bills of Entry returned between the 1st and last day of a month can be paid by the 1st day of the following month.
- March Rule: As an exception, any duty for bills in March must be paid by March 31.
How will the inspection process change?
A major shift has been introduced regarding the physical checking of goods. Customs officials will no longer hold suspicious goods at port warehouses for long periods. Instead, the inspection will be conducted directly at the entrepreneur’s production unit or factory. This ‘off-site inspection’ is similar to systems used in countries like the US. To ensure transparency, officers will wear body cameras during these inspections, and the recordings will be kept for two years. Additionally, the government plans to reduce manual checking at ports by installing modern scanners.
