Deferred duty payment, customs
Deferred duty payment is a mechanism for delinking duty payment and Customs clearance. It is based on the principle ‘Clear First-Pay later’. The aim is to have a seamless dock to warehouse transit in order to facilitate just-in-time production.
Deferred duty payment refers to the payment of duties and taxes for products declared over a predetermined period, for example 14 days, after the arrival of the merchandise, in one sum by bank exchange or other non-money installment technique, to the Customs ledger or by withdrawal by Customs from the broker's Customs account.
As a part of the ease of doing business focus of the Government of India, the Central Board of Excise and Customs (CBEC) has rolled out the AEO (AUTHORIZED ECONOMIC OPERATOR) programme. It is a trade facilitation move wherein benefits are reached out to the substances who have shown solid inside control frameworks and eagerness to conform to the laws controlled by the CBEC.
Under the aegis of the flagship AEO scheme, the GoI has notified the Deferred Payment of Import Duty Rules, 2016 (hereinafter referred to as the Rules) vide notification no 134/2016-Customs (NT) and 135/2016-Customs (NT) both dated 02 Nov 2016.