UPSC Prelims Practice Questions — Central Board of Indirect Taxes and Customs (CBIC) introduces deferred Customs Duty payment facility for Eligible Manufacturer Importers as announced in Union Budget 2026-27

Q1. The Deferred Payment of Import Duty Rules, 2016 — under which the new Eligible Manufacturer Importer deferred-duty facility operates — are framed under which one of the following statutes?

  • A. Customs Act, 1962
  • B. Customs Tariff Act, 1975
  • C. Central Goods and Services Tax Act, 2017
  • D. Foreign Trade (Development and Regulation) Act, 1992

Q2. With reference to the institutional and statutory architecture of the Eligible Manufacturer Importer (EMI) deferred-duty facility, consider the following: 1. CBIC functions under the Department of Revenue, Ministry of Finance. 2. The Deferred Payment of Import Duty Rules, 2016 are framed under the Customs Act, 1962. 3. AEO Tier-Two and Tier-Three importers were the original beneficiaries of the deferred-duty scheme. 4. Approval of Eligible Manufacturer Importers is handled by the Directorate General of Foreign Trade (DGFT). Which of the above is/are correctly identified?

  1. CBIC functions under the Department of Revenue, Ministry of Finance.
  2. The Deferred Payment of Import Duty Rules, 2016 are framed under the Customs Act, 1962.
  3. AEO Tier-Two and Tier-Three importers were the original beneficiaries of the deferred-duty scheme.
  4. Approval of Eligible Manufacturer Importers is handled by the Directorate General of Foreign Trade (DGFT).
  • A. 1, 2 and 3
  • B. 2 and 4
  • C. 1 and 4
  • D. 1, 2, 3 and 4

Q3. As notified, for how many years is the Eligible Manufacturer Importer (EMI) deferred-duty facility (1 April 2026 to 31 March 2028) to remain in force?

  • A. One year
  • B. Two years
  • C. Three years
  • D. Five years

Q4. Under the EMI facility operationalised by Circular No. 08/2026-Customs, what does the deferred payment of customs duty precisely mean for an approved manufacturer-importer?

  • A. Imported goods are cleared without paying customs duty upfront, with the duty paid on a monthly basis
  • B. Customs duty on imported inputs is permanently exempted for manufacturer-importers
  • C. Customs duty is refunded to the importer after the imported goods are consumed in manufacturing
  • D. Customs duty is paid in equal instalments spread across the full two-year scheme window

Q5. The Indian Authorised Economic Operator (AEO) programme — and the approval of Eligible Manufacturer Importers — is administered by which one of the following?

  • A. Directorate General of Foreign Trade (DGFT)
  • B. Directorate of International Customs, CBIC
  • C. Directorate of Revenue Intelligence (DRI)
  • D. Directorate General of Systems and Data Management, CBIC

Q6. Under the Deferred Payment of Import Duty Rules, 2016, how many tiers of Authorised Economic Operators were originally notified as 'eligible importers' for the deferred-duty facility?

  • A. One
  • B. Two
  • C. Three
  • D. Four

Q7. With reference to the policy objectives of the Eligible Manufacturer Importer (EMI) scheme compared with the earlier deferred-duty arrangement, consider the following statements: 1. Unlike the earlier facility confined to AEO-certified importers, the EMI scheme explicitly extends the benefit to manufacturer-importers, including MSMEs. 2. By deferring duty to a monthly cycle, the scheme eases working-capital lock-in and improves cash flow at the time of clearance. 3. The EMI scheme supersedes and replaces the 'Make in India' initiative as the principal framework for domestic manufacturing. Which of the statements given above is/are correct?

  1. Unlike the earlier facility confined to AEO-certified importers, the EMI scheme explicitly extends the benefit to manufacturer-importers, including MSMEs.
  2. By deferring duty to a monthly cycle, the scheme eases working-capital lock-in and improves cash flow at the time of clearance.
  3. The EMI scheme supersedes and replaces the 'Make in India' initiative as the principal framework for domestic manufacturing.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. Eligibility of a Manufacturer Importer for the EMI facility is assessed against criteria relating to Customs and GST compliance, turnover, financial standing and past track record. On how many such prescribed parameters is eligibility assessed?

  • A. Two
  • B. Three
  • C. Four
  • D. Six

Q9. Both the pre-existing AEO deferred-duty facility and the new EMI scheme are administered by CBIC, which functions under which one of the following?

  • A. Department of Commerce, Ministry of Commerce and Industry
  • B. Department of Revenue, Ministry of Finance
  • C. Department for Promotion of Industry and Internal Trade (DPIIT)
  • D. Department of Economic Affairs, Ministry of Finance

Q10. With reference to how the EMI deferred-duty facility differs from the pre-existing AEO-based facility, consider the following statements: 1. The original deferred-payment facility under the 2016 Rules was available only to AEO Tier-Two and Tier-Three importers. 2. The EMI category was created pursuant to a Union Budget 2026-27 announcement, extending the benefit beyond AEO-certified importers. 3. EMI status, like AEO certification, is itself conferred under the WCO SAFE Framework of Standards. Which of the statements given above is/are correct?

  1. The original deferred-payment facility under the 2016 Rules was available only to AEO Tier-Two and Tier-Three importers.
  2. The EMI category was created pursuant to a Union Budget 2026-27 announcement, extending the benefit beyond AEO-certified importers.
  3. EMI status, like AEO certification, is itself conferred under the WCO SAFE Framework of Standards.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q11. With reference to the Customs (Import of Goods at Concessional Rate of Duty), i.e. IGCR, Rules, 2017, consider the following: 1. 'IGCR' stands for Import of Goods at Concessional Rate of Duty. 2. The Rules impose an end-use condition to ensure goods imported at a concessional rate are used for the specified purpose. 3. The 2022 simplification made the IGCR procedure largely paperless and automated through the ICEGATE portal. 4. The IGCR Rules are administered by the Reserve Bank of India. Which of the above is/are correctly identified?

  1. 'IGCR' stands for Import of Goods at Concessional Rate of Duty.
  2. The Rules impose an end-use condition to ensure goods imported at a concessional rate are used for the specified purpose.
  3. The 2022 simplification made the IGCR procedure largely paperless and automated through the ICEGATE portal.
  4. The IGCR Rules are administered by the Reserve Bank of India.
  • A. 1, 2 and 3
  • B. 2 and 4
  • C. 1 and 4
  • D. 1, 2, 3 and 4