Archive · 23 Sep 2026
India Urged to Reform Customs Payments to Cut Delays
India has a system that lets some importers pay customs duty later.
About 1,500 importers can use it.
That is less than 1% of all eligible businesses or users.
The system has been available for about ten years.
However, most importers still pay before collecting their shipments.
In 2026, only 12% of seaport bills used deferred payment.
At land borders, the figure was only 3%.
Reforming the default payment process could help reduce delays in getting goods.
About 1,500 importers are eligible to defer customs payments, representing well under 1%.
The deferral facility is rarely used despite being available for about a decade.
In 2026, deferred payments covered 12% of bills of entry at seaports.
At land borders, deferred payments covered just 3% of bills of entry in 2026.
Most importers still pay customs duty before receiving their shipments, causing logistical delays.
- Who
- Indian importers and the customs authorities managing duty payments.
- What
- India is being urged to reform its default customs-payment process and expand the use of deferred payments.
- When
- The facility has existed for about a decade; usage figures cited are for 2026.
- Where
- At Indian seaports and land borders.
- Why
- To minimize logistical delays caused by requiring most importers to pay duty before receiving shipments.
- Eligible for deferred payment
- About 1,500 importers
- Share of eligible users
- Well under 1%
- Facility duration
- About a decade
- Seaport usage in 2026
- 12% of bills of entry
- Land-border usage in 2026
- 3% of bills of entry
- Current dominant practice
- Most importers pay duty before obtaining shipments
- Proposed objective
- Reduce logistical delays