CBIC Allows Extension of Two-Year Time Limit Under Notification No. 8/2016-Customs
The Central Government has issued an amendment to Notification No. 8/2016-Customs dated 5 February 2016 under Section 25(1) of the Customs Act, 1962. The amendment introduces greater flexibility by empowering the Central Board of Indirect Taxes and Customs (CBIC) to extend the prescribed two-year time limit in deserving cases where sufficient cause is demonstrated.
This amendment provides relief to importers and stakeholders covered under the notification by ensuring that genuine procedural or operational delays do not automatically result in the loss of the available benefit.
What Has Changed?
The amendment inserts a new proviso under Condition (6) of Notification No. 8/2016-Customs.
New Provision
A fresh proviso has been inserted stating that:
The existing two-year period may be extended by the Board in a particular case if sufficient cause is shown. The Board may grant such additional period as it considers appropriate.
This means that the earlier fixed time limit is no longer absolute where genuine reasons exist.
Amendment to the Existing Provisos
Apart from introducing the new extension provision, the notification also makes a drafting change.
Terminology Updated
The earlier second proviso, which began with the words:
“Provided further that”
has now been replaced with:
“Provided also that”
This is a consequential amendment made to maintain the correct sequence of provisos after inserting the new one.
Why This Amendment Matters
The amendment introduces administrative flexibility while maintaining regulatory oversight.
Key Benefits
- Provides relief where compliance within two years is not possible due to genuine circumstances.
- Enables case-specific consideration instead of applying a rigid deadline.
- Empowers CBIC to evaluate requests based on the merits of each case.
- Reduces the possibility of denial of benefits solely because of unavoidable delays.
Who Should Take Note?
This amendment is relevant for:
- Importers operating under Notification No. 8/2016-Customs.
- Customs brokers and logistics service providers.
- Trade compliance professionals.
- Businesses handling long-term import transactions covered by the notification.
Stakeholders facing delays should maintain proper documentary evidence to establish sufficient cause when seeking an extension from the Board.
Practical Impact
The amendment does not provide an automatic extension of the two-year period.
Instead, it creates a legal mechanism whereby:
- an application can be considered,
- sufficient cause must be demonstrated, and
- the Board has the discretion to grant an appropriate extension based on the facts of the case.
Each request will therefore be evaluated individually.
Important Note
- Amendment issued under Section 25(1) of the Customs Act, 1962.
- Applies to Notification No. 8/2016-Customs dated 5 February 2016.
- Inserts a new proviso under Condition (6).
- CBIC may extend the prescribed two-year period on sufficient cause being shown.
- The amendment also renumbers the existing provisos through a drafting correction.
Conclusion
The latest amendment to Notification No. 8/2016-Customs introduces a pragmatic approach to customs compliance by allowing the CBIC to extend the prescribed two-year time limit in deserving cases. Rather than enforcing a rigid deadline in every situation, the amendment recognizes that genuine operational or procedural constraints may arise and provides a statutory mechanism for seeking relief. Importers and trade participants should ensure that any request for an extension is supported by adequate documentation and submitted with clear justification to facilitate consideration by the Board.
Notification Reference: Customs
Notification No.28/2026-Customs
10/07/2026