R ARIVANANTHAM
CHENNAI, MAR 2
In a decisive move to deepen trade facilitation and strengthen India’s manufacturing competitiveness, the Central Board of Indirect Taxes and Customs (CBIC) has introduced a deferred Customs duty payment facility for a new category of trusted importers designated as Eligible Manufacturer Importers (EMIs).
Announced in the Union Budget 2026–27, the reform allows eligible manufacturers to clear imported goods without immediate payment of Customs duty at the port. Instead, duty payments can be made on a consolidated monthly basis, in accordance with the Deferred Payment of Import Duty Rules, 2016—significantly improving working capital efficiency and operational liquidity.
- Trust-based customs reform empowers compliant manufacturers with duty deferment flexibility
- New EMI facility to strengthen cash flows, boost domestic manufacturing and compliance culture
- Online applications open from March 1, 2026; scheme operational from April 1, 2026 to March 31, 2028
- Reform aligns with Union Budget 2026–27 vision to create predictable, facilitative trade ecosystem
CBIC has issued detailed eligibility conditions, application procedures and operational guidelines through Circular No. 08/2026-Customs dated February 28, 2026.
The EMI facility will be available from April 1, 2026 to March 31, 2028, providing a structured, time-bound window for trusted manufacturers to benefit from enhanced Customs facilitation.
Trust-based scheme to promote compliance and manufacturing growth
The EMI scheme has been designed as a trust-based Customs facilitation initiative aimed at encouraging compliant manufacturers to benefit from simplified procedures while strengthening India’s compliance ecosystem.
Under the scheme, eligible manufacturers can defer duty payments instead of paying them upfront at the time of import clearance. This enables improved cash-flow management, reduces financial strain, and supports smoother supply chain operations.
The deferred payment facility will be available to manufacturers that meet prescribed criteria relating to:
- Customs and GST compliance history
- Financial standing and turnover thresholds
- Demonstrated track record of regulatory adherence
Existing Authorised Economic Operator-Tier 1 (AEO-T1) entities, including MSMEs, that fulfil the eligibility criteria will also be eligible to participate.
Incentivising higher compliance and faster clearances
CBIC emphasised that the EMI scheme will serve as a stepping stone for manufacturers to achieve higher levels of compliance and facilitation. During the scheme’s validity period, approved EMIs are expected to progressively upgrade to AEO-T2 or AEO-T3 certification, unlocking additional benefits such as:
- Faster Customs clearances
- Priority cargo handling
- Reduced inspections and procedural requirements
- Enhanced predictability in import operations
This structured compliance pathway reinforces the government’s strategy of incentivising trust-based trade facilitation.
Online application portal opens March 1, 2026
Applications under the EMI scheme can be submitted online from March 1, 2026, through the AEO portal under the “Eligible Manufacturer Importer” tab.
The digital application framework ensures transparency, accessibility, and ease of participation for eligible manufacturers nationwide.
Major boost to ease of doing business and export-led growth
The EMI scheme is expected to significantly enhance ease of doing business by easing liquidity pressures, simplifying Customs procedures, and strengthening trust between industry and regulators.
The reform is also poised to encourage broader participation in the AEO Programme while supporting India’s ambitions to emerge as a global manufacturing and export hub.
By enabling duty deferment and promoting compliance-driven facilitation, CBIC continues to create a predictable, efficient and industry-friendly Customs ecosystem aligned with India’s long-term manufacturing-led growth vision.
