In line with the announcement made in the Union Budget 2026–27, the Central Board of Indirect Taxes and Customs (CBIC) has operationalised a major trade facilitation reform by introducing a deferred Customs duty payment facility for a new category of importers designated as Eligible Manufacturer Importers (EMIs).
The initiative seeks to strengthen domestic manufacturing by easing working capital pressures while deepening compliance standards within the Customs ecosystem.
CBIC has notified the eligibility conditions, application process and operational framework through Circular No. 08/2026-Customs dated 28 February 2026. The scheme formalises a trust-based facilitation model that aligns fiscal efficiency with regulatory discipline.
Under the EMI framework, approved manufacturers will be permitted to clear imported goods without payment of Customs duty at the time of import. Instead, the duty liability may be discharged on a consolidated monthly basis in accordance with the Deferred Payment of Import Duty Rules, 2016. By shifting the duty payment cycle from transaction-based to periodic settlement, the measure is expected to significantly enhance liquidity management and optimise working capital utilisation for manufacturing entities.
The facility will be available from 1 April 2026 and will remain in force until 31 March 2028. To qualify, applicants must meet prescribed criteria relating to Customs and GST compliance, financial soundness, turnover thresholds and established operational track record. Existing Authorised Economic Operator (AEO-T1) entities, including eligible MSMEs, may also apply provided they satisfy the notified conditions.
The EMI scheme has been conceptualised as a transitional compliance accelerator within the broader AEO framework. During the validity period of the scheme, approved EMIs are expected to progressively upgrade to AEO-T2 or AEO-T3 status.
Such progression would entitle them to higher levels of trade facilitation, including faster clearances, reduced examination norms and priority treatment under the AEO Programme. In this sense, the EMI initiative functions not merely as a liquidity-support mechanism but as a structured pathway toward enhanced compliance maturity.
Applications under the scheme can be submitted online beginning 1 March 2026 through the AEO portal at www.aeoindia.gov.in under the designated “Eligible Manufacturer Importer” tab.
The reform is expected to deliver tangible improvements in ease of doing business by reducing transactional friction at the border while reinforcing a culture of voluntary compliance. It also signals CBIC’s strategic shift toward calibrated trust-based regulation—rewarding credible manufacturers with procedural flexibility while maintaining systemic safeguards.
By aligning Customs administration with India’s manufacturing-led growth strategy, the EMI scheme reinforces the broader objective of building a competitive, export-oriented and compliance-driven industrial ecosystem.
