The Central Board of Indirect Taxes and Customs (CBIC) will implement the Eligible Manufacturer Importers (EMI) scheme from April 1, allowing approved manufacturers to clear imported goods without paying customs duty at the time of clearance.
Under the scheme, eligible importers can instead pay the applicable duty on a monthly basis in accordance with the Deferred Payment of Import Duty Rules, 2016, easing cash flow and working capital pressures.
The facility will be available from April 1, 2026, and remain in force until March 31, 2028.
The Finance Ministry stated that the deferred payment facility will be extended to Eligible Manufacturer Importers meeting prescribed criteria related to Customs and GST compliance, turnover, financial standing and past track record.
“This reform is expected to significantly improve ease of doing business, strengthen the compliance culture, promote wider participation in the AEO programme and provide a boost to domestic manufacturing,” the ministry said.
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Existing AEO-T1 entities, including MSMEs, that fulfil the eligibility conditions will also be able to participate in the scheme.
The EMI initiative has been designed as a trust-based facilitation measure aimed at encouraging compliant manufacturers to benefit from simplified procedures while nudging them towards higher compliance levels.
During the scheme’s validity period, approved EMIs are expected to progressively obtain AEO-T2 or AEO-T3 status, enabling enhanced facilitation, faster clearances and priority treatment under the Authorised Economic Operator (AEO) Programme.
Applications under the EMI scheme can be submitted online from March 1, 2026, on the AEO portal.
The measure was announced in the Union Budget 2026-27 as a new facilitation step for trusted manufacturers by creating a new category of importers — Eligible Manufacturer Importers, eligible for deferred customs duty payment.
The government has positioned the initiative as part of its broader push to create a predictable, efficient and facilitative customs environment to support manufacturing-led and export-oriented growth.
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