EMI scheme for deferred customs duty payment to be implemented from April 1

The deferred payment facility will be available to Eligible Manufacturer Importers (EMIs) meeting prescribed criteria related to Customs and GST compliance, turnover, and financial standing

The Central Board of Indirect Taxes and Customs on Sunday said the Eligible Manufacturer Importers scheme will be implemented from April 1, and such importers can clear imported goods without paying customs duty at the time of clearance.

The deferred payment facility will be available to Eligible Manufacturer Importers (EMIs) meeting prescribed criteria related to Customs and GST compliance, turnover, financial standing and past track record, a finance ministry statement said.

"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.

 

Existing AEO-T1 entities, including MSMEs, that fulfil the eligibility conditions are also eligible to participate in the scheme.

"The facility will be available from 1st April, 2026, and will remain in force till 31st March, 2028," it added.

Under this initiative, EMIs would be able to clear imported goods without paying Customs duty at the time of clearance. Instead, the applicable duty can be paid on a monthly basis as prescribed under the Deferred Payment of Import Duty Rules, 2016, helping manufacturers better manage cash flows and working capital.

The EMI scheme is designed as a trust-based facilitation measure, encouraging compliant manufacturers to benefit from simplified procedures while nudging them towards higher levels of compliance.

During the validity period of the scheme, approved Eligible Manufacturer Importers are expected to progressively obtain AEO-T2 or AEO-T3 status, enabling access to enhanced facilitation, faster clearances and priority treatment under the AEO Programme.

Applications under the EMI scheme can be submitted online from March 1, 2026, on the AEO portal -- www.aeoindia.gov.in -- under the tab "Eligible Manufacturer Importer".

The scheme reflects CBIC's (Central Board of Indirect Taxes and Customs) continued commitment to creating a predictable, efficient and facilitative Customs environment to support India's manufacturing-led and export-oriented growth, the statement said.

The Union Budget 2026-27 had announced a new facilitation measure for trusted manufacturers by enabling the facility of deferred payment of customs duty to a new category of importers called Eligible Manufacturer Importers (EMIs).