New Delhi: The Central Board of Indirect Taxes and Customs (CBIC) introduced the EMI Scheme to allow deferred payment of Customs duty for eligible manufacturer importers, as announced in the Union Budget 2026-27.
CBIC issued eligibility conditions and operational guidelines through Circular No. 08/2026-Customs dated February 28, 2026. The measure created a new category of importers called Eligible Manufacturer Importers.
Under this facilitation, eligible entities can clear imported goods without paying Customs duty at the time of clearance. Instead, they can pay the applicable duty on a monthly basis under the Deferred Payment of Import Duty Rules, 2016. As a result, manufacturers can better manage working capital and cash flow.
The facility will remain in force from April 1, 2026 to March 31, 2028. However, only entities meeting prescribed criteria related to Customs and GST compliance, turnover, financial standing and past record will qualify. Existing AEO-T1 entities, including MSMEs, can also participate if they meet the conditions.
EMI Scheme to operate as trust-based facilitation model till 2028
The EMI Scheme has been designed as a trust-based Customs facilitation measure. It encourages compliant manufacturers to adopt simplified procedures while moving towards higher compliance standards.
During the validity period, approved importers are expected to obtain AEO-T2 or AEO-T3 status. Consequently, they can access faster clearances, priority treatment and enhanced benefits under the AEO Programme.
Applications under the EMI Scheme can be submitted online from March 1, 2026 on the AEO portal at www.aeoindia.gov.in under the tab “Eligible Manufacturer Importer”.
Officials said the reform aims to improve ease of doing business and strengthen compliance culture. Moreover, it seeks to boost domestic manufacturing and increase participation in the AEO framework. The move reflects CBIC’s push to create a predictable and efficient Customs environment.
