The Central Board of Indirect Taxes and Customs (CBIC) has launched a new facilitation measure, allowing Eligible Manufacturer Importers (EMIs) to defer payment of customs duty, aiming to enhance the ease of doing business. This initiative permits EMIs to clear imported goods without immediate duty payment, with the duty payable on a monthly basis as per the Deferred Payment of Import Duty Rules, 2016. The scheme, effective from April 1, 2026, until March 31, 2028, offers a cash flow advantage to manufacturers.
Eligible Manufacturer Importers under the scheme must meet specific criteria concerning Customs and GST compliance, turnover, financial stability, and past performance. Existing AEO-T1 entities, including MSMEs, that meet the requirements are also eligible to apply. The EMI scheme, designed to promote compliance among manufacturers, aims to simplify procedures and encourage higher levels of adherence to regulations, fostering a culture of trust and compliance.
During the scheme’s validity, approved Eligible Manufacturer Importers are encouraged to progress to AEO-T2 or AEO-T3 status, granting them enhanced facilitation, quicker clearances, and priority treatment under the AEO Programme. This strategic move is anticipated to reinforce compliance practices, expand AEO program participation, and provide a fillip to the domestic manufacturing sector.
