The Central Board of Indirect Taxes and Customs (CBIC) has rolled out a deferred Customs duty payment facility for a new category of importers termed Eligible Manufacturer Importers (EMIs), in line with the announcement made in the Union Budget 2026–27 by the Union Minister for Finance and Corporate Affairs.

The board has issued detailed eligibility criteria, application procedures and operational guidelines through Circular No. 08/2026-Customs dated February 28, 2026.

Under the new initiative, EMIs will be permitted to clear imported goods without immediate payment of Customs duty at the time of clearance. Instead, the duty can be paid on a monthly basis in accordance with the Deferred Payment of Import Duty Rules, 2016. The measure is aimed at improving manufacturers’ cash flow management and easing working capital pressures.

The facility will be operational from April 1, 2026, and will remain valid until March 31, 2028. To qualify, importers must meet specified criteria relating to Customs and GST compliance, turnover, financial soundness and track record. Existing AEO-T1 entities, including MSMEs that meet the prescribed conditions, will also be eligible.

The EMI scheme is positioned as a trust-based facilitation measure to reward compliant manufacturers with simplified procedures while encouraging them to move toward higher compliance standards. Approved EMIs are expected to progress toward obtaining AEO-T2 or AEO-T3 certification during the scheme’s validity period, which would grant access to enhanced facilitation and priority clearances under the AEO programme.

Applications can be submitted online from March 1, 2026, through the AEO portal under the “Eligible Manufacturer Importer” section.

CBIC stated that the reform is expected to improve ease of doing business, foster a stronger compliance culture, expand participation in the AEO programme and support domestic manufacturing. The move underscores the government’s commitment to creating a more predictable and facilitative Customs framework aligned with India’s manufacturing and export growth strategy.