CBIC EMI Scheme Customs Duty has been introduced by the Central Board of Indirect Taxes and Customs (CBIC) as a new facilitation measure for trusted manufacturers in India. The initiative was announced in the Union Budget 2026–27 by Nirmala Sitharaman, the Union Minister for Finance and Corporate Affairs. The scheme allows eligible manufacturers to defer payment of customs duty on imported goods, helping businesses manage their working capital more efficiently.

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According to CBIC guidelines issued through Circular No. 08/2026-Customs on 28 February 2026, the scheme creates a new category of importers known as Eligible Manufacturer Importers (EMIs). These importers will be allowed to clear imported goods without paying customs duty immediately at the time of clearance.

Deferred Duty Payment Mechanism

Under the CBIC EMI Scheme Customs Duty framework, approved EMIs can defer payment of import duty and instead pay the applicable customs duty on a monthly basis. The system operates in accordance with the Deferred Payment of Import Duty Rules, 2016.

This mechanism is expected to reduce financial pressure on manufacturers that rely heavily on imported raw materials or components. By allowing monthly payment of duties, businesses can better manage cash flow and maintain smoother production cycles.

The scheme will officially come into effect from 1 April 2026 and remain valid until 31 March 2028. It is considered a time-bound reform aimed at improving India’s manufacturing competitiveness.

Eligibility and Compliance Requirements

The CBIC EMI Scheme Customs Duty facility will be available only to manufacturers that meet strict eligibility criteria. These include compliance with customs and GST regulations, strong financial stability, minimum turnover thresholds, and a positive compliance history.

Entities already registered under the Authorised Economic Operator Programme Tier-1 category can also apply. This includes Micro, Small and Medium Enterprises (MSMEs) that meet the required standards.

Eligible manufacturers can submit their applications online through the AEO portal starting 1 March 2026. The goal is to expand participation among compliant businesses while ensuring safeguards for government revenue.

Trust-Based Facilitation Through AEO

The EMI scheme is designed as a trust-based compliance initiative. During the scheme period, participating EMIs are encouraged to upgrade their status to higher AEO tiers such as AEO-T2 or AEO-T3.

Higher AEO certification provides additional trade facilitation benefits, including faster customs clearances, priority processing, and reduced inspections. These advantages are expected to strengthen India’s global trade efficiency.

Key Facts About the Scheme

Deferred Payment of Import Duty Rules were introduced in 2016.
The Authorised Economic Operator programme promotes trusted trader facilitation.
CBIC operates under the Department of Revenue, Ministry of Finance.
The EMI scheme will run from 1 April 2026 to 31 March 2028.

Boost to Ease of Doing Business

The CBIC EMI Scheme Customs Duty is expected to improve the ease of doing business for Indian manufacturers. By reducing the burden of upfront customs duty payments, the initiative supports better liquidity and operational efficiency.

Overall, the scheme reflects the government’s strategy of combining trade facilitation with compliance incentives. By promoting transparency, predictability, and trust-based governance, CBIC aims to strengthen India’s manufacturing sector and support export-oriented growth.