In a major boost to India’s manufacturing sector, the Central Board of Indirect Taxes and Customs (CBIC) has rolled out the Eligible Manufacturer Importer (EMI) facility following the 2026-27 Budget announcement. This innovative measure lets select manufacturers import goods and settle customs duties later, freeing up vital liquidity.
Under the scheme, outlined in Circular 08/2026-Customs, EMIs can release consignments at the border without upfront duty payments. Instead, they remit dues monthly as per the Deferred Payment Rules of 2016. The two-year pilot, effective from April 1, 2026, to March 31, 2028, targets high-compliance entities with strong financials, business stability, and unblemished records in customs and GST filings.
Applications open March 1, 2026, via the AEO portal’s EMI section. Qualifying AEO-T1 holders and MSMEs stand to gain immensely, using the breathing room to streamline operations and scale production.
CBIC envisions EMI as a gateway to higher AEO tiers, rewarding sustained compliance with superior trade perks like expedited approvals. This forward-thinking reform aligns with national goals of trade ease, wider AEO adoption, and manufacturing resurgence.
Industry watchers predict a surge in applications, as the scheme directly tackles cash crunch issues plaguing importers. By prioritizing trust and accountability, CBIC is paving the way for a more agile, competitive Indian industry on the global stage.