The Central Board of Indirect Taxes and Customs (CBIC) is preparing to roll out a new compliance facilitation initiative — the Eligible Manufacturer-Importer (EMI) Scheme — by March 1, marking a significant step toward trust-based and technology-driven customs administration.
Speaking at a media interaction in Mumbai, CBIC Chairman Vivek Chaturvedi confirmed that a draft framework of the proposed scheme will be released within the next five to six days for stakeholder consultation. The scheme will initially be operational for a two-year period, offering qualifying manufacturers an opportunity to transition into higher compliance standards under the Authorised Economic Operator (AEO) programme.
Transitional Window for Non-AEO Manufacturers
The EMI Scheme is designed primarily for manufacturer-importers who are not currently accredited as Authorised Economic Operators. Under the proposed framework, such entities will receive specified trade facilitation benefits for two years. During this transitional phase, they will be required to comply with prescribed norms and operational benchmarks in order to qualify for full-fledged AEO certification.
Officials clarified that the objective is to provide eligible businesses a structured pathway toward Tier 3 AEO status, which is the highest level of accreditation under the AEO programme and offers substantial customs facilitation advantages.
An internal committee within CBIC is currently finalising the eligibility parameters and compliance requirements. The detailed contours of the scheme — including qualification thresholds, documentation standards, and compliance monitoring mechanisms — will be placed in the public domain shortly to invite industry feedback.
Aligned with Trust-Based, Tech-Enabled Customs Reform
Chairman Chaturvedi emphasised that the EMI initiative forms part of the broader customs reform strategy focused on reducing interface-based interventions and enhancing system-driven decision-making.
With artificial intelligence and machine learning increasingly integrated into customs risk management systems, the administration aims to minimise physical inspections and manual scrutiny. Advanced data analytics and algorithm-based cargo screening are expected to facilitate quicker clearances, improve risk targeting, and strengthen compliance oversight.
The EMI Scheme is therefore positioned as a bridge mechanism — combining facilitation with accountability — while gradually expanding the AEO ecosystem in India.
Duty Deferral and Budget 2026-27 Announcements
The proposal for extending duty deferral facilities to eligible manufacturer-importers was formally introduced in the Union Budget 2026–27. Under the new scheme, qualifying entities will be granted the same duty deferment benefits currently available to higher-tier AEOs, allowing them to optimise working capital management and streamline import operations.
Presenting the Budget, Finance Minister Nirmala Sitharaman also proposed extending the validity of advance rulings issued by Customs authorities. The binding period of such rulings is set to increase from three years to five years, offering greater regulatory certainty and improved long-term business planning for importers and exporters.
The combined effect of these measures is expected to enhance India’s trade facilitation framework, reduce compliance costs, and encourage more businesses to adopt internationally recognised best practices in supply chain security and regulatory compliance.
With stakeholder consultations set to begin shortly, industry participants are closely watching the final design of the EMI Scheme, which could significantly reshape India’s customs compliance landscape over the coming years.
