The Central Board of Indirect Taxes and Customs (CBIC) has substantially reduced the documentation required under the Eligible Manufacturer Importer (EMI) scheme as part of a renewed effort to increase participation in the customs-duty deferment facility, particularly among micro, small and medium enterprises.
The number of documents applicants must submit under the scheme has been reduced from 10 to three with effect from September 15. The amount of information required in the application has also reportedly been curtailed.
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The simplification follows a subdued response to the EMI scheme during its initial months. Fewer than 1,000 businesses reportedly enrolled after the facility was introduced at the beginning of the financial year in April.
CBIC is now expected to supplement the reduced paperwork with outreach programmes and direct handholding for MSMEs. The objective is to create wider awareness and help smaller manufacturers understand the eligibility conditions, enrolment process and compliance requirements.
A senior CBIC official reportedly acknowledged that the scheme had not gained the level of traction initially envisaged. The administration expects simplified documentation and greater awareness to improve acceptance among eligible manufacturers.
Introduced from April 1 under the Union Budget 2026–27, the EMI scheme allows eligible manufacturers to clear imported goods without paying the entire customs duty upfront. The deferred duty can instead be paid in monthly tranches in accordance with the scheme.
The facility is intended to ease pressure on manufacturers’ cash flows and working-capital requirements. Ordinarily, payment of customs duty at the import stage can lock up significant funds before imported inputs are used in production or finished goods generate revenue.
By postponing the immediate duty outflow, the scheme seeks to provide eligible manufacturers with greater flexibility in managing their finances. The relief can be particularly relevant for MSMEs, which frequently operate with tighter credit limits and smaller working-capital buffers than larger companies.
The facility is stated to remain available until March 31, 2028.
The reduction in documentation follows representations from trade and industry seeking a lighter compliance burden. Businesses had raised concerns that extensive paperwork could discourage eligible manufacturers from using a facility designed to improve liquidity.
Under the revised approach, information that can be independently verified through government or customs backend systems need not be repeatedly furnished by applicants in physical or manual form. The measure is expected to eliminate duplication and reduce the time required to prepare and process applications.
Bringing the documentation requirement down from 10 papers to only three represents a significant procedural change. It transfers a larger part of the verification process to the administration’s technology systems while reducing the burden placed on manufacturers.
For smaller businesses, the change could also lower the cost of applying for the scheme. MSMEs often have limited in-house customs and legal teams, making documentation-heavy procedures comparatively difficult and expensive to navigate.
Simplifying the application process is only one part of CBIC’s renewed push. The Board is also planning outreach programmes to explain the scheme to manufacturers and encourage eligible businesses to enrol.
The proposed handholding exercise is expected to focus particularly on MSMEs. Awareness sessions could help businesses understand how duty deferment works, what records must be maintained and how the monthly payment mechanism affects their import planning and cash-flow cycles.
The outreach assumes importance because low initial enrolment may not necessarily reflect a lack of demand for working-capital support. Limited awareness, uncertainty about eligibility and the perceived complexity of compliance may also have prevented manufacturers from joining the scheme.
The effectiveness of the renewed drive will depend on how quickly eligible businesses are informed of the revised requirements and whether the simplified process translates into faster and more predictable enrolment.
The changes are also consistent with the customs administration’s broader movement towards technology-based and risk-oriented regulation. Verification through backend systems can reduce dependence on paper records and allow officers to concentrate on material compliance risks.
Such an approach is intended to make legitimate trade easier without diluting customs oversight. Where relevant particulars are already available through government systems, asking applicants to submit the same information again may add time and cost without materially strengthening verification.
The EMI scheme combines this technology-led approach with a cash-flow benefit for domestic manufacturers. By allowing eligible importers to defer customs duty and reducing the paperwork needed to access the facility, CBIC is seeking to improve both ease of doing business and the practical utility of the scheme.
The September 15 simplification, together with the proposed awareness and handholding programmes, seeks to address two major barriers identified during the initial rollout: extensive documentation and inadequate awareness among potential beneficiaries.
Manufacturers considering the facility should examine the notified eligibility conditions and revised application requirements before seeking enrollment.
