The Central Board of Indirect Taxes and Customs (CBIC) has released a comprehensive set of Frequently Asked Questions (FAQs) for trade and industry on the Eligible Manufacturer Importer (EMI) Scheme, a key initiative aimed at strengthening the government’s Make in India push while improving ease of doing business for manufacturing importers.
The EMI Scheme expands the duty deferment framework by allowing approved manufacturer importers to clear imported goods without making immediate payment of customs duties. Instead of paying duty on a transaction-wise basis, eligible entities can make consolidated monthly payments, thereby improving cash flow and reducing compliance burdens.
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Scheme Designed to Improve Liquidity and Compliance
The scheme has been introduced to reduce compliance costs, improve cash liquidity for manufacturers, and encourage them to transition to the Authorised Economic Operator (AEO) programme for enhanced trade facilitation.
The EMI Scheme is governed by Notification No. 12/2026-Customs (NT) dated February 1, 2026, issued under the second proviso to Section 47(1) of the Customs Act, 1962.
Under the scheme, the facility of Deferred Payment of Import Duty allows importers to take delivery of imported goods immediately while paying customs duty at a later date within the prescribed monthly schedule.
Validity and Transition to AEO Status
The EMI Scheme is available for a limited period up to 31 March 2028. The government has designed this period as a transition window for manufacturers to adopt higher compliance standards and obtain AEO-T2 certification, which would allow them to continue enjoying the deferred duty facility beyond this period.
Eligibility Conditions for Importers
To qualify as an Eligible Manufacturer Importer, applicants must meet several criteria, including:
- Possession of a valid Importer Exporter Code (IEC) issued by the Directorate General of Foreign Trade
- Minimum annual aggregate turnover of ₹5 crore in the preceding financial year
- At least 25 EXIM documents filed in the previous financial year (relaxed to 10 documents for MSMEs)
- Active GST registration with manufacturing activity declared
- Filing of all due GSTR-3B returns at the time of application
- Submission of audited financial statements and a CA certificate confirming financial solvency.
Importers engaged in manufacturing through job-work arrangements under Section 143 of the CGST Act may also be eligible, while pure traders and service providers cannot apply unless they qualify as manufacturer importers.
Fully Digital Application Process
Applications under the EMI Scheme must be filed online through the AEO India portal. The process is entirely digital and does not require submission of physical documents or visits to customs offices. Importantly, no registration fee, bond, or bank guarantee is required for availing the scheme.
Once approved, the EMI status is valid across all Customs stations, allowing importers to consolidate duty payments for multiple Bills of Entry filed at different ports within a month.
Additional Key Features
The FAQs clarify several operational aspects of the scheme:
- Deferred payment facility also covers IGST on imports.
- No monetary cap has been prescribed for the amount of duty eligible for deferment.
- Importers may choose deferred payment for some consignments and normal payment for others.
- No interest is charged if the duty is paid within the prescribed due date.
However, repeated failure to pay duty within the due date may lead to suspension of the deferred payment facility.
Dedicated Helpdesk for Industry
To assist applicants and address queries, the Directorate of International Customs has also set up a dedicated helpdesk for the EMI Scheme.
With the release of these FAQs, CBIC aims to provide clarity to industry stakeholders and facilitate wider adoption of the EMI Scheme, which is expected to significantly improve liquidity for manufacturers and strengthen India’s manufacturing ecosystem.
