Deferred Customs Payment Boosts Manufacturing
The Eligible Manufacturer Importers (EMI) scheme, starting April 1, enables manufacturers to defer customs duty payment. Aimed at simplifying processes and boosting domestic manufacturing, it requires EMIs to meet certain criteria. The initiative encourages compliance and enhances India's manufacturing environment by offering financial flexibility.
- Country:
- India
The Central Board of Indirect Taxes and Customs has announced the implementation of the Eligible Manufacturer Importers (EMI) scheme, starting April 1, to streamline customs duty payments. This new initiative will allow manufacturers to clear imported goods without upfront payment, improving cash flow management.
According to the finance ministry, the scheme targets manufacturers meeting specific Customs and GST compliance criteria, financial standing, and track records. It is designed to enhance the ease of doing business, encourage compliance, and support the growth of domestic manufacturing.
The EMI scheme is a trust-based facilitation measure, urging manufacturers to achieve higher compliance levels. Approved EMIs will progressively obtain AEO-T2 or AEO-T3 status, granting access to faster clearances and priority treatment. Online applications will be open from March 1, 2026, via the AEO portal.
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