New Customs Duty Payment Scheme for Eligible Manufacturers Launched
Synopsis
The CBIC has launched a new deferred customs duty payment facility for Eligible Manufacturer Importers (EMIs) to streamline business operations and enhance cash flow management. This initiative, effective from April 2026, encourages compliance and aims to strengthen domestic manufacturing.
Key Takeaways
CBIC introduces deferred customs duty payment for EMIs.
Facility starts on April 1, 2026, until March 31, 2028.
Applications can be made online via the AEO portal.
Focus on enhancing cash flow and compliance.
Encourages participation in the AEO program.
New Delhi, March 1 (NationPress) To enhance the ease of doing business for manufacturers, the Central Board of Indirect Taxes and Customs (CBIC) has rolled out a significant measure allowing deferred customs duty payments for a newly defined group known as Eligible Manufacturer Importers (EMIs). This was announced on Sunday.
In a circular dated February 28, CBIC outlined detailed eligibility requirements, the application procedure, and operational guidelines in alignment with the Union Budget 2026–27.
Through this initiative, EMIs will be permitted to clear their imported goods without making an upfront customs duty payment.
“Instead, the required duties can be settled monthly, as per the Deferred Payment of Import Duty Rules, 2016, thereby aiding manufacturers in better managing their cash flow and working capital,” stated the Ministry of Finance.
This facility will be accessible starting April 1, 2026, and will continue until March 31, 2028.
Applications for the EMI program can be submitted online via the AEO portal beginning March 1, 2026.
The deferred payment option is available to EMIs that meet certain criteria regarding Customs and GST compliance, turnover, financial status, and historical performance.
“Current AEO-T1 entities, including MSMEs, that satisfy the eligibility criteria are also qualified to participate,” the ministry added.
The EMI initiative is crafted as a trust-based facilitation measure to encourage compliant manufacturers to benefit from streamlined processes while motivating them to achieve higher compliance levels.
“During the scheme's validity, recognized Eligible Manufacturer Importers are expected to gradually attain AEO-T2 or AEO-T3 status, which will provide access to improved facilitation, expedited clearances, and priority treatment under the AEO Program,” the statement elaborated.
This is anticipated to bolster the compliance culture, expand participation in the AEO program, and support domestic manufacturing.
Point of View
This initiative by the CBIC is a commendable step towards fostering a more conducive business environment. By facilitating deferred customs duty payments, the government is not only aiding manufacturers in managing their cash flows but also encouraging compliance and participation in the AEO program, which is crucial for strengthening the domestic manufacturing sector.
NationPress
11 May 2026
Frequently Asked Questions
What is the new deferred customs duty payment facility?
It is a scheme introduced by the CBIC allowing Eligible Manufacturer Importers (EMIs) to defer customs duty payments and manage their cash flow more effectively.
Who qualifies as an Eligible Manufacturer Importer?
EMIs are manufacturers who meet specific eligibility criteria set by the CBIC concerning Customs and GST compliance, financial standing, and past performance.
When does the facility become available?
The deferred payment facility will be available from April 1, 2026, until March 31, 2028.
How can manufacturers apply for this facility?
Applications can be submitted online through the AEO portal starting from March 1, 2026.
What benefits does this scheme offer?
The scheme helps manufacturers by allowing them to clear goods without paying customs duty upfront, thereby improving cash flow and encouraging compliance.
