New Delhi: The deferred customs duty payment facility has been introduced by the Central Board of Indirect Taxes and Customs (CBIC) for Eligible Manufacturer Importers (EMIs), as announced in the Union Budget 2026–27.
This deferred customs duty payment initiative aims to enhance cash flow flexibility for trusted manufacturers while strengthening compliance and promoting domestic manufacturing.
In pursuance of the Union Budget 2026–27 announcement by the Union Minister for Finance and Corporate Affairs, the Central Board of Indirect Taxes and Customs (CBIC) has enabled the facility of deferred customs duty payment for a new category of importers called Eligible Manufacturer Importers (EMIs).
CBIC has issued detailed eligibility conditions, application procedures and operational guidelines through Circular No. 08/2026-Customs dated 28th February, 2026.
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Key Features of the Deferred Customs Duty Payment Facility
Under the newly introduced deferred customs duty payment mechanism, Eligible Manufacturer Importers (EMIs) will be able to clear imported goods without paying Customs duty at the time of clearance.
Instead, the applicable duty can be paid on a monthly basis as prescribed under the Deferred Payment of Import Duty Rules, 2016.
This deferred customs duty payment facility is expected to help manufacturers better manage cash flows and working capital requirements, particularly for businesses dependent on regular imports of raw materials and components.
Validity and Eligibility Criteria
The deferred customs duty payment facility will be available from 1st April, 2026 and will remain in force until 31st March, 2028.
To avail the deferred customs duty payment benefit, EMIs must meet prescribed eligibility criteria related to Customs and GST compliance, turnover thresholds, financial standing and past track record.
Existing AEO-T1 entities, including MSMEs, that fulfil the eligibility conditions are also eligible to participate in the scheme.
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Trust-Based Facilitation Through EMI Scheme
The EMI scheme has been designed as a trust-based Customs facilitation measure. Through the deferred customs duty payment facility, compliant manufacturers will benefit from simplified procedures while being encouraged to progress toward higher compliance standards.
During the validity period of the scheme, approved Eligible Manufacturer Importers are expected to progressively obtain AEO-T2 or AEO-T3 status under the AEO Programme.
Achieving these higher certification levels will enable access to enhanced facilitation, faster clearances and priority treatment.
The introduction of the deferred customs duty payment framework aligns with CBIC’s objective of strengthening the compliance ecosystem and deepening participation in the AEO programme.
Application Process and Timeline
Applications under the EMI scheme for the deferred customs duty payment facility can be submitted online from 1st March, 2026 on the AEO portal at www.aeoindia.gov.in under the tab “Eligible Manufacturer Importer”.
This deferred customs duty payment reform is expected to significantly improve ease of doing business, promote wider participation in the AEO programme and provide a boost to domestic manufacturing.
