The Central Board of Indirect Taxes and Customs (CBIC) has introduced a deferred Customs duty payment facility for a new category of importers designated as Eligible Manufacturer Importers (EMIs) following the Union Budget 2026–27 announcement. CBIC issued detailed eligibility conditions, the application process and operational guidelines through Circular No. 08/2026-Customs dated 28 February 2026. The scheme is presented as a trust-based facilitation measure to support compliant manufacturers, improve cash flow and promote higher levels of compliance.

Under the initiative EMIs will be able to clear imported goods without paying Customs duty at the time of clearance and the applicable duty may be paid on a monthly basis as prescribed under the Deferred Payment of Import Duty Rules, 2016. The deferred arrangement is intended to help manufacturers better manage working capital and business continuity. The facility is expected to reduce liquidity pressure and streamline import operations for eligible entities.

The deferred payment facility will be available from first April 2026 and will remain in force until 31 March 2028, subject to fulfilment of prescribed criteria relating to Customs and Goods and Services Tax compliance, turnover, financial standing and past track record. Existing Authorised Economic Operator (AEO) T1 entities, including micro, small and medium enterprises, that meet the eligibility conditions may participate. Approved EMIs are expected to progress to AEO T2 or AEO T3 status during the validity period to access enhanced facilitation and priority treatment.

Applications under the EMI scheme can be submitted online from first March 2026 on the Authorised Economic Operator portal at www.aeoindia.gov.in under the tab Eligible Manufacturer Importer and applicants are required to follow the procedures laid down in the circular. The reform is expected to improve ease of doing business, bolster domestic manufacturing and encourage wider participation in the AEO programme. The measure reflects CBIC's continued commitment to creating a predictable and facilitative Customs environment to support India’s manufacturing-led and export-oriented growth.