Duty Deferment Scheme Opens for Manufacturers: Faster Imports, No Upfront Duty, Fully Online Application
At an outreach programme held in the capital, senior officials including Yogendra Garg and Manish Kumar highlighted how the Duty Deferment Scheme for Eligible Manufacturer Importers (EMI) is designed to improve liquidity, reduce delays, and strengthen India’s manufacturing competitiveness.
New Delhi: The Central Board of Indirect Taxes and Customs has rolled out a major trade facilitation initiative under the Union Budget 2026–27, enabling eligible manufacturer importers to defer payment of customs duties, significantly easing cash flow pressures and speeding up cargo clearance.
At an outreach programme held in the capital on Saturday, senior officials including Yogendra Garg and Manish Kumar highlighted how the Duty Deferment Scheme for Eligible Manufacturer Importers (EMI) is designed to improve liquidity, reduce delays, and strengthen India’s manufacturing competitiveness.
What the scheme offers
The EMI scheme allows importers to clear goods without paying customs duty upfront, shifting the payment cycle to a monthly basis. This change is expected to ease working capital constraints, especially for manufacturing units dependent on regular imports of raw materials.
Officials said the scheme adopts a trust-based compliance model, reducing procedural friction and enabling faster clearances at ports.
Key benefits for industry
The scheme is positioned as a significant boost for both large manufacturers and MSMEs:
- No upfront duty payment, improving liquidity
- Faster cargo clearance, reducing port dwell time
- Better import planning through flexible scheduling
- Efficient inventory management
- Improved supply chain efficiency
- Enhanced global competitiveness of Indian manufacturers
CBIC officials noted that MSMEs are specifically included, lowering the entry threshold to ensure wider participation.
Who can apply
To qualify for the scheme, applicants must meet the following criteria:
- Must be a manufacturer importer with a valid Import Export Code (IEC)
- Should have filed at least 25 EXIM documents in the previous financial year (10 for MSMEs)
- Must be GST compliant with no pending returns
- Should demonstrate financial solvency
- Must have a clean compliance record
How to apply
The application process has been made completely digital, with no physical interface required:
- Apply through the official AEO portal: www.aeoindia.gov.in
- The portal has been operational since March 1, 2026
- Applications are processed online under a streamlined approval mechanism
Once approved, importers can start availing benefits across all customs formations from April 1, 2026.
Validity and rollout
The scheme will remain valid for two years, up to March 31, 2028, giving businesses a stable window to plan imports and optimise working capital cycles.
Industry impact
Officials said the initiative aligns with the government’s broader Make in India push, aiming to strengthen domestic manufacturing by improving liquidity and reducing transaction delays.
The outreach programme included detailed presentations and interactive sessions with trade bodies and industry stakeholders, reflecting CBIC’s push towards a transparent, technology-driven, and trust-based compliance ecosystem.
With duty payments deferred and processes digitised, the EMI scheme is expected to significantly improve ease of doing business for India’s manufacturing sector.
