The Central Board of Indirect Taxes and Customs (CBIC) introduced Circular No. 08/2026-Customs, extending the Deferred Payment of Customs Duty facility to Eligible Manufacturer Importers (EMI). Active from April 1, 2026, to March 31, 2028, this trade facilitation measure allows qualifying manufacturers to clear imported consignments immediately without paying customs duty upfront.
Key Highlights of the EMI Scheme
- Working Capital Boost: Pay customs duty on a monthly deferred schedule instead of per consignment.
- Full Duty Coverage: Covers total duty liabilities assessed on the Bill of Entry (including Basic Customs Duty, SWS, IGST, and Compensation Cess).
- Bridge to AEO Status: Serves as a 2-year runway for compliant businesses to transition to AEO T2/T3 accreditation.
Table of Criteria
| Criteria | Non-MSME Applicants | MSME Applicants |
| Past EXIM Filings | Minimum 25 EXIM documents in previous FY | Minimum 10 EXIM documents in previous FY |
| Turnover Requirement | Aggregate PAN turnover > ₹5 Crore in previous FY | Aggregate PAN turnover > ₹5 Crore in previous FY |
| Business History | Active operations for 2 Financial Years | Active operations for
2 Financial Years |
| Status Declaration | “Factory/Manufacturing” in FORM GST REG-01 | “Factory/Manufacturing” in FORM GST REG-01 |
| Financial Health | Positive net worth & CA Solvency Certificate | Positive net worth & CA Solvency Certificate |
Frequently Asked Questions (FAQs)
Q1: What is the EMI Scheme under Customs?
The Eligible Manufacturer Importer (EMI) scheme allows compliant manufacturing importers to defer customs duty payments on imported raw materials and capital goods. Instead of paying at the port, importers clear goods immediately and settle duties on a monthly basis.
Q2: What is the validity period of the EMI Scheme?
The scheme is valid for two years, running from April 1, 2026, through March 31, 2028. Approved EMIs are expected to obtain AEO T2 or T3 accreditation within this period.
Q3: Who can apply for the EMI facility?
Importers who are either manufacturers or send imported inputs/capital goods to job workers under Section 143 of the CGST Act. Applicants must have an active GST registration, an aggregate turnover exceeding ₹5 Crore, a clean track record, and meet the minimum EXIM document filing threshold.
Q4: Can trading firms or pure commercial importers apply for EMI status?
No, The facility is restricted strictly to manufacturer-importers or entities utilizing registered job workers for manufacturing.
Q5: What are the due dates for paying deferred customs duty?
For Bills of Entry returned from the 1st to the last day of any month (except March), duties are due by the 1st day of the following month. For goods cleared between March 1st and March 31st, payment must be made on or before March 31st.
Q6: Does the deferred payment facility apply to Import IGST?
Yes, Deferment applies to the total customs import duty assessed on the Bill of Entry, including Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), and Integrated GST (IGST).
Q7: How do approved EMIs claim duty deferment on shipments?
While filing the Bill of Entry on ICEGATE, select Flag “D” under the Payment Method column. The authorized nodal person then authenticates the transaction using an OTP sent to their registered contact details.
Q8: Do existing AEO-T1 certificate holders need to meet EMI criteria?
Yes, Existing AEO-T1 entities (including MSMEs) can apply for the EMI facility provided they meet all eligibility criteria outlined in Circular No. 08/2026-Customs.
Q9: Is a Bank Guarantee (BG) or physical document submission required?
No, No Bank Guarantee or physical paperwork is required. The entire application process is fully digital via the official AEO portal (www.aeoindia.gov.in).
Q10: What documents are required to apply for EMI status?
Applicants must upload IEC, PAN, GST Certificates, UDYAM registration (if MSME), GSTR-9C/ITC-04 forms, audited financial statements for 2 years, lease/title deeds of premises, and a CA Solvency Certificate (Appendix-III) with a valid UDIN.
Q11: Can non-manufacturers who use job workers qualify for the EMI scheme?
Yes. Non-manufacturer importers qualify if they send inputs or capital goods without payment of tax to a job worker under Section 143 of the CGST Act. Both the importer and job worker must have active GSTINs, the job worker’s GSTIN must specify “factory/manufacturing” in Form REG-01, and the last two half-yearly GSTR ITC-04 returns must be filed.
Q12: What happens if an applicant has multiple active GSTINs under the same PAN?
If an applicant operates multiple active GSTINs under a single PAN, at least one active GSTIN must explicitly declare its business activity as “factory/manufacturing” in FORM GST REG-01. The aggregate turnover across all active GSTINs combined must exceed ₹5 Crore for the preceding financial year.
Q13: Are there any restrictions regarding pending tax litigation or prosecution?
Yes. The applicant, proprietor, partners, or board of directors must have no pending prosecution proceedings or past convictions/arrests under the Customs Act, CGST/SGST Act, Central Excise Act, Finance Act (Service Tax), or any other existing law.
Q14: Can an applicant re-apply if a previous EMI application was rejected?
An applicant can re-apply if the earlier rejection was due to minor procedural deficiencies. However, if a previous application was rejected or suspended because the applicant submitted false declarations or forged documents, they are permanently disqualified from applying under the EMI scheme.
Q15: Is there an official application fee or bond requirement for applying under EMI?
No. The entire application process on the AEO portal (www.aeoindia.gov.in) is completely free of cost, and approved importers are not required to execute a financial bond or provide bank guarantees to avail of duty deferment.
