Eligible Manufacturer Importer (EMI) Scheme

Why in News?

Recently, as announced in the Union Budget 2026–27, India has announced a deferred Customs Duty payment facility.

• EMI Scheme is a Trust-Based Customs Facilitation Scheme.
• Aim – This measure enables Eligible Manufacturer Importers (EMIs) to clear imported goods without having to pay Customs duty at the time of clearance.

• Launched By – Central Board of Indirect Taxes and Customs.
• Under – Section 47(1) of Customs Act, 1962.
• Governed By – Deferred Payment of Import Duty Rules, 2016.
• It Promote compliance under the Authorised Economic Operator (AEO) framework.

AEO (Authorised Economic Operator) is a trade facilitation programme implemented by the Central Board of Indirect Taxes and Customs under the World Customs Organization framework.

• Key Features – Allows – Clearance of imported goods without upfront customs duty payment for certain manufacturers, eases pressure on their working capital.
• Encourages progression to AEO-T2/AEO-T3 status.
• Eligibility Criteria – Strong Customs and GST compliance, turnover, sound financial standing and a clean past track record.
• Existing AEO-T1 entities (including MSMEs) are eligible if conditions are met.
• Validity – 1 April 2026 – 31 March 2028
• Applications open from 1 March 2026 (via AEO portal)
• New category – The scheme creates a new category, Eligible Manufacturer Importers (EMIs), with duty payable on a monthly basis instead of at import.
• Benefits – Improve working capital and liquidity.
• Encourage domestic production and exports.
• Enhance Ease of Doing Business.

Quick Facts

• AEO three Tiers – AEO T1, AEO T2, AEO T3, where AEO T3 is the highest level of accreditation for Exporters and Importers.
• There is one more category of AEO- LO that covers all other entities in the supply chain other than the importers and exporters.

References

1. PIB | Eligible Manufacturer Importer (EMI) Scheme
2. ET | Eligible Manufacturer Importer (EMI) Scheme