Deferred Payment of Customs Duty Scheme for Eligible Manufacturer Importers (EMI)

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Dated: 02.03.2026

Deferred Payment of Customs Duty Scheme for Eligible Manufacturer Importers (EMI)

The Government of India, through the Ministry of Finance and the Central Board of Indirect Taxes & Customs (CBIC), has introduced a significant reform to streamline customs clearance processes and support manufacturers and importers. With the issuance of Circular No. 08/2026-Customs dated 28th February 2026, the government has extended the facility of deferred payment of customs duty to Eligible Manufacturer Importers (EMI). This initiative aims to expedite customs clearance and provide financial flexibility to manufacturers and importers, fostering ease of doing business in India.

What is the Deferred Payment of Customs Duty Scheme? 

The Deferred Payment of Customs Duty Scheme allows eligible importers to defer the payment of customs duties on imported goods, enabling faster clearance at ports, airports, and Inland Container Depots (ICDs). This facility is governed by the Deferred Payment of Import Duty Rules, 2016, as amended, and will be available to eligible EMIs starting from 1st April 2026 until 31st March 2028.

Benefits of the EMI Scheme 

Expedited Customs Clearance: The deferred payment facility ensures faster clearance of imported goods, reducing delays and improving operational efficiency.
Financial Flexibility: EMIs can defer their customs duty payments, allowing them to better manage cash flow and allocate resources effectively.
Enhanced Accreditation Opportunities: Approved EMIs are expected to obtain AEO T2/T3 accreditations within the scheme’s duration, enabling them to access assured facilitation, priority treatment, and other benefits associated with AEO T2/T3 status.
Expanded Benefits for AEO Entities: Existing AEO-accredited entities will also see an expansion of their benefits under this scheme.

Eligibility Criteria for EMI

To qualify as an Eligible Manufacturer Importer, applicants must meet the following criteria:

Manufacturer and Importer Status: The applicant must be an importer under Section 2(26) of the Customs Act, 1962, and a manufacturer under Section 2(72) of the CGST Act. Non-manufacturers can qualify if they send inputs/capital goods to job workers under Section 143 of the CGST Act.
Importer Exporter Code (IEC): A valid IEC issued by DGFT is mandatory.
Customs Footprint: Non-MSME applicants must have filed at least 25 EXIM documents in the previous financial year, while MSMEs need to file a minimum of 10.
GST Registration: At least one active GST Registration Certificate is required.
Manufacturing Declaration: Manufacturers must declare their business activity as “factory/manufacturing” in FORM REG-01 of their GSTIN.
Turnover Threshold: The annual aggregate turnover of all GSTINs under the applicant’s PAN must exceed ₹5 crore in the last financial year.
Business Continuity: The applicant must have been operational for at least two financial years preceding the application date.
GST Compliance: All pending GSTR-3B returns must be filed.
No Tax Collection Defaults: The applicant must not have instances of GST, Central Excise, or Service Tax collected but not deposited with the government.
Financial Solvency: The applicant must be financially solvent and not undergoing insolvency, liquidation, or bankruptcy proceedings.
No Arrests or Convictions: The applicant or its key personnel must not have been arrested or convicted under relevant laws.
No Pending Prosecution: There must be no pending prosecution against the applicant or its key personnel.
No Past Rejections or Suspensions: Previous applications must not have been rejected or suspended due to false information or forged documents.

Application Process for EMI Approval 

Eligible Manufacturer Importers can apply for the deferred payment facility starting 1st March 2026 through the official web portal www.aeoindia.gov.in. The application process involves:

Registration and Submission: Applicants must fill out the prescribed form (Appendix-I) and upload required documents (Appendix-II and Appendix-III).
Approval: The Directorate of International Customs (DIC), CBIC, will scrutinize the application and approve eligible applicants as EMIs.
Customs System Update: Upon approval, the designated officer will update the Customs Automated System to enable the deferred payment facility.
ICEGATE Login: The EMI’s authorized nodal person must obtain an ICEGATE login and authenticate customs transactions using an OTP.

Payment Process for Deferred Customs Duty 

Once approved, EMIs can indicate their intent to make deferred payments by using the flag “D” in the Payment Method Column of the Bill of Entry. The nodal person must authenticate the intent via ICEGATE using an OTP. The due dates for payment are as follows:

For goods cleared between the 1st and last day of any month (except March), payment is due by the 1st day of the following month.
For goods cleared between the 1st and 31st of March, payment is due by 31st March.

EMIs also have the option to pay customs duties before the due date for added convenience.

Monitoring and Compliance 

Principal Commissioners/Commissioners of Customs will monitor the deferred payment facility at their respective stations to ensure timely payment of duties. Any instances of non-payment will be reported to the DIC, CBIC, which may suspend or revoke EMI approval if the importer becomes ineligible.

Conclusion

The extension of the Deferred Payment of Customs Duty benefits to Eligible Manufacturer Importers is a progressive step by the Government of India to enhance ease of doing business and support manufacturers and importers. By providing financial flexibility and streamlining customs clearance, this scheme is expected to boost trade efficiency and encourage compliance with regulatory requirements. Eligible businesses should take advantage of this opportunity to optimize their operations and benefit from the associated advantages of AEO accreditation.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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Source: CBIC, Ministry of Finance, Govt. of India

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