The Central Board of Indirect Taxes and Customs (CBIC) has announced that a new EMI (Equated Monthly Instalment) scheme for deferred customs duty payments will come into effect on April 1, 2026. Under this initiative, approved Eligible Manufacturer Importers (EMIs) will be allowed to clear imported goods without paying customs duty upfront, and instead pay the duty on a monthly basis in line with the Deferred Payment of Import Duty Rules, 2016.
The deferred payment facility is part of broader reforms introduced in the Union Budget 2026-27 to improve ease of doing business, strengthen compliance culture, and support domestic manufacturing growth. To qualify, importers must meet prescribed criteria related to Customs and GST compliance, turnover, financial standing, and past track record. Existing Authorised Economic Operator (AEO-T1) entities — including MSMEs — that meet these conditions are also eligible.
The scheme will be available from 1 April 2026 through 31 March 2028, giving compliant manufacturers more flexibility in managing cash flows and working capital. Approved EMIs are also expected to progressively attain higher AEO statuses (T2/T3), unlocking further facilitation benefits such as faster clearances and priority treatment under the AEO programme.
Applications for the EMI scheme opened on March 1, 2026 via the official AEO portal, enabling manufacturers to begin the process ahead of its implementation. Officials said the reform will help attract wider participation in trusted Customs frameworks and bolster India’s manufacturing-led growth strategy.
