Less Than 1,000 Enrolled In Deferred Customs Duty Payment Scheme Since Apr; CBIC To Handhold MSMEs

The Central Board of Indirect Taxes and Customs (CBIC) will conduct outreach programmes and handhold MSMEs to encourage them to opt for the Eligible Manufacturer Importer (EMI) scheme, a senior official said on Wednesday.

With less than 1,000 businesses opting for the EMI scheme since its launch on April 1, the CBIC, effective September 15, "substantially reduced" the data and documentation requirements for businesses who enrol under the scheme.

"The scheme has not taken off the way we had envisaged. We will conduct outreach programmes on the benefits of the scheme and with simplified documentation, we hope the EMI scheme will gain greater acceptability," an official said.

The 2026-27 Union Budget had introduced a new facilitation measure for trusted manufacturers by enabling the facility of deferred payment of Customs duty to a new category of importers called Eligible Manufacturer Importers (EMIs).

Under this, EMIs would be able to clear imported goods without paying Customs duty at the time of clearance. Instead, the applicable duty can be paid on a monthly basis as prescribed under the Deferred Payment of Import Duty Rules, 2016, helping manufacturers better manage cash flows and working capital. The facility is available from April 1, 2026, till March 31, 2028.

Earlier this month, the CBIC had said it has received representations from the trade seeking rationalisation of the data and documentary requirements prescribed for filing applications under the EMI scheme.

Following this, the CBIC issued a circular saying that the number of documents to be uploaded by an applicant has been reduced from 10 to 3 in the revised application format.

Also, the list of data that is required to be submitted has been cut down to ease the process of filing applications.

"With these changes, the data and documentary requirements for a prospective EMI applicant stand substantially reduced, while facilitating verification of the relevant particulars through appropriate backend IT systems," the CBIC said.

From September 15 onwards, eligible importers can apply for enrolment under the scheme with the modified documentation requirement, the CBIC said.

The EMI scheme is aimed at improving ease of doing business, strengthening the compliance culture and providing a boost to domestic manufacturing.