New Delhi: The Centre has announced a major reform aimed at easing customs processes for domestic manufacturers. The Central Board of Indirect Taxes and Customs (CBIC) will roll out the new Eligible Manufacturer–Importer (EMI) Scheme from March 1, offering faster clearances, duty deferral benefits, and simplified compliance procedures.
The EMI Scheme will initially operate on a pilot basis for two years. During this period, manufacturers who are not yet certified as Authorised Economic Operators (AEO) can enroll and enjoy provisional benefits.
However, participating firms will be required to obtain full AEO certification within the pilot timeframe. An internal committee is currently working on defining eligibility criteria, and a draft framework is expected to be released shortly for stakeholder consultation.
More information on customs reforms and AEO certification is available on the official CBIC portal at https://www.cbic.gov.in and the government’s information platform https://pib.gov.in.
Duty Deferral to Improve Cash Flow
One of the most significant advantages of the EMI Scheme is the provision for duty deferral. Eligible manufacturers will be allowed to delay payment of customs duties, giving them improved liquidity and working capital flexibility.
This measure is expected to benefit exporters and large-scale manufacturers who rely heavily on imported raw materials and components. By easing immediate tax burdens, businesses can reinvest funds into production, technology upgrades, and expansion plans.
Officials indicated that the scheme also aims to encourage companies to progress toward higher-tier AEO certification, particularly Tier-3 status, which offers enhanced trade facilitation benefits.
Technology-Driven Customs Processes
The EMI Scheme will leverage advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) to streamline customs assessments. These tools will assist in risk profiling, cargo screening, and data analysis.
By adopting automated and data-driven inspection systems, customs authorities intend to minimize human intervention and reduce delays at ports and airports. This move is expected to make clearance processes more transparent and predictable.
Industry stakeholders have welcomed the reform, noting that digital integration can significantly cut down transaction time and compliance costs.
Strengthening India’s Trade Ecosystem
The government views the EMI Scheme as a step toward strengthening India’s manufacturing and export ecosystem. By reducing inspection frequency and paperwork requirements, the initiative aims to create a more efficient trade environment.
Manufacturers enrolling under the scheme must meet specific operational and compliance standards. Authorities have assured that consultations with industry bodies will help finalize a practical and inclusive framework.
With the scheme set to take effect from March 1, businesses are preparing to evaluate eligibility and align internal systems with the new norms.
What It Means for Manufacturers
The EMI Scheme represents a shift toward facilitative customs governance. Faster approvals, fewer inspections, and deferred duty payments are expected to provide measurable relief to manufacturers.
For small and mid-sized enterprises lacking AEO certification, the scheme offers a transitional pathway into India’s trusted trade framework. Over the long term, policymakers hope the initiative will enhance industrial productivity and reinforce India’s position in global supply chains.
As implementation begins, the coming months will determine how effectively the EMI Scheme transforms customs operations and boosts manufacturing growth.