CLIENT ADVISORY
Deferred Payment of Customs Duty – New Scheme for Eligible Manufacturer Importers (EMI)
| Circular Reference | Circular No. 08/2026-Customs dated 28th February, 2026 |
| Issued By | CBIC, Department of Revenue, Ministry of Finance |
| Effective Date | Applications from 01.03.2026 | Facility from 01.04.2026 |
| Validity | Till 31st March, 2028 |
1. Background & Purpose
CBIC has vide Notification No. 12/2026-Customs (N.T.) dated 01.02.2026 extended the facility of Deferred Payment of Customs Import Duty (available hitherto only to AEO-accredited entities) to a new class of importers called ‘Eligible Manufacturer Importers’ (EMI). This is governed by the Deferred Payment of Import Duty Rules, 2016, as amended.
The key objective is to expedite Customs clearance of imported goods at Ports/Airports/ICDs, thereby reducing transaction costs and improving ease of doing business for the manufacturing sector.
2. Who Can Apply – Eligibility Criteria
To qualify as an EMI, the applicant must satisfy ALL of the following conditions:
A. Entity Status
- Must be an Importer as defined under Section 2(26) of the Customs Act, 1962; AND
- Must be a Manufacturer as defined under Section 2(72) of CGST Act, 2017; OR
- If not a manufacturer – must be sending inputs/capital goods to a Job Worker under Section 143 of CGST Act without payment of tax.
B. Customs & Trade Credentials
- Valid Importer Exporter Code (IEC) issued by DGFT.
- Must have filed minimum 25 EXIM documents (Bills of Entry/Shipping Bills) in the preceding Financial Year. For MSME applicants, this is relaxed to 10 documents.
C. GST Compliance Requirements
- At least one active GST Registration Certificate under CGST/SGST Act, 2017.
- For manufacturers: At least one active GSTIN must declare ‘factory/manufacturing’ as the nature of business in FORM REG-01 [Col. 16(d) or Col. 20(d)].
- For non-manufacturers (job work route): The relevant GSTIN must have filed the last two half-yearly GSTR ITC-04 returns. The Job Worker must also have an active GSTIN with ‘factory/manufacturing’ declared in REG-01.
- All pending GSTR-3B returns for all active GSTINs must be filed as on the date of application.
- No instances of GST collected from customers but not deposited with the Government.
D. Financial Thresholds
- Annual aggregate turnover of all GSTINs under the same PAN must exceed Rs. 5 Crore in the last Financial Year.
- Applicant must have been in business for at least 2 financial years preceding the date of application.
- Must be financially solvent – not listed as insolvent, in liquidation, or bankrupt. A Chartered Accountant Certificate in prescribed format (Appendix-III) is mandatory.
E. Legal & Compliance Clean Chit
- No instances of Central Excise/Service Tax collected but not deposited.
- Applicant, its proprietor/partners/Directors must not have been arrested or convicted under Customs Act, Central Excise Act, Finance Act (Chapter V), or CGST/SGST Act.
- No pending prosecution proceedings under any of the above laws.
- Earlier application for EMI should not have been rejected on grounds of false information or forged documents.
- Earlier EMI status should not have been suspended on similar grounds.
Note: Existing AEO-T1 entities (including MSMEs) meeting the above criteria are also eligible to apply.
3. How to Apply
- Applications to be submitted electronically on www.aeoindia.gov.in under the tab ‘Eligible Manufacturer Importer’.
- Applications open from 01st March, 2026.
- After scrutiny, the designated officer of Directorate of International Customs (DIC), CBIC will approve the application. No further action required by the EMI after approval.
Documents Required (as per Appendix-II)
| Sr. | Document |
| 1 | IEC Copy |
| 2 | PAN Copy |
| 3 | GST Registration Certificate for each GSTIN under PAN |
| 4 | UDYAM Certificate (for MSME applicants) |
| 5 | GST ITC-04 (if applicable – for job work route) |
| 6 | GSTR-9C evidencing turnover and GST paid for last Financial Year |
| 7 | Chartered Accountant Certificate with UDIN as per prescribed format (Appendix-III) |
| 8 | Audited Financial Statements for the last two Financial Years |
| 9 | Lease/Rent Agreement/Title Deed/Sale Deed/Mutation Record for factory premises |
| 10 | Authorization Letter for Authorized Signatory |
4. How the Facility Works
- Upon approval, a Nodal Person authorized by the EMI obtains ICEGATE login credentials.
- While filing a Bill of Entry, the EMI must indicate flag ‘D’ in the Payment Method Column to avail deferred payment.
- The Nodal Person authenticates the intent via OTP sent to the registered email/mobile. Multiple Bills of Entry can be authenticated at once.
- Customs clearance is provided only after such OTP authentication.
Payment Due Dates (as per Rule 4 of Deferred Payment of Import Duty Rules, 2016)
| Period of Bill of Entry | Due Date for Payment |
| 1st to last day of any month (other than March) | 1st day of the following month |
| 1st to 31st March | 31st March (same year) |
Optional: EMI may also choose to pay before the due date at their convenience.
5. CA Certificate – Key Role for Chartered Accountants
This Circular creates a specific and important compliance role for Chartered Accountants. The following certificates are required from a CA:
- Financial Solvency Certificate: Certifying that the entity has been financially solvent for the last two financial years, is not insolvent/in liquidation/bankruptcy, and net current assets are positive. A detailed financial summary covering Total Assets, Fixed Assets, Liabilities, Net Worth, Current Ratio, Debt-Equity Ratio, Turnover etc. must be provided for two years.
- The certificate must be on CA Firm letterhead, bear a valid UDIN, and be in the prescribed format as per Appendix-III of the Circular.
This is a significant attestation responsibility. CAs must ensure thorough examination of books and records before issuing such certificates.
6. Monitoring & Suspension
- Commissioners of Customs will monitor deferred payment compliance through ICES reports and dashboards.
- Non-payment instances must be reported to DIC, CBIC.
- DIC may suspend/revoke EMI approval if the entity becomes ineligible at any point.
- If false information or forged documents are discovered, approval may be suspended and the entity may be barred from applying in future.
7. Transition to AEO Accreditation
Approved EMIs are expected to use the two-year period (up to 31.03.2028) to obtain AEO T2/T3 accreditation, which will provide them with additional long-term benefits including assured facilitation and priority treatment. CBIC has also announced expansion of existing AEO benefits.
8. Key Takeaways for Clients
| Aspect | Position |
| Who benefits? | Manufacturers/Job Work principals who import raw materials/capital goods regularly |
| Cash flow benefit | Customs duty payment deferred by approximately one month, improving working capital |
| GST pre-requisite | All GSTR-3B returns must be filed and no GST collected-but-not-deposited liability |
| Turnover threshold | Aggregate turnover > Rs. 5 Crore across all GSTINs under same PAN |
| CA Certificate | Mandatory with UDIN – solvency and financial health |
| Application portal | www.aeoindia.gov.in (from 01.03.2026) |
| Helpdesk | emihelpdesk-dic@gov.in | 011-23310014 |
Disclaimer: This advisory is prepared for the benefit of clients and is based on Circular No. 08/2026-Customs dated 28.02.2026 issued by CBIC. It is intended for general information purposes only and should not be construed as professional legal or tax advice for any specific transaction. Clients are advised to consult their advisors for specific guidance.