In line with the Government’s commitment to strengthen the Make in India initiative and enhance ease of doing business, the Central Board of Indirect Taxes and Customs (CBIC), under the Department of Revenue, Ministry of Finance, has released a comprehensive set of Frequently Asked Questions (FAQs) on the Duty Deferment Scheme for Eligible Manufacturer Importers (EMI) for the benefit of trade and industry.
The EMI Scheme has been introduced with the objective of supporting domestic manufacturers by improving cash liquidity, reducing compliance costs, and simplifying customs procedures. Under this scheme, eligible manufacturer-importers are permitted to defer the payment of customs duty on imported goods, thereby eliminating the need for upfront duty payment at the time of import.
Traditionally, importers are required to pay applicable customs duties immediately upon clearance of imported goods. However, the EMI Scheme allows eligible manufacturers to defer this payment for a specified period, enabling them to utilize their financial resources more efficiently for production and business operations. The scheme is particularly beneficial for manufacturing units that rely on imported raw materials, components, or capital goods as inputs in their manufacturing processes.
By enabling deferred duty payments, the EMI Scheme helps improve working capital management and provides liquidity support to manufacturers. This, in turn, contributes to strengthening domestic manufacturing capabilities and enhancing the competitiveness of Indian industry.
To facilitate effective implementation and promote wider adoption of the scheme, CBIC has issued detailed FAQs addressing key aspects of the EMI Scheme. These FAQs provide clarity on important elements such as eligibility criteria for manufacturer-importers, procedural requirements for availing the scheme, operational modalities, compliance obligations, and the mechanism for duty deferment.
The FAQs are designed to act as a practical guidance document for trade and industry stakeholders, helping them better understand the scheme and avail its benefits in a seamless and compliant manner.
The release of these FAQs reflects the Government’s continued focus on improving the regulatory environment for businesses and simplifying customs procedures. Initiatives such as the EMI Scheme are expected to significantly contribute to the Government’s broader objective of promoting manufacturing growth, facilitating trade, and strengthening India’s position as a global manufacturing hub.
Trade and industry stakeholders are encouraged to refer to the FAQs issued by CBIC for detailed guidance on the Duty Deferment Scheme for Eligible Manufacturer Importers (EMI).
The Complete FAQ’s can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/03/Frequently-Asked-Questions-FAQs-on-the-EMI-Scheme-–-For-Trade-Industry.pdf
