CBIC Circular No. 08/2026-Customs · Effective 1st April 2026

Deferred Duty for
Manufacturers —
Now Within Reach

The Eligible Manufacturer Importer (EMI) Scheme is India's landmark trade facilitation measure. Defer your customs duty to the 1st of the following month — zero interest, zero bank guarantee, zero deposit.

₹862 Cr
Projected annual interest savings for eligible manufacturers
📅
~1 Month
Full calendar month duty deferment with zero interest
🛡️
Zero
No bank guarantee, no security deposit, no interest charges

Scheme valid until 31st March 2028 · Gateway to AEO-T2/T3 accreditation

India's Fulfilment of International Commitments

Deferred duty is not a new concept — it is a globally recognised trade facilitation standard enshrined in the Revised Kyoto Convention (RKC).

India's implementation under the EMI Scheme is grounded in Section 47(1) of the Customs Act, 1962. What makes this landmark is the completeness of its delivery: a full month of deferment with zero interest, just as the RKC mandated.

In short, the EMI scheme puts real working capital back in the hands of manufacturers — without the burden of collateral or financing costs.

4.15
Conditions Specified in Law

RKC requires deferral conditions be clearly codified in national legislation. India's basis: Section 47(1), Customs Act 1962.

4.16
Zero Interest During Deferment

Deferment must be granted without interest charges. The EMI scheme delivers precisely this — no cost of carry during the window.

4.17
Minimum 14-Day Window

RKC sets a 14-day floor. India goes further — offering a full calendar month, with duty due on the 1st of the following month.

Real Capital. Real Impact.

Against India's annual customs duty collection of approximately ₹2.33 lakh crore, an estimated ₹862 crore in annual interest savings is projected to flow to eligible manufacturers.

💰
Reduced Borrowing Costs

Stop borrowing to pay duty the day goods clear. Defer to the 1st, and keep that capital working in your production cycle.

📈
Improved Cash Flow

Predictable monthly duty cycles align with your AP timelines — giving finance teams visibility and control they've never had before.

🏭
Stronger Liquidity

Manufacturers with import-heavy input sourcing benefit the most. More capital on hand means faster procurement and faster production.

The Window Is Open Now

01
1st April 2026
EMI Scheme Goes Live

CBIC Circular No. 08/2026-Customs takes effect. Manufacturer importers across India can now apply for EMI status through aeoindia.gov.in.

02
Ongoing
Monthly Duty Deferment in Operation

Approved EMIs clear goods and defer duty to the 1st of the following month — zero interest, no collateral required.

03
During Validity
Pathway to AEO-T2/T3 Accreditation

The EMI scheme is explicitly designed as a two-year runway — building the compliance track record needed for full AEO accreditation.

04
31st March 2028
Scheme Validity Ends

Every month without deferred duty is a month of unnecessary interest cost. The window closes in March 2028 — act now.

The Application, Simplified

Applying for EMI status involves navigating a detailed eligibility framework spanning business registration, GST compliance, customs footprint, financial solvency, and ICEGATE integration. The Covnentra EMI Tool is purpose-built to guide you through every step.

1
Eligibility Assessment

Evaluate all criteria (A through O) systematically — flags missing elements before you begin.

2
Document Preparation

Guides preparation across Sections A to F of Appendix-II and CA certificate requirements under Appendix-III.

3
Completion Tracking

Tracks status across sections in real time — so nothing slips through before portal submission.

4
Submission-Ready Output

Application is verified and ready for submission on aeoindia.gov.in with confidence.

✦ What the Tool Covers
  • Eligibility criteria A through O — complete assessment
  • Appendix-II · Sections A to F — document checklist
  • Appendix-III · CA Certificate requirements
  • ICEGATE integration verification
  • AEO-T1 fast-track qualification check
  • aeoindia.gov.in portal submission guide

Already an AEO-T1 entity? You may already qualify — the tool will confirm it in minutes.

Scheme Live · Applications Open

Ready to Claim Your Deferred Duty Benefit?

Every month without deferred duty is a month of unnecessary interest cost on your working capital. The Covnentra EMI Application Tool takes the complexity out of the process — guiding you section by section, document by document.

Questions? Reach our advisory team at [email protected]