CBIC Announces March 1 Launch for Eligible Manufacturer-Importer Scheme
The Central Board of Indirect Taxes and Customs (CBIC) is poised to roll out its proposed Eligible Manufacturer-Importer (EMI) scheme by March 1, with a draft framework anticipated for release within the next five to six days to facilitate stakeholder consultation. This announcement was made by a senior official on Thursday, marking a significant step in the government's customs modernization efforts.
Two-Year Preview Period for Non-AEO Manufacturers
Addressing a media interaction in Mumbai, CBIC Chairman Vivek Chaturvedi detailed that the EMI scheme will be introduced initially for a period of two years. During this time, it will offer eligible manufacturer-importers a "preview" of the benefits available under the new framework. Officials clarified that manufacturers who are not currently Authorised Economic Operators (AEOs) will receive these benefits for the two-year duration, provided they comply with prescribed norms to eventually obtain AEO certification.
Eligibility Criteria and Public Feedback
The government is actively working to finalize the eligibility criteria for the EMI scheme through an internal committee. Detailed contours of the scheme will be shared imminently for public feedback, ensuring transparency and stakeholder involvement in the process. This move aligns with broader administrative reforms aimed at fostering a trust-based and technology-driven customs environment.
Technology-Driven Customs Processes
Chaturvedi emphasized that the EMI scheme is part of a larger push towards leveraging advanced technologies in customs operations. With artificial intelligence and machine learning being increasingly deployed for risk assessment and cargo screening, the new system aims to:
- Reduce physical inspections and human intervention
- Enable faster, data-driven decision-making
- Streamline customs processes for enhanced efficiency
Budget Proposals and Duty Deferral Facility
In the Union Budget 2026-27, the government proposed to provide eligible manufacturer-importers with the same duty deferral facility, which is expected to incentivize them to pursue accreditation as full-fledged Tier 3 AEOs in due course. Additionally, Finance Minister Nirmala Sitharaman has proposed extending the validity period of advance rulings, binding on Customs, from three years to five years. This extension is intended to offer greater certainty and facilitate better business planning for importers and manufacturers.
The introduction of the EMI scheme represents a strategic initiative to modernize India's customs framework, promoting compliance through technology and trust-based administration while supporting economic growth.
