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Centre launches EMI scheme from March 1: What it means for Indian manufacturers

The government’s new EMI scheme, effective March 1, aims to ease compliance, speed up customs clearances and offer duty deferral benefits to domestic manufacturers.

By Rajasree Roy

Feb 18, 2026 18:37 IST

The Centre has announced a major step to support Indian manufacturers with the launch of the “Eligible Manufacturer–Importer” (EMI) scheme. Introduced by the Central Board of Indirect Taxes and Customs (CBIC), the initiative is designed to ease import-export processes and reduce compliance burdens. The scheme will come into effect from March 1.

CBIC Chairman Vivek Chaturvedi said the draft framework of the EMI scheme will be released in the coming days for consultation. He announced during a media interaction in Mumbai. Industry stakeholders will be invited to review the proposal and provide feedback before the framework is finalised.

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The EMI scheme will begin as a two-year pilot programme. It is expected to benefit manufacturers who do not currently hold Authorised Economic Operator (AEO) certification by offering faster clearances and simplified procedures during the trial period.

Pilot phase, eligibility norms and technology push

Manufacturers enrolling under the EMI scheme must meet specific eligibility conditions. During the two-year pilot phase, participants will be required to obtain full AEO certification. An internal committee is working on the eligibility criteria, and public consultations will help shape the final framework.

The government is positioning the scheme within its broader focus on trust-based governance and technology-driven customs operations. The objective is to increase transparency, cut delays and streamline import-export transactions. By reducing procedural hurdles, businesses are expected to operate more efficiently.

The scheme will also integrate advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) to strengthen customs risk assessment and cargo screening. This approach aims to reduce physical inspections, limit human intervention and enable faster, data-backed decision-making.

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As outlined in the Union Budget 2026–27, eligible manufacturers will receive duty deferral benefits under the EMI scheme, allowing them to postpone tax payments and improve cash flow. The initiative also encourages businesses to progress toward full Tier-3 AEO certification.

Overall, the EMI scheme is expected to simplify trade processes, reduce inspection burdens and enhance financial flexibility for manufacturers, potentially strengthening India’s global trade competitiveness from March 1 onward.

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