India's New Import Rules Effective April 1
India's Central Board of Indirect Taxes and Customs (CBIC) has issued new guidelines for the Eligible Manufacturer Importer Scheme, which will take effect on April 1, 2026. The changes could impact supply chains and the cost of goods for merchants who source imported products.
The core change is the introduction of a deferred payment system for customs duties, a measure announced by Finance Minister Nirmala Sitharaman in the Union Budget for 2026-27. Under this new system, a category of "Eligible Manufacturer Importers" (EMIs) can clear imported goods from ports without immediate payment of customs duty, helping to ease working capital pressure. Instead of paying at the point of clearance, eligible businesses can pay the accumulated duties on a monthly basis, as laid out in the Deferred Payment of Import Duty Rules, 2016. This facility is designed to improve cash flow for manufacturers who rely on imported components and raw materials for their production lines. Eligibility for the EMI scheme is not automatic and is designed as a trust-based measure. Applicants must meet specific criteria related to their compliance history under Customs and GST laws, demonstrate financial stability, and meet minimum turnover requirements. The scheme is also open to existing Authorised Economic Operator (AEO)-T1 entities, including MSMEs, provided they meet the conditions. This initiative will be in effect for a two-year period, from April 1, 2026, to March 31, 2028. During this time, the government expects approved EMIs to work towards achieving higher AEO-T2 or AEO-T3 status, which offers even greater facilitation and faster clearances. The long-term goal is to bring more companies into a framework of trusted and compliant traders. Applications for the EMI scheme were opened for submission online starting March 1, 2026, through the official AEO India portal. This reform is part of a broader government strategy to boost domestic manufacturing, improve the ease of doing business, and encourage wider participation in the AEO program. It is important to note this scheme focuses on payment deferral, not duty rates themselves. However, the Union Budget 2026 also included separate changes to Basic Customs Duty (BCD) for various items and the lapsing of 22 exemptions, which could independently affect the final cost of some imported goods starting April 1, 2026.
