CBIC Rolls Out Duty Deferment Scheme for Importers to Improve Cash Flow for Industry

Addressing the gathering, Shri Yogendra Garg highlighted that the EMI Scheme is built on a trust-based compliance framework, aimed at transforming the interface between customs authorities and importers.

In line with the trade facilitation measures announced in the Union Budget 2026–27, the Central Board of Indirect Taxes & Customs (CBIC) on Saturday conducted a high-level outreach programme on the Duty Deferment Scheme for Eligible Manufacturer Importers (EMI), signalling a major reform aimed at easing import processes and improving liquidity for industry.

The hybrid session, held in New Delhi, brought together senior customs officials, industry representatives, and trade bodies to deliberate on the operational framework, benefits, and implementation roadmap of the scheme.

The event was attended by Shri Yogendra Garg, Member (Customs), CBIC; Shri Manish Kumar, Chief Commissioner, Delhi Customs; Shri Sanjay Gupta, Chief Commissioner, Delhi Customs (Preventive) Zone; and Shri Akhil Kumar Khatri, Chief Commissioner, DIC, along with key stakeholders from the manufacturing and trade ecosystem.

Trust-Based Compliance Model to Reduce Delays

Addressing the gathering, Shri Yogendra Garg highlighted that the EMI Scheme is built on a trust-based compliance framework, aimed at transforming the interface between customs authorities and importers.

“The scheme is designed to enable faster clearances, reduce dwell time, and minimise the trust deficit between the administration and trade,” he said, adding that the initiative aligns with India’s broader goal of improving ease of doing business and enhancing supply chain efficiency.

He encouraged industry participants to actively adopt the scheme and provide feedback to further refine its implementation.

Boost to Working Capital and Import Planning

Shri Manish Kumar, Chief Commissioner, Delhi Customs, underscored the scheme’s potential to significantly improve the commercial viability of manufacturer importers.

By allowing deferment of customs duty payments, the scheme enables businesses to:

• Optimise working capital utilisation

• Improve cash flow management

• Plan imports more efficiently

• Reduce financial pressure during procurement cycles

Industry experts note that for sectors dependent on high-value imports—such as electronics, machinery, and chemicals—the scheme could result in substantial liquidity benefits.

Interactive Industry Engagement

The outreach programme featured a detailed technical presentation on the EMI Scheme, followed by an interactive session where stakeholders raised queries related to eligibility, compliance requirements, and operational procedures.

Officials clarified key aspects of the scheme, including:

• Eligibility criteria for manufacturer importers

• Documentation and approval processes

• Timelines for duty payment deferment

• Compliance safeguards to ensure accountability

Participants from trade bodies and industry associations welcomed the initiative, noting that it could reduce procedural bottlenecks and align India’s customs practices with global standards.

Key Reform Under Budget 2026–27

The Duty Deferment Scheme forms part of a broader set of trade facilitation reforms announced in the Union Budget 2026–27, aimed at:

• Reducing transaction costs for businesses

• Enhancing competitiveness of Indian manufacturing

• Streamlining customs processes through digitisation and trust-based systems

The move is also expected to complement initiatives such as faceless assessment, risk-based inspections, and paperless customs, which have already been introduced in recent years.

Towards Faster, Efficient Trade Ecosystem

With global supply chains becoming increasingly dynamic, timely customs clearance and efficient capital management have emerged as critical factors for industrial growth.

Officials indicated that the EMI Scheme could play a key role in:

• Reducing cargo dwell time at ports

• Improving turnaround times for imports

• Encouraging domestic manufacturing under “Make in India”

The CBIC reiterated its commitment to continued engagement with stakeholders and assured that feedback from industry will be incorporated to ensure smooth rollout and scalability of the scheme.

As India aims to strengthen its position in global trade and manufacturing, initiatives like the Duty Deferment Scheme signal a shift towards more facilitative, transparent, and industry-friendly customs administration.