CBIC cuts paperwork in deferred customs duty scheme to boost MSME participation and ease cash flow
The CBIC is simplifying its deferred customs duty scheme for manufacturers. Paperwork has been reduced from ten documents down to just three. Outreach programs will now handhold MSMEs to encourage scheme adoption. This initiative aims to ease cash flow and working capital for businesses. The scheme allows duty payments in monthly installments until March 2028.
New Delhi: The central board of indirect taxes and customs (CBIC) is streamlining paperwork and launching outreach initiatives to encourage more manufacturers, especially small and medium enterprises (MSMEs), to utilize its deferred customs duty scheme, following a disappointing enrollment of fewer than 1,000 businesses since its April launch.
The board has reduced the required documents under the Eligible Manufacturer Importer (EMI) scheme from 10 to three, effective September 15, and simplified the data submission process. The CBIC will now provide outreach programs and support to MSMEs under the scheme, according to a senior CBIC official. The scheme, introduced on April 1 under the 2026-27 Union Budget, allows eligible manufacturers to clear imported goods without immediate customs duty payments and pay in monthly installments to alleviate cash flow and working capital constraints.
The changes in documentation were prompted by feedback from trade seeking to reduce compliance burdens. The CBIC stated that relevant information can now be verified through backend IT systems, eliminating the need for manual document submission. This renewed push for the scheme comes as the customs administration aims to transition towards a more technologically-driven, risk-based system.
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