CBIC to step up outreach as EMI scheme struggles to attract manufacturers
The CBIC will conduct outreach programs to encourage EMI scheme adoption. Data and documentation requirements for the scheme have been substantially reduced. This aims to improve cash flow management for eligible manufacturers. The scheme offers deferred Customs duty payment for imported goods. These changes seek to boost domestic manufacturing and ease business operations.
As the Eligible Manufacturer Importer (EMI) scheme struggles to attract manufacturers, the Central Board of Indirect Taxes and Customs (CBIC) plans to ramp up outreach efforts and support small and medium-sized enterprises (MSMEs) to encourage their participation, a senior official revealed on Wednesday.
Since the scheme's launch on April 1, only a fraction of businesses, less than 1,000, have opted for the EMI scheme. To address this, the CBIC has significantly simplified the data and documentation requirements for businesses enrolling under the scheme, starting from September 15.
The CBIC chief acknowledged that the scheme has not performed as anticipated, but with simplified documentation and outreach programs highlighting its benefits, they aim to boost its acceptance. The 2026-27 Union Budget introduced a new facilitation measure for trusted manufacturers, allowing Eligible Manufacturer Importers (EMIs) to defer the payment of Customs duty to a monthly schedule, helping them manage cash flows and working capital more efficiently. This facility is available from April 1, 2026, to March 31, 2028.
Following concerns from the trade community regarding the data and documentation requirements for the EMI scheme, the CBIC has eased the process. The number of documents required for filing applications has been reduced from 10 to 3, and the list of necessary data has been streamlined. With these changes, eligible importers can now apply for enrollment in the scheme with significantly reduced documentation, while still allowing for verification through appropriate backend IT systems.
The EMI scheme aims to enhance ease of doing business, strengthen compliance culture, and provide a boost to domestic manufacturing.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
