News: Recently, the Central Board of Indirect Taxes and Customs issued detailed eligibility conditions and operational guidelines for the EMI scheme.
About Eligible Manufacturer Importers (EMIs) Scheme
- The EMI Scheme is a trust-based Customs facilitation scheme that allows deferred payment of Customs duty.
- Launched By: The scheme is launched by the Central Board of Indirect Taxes and Customs under Section 47(1) of the Customs Act, 1962.
- Aim: The scheme enables Eligible Manufacturer Importers to clear imported goods without paying Customs duty at the time of clearance and promotes compliance under the Authorised Economic Operator (AEO) framework.
- Implementation period: The facility will remain valid from 1 April 2026 to 31 March 2028.
- Eligibility criteria
- The importer must have strong Customs and GST compliance, sound financial standing, adequate turnover, and a clean past track record.
- Existing Authorised Economic Operator (AEO)-T1 entities, including MSMEs, are eligible if they meet the prescribed conditions.
- Key features
- Deferred payment facility: The scheme allows clearance of imported goods without upfront Customs duty payment, and duty is payable monthly under the Deferred Payment of Import Duty Rules, 2016.
- Progression to higher AEO status: Approved Eligible Manufacturer Importers (EMIs) are encouraged to obtain AEO-T2 or AEO-T3 status for enhanced facilitation.
- Creation of new category: The scheme creates a new category called Eligible Manufacturer Importers with duty payable on a monthly basis.
About Authorised Economic Operator (AEO) Framework
- International basis: The AEO programme operates under the World Customs Organisation SAFE Framework of Standards, adopted in June 2005 to secure the international supply chain.
- Nature of programme: It is a voluntary compliance programme that builds close partnership between Customs and trade stakeholders in the international supply chain.
- Launch and Implementation in India: It was launched by the Central Board of Indirect Taxes and Customs as a pilot in 2011, revised in 2016, and is implemented by the Directorate of International Customs.
- The Authorised Economic Operator framework has four categories, which are explained below:
- AEO-T1 (Authorised Economic Operator – Tier 1): This is the foundational level of certification and is granted on the basis of review of submitted documents.
- AEO-T2 (Authorised Economic Operator – Tier 2): This is the intermediate level of certification and requires document verification along with a physical site visit by Customs authorities.
- AEO-T3 (Authorised Economic Operator – Tier 3): This is the highest level of certification and is granted to businesses that have held AEO-T2 status for at least two years or have AEO-certified partners.
- AEO-LO (Authorised Economic Operator – Logistics Operator): This category is meant for logistics operators such as customs brokers, warehouse operators and transporters, who are part of the supply chain other than importers and exporters.
