CBIC Simplifies EMI Scheme Documentation: What Manufacturer-Importers Need to Know

If You’re a Manufacturer Importing Inputs Under Deferred Duty Payment, This Change Is Worth Five Minutes of Your Time

If your business pays customs duty on imported raw materials, components, or capital goods and has been exploring — or already uses — deferred payment of import duty under the Eligible Manufacturer Importer (EMI) Scheme, the Central Board of Indirect Taxes and Customs (CBIC) has just made your life a little easier. On 3rd September 2026, CBIC issued Circular No. 39/2026-Customs, cutting down the mountain of paperwork that manufacturer-importers previously had to submit to enroll under the scheme.

This isn’t a change to who is eligible or what the benefit is. It’s a change to how much you need to prove it — and that distinction matters, because a scheme that offers real cash-flow relief is only useful if applying for it doesn’t become a compliance project in itself.

Here’s what actually changed, who it affects, and what you should do before the revised process kicks in on 15th September 2026.

Quick Take: What Manufacturer-Importers Need to Know

• CBIC has amended Circular No. 08/2026-Customs dated 28.02.2026, which governs the EMI Scheme, through Circular No. 39/2026-Customs dated 03.09.2026.
• The EMI Scheme allows eligible manufacturer-importers to defer payment of customs import duty under the proviso to Section 47(1) of the Customs Act, 1962.
• The number of data elements required in the application form (Appendix-I) has been substantially reduced.
• The number of documents to be uploaded (Appendix-II) has dropped from 10 documents to just 3.
• Documents no longer required include copies of IEC, PAN, GST registration certificates, GSTR ITC-04 returns, GSTR-9C, two years of audited financial statements, and premises ownership/lease documents.
• Three requirements continue: the UDYAM certificate (if MSME status is claimed), a Chartered Accountant’s certificate bearing a UDIN, and an authorization letter for the signatory.
• The Chartered Accountant’s certificate format (Appendix-III) has been revised to require the CA to give reasons where net worth or net current assets are negative.
• Verification of data such as GSTIN status, turnover, and GST payment history will now happen through backend IT systems rather than manual document uploads.
• Eligible importers can apply for enrollment under the revised, simplified format from 15.09.2026.

What Does the New CBIC Circular Actually Say?

Circular No. 39/2026-Customs is issued under file reference F. No. 450/81/2016-Cus IV by the Customs Policy Wing of CBIC, and is signed by Under Secretary Indrajit Panda. It amends the earlier Circular No. 08/2026-Customs dated 28.02.2026, which itself was issued in pursuance of Notification No. 12/2026-Customs (N.T.) dated 01.02.2026 — the notification that originally extended the deferred customs duty payment facility to Eligible Manufacturer Importers.

The trigger for this amendment was straightforward: CBIC received representations from trade bodies asking for the data and documentary burden under the EMI Scheme to be rationalized. The Board examined the matter and concluded that the application process could be simplified without compromising the government’s ability to verify applicant eligibility — largely because much of the previously self-declared data (GST filing status, turnover, ITC-04 particulars, and so on) can now be cross-checked through backend systems instead of being manually uploaded by the applicant.

What Has Changed?

The amendment operates on three fronts: the application form itself (Appendix-I), the list of documents to upload (Appendix-II), and the Chartered Accountant certificate format (Appendix-III).

Appendix-I (Application Form): A number of data fields have been removed from what applicants must declare, including details of EXIM documents filed in the previous financial year, GSTIN status, declaration of manufacturing activity under FORM GST REG-01, GSTR-3B filing status, aggregate turnover and GST payment history, date of commencement of business or GST registration, ITC-04 filing particulars, details of factory or manufacturing premises, property holding rights, book value of plant and machinery, details of major raw materials and finished goods with HSN codes, and particulars relating to job workers.

Appendix-II (Documents to be Uploaded): This is where the most visible simplification sits. Previously ten supporting documents were required; now only three remain mandatory.

Appendix-III (CA Certificate Format): The Chartered Accountant’s certificate has been revised to specifically require the CA to state reasons wherever the applicant’s net worth or net current assets are found to be negative — a targeted addition rather than a wholesale rewrite.

Before vs Now

Why Is This Important for Manufacturer-Importers?

For most manufacturer-importers, the EMI Scheme itself is attractive: deferring customs duty payment under Section 47(1) improves working capital and cash-flow timing, particularly for businesses that import inputs in bulk or on a recurring basis. The problem, in practice, has often been the application overhead — assembling audited financials, ownership documents, GST returns and ITC-04 filings, formatting them to portal specifications, and getting everything cleared in one go.

By cutting the document list from ten to three and moving much of the verification to backend systems, CBIC has removed a meaningful chunk of that friction. This matters most for:

• Businesses that have been hesitant to apply because of the documentation load
• Companies actively assembling an application right now, who should hold off submitting the old-format paperwork and wait for the revised process
• Manufacturer-importers who are also AEO T1 accredited, since the application form specifically asks whether the applicant holds AEO T1 status and requests the certificate number — accreditation may support a smoother review

Who Will Be Affected?

Manufacturer-importers who may benefit:

• Businesses that qualify as manufacturers under Section 2(72) of the CGST Act, 2017
• Companies planning to apply for EMI status for the first time
• MSME-registered importers, who retain a lighter documentation path via the UDYAM certificate
• Companies with straightforward, positive financials that will find the revised CA certificate process quick to obtain

Manufacturer-importers who need to plan carefully:

• Applicants with negative net worth or negative net current assets, since the CA certificate must now specifically explain the reasons — this needs proper preparation with your Chartered Accountant rather than a last-minute certificate
• Importers who send inputs or capital goods to job workers under Section 143 of the CGST Act, since the application form still requires GSTIN-wise disclosure of job-work arrangements

Businesses likely unaffected:

• Pure traders/importers who do not meet the “manufacturer” definition under Section 2(72) of the CGST Act and are not otherwise eligible for the scheme
• Businesses not intending to use deferred duty payment under Section 47(1) at all

Eligibility and Conditions

Based on the application form (Appendix-I) as it stands after this amendment, applicants are still expected to establish:

• A valid Importer Exporter Code (IEC) and PAN
• Manufacturer status under Section 2(72) of the CGST Act, 2017, with at least one active GSTIN declaring “factory/manufacture” as the nature of activity in the relevant field of FORM GST REG-01
• No liability for GST collected from customers but not deposited with the government
• No arrest, conviction, or pending prosecution under the Customs Act 1962, Central Excise Act 1944, Chapter V of the Finance Act 1994, or the CGST/SGST Act 2017
• Financial solvency for the preceding two financial years, certified by a Chartered Accountant
• Where applicable, disclosure of any previous EMI application and its status (suspended, rejected, or returned)

Important Dates and Deadlines

Exporter/Importer Tip: If you were preparing your EMI application under the old ten-document format, it’s worth pausing until 15th September rather than submitting under the outgoing requirements — you may end up assembling documents (like audited financial statements or premises ownership proof) that are no longer needed.

Impact on Advance Authorisation, EPCG, and Other DGFT Schemes

This circular is issued under the Customs Act, 1962, and relates specifically to the EMI Scheme’s deferred duty payment mechanism — it does not amend the Foreign Trade Policy, Advance Authorisation, EPCG, RoDTEP, DFIA, or other DGFT schemes. Businesses holding Advance Authorisation or EPCG licences and separately applying for EMI status should treat this as a standalone documentation simplification for the customs deferred-payment facility, not a change to their DGFT scheme obligations. If your business uses both an EMI enrollment and a DGFT authorisation, the two should continue to be tracked and complied with independently.

Practical Example: How the Simplified Process Could Play Out

Suppose a manufacturer importing plastic granules and machine components applied for EMI status in June 2026, under the original Circular 08/2026 framework. At that stage, the company had to compile ten documents — including two years of audited financials, GST registration certificates, IEC and PAN copies, GSTR ITC-04 returns, GSTR-9C, and lease documents for its factory premises — alongside a lengthy data-heavy application form.

Under the revised process effective 15.09.2026, the same company would only need to upload three documents: a UDYAM certificate (since it is MSME-registered), a CA certificate with UDIN following the new Appendix-III format, and an authorization letter for its signatory. Data such as GST filing status and turnover, which previously had to be manually entered and cross-verified, would instead be checked through backend systems linked to GST and Customs databases.

(Figures and scenario above are illustrative only, based on the framework described in the circular.)

What Should Manufacturer-Importers Do Now?

☐ Confirm whether your business qualifies as a “manufacturer” under Section 2(72) of the CGST Act, 2017 ☐ Check whether at least one of your GSTINs declares “factory/manufacture” activity in FORM GST REG-01 ☐ If MSME, keep your UDYAM Registration Certificate ready ☐ Engage your Chartered Accountant early to prepare the revised Appendix-III certificate, especially if net worth or net current assets require explanation ☐ Prepare the authorization letter for your designated signatory ☐ Hold off submitting under the old ten-document format if you haven’t applied yet ☐ Plan to submit your EMI application on or after 15.09.2026 ☐ If you already hold AEO T1 accreditation, have your certificate number ready — the form specifically asks for it ☐ Review any job-work arrangements involving imported inputs/capital goods, since GSTIN-wise disclosure is still required ☐ Consult a DGFT/Customs professional if your financials show negative net worth or negative net current assets

Common Mistakes to Avoid

• Assuming the old documentation list still applies after 15.09.2026 — submitting unnecessary documents wastes time without adding value
• Treating the CA certificate as a formality — the revised format specifically requires reasons for negative net worth/net current assets, and a generic certificate may not meet the prescribed format
• Ignoring the manufacturer-status requirement — Section 2(72) CGST Act eligibility, and the GST REG-01 declaration, remain foundational conditions that reduced paperwork does not remove
• Overlooking job-work disclosures — even under the simplified form, GSTIN-wise job-work details must still be furnished where applicable
• Assuming this affects DGFT schemes — this circular is Customs-specific and does not alter Advance Authorisation, EPCG, or other FTP-linked benefits

FAQs

1. What is the EMI Scheme under CBIC? The Eligible Manufacturer Importer (EMI) Scheme allows qualifying manufacturer-importers to defer payment of customs import duty under the proviso to Section 47(1) of the Customs Act, 1962, easing cash-flow pressure at the time of import clearance.

2. What has changed under CBIC Circular No. 39/2026-Customs? The circular reduces the data elements required in the EMI application form and cuts the number of documents to be uploaded from ten to three, while also revising the Chartered Accountant certificate format.

3. From when does the revised documentation apply? Eligible importers can apply for enrollment under the simplified format from 15th September 2026.

4. Which documents are no longer required? Copies of IEC, PAN, GST registration certificates, GSTR ITC-04 returns, GSTR-9C, audited financial statements for the preceding two financial years, and documents relating to ownership, lease, or rental of premises are no longer required to be uploaded.

5. Which documents are still required? The UDYAM Registration Certificate (where MSME status is claimed), a Chartered Accountant’s certificate bearing a UDIN in the prescribed format, and an authorization letter for the authorized signatory.

6. Does this circular affect Advance Authorisation or EPCG? No. This circular is specific to the Customs Act’s EMI Scheme documentation and does not amend Advance Authorisation, EPCG, RoDTEP, DFIA, or other DGFT/FTP schemes.

7. Who is eligible to apply under the EMI Scheme? Broadly, businesses that qualify as manufacturers under Section 2(72) of the CGST Act, 2017, with at least one active GSTIN declaring factory/manufacturing activity, and that meet the financial solvency and compliance-history conditions in the application form.

8. What happens if my net worth or net current assets are negative? Your Chartered Accountant will need to specifically state the reasons in the revised Appendix-III certificate format; a straightforward positive-solvency certificate will not suffice in that situation.

9. Do I need to reapply if I already hold EMI status? The circular addresses the documentation for new applications; if you already hold EMI approval, review the circular with your compliance advisor to confirm whether any action is needed for your specific case.

10. How is data like GST filing status now verified? Through backend IT systems linked to GST and Customs databases, rather than through manual document uploads by the applicant.

Final Takeaway

CBIC Circular No. 39/2026-Customs doesn’t change who qualifies for the EMI Scheme or what benefit it offers — it changes how much paperwork you need to prove it. For manufacturer-importers who found the original ten-document, data-heavy application process a deterrent, this is a genuine easing of the compliance burden, provided you apply on or after 15th September 2026 and prepare the three retained documents correctly — particularly the revised CA certificate.

Need Help With Your EMI Scheme Application?

CBIC notifications can look simple on paper, but whether the reduced documentation genuinely fits your situation — your manufacturer status, GSTIN structure, job-work arrangements, or financial position — often needs a closer look. A V International has worked with Indian importers and exporters on DGFT and Customs compliance for over 35 years, and can help you assess your EMI Scheme eligibility, prepare the required Chartered Accountant certificate, and put together a clean, complete application from 15th September 2026 onward. We also assist with related compliance areas including AEO accreditation, Advance Authorisation, and EPCG.

Official Sources / References

• CBIC Circular No. 39/2026-Customs dated 03.09.2026, F. No. 450/81/2016-Cus IV
• CBIC Circular No. 08/2026-Customs dated 28.02.2026
• Notification No. 12/2026-Customs (N.T.) dated 01.02.2026
• Section 47(1) proviso, Customs Act, 1962
• Section 2(72), Central Goods and Services Tax Act, 2017
• Section 143, Central Goods and Services Tax Act, 2017