To be launched by the Central Board of Indirect Taxes and Customs (CBIC) on March 1, 2026, the Eligible Manufacturer-Importer (EMI) scheme allows textile manufacturers who lack formal Authorised Economic Operator (AEO) status to access duty deferral benefits for a two-year transition period. By deferring customs duties on essential raw material imports - such as specialty man-made fibers and high-end machinery - apparel exporters can optimize their working capital. Vivek Chaturvedi, Chairman, CBIC, notes, the framework utilizes advanced risk-assessment technologies to expedite cargo clearance, a move critical for the textile industry where seasonal lead times are increasingly compressed.
Bridging the compliance gap for global competitiveness For many small and medium-sized garment exporters, the rigorous audit requirements of Tier III AEO certification have historically acted as a barrier to entry. The EMI scheme serves as a strategic ‘on-ramp,’ granting these entities immediate operational advantages while they align their internal controls with international standards. This development is particularly timely as the industry aims to increase its share in the global apparel market, which is projected to reach $830 billion by 2027. The extension of advance customs rulings from three to five years further stabilizes long-term business planning, allowing manufacturers to lock in duty structures for multi-year export contracts without the risk of sudden fiscal revisions.
Strengthening logistics with technology-driven screening
The integration of machine learning into cargo screening marks a departure from traditional physical inspections, which have often delayed time-sensitive fashion shipments. A brief analysis of the Tiruppur knitwear cluster indicates that reducing customs turnaround by even 24 hours can improve the bottom line of an average exporter by 2-3 per cent. By fostering a trust-based administrative environment, the EMI scheme not only lowers transaction costs but also enhances India’s reliability as a sourcing destination. Industry stakeholders expect the draft framework to catalyze a new wave of capital investment in high-value technical textiles, as manufacturers leverage deferred duties to fund technological upgrades.
The Central Board of Indirect Taxes and Customs manages India’s customs, GST, and excise policies. By overseeing international trade gateways, the CBIC supports various industries through technology-led facilitation. Current growth plans focus on complete digitalization and trust-based compliance to improve India’s ranking in the global Ease of Doing Business index.
