Circular No. 39/2026-Customs: CBIC Rationalises Documentation Requirements Under the Eligible Manufacturer Importer Scheme.

Introduction

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 39/2026-Customs dated 3 September 2026, significantly rationalising the data and documentary requirements for applicants seeking approval as an Eligible Manufacturer Importer (EMI) under the EMI Scheme.

The Circular Amends Circular No. 08/2026-Customs dated 28 February 2026, which was issued pursuant to Notification No. 12/2026-Customs (N.T.) dated 1 February 2026 and introduced the facility of deferred payment of Customs import duty for eligible manufacturer-importers under the proviso to Section 47(1) of the Customs Act, 1962.

The latest Circular is aimed at reducing the compliance burden associated with applying for EMI status while retaining sufficient information for verification through departmental information-technology systems. Importantly, eligible importers will be able to apply for enrolment under the EMI Scheme from 15 September 2026 under the revised documentation framework.

Background: What is the EMI Scheme?

The EMI Scheme provides an eligible manufacturer-importer with the facility of deferred payment of Customs import duty in accordance with the applicable provisions of the Customs Act and the notification governing the scheme. The original application framework prescribed under Circular No. 08/2026-Customs required applicants to furnish a substantial amount of business, financial, GST, manufacturing and documentary information. Trade representatives subsequently made representations requesting rationalisation of these requirements. The Board examined the issue and has now decided to substantially simplify the application process.

Key objective of Circular No. 39/2026-Customs

The central objective is to achieve a balance between:

• Simplifying the EMI application process;
• Reducing repetitive documentary requirements;
• Lowering compliance costs for applicants;
• Using backend IT systems for verification wherever possible; and
• Retaining sufficient information to establish eligibility under the scheme.

The CBIC has therefore reduced both the number of data elements required in the application and the number of documents that need to be uploaded.

Major reduction in information requirements

Under the revised Appendix-I, several categories of information required under the earlier framework have been removed. The applicant will no longer be required to furnish a number of detailed particulars that were earlier contemplated, including information relating to:

• EXIM documents filed during the previous financial year;
• GSTIN status in the earlier prescribed form;
• Declaration of manufacturing activity in Form GST REG-01;
• GSTR-3B filing status;
• Aggregate turnover;
• GST payment details;
• Date of commencement of business/GST registration;
• ITC-04 filing particulars;
• Details of factory/manufacturing premises;
• Ownership/property holding rights;
• Book value of plant and machinery;
• Major raw materials and finished goods with HSN details; and
• Particulars relating to job workers.

This represents a substantial reduction in the amount of information an applicant has to manually compile while submitting the EMI application. The approach adopted by CBIC appears to recognise that much of this information can potentially be verified through existing government databases and backend IT systems.

Significant reduction in document uploads

One of the most important changes is the reduction in the number of documents required to be uploaded with the application. Under the revised framework, the following documents will generally continue to be required:

1. Udyam Registration Certificate, where the applicant claims MSME status;
2. Chartered Accountant's Certificate bearing UDIN, in the prescribed format; and
3. Authorisation letter for the authorised signatory.

An additional "Others" category has also been provided as an optional upload. The CBIC has stated that the number of documents to be uploaded has been reduced from 10 documents to 3 mandatory documents under the revised application format. This is arguably the most visible compliance-relief measure introduced through Circular No. 39/2026-Customs.

Information that will continue to be required

Although the documentary burden has been substantially reduced, the revised application continues to seek important information relating to the applicant's eligibility.

General details

The applicant will provide information such as:

• Importer Exporter Code (IEC);
• PAN;
• Whether the applicant is an MSME;
• Udyam Registration Number, where applicable;
• Whether the applicant is an AEO;
• AEO certificate number, where applicable;
• Whether there is any liability arising from GST collected from customers but not deposited with the Government;
• Relevant GSTINs; and
• Whether the applicant qualifies as a manufacturer under Section 2(72) of the CGST Act, 2017.

Where the applicant is a manufacturer, relevant GSTINs involved in manufacturing are to be identified. Where the applicant is an importer but not a manufacturer and sends inputs or capital goods to job workers under Section 143 of the CGST Act, the relevant GSTIN and job-work information is required. The application also requires the applicant to have at least one active GSTIN which has declared the nature of activity as "factory/manufacture" in the prescribed GST registration details, wherever applicable to the manufacturer route.

Financial and legal compliance remains important

The reduction in documents does not mean that financial and legal eligibility requirements have been diluted. The revised application continues to require declarations concerning the applicant's financial position and compliance history. The applicant has to provide information regarding:

• Financial solvency during the preceding two financial years;
• Whether the applicant is insolvent, in liquidation or bankruptcy;
• Whether net worth was positive during the preceding two financial years;
• Net current assets;
• Arrest or conviction for specified offences; and
• Pending prosecution for specified offences.

The revised framework also continues to require a Chartered Accountant's Certificate in the prescribed format.

New focus on negative net worth and net current assets

An important modification concerns applicants whose financial position does not meet the positive-net-worth or positive-net-current-assets parameters. The revised Appendix-III requires the Chartered Accountant to provide reasons where:

• The applicant has negative net worth; or
• The applicant has negative net current assets.

This requirement has been introduced after consultation with stakeholders and in the context of the overall reduction in documentary requirements. Therefore, applicants with negative financial indicators are not simply excluded from the application process on that basis; instead, the prescribed CA certificate requires the circumstances to be explained.

This makes the quality and completeness of the Chartered Accountant's certificate particularly important.

Revised Chartered Accountant's Certificate

Appendix-III prescribes a standard format for the CA certificate. The certificate is required to be issued on the letterhead of the Chartered Accountant or CA firm and should identify:

• Name of the CA firm;
• Firm Registration Number (FRN);
• Name of the applicant;
• IEC;
• Registered office address; and
• Relevant financial information for the preceding two financial years.

Financial information covered

The certificate includes a financial summary covering, among other things:

• Total assets;
• Total fixed assets;
• Land and building;
• Plant and machinery;
• Other fixed assets;
• Total liabilities;
• Contingent liabilities, if any;
• Net worth;
• Current assets;
• Current liabilities;
• Turnover/gross revenue;
• Current ratio; and
• Debt-equity ratio.

The CA is also required to provide an opinion concerning the applicant's solvency and financial capability.

Specific responsibility of the Chartered Accountant

The prescribed certificate requires the Chartered Accountant to comment on several aspects.

Positive net worth - The CA is expected to certify whether the entity has maintained positive net worth, represented by capital and reserves, and whether its total assets exceed total liabilities. Where positive net worth has not been maintained, reasons are required to be provided.

Liquidity - The certificate also addresses liquidity based on current assets, current liabilities and the current ratio. Again, where positive net current assets are not available, reasons are required.

Government dues and statutory liabilities - The CA is required to state, based on the records and information provided, whether the entity has defaulted in payment of statutory dues and whether material tax arrears exist that could affect solvency.

Solvency status - The certificate also covers whether the entity has remained solvent during the preceding two financial years and whether it is undergoing insolvency, liquidation or bankruptcy proceedings as on the date of the certificate.

The certificate must bear the UDIN and be signed by the authorised partner/proprietor of the CA firm.

Previous EMI applications

The revised application also asks applicants whether an application for approval as an Eligible Manufacturer Importer has previously been filed. If the answer is yes, the applicant must provide the reference number and select the status of the previous application, such as:

• Suspended;
• Rejected; or
• Returned.

This provision enables the authorities to identify earlier applications and maintain continuity in the applicant's EMI records.

Authorised person and contact details

The application requires details of the authorised contact person, including:

• Name and designation;
• Mobile number;
• Alternate mobile number; and
• Email address.

The applicant is also required to declare that the person signing the application is authorised to do so on behalf of the applicant.

Declarations and undertakings

The applicant must make several important declarations. The applicant declares that the information and documents submitted are true, correct and complete. The applicant also acknowledges that submission of false information, false declarations or forged documents may result in:

• Suspension of EMI approval;
• Action under the relevant provisions of the Customs Act, 1962; and
• Ineligibility to apply under the EMI Scheme in the future.

The applicant must further undertake that there are no instances of tax collected but not deposited with the Government under the Central Excise Act, 1944 or Chapter V of the Finance Act, 1994.

The applicant must also notify the Directorate of International Customs (DIC), CBIC of changes affecting its eligibility for the EMI Scheme.

What has been removed from the application burden?

The practical impact of the Circular becomes clearer when the earlier and revised requirements are compared.

Thus, the reform is not merely a change in wording. It represents a substantial move from document-heavy verification towards data-based and backend verification.

Application from 15 September 2026

A key operational point in the Circular is that eligible importers will be able to apply for enrolment under the EMI Scheme from 15 September 2026 using the modified documentation requirements. Applicants planning to avail themselves of the deferred-duty facility should therefore review their eligibility and begin preparing the three principal documents, particularly the prescribed CA certificate.

Practical implications for businesses

1. Lower compliance burden - The most immediate benefit is the reduction in documents and information that an applicant must manually collect and upload. This should make the application process faster and less cumbersome, particularly for businesses maintaining large volumes of GST, financial and manufacturing records.

2. Less duplication of government data - The revised approach indicates greater reliance on backend IT systems. Applicants are no longer required to repeatedly upload documents containing information that may already be available with government authorities.

3. CA certificate becomes more important - While the overall documentation requirement has reduced, the Chartered Accountant's certificate assumes greater significance. Applicants should ensure that the financial information supplied to the CA is accurate, complete and reconciled with the entity's audited financial statements and books of account.

4. Negative financial indicators require explanation - Entities with negative net worth or negative net current assets should not treat the application as a routine filing. The reasons for such financial positions must be appropriately captured in the CA certificate.

5. GST records should still be internally reconciled - Although several GST documents no longer have to be uploaded, applicants should continue to ensure that their GST registrations and manufacturing-related information are accurate. The reduction in uploading requirements should not be interpreted as a relaxation of the underlying eligibility conditions.

6. Legal and compliance history remains relevant - Applicants should carefully examine their litigation, prosecution, arrest, conviction and statutory-dues position before making the declarations in the application. False declarations can have consequences extending beyond rejection of the EMI application.

Shift from document submission to system-based verification - Perhaps the broader significance of Circular No. 39/2026-Customs lies in the philosophy behind the reform. The CBIC has expressly stated that the reduced documentation requirements are accompanied by verification of relevant particulars through appropriate backend IT systems. This reflects a broader direction in tax and customs administration: rather than requiring taxpayers to repeatedly submit information already available with government databases, authorities can increasingly use interconnected systems for verification.

For compliant businesses, this can translate into:

• Faster application processing;
• Fewer documents to upload;
• Reduced administrative costs;
• Lower scope for documentary discrepancies; and
• Greater ease in accessing the EMI facility.

Conclusion

Circular No. 39/2026-Customs dated 3 September 2026 is a significant compliance-relief measure under the Eligible Manufacturer Importer Scheme.

The CBIC has substantially rationalised the application process by removing numerous data elements and eliminating the requirement to upload a large number of documents previously contemplated under Circular No. 08/2026-Customs.

The number of mandatory uploaded documents has effectively been reduced from ten to three, the Udyam Certificate, where applicable, the prescribed CA Certificate bearing UDIN, and the authorisation letter for the authorised signatory.

At the same time, the revised framework retains important safeguards relating to financial solvency, net worth, liquidity, statutory dues, legal compliance and previous applications. The requirement to explain negative net worth or negative net current assets through the prescribed Chartered Accountant's certificate is particularly noteworthy India should review their eligibility, update their internal records and coordinate with their Chartered Accountants so that the prescribed certificate and other required.

The overall approach is therefore one of simplification without abandoning eligibility verification.

With applications under the revised framework opening from 15 September 2026, eligible manufacturers importing goods into India should review their eligibility, update their internal records and coordinate with their Chartered Accountants so that the prescribed certificate and other required documents are ready for filing.

The Circular is ultimately another step towards a less paper-intensive, technology-enabled and business-friendly customs administration, while retaining the safeguards necessary for a deferred-duty facility.

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