Govt Rolls Out Import Duty EMI System, Big Relief for Surat Traders

Surat | Gujarat — In a significant move to cushion Indian businesses from global economic shocks, the Centre has rolled out an EMI-based import duty payment system, offering much-needed relief to traders in Surat — a city heavily reliant on imports for its thriving textile, diamond and jewellery industries.

The new system, implemented from March 1 by the Central Board of Indirect Taxes and Customs, allows eligible importers to pay customs duties in monthly installments instead of making a lump sum payment at the time of goods clearance. The reform comes against the backdrop of geopolitical tensions in the Middle East and fresh tariff pressures from the United States, which have strained global trade dynamics.

“This is a game-changer for importers. Earlier, a large portion of working capital would get locked in duty payments. Now, businesses can maintain liquidity and manage operations more efficiently,” said tax expert C.A. Hardik Shah.

Under the new framework, traders can access the EMI facility through the Customs portal, provided they meet specific eligibility criteria, including strong compliance records under GST and customs laws, financial stability, and a credible transaction history. The scheme follows a “trust-based model,” rewarding reliable businesses with easier payment options.

Industry leaders believe the move will particularly benefit Surat’s export-driven sectors. The city processes a major share of the world’s diamonds and is one of India’s largest textile hubs, making liquidity management critical for day-to-day operations.

According to Dinesh Navadia of the Gems and Jewellery Export Promotion Council, the scheme could be especially useful for segments dealing with polished diamonds and jewellery. “While rough diamonds attract minimal duty, the EMI system will support traders handling higher-value imports like polished stones and finished jewellery,” he said.

The initiative is also expected to benefit large textile importers who depend on steady raw material inflows. With the burden of upfront duty payments reduced, businesses can redirect funds towards production, wages, and expansion.

Officials say the reform aligns with broader efforts to improve ease of doing business and strengthen India’s manufacturing ecosystem. “This step will enhance cash flow, encourage trade participation, and support MSMEs that often face liquidity constraints,” a senior अधिकारी noted.

To avail the scheme, eligible importers must apply online through the Authorized Economic Operator (AEO) portal under the “Eligible Manufacturer” category. Existing AEO-T1 entities, including MSMEs, can also participate if they meet the prescribed conditions.

However, experts caution that the benefits will largely depend on how widely the scheme is adopted and how efficiently it is implemented. Strict eligibility norms may limit access to only well-established players initially.