New Delhi, India: The Directorate General of Foreign Trade (DGFT) has removed the requirement for exporters to submit physical duty payment challans when applying for Export Obligation Discharge Certificates (EODCs) under the Advance Authorisation and Export Promotion Capital Goods (EPCG) schemes.
The change applies to voluntary duty payments made on or after August 1, 2026, and is aimed at simplifying export-related compliance and reducing paperwork for businesses.
Under the new system, voluntary duty payment data received from Customs/ICEGATE has been integrated with DGFT’s online systems. The integration enables authenticated verification of duty payments directly against the relevant authorisation.
Exporters applying for closure of their authorisations will no longer need to attach physical challans to their applications. Authenticated payment details will instead be made available through the DGFT Customer Portal, allowing exporters to verify that the payment has been correctly mapped to the concerned authorisation before submitting an application.
The same authenticated payment record will also be accessible to Regional Authorities through the DGFT Back Office. This eliminates the need for manual verification of payment details and is expected to support faster processing and reduce avoidable correspondence between exporters and DGFT authorities.
The digital facility has been implemented through an API-based data exchange between DGFT and ICEGATE. Duty payment information from Customs systems is transmitted electronically to DGFT’s EODC processing workflow, replacing manual submission and verification with authenticated digital records.
According to the government, the move is expected to shorten processing timelines, improve data accuracy, minimise human intervention and enhance transparency in the authorisation closure process. It will also reduce documentation, follow-ups and physical interactions associated with export compliance.
The measure is particularly relevant for MSME exporters that manage export obligation closure formalities internally. By reducing the documentation and compliance burden, the system is intended to make the EODC process more efficient and predictable.
The Advance Authorisation Scheme allows duty-free import of inputs that are physically incorporated into exported products. The EPCG Scheme, meanwhile, permits the import of capital goods at concessional or zero customs duty against an export obligation.
When an export obligation is not fully fulfilled, an authorisation holder can voluntarily pay the proportionate customs duty saved, along with applicable interest, and subsequently apply for an EODC. Previously, proof of such payments had to be submitted physically and manually verified by the Regional Authority.
The DGFT said the initiative forms part of the government’s broader digital transformation agenda for trade facilitation and supports the objective of creating a more efficient, predictable and trust-based regulatory environment for exporters.
Source: This article is based on an official press release issued by the Press Information Bureau (PIB), Ministry of Commerce & Industry, Government of India
Press Release Page | Press Information Bureau
