The Directorate General of Foreign Trade (DGFT) has removed the requirement for exporters to submit physical duty payment challans while applying for Export Obligation Discharge Certificates (EODC) under the Advance Authorisation (AA) and Export Promotion Capital Goods (EPCG) schemes. The move is part of the government’s broader Ease of Doing Business efforts and aims to simplify export compliance and reduce paperwork.
The change applies to voluntary duty payments made on or after 1 August 2026. DGFT has integrated licence-wise voluntary duty payment data received from Customs through the ICEGATE system with its online platform. This integration allows DGFT to verify authenticated duty payments directly against the relevant authorisation.
Exporters can now view their authenticated payment details on the DGFT Customer Portal and check whether the payment has been correctly mapped to the concerned authorisation before submitting their EODC application. The same payment record will also be available to Regional Authorities through the DGFT Back Office. This removes the need for officials to manually verify payment details submitted by exporters.
The digital process is expected to speed up EODC processing and reduce avoidable correspondence between exporters and DGFT offices. It is also expected to bring greater consistency in decision making across DGFT Regional Authorities.
The new system uses an API based data exchange between DGFT and ICEGATE. Customs systems will electronically transmit duty payment details to DGFT’s EODC processing workflow. By replacing manual submission and verification with authenticated digital records, the system is expected to reduce processing time, improve data accuracy, minimise human intervention and increase transparency in the authorisation closure process.
The measure will also reduce documentation and follow-up requirements for exporters. This is expected to lower transaction costs and the overall compliance burden, particularly for MSME exporters that manage closure formalities in-house.
DGFT has issued Trade Notice No. 15/2026-27 dated 5 August 2026 to inform exporters and other stakeholders about the change.
The initiative forms part of the government’s wider digital transformation programme for trade facilitation. By connecting trade-related digital systems and reducing dependence on physical documents, the government aims to create a more efficient and predictable regulatory environment. The move also supports the broader objective of “Minimum Government, Maximum Governance” and allows exporters to focus more on trade and business growth.
Under the Advance Authorisation Scheme, exporters can import inputs without paying customs duty when they physically incorporate those inputs into their export products. The EPCG Scheme allows the import of capital goods at concessional or zero customs duty against an export obligation.
When an exporter does not fully meet the prescribed export obligation, the authorisation holder can regularise the case by voluntarily paying the proportionate customs duty saved along with applicable interest. The exporter can then apply for an EODC to close the authorisation.
Earlier, exporters had to submit physical proof of the duty payment, which Regional Authorities then verified manually. The new digital process replaces this requirement with authenticated payment records shared electronically between Customs and DGFT.
The move is expected to make the EODC closure process simpler for exporters while improving the efficiency of DGFT’s regulatory and verification systems.
