Indian Economy News

DGFT Removes Physical Duty Payment Challans for Export Obligation Discharge Certificate Applications under Advance Authorisation and Export Promotion Capital Goods Schemes

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, as part of the Government’s Ease of Doing Business measures. Licence-wise voluntary duty payment data received from Customs/ICEGATE has been integrated with DGFT’s online systems, enabling authenticated verification of payments directly against the concerned authorisation. For voluntary duty payments made on or after August 1, 2026, exporters will no longer need to submit physical challans with applications for closure of authorisations. Authenticated payment details will be available on the DGFT Customer Portal, allowing exporters to verify that payments have been correctly mapped before filing applications, while Regional Authorities can access the same records through the DGFT Back Office.

The digital facility has been implemented through an API-based data exchange between DGFT and ICEGATE, enabling electronic transmission of duty payment particulars to the EODC processing workflow. The measure is expected to reduce manual verification, documentation, correspondence and physical interface, while improving processing timelines, data accuracy and transparency. It is also expected to lower transaction costs and compliance burdens, particularly for MSME exporters handling closure formalities in-house. DGFT has issued Trade Notice No. 15/2026-27 dated August 5, 2026, regarding the facility. Under the Advance Authorisation Scheme, exporters can import inputs duty-free against an export obligation, while the EPCG Scheme facilitates the import of capital goods at concessional or zero customs duty against an export obligation. The latest measure strengthens digital integration across trade systems and supports the Government’s broader objective of creating a more efficient and predictable trade facilitation ecosystem.

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