DGFT Removes Physical Duty Payment Challans for EODC Applications Under Advance Authorisation and EPCG Schemes

The Directorate General of Foreign Trade has removed the requirement for exporters to submit physical duty payment challans while applying for Export Obligation Discharge Certificates under the Advance Authorisation and Export Promotion Capital Goods schemes, in a significant Ease of Doing Business measure.

What does the new system replace and when does it take effect?

For voluntary duty payments made on or after August 1, 2026, exporters will no longer need to attach physical challans when applying for closure of their authorisations. Licence-wise voluntary duty payment data received from Customs and ICEGATE has been integrated with DGFT’s online systems, enabling authenticated verification of payments directly against the concerned authorisation. The facility has been enabled through API-based integration between DGFT and ICEGATE, allowing Customs duty payment records to be transmitted electronically to DGFT’s EODC processing system.

How will exporters verify their payments under the new process?

Authenticated payment details will be made available to exporters on the DGFT Customer Portal, allowing them to verify that a payment has been correctly mapped to the concerned authorisation before filing their application. These authenticated payment records will also be accessible to DGFT Regional Authorities through the DGFT Back Office, eliminating the need for manual verification of payment particulars on the government’s side as well.

What is the Advance Authorisation and EPCG framework this applies to?

The Advance Authorisation Scheme permits duty-free import of inputs that are physically incorporated into export products, while the EPCG Scheme permits import of capital goods at concessional or zero customs duty, both against a corresponding export obligation. Where the export obligation is not fully met, the authorisation holder regularises the case by voluntarily paying the proportionate customs duty saved, along with applicable interest, before applying for an EODC to formally close the authorisation.

What benefits is this expected to deliver for exporters?

The measure is expected to reduce transaction costs and compliance burden for exporters by cutting down on documentation, follow-up and physical interface with authorities, a change officials say will particularly benefit MSME exporters who handle closure formalities in-house without dedicated compliance teams.

What official notification governs this change?

Trade Notice No. 15/2026-27, dated August 5, 2026, has been issued by DGFT for the information of exporters and other stakeholders, formally notifying the revised process.

What does this mean for India’s broader trade facilitation agenda?

The initiative forms part of the government’s wider digital transformation agenda for trade facilitation, aimed at creating a more efficient, predictable and trust-based regulatory environment. By strengthening integration between trade-related digital systems and reducing reliance on physical documentation, the measure reinforces the government’s vision of Minimum Government, Maximum Governance, freeing exporters to focus more on trade and growth rather than compliance paperwork.