DGFT removes physical duty payment challans for export obligation discharge certificate applications
New Delhi, August 10
In a significant Ease of Doing Business measure for exporters, the Directorate General of Foreign Trade has removed the requirement of submitting physical duty payment challans while applying for Export Obligation Discharge Certificates.
Ministry of Commerce and Industry made the announcement on Monday and mentioned that the decision is taken under the Advance Authorisation (AA) and Export Promotion Capital Goods (EPCG) schemes.
It further said that the licence-wise voluntary duty payment data received from customs and ICEGATE (Indian Customs Electronic Data Interchange Gateway) has been integrated with DGFT's online systems, enabling authenticated verification of such payments directly against the concerned authorisation.
For voluntary duty payments made on or after August 1, 2026, the Ministry further said "exporters will no longer be required to submit physical challans along with their applications for closure of authorisations."
"Authenticated payment details will be made available to exporters on the DGFT Customer Portal, enabling them to verify that the payment has been correctly mapped to the concerned authorisation before filing the application," it said.
The same authenticated payment record will be available to the Regional Authorities on the DGFT Back Office, eliminating the need for manual verification of payment particulars, said the Ministry in a statement, adding "this is expected to facilitate faster processing, reduce avoidable correspondence and bring greater consistency in decision-making across DGFT Regional Authorities."
It further said that the digital facility has been implemented through an API-based data exchange between DGFT and ICEGATE, under which duty payment particulars are transmitted electronically from Customs systems to DGFT's EODC processing workflow.
As per the Ministry, the replacement of manual submission and verification with authenticated digital records is expected to shorten processing timelines, improve data accuracy, minimise human intervention and enhance transparency in the closure process.
The measure is also expected to reduce transaction costs and compliance burden for exporters by reducing documentation, follow-up and physical interface, particularly benefiting MSME exporters handling closure formalities in-house."
Trade Notice No. 15/2026-27 dated August 5, 2026 has been issued by DGFT for the information of exporters and other stakeholders, it added.
The initiative is part of the government's broader 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 vision of "Minimum Government, Maximum Governance" and enables exporters to focus on trade and growth.
The Advance Authorisation Scheme permits duty-free import of inputs that are physically incorporated in the export product, while the EPCG Scheme permits import of capital goods at concessional or zero customs duty, in both cases against an export obligation. Where the export obligation is not fulfilled in full, the authorisation holder regularises the case by voluntarily paying the proportionate customs duty saved along with applicable interest and thereafter applies for an EODC to close the authorisation.
Earlier, proof of such payment was required to be submitted in physical form and verified manually by the regional authority.
— ANI
Reader Comments
Great initiative! I work with Indian suppliers regularly and this kind of digital integration is exactly what makes trade smoother. If only more countries would follow this lead on paperless compliance. Good to see India leading the way in Ease of Doing Business.
This is a welcome move, but let's be honest—digital transformation in Indian bureaucracy is often easier said than done. How will this work for older authorisations where payments were made before August 2026? Will there be a transition period or grandfathering provision? Just want to make sure we don't get stuck for pending cases.
Excellent step. "Minimum Government, Maximum Governance" indeed. The API-based integration between DGFT and ICEGATE is exactly the kind of inter-departmental coordination we need. Hope this sets a precedent for more such seamless integrations across government platforms.
Nice to see the digital transformation continuing. I've worked in trade compliance for years, and India's DGFT is becoming more efficient than many other countries' authorities. This will help reduce the compliance burden and prevent manual errors that used to cause delays.
This is great for the big players, but I really hope our smaller exporters in Tier-2 and Tier-3 cities get proper digital literacy support. Not all MSME owners are tech-savvy. The government should also ensure the DGFT portal is available in regional languages and has helplines for those who struggle with digital processes.
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