The Directorate General of Foreign Trade (DGFT) has introduced a major digital facilitation measure aimed at reducing paperwork and compliance requirements for exporters seeking closure of authorisations under the Advance Authorisation (AA) and Export Promotion Capital Goods (EPCG) Schemes.
Under the new system, exporters will no longer need to submit physical duty payment challans while applying for Export Obligation Discharge Certificates (EODC), provided the voluntary duty payments were made on or after August 1, 2026. The move is expected to simplify the closure process, reduce processing time and strengthen transparency in the export authorisation system.
Duty Payment Data Integrated with DGFT System
The new facility has been enabled through an API-based integration between DGFT and the Customs’ ICEGATE system. Under this arrangement, licence-wise information relating to voluntary duty payments is electronically transmitted from Customs systems to the DGFT’s digital platform.
The authenticated payment information will be linked to the relevant authorisation, allowing exporters to access and verify the details through the DGFT Customer Portal before submitting their EODC application.
This eliminates the earlier requirement of physically attaching duty payment challans as proof of payment. Exporters can now check whether their payment has been correctly mapped to the concerned authorisation and proceed with the closure application through the online system.
Manual Verification by Regional Authorities Reduced
The digital payment record will also be accessible to DGFT Regional Authorities through the Back Office system. As a result, officials will be able to verify authenticated payment details electronically instead of relying on physical documents and manual checking.
The change is expected to reduce correspondence between exporters and Regional Authorities over payment-related information. It may also bring greater uniformity to the processing of EODC applications across different regional offices.
By replacing manual verification with system-generated and authenticated records, DGFT expects the process to become faster, more reliable and less dependent on human intervention.
Lower Compliance Burden for Exporters
The reform is likely to be particularly useful for exporters, including MSMEs, that manage authorisation closure formalities internally. Removal of physical documentation can reduce administrative work, follow-ups and the need for physical interaction with authorities.
The digital approach is also expected to improve the accuracy of payment information and minimise the possibility of discrepancies arising from manual data entry or document handling.
Overall, the initiative is aimed at reducing transaction costs and making the process of obtaining EODCs more predictable for exporters.
Understanding Advance Authorisation and EPCG Schemes
The Advance Authorisation Scheme allows eligible exporters to import inputs without payment of customs duty, subject to the condition that the imported inputs are physically incorporated into the exported products.
The EPCG Scheme, meanwhile, facilitates the import of capital goods at concessional or zero customs duty against the fulfilment of specified export obligations.
In cases where an exporter is unable to fulfil the prescribed export obligation completely, the authorisation holder may regularise the shortfall by voluntarily paying the proportionate customs duty saved along with applicable interest. The exporter can subsequently apply for an EODC to formally close the authorisation.
Previously, proof of such voluntary duty payment had to be submitted physically and verified by the concerned Regional Authority. The new digital mechanism removes this documentation-heavy step for eligible payments.
Part of Wider Trade Facilitation Drive
DGFT has issued Trade Notice No. 15/2026-27 dated August 5, 2026, informing exporters and other stakeholders about the new facility.
The initiative forms part of the Government’s broader efforts to digitise trade-related processes and improve the ease of doing business. Greater interoperability between DGFT and Customs systems is expected to create a more seamless regulatory environment while reducing dependence on physical documentation.
The latest reform also aligns with the Government’s broader objective of “Minimum Government, Maximum Governance”, using digital integration to simplify compliance and improve service delivery.
With authenticated payment information now flowing directly between Customs and DGFT systems, exporters can expect a more streamlined EODC closure process, allowing them to spend less time on administrative formalities and more time on their core business and export activities.
Author: Shivam
Shivam Dwivedi is a senior journalist with extensive experience in research-driven journalism, policy communication, and multi-platform storytelling. His areas of interest include international relations, defence, science & technology, education, urban development, agriculture, spirituality, and environmental sustainability. His work focuses on in-depth analysis, public discourse, and impactful narratives across governance and development sectors, with a strong commitment to the Sustainable Development Goals (SDGs). Contact: [email protected]
