New Delhi: Exporters seeking closure of authorisations under two key export promotion schemes will no longer need to submit physical proof of certain customs duty payments, as the government shifts another compliance process onto an integrated digital platform.
The Directorate General of Foreign Trade (DGFT) has removed the requirement for 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 Ministry of Commerce and Industry said on 10 August.
The change applies to voluntary duty payments made on or after 1 August 2026.
Licence-wise voluntary duty payment data received from Customs and ICEGATE has now been integrated with DGFT’s online systems, enabling authenticated payment records to be linked directly with the concerned authorisation.
Under the new system, exporters can view authenticated payment details on the DGFT Customer Portal and verify whether a payment has been correctly mapped to the relevant authorisation before filing an application for closure.
The same authenticated payment record will be available to Regional Authorities on the DGFT Back Office, eliminating the need for manual verification of payment particulars.
The ministry said the digital arrangement is expected to speed up processing, reduce avoidable correspondence and bring greater consistency in decisions across DGFT Regional Authorities.
The facility has been implemented through an API-based data exchange between DGFT and ICEGATE, under which customs duty-payment particulars are transmitted electronically from Customs systems into DGFT’s EODC processing workflow.
According to the ministry, replacing manual submission and verification with authenticated digital records is expected to shorten processing timelines, improve data accuracy, reduce human intervention and increase transparency in the authorisation closure process.
The measure is also expected to reduce transaction costs and compliance burden for exporters by cutting documentation, follow-up requirements and physical interaction with authorities.
The ministry said the change is expected to particularly benefit MSME exporters handling authorisation closure formalities in-house.
DGFT issued Trade Notice No. 15/2026-27 dated 5 August 2026 to inform exporters and other stakeholders about the new arrangement.
Under the Advance Authorisation Scheme, exporters are permitted to import inputs duty-free when those inputs are physically incorporated into products meant for export.
The EPCG Scheme, meanwhile, allows the import of capital goods at concessional or zero customs duty, subject to fulfilment of prescribed export obligations.
If the required export obligation is not fulfilled in full, the authorisation holder can regularise the case by voluntarily paying the proportionate customs duty saved along with applicable interest and then applying for an EODC to close the authorisation.
Earlier, proof of such payment had to be submitted physically and manually verified by the concerned Regional Authority.
The new integration is intended to make the authorisation closure process more digital, transparent and less dependent on physical documentation, while reducing the compliance burden on exporters.
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