Streamlined Export Process: DGFT Eliminates Physical Duty Payment Submission

Significant Update for Exporters

In a pivotal move aimed at enhancing the 'Ease of Doing Business' for exporters, the Directorate General of Foreign Trade (DGFT) has announced the removal of the requirement to submit physical challans for duty payments when applying for the Export Obligation Discharge Certificate (EODC). This decision was revealed by the Ministry of Commerce and Industry on Monday, indicating that it falls under the 'Advance Authorization' (AA) and 'Export Promotion Capital Goods' (EPCG) schemes.

The ministry further explained that the customs and ICEGATE (Indian Customs Electronic Data Interchange Gateway) have integrated voluntary duty payment data with DGFT's online system. This integration allows for direct and verified payment validation based on the relevant authorizations.

Enhanced Verification Process

According to the announcement, exporters will now have access to verified payment information on the DGFT customer portal, enabling them to confirm whether their payments are linked to the correct authorization before submitting their applications. The verified payment records will also be accessible to regional authorities within the DGFT, eliminating the need for manual verification of payment details.

This change is expected to expedite processing times, reduce unnecessary interactions, and promote greater consistency in decisions made by various regional authorities of the DGFT. The ministry noted that this digital facility has been implemented through an API-based data exchange between DGFT and ICEGATE, allowing duty payment information to be electronically sent from the customs system to the EODC processing workflow of DGFT.

Benefits for Exporters

The ministry anticipates that utilizing verified digital records instead of manually submitting and verifying information will lead to reduced processing times, improved data accuracy, decreased human intervention, and increased transparency in the closure process. This initiative is expected to lower transaction costs and compliance burdens for exporters, as it minimizes documentation, follow-ups, and physical interactions.

Particularly, this will benefit MSME exporters who handle closure formalities in-house. Additionally, the DGFT has issued Trade Notice No. 15/2026-27 on August 5, 2026, to inform exporters and other stakeholders about these changes.