DGFT Ends Physical Duty Challan Requirement for AA, EPCG Exporters

The digital facility works through an API-based exchange of data between DGFT and ICEGATE, with Customs duty payment particulars transmitted electronically into DGFT’s EODC workflow.

Exporters seeking closure of Advance Authorisation (AA) and Export Promotion Capital Goods (EPCG) authorisations will no longer need to submit physical duty payment challans for certain voluntary duty payments, following a new digital integration introduced by the Directorate General of Foreign Trade (DGFT). The change connects duty payment information received from Customs and ICEGATE directly with DGFT's online systems, allowing payment records to be authenticated and linked with the relevant authorisation without requiring exporters to provide paper proof.

The facility applies to voluntary duty payments made on or after August 1, 2026. Exporters applying for an Export Obligation Discharge Certificate (EODC) can view authenticated payment details on the DGFT Customer Portal and check whether the payment has been correctly mapped to their authorisation before submitting the closure application. DGFT announced the change through Trade Notice No. 15/2026-27 dated August 5, 2026.

Exporters Can Check Duty Payments Online Before Filing EODC

Under the earlier process, exporters who had voluntarily paid customs duty and applicable interest were required to submit proof of payment, which then had to be manually checked by the concerned Regional Authority. The new arrangement removes this paper-based step for eligible payments because licence-wise voluntary duty payment information received from ICEGATE is now integrated with DGFT's EODC processing system.

Having the payment record visible on the Customer Portal gives exporters an opportunity to confirm the mapping before filing their application, which can help prevent cases where incorrect or incomplete payment details lead to queries during processing. Regional Authorities will also have access to the same authenticated information through the DGFT Back Office, reducing the need for officials to manually verify challan particulars submitted with individual applications.

DGFT-ICEGATE Integration Could Speed Up Authorisation Closure

The digital facility works through an API-based exchange of data between DGFT and ICEGATE, with Customs duty payment particulars transmitted electronically into DGFT's EODC workflow. Replacing physical documents with authenticated digital records is expected to improve the accuracy of payment information, cut down manual intervention and reduce correspondence between exporters and Regional Authorities during the closure process.

The change could be particularly useful for MSME exporters that manage compliance and authorisation closure work internally, since fewer documents and reduced physical interaction can lower the time and cost involved in completing EODC formalities. A common digital record available to both exporters and DGFT officials can also support more consistent processing across different Regional Authorities.

What Advance Authorisation and EPCG Exporters Should Know

The Advance Authorisation Scheme allows duty-free import of inputs that are physically incorporated into export products, while the EPCG Scheme allows eligible capital goods to be imported at concessional or zero customs duty against prescribed export obligations. Authorisation holders are required to meet these obligations within the applicable conditions and timelines before the authorisation can be closed.

When the required export obligation is not fulfilled completely, the authorisation holder may regularise the shortfall by voluntarily paying the proportionate customs duty saved along with applicable interest and then applying for an EODC. For qualifying payments made from August 1, 2026, the authenticated digital payment record can now replace the earlier requirement of submitting a physical challan, making one of the key steps in the closure process simpler for exporters.

The move forms part of the government's wider push to connect trade-related digital systems and reduce paperwork in regulatory processes. Direct data exchange between Customs and DGFT gives exporters and officials access to the same authenticated payment information, creating a more transparent and less documentation-heavy route for closing AA and EPCG authorisations.