DGFT removes physical challans for EODC applications from August 1

The Directorate General of Foreign Trade (DGFT) has removed the requirement for exporters to submit 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 change applies to voluntary duty payments made on or after 1 August 2026. Exporters will now be able to access authenticated payment details through the DGFT Customer Portal and verify whether the payment has been correctly mapped to the relevant authorisation before submitting their EODC application.

The same payment records will be available to DGFT Regional Authorities through the DGFT Back Office. This removes the need for manual verification of payment details and is expected to speed up processing and reduce correspondence between exporters and authorities.

The facility has been enabled through an API-based data exchange between DGFT and ICEGATE. Under the system, duty payment details are electronically transferred from Customs systems to DGFT’s EODC processing workflow.

The digital process is expected to reduce processing time, improve data accuracy, minimise manual intervention and increase transparency in the closure of authorisations. It will also reduce documentation, follow-ups and physical interaction for exporters.

The measure is expected to particularly benefit MSME exporters that manage their authorisation closure formalities in-house. DGFT has issued Trade Notice No. 15/2026-27 dated 5 August 2026 to inform exporters and other stakeholders about the change.

The Advance Authorisation Scheme allows duty-free import of inputs that are physically incorporated into export products, while the EPCG Scheme allows the import of capital goods at concessional or zero customs duty against an export obligation.

Where an exporter does not fulfil the export obligation in full, the authorisation holder can regularise the case by voluntarily paying the proportionate customs duty saved along with applicable interest. The exporter can then apply for an EODC to close the authorisation.

Earlier, exporters were required to submit physical proof of such duty payments, which was then manually verified by the concerned Regional Authority. The new system replaces this process with authenticated digital payment records received from Customs and ICEGATE.