India digitises export duty verification, streamlining compliance for exporters

India’s export regulator has introduced a new digital system for verifying duty payments, eliminating the need for physical challans and speeding up export obligation clearance for exporters under key schemes.

India’s export regulator has moved to digital verification for a key compliance step, removing the need for exporters to file physical duty payment challans when seeking Export Obligation Discharge Certificates under the Advance Authorisation and Export Promotion Capital Goods schemes.

The Directorate General of Foreign Trade said the change applies to voluntary duty payments made on or after August 1, 2026. Under the new system, licence-wise payment details will flow automatically from Customs through an API link with ICEGATE into the DGFT’s EODC workflow, allowing officials to verify payments electronically rather than through manual paperwork. The agency said exporters will be able to see authenticated payment data on the DGFT Customer Portal before filing an application.

According to the DGFT, the same records will also be available to regional offices through its back office, which should reduce manual checks, cut avoidable correspondence and make decisions more uniform across offices. The reform is expected to speed up closure of cases, lower the risk of mapping errors and ease compliance costs, especially for smaller exporters that handle these formalities themselves.

The change matters because both schemes are tied to export commitments. Advance Authorisation allows duty-free imports of inputs used in export goods, while EPCG permits concessional or zero-duty imports of capital goods against an export obligation. If the obligation is not fully met, exporters must regularise the case by paying the duty saved, plus interest where applicable, before applying for an EODC to close the authorisation. The DGFT issued Trade Notice No. 15/2026-27 on August 5, 2026 to announce the update.

Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.