India Removes Physical Duty Challan Requirement for Exporters

The Directorate General of Foreign Trade (DGFT) has eliminated the requirement for exporters to submit physical duty payment challans when applying for Export Obligation Discharge Certificates (EODC). Announced by the Ministry of Commerce and Industry on August 10, 2026, the measure applies to voluntary duty payments made on or after August 1, 2026, under the Advance Authorisation and Export Promotion Capital Goods (EPCG) schemes.

The new system implements an API-based data exchange between the DGFT and the Indian Customs Electronic Data Interchange Gateway (ICEGATE). This integration allows payment particulars to be transmitted electronically, enabling exporters to verify payment mapping via the DGFT Customer Portal and allowing Regional Authorities to perform authenticated digital verification through the DGFT Back Office.

By replacing manual submissions with digital records, the government aims to shorten processing timelines, improve data accuracy, and minimize human intervention. The transition is intended to reduce compliance costs and administrative burdens, particularly for small and medium businesses, by removing the need for face-to-face office visits during the closure process for companies that voluntarily pay back saved duties after missing export targets.