Effective 1 August 2026, exporters will no longer need to submit physical duty payment challans when applying for Export Obligation Discharge Certificates (EODC) under the Advance Authorisation (AA) and Export Promotion Capital Goods (EPCG) schemes, according to News on AIR (Akashvani). The Directorate General of Foreign Trade (DGFT) has dispensed with the requirement for voluntary duty payments made on or after that date, the Commerce and Industry Ministry said.
What changed: physical challans removed for EODC applications
Per the Commerce and Industry Ministry, exporters will no longer be required to submit physical challans along with their applications for closure of authorisations under the AA and EPCG schemes. The change applies to voluntary duty payments made on or after 1 August 2026.
Voluntary duty payments made on or after 1 August 2026 will no longer require physical challans for EODC applications under the AA and EPCG schemes.
The DGFT is replacing manual submission and verification with authenticated digital records. According to the ministry, the measure is expected to speed up processing, reduce avoidable correspondence and ensure greater consistency in decision-making across DGFT Regional Authorities.
Who is affected
- Exporters holding AA or EPCG authorisations who apply for EODC — the certificate needed to discharge export obligations — will no longer have to attach physical duty payment challans to their closure applications.
- Micro, small and medium enterprises (MSMEs) are a particular focus: the ministry said the change will reduce transaction costs and compliance burden for exporters, especially MSMEs, by cutting documentation, follow-ups and physical interface.
- DGFT Regional Authorities, which process the closure applications, will see fewer follow-ups and a shared digital record base intended to improve consistency in decision-making.
Compliance obligations and deadlines
- The rule takes effect for voluntary duty payments made on or after 1 August 2026.
- No physical challan submission is required for applications for closure of authorisations.
- Exporters must still make the voluntary duty payment; the documentation, not the payment itself, has been digitalised.
- Authenticated digital records now serve in place of manual challan submission and verification.
The table below summarises the shift:
| Process element | Previous manual approach | New digital approach |
|---|---|---|
| Challan submission | Physical duty payment challan submitted with EODC application | Physical challan dispensed with for voluntary payments on or after 1 Aug 2026 |
| Verification | Manual submission and verification | Authenticated digital records |
| Processing speed | Longer timelines | Shortened timelines |
| Data accuracy | Subject to manual error | Improved data accuracy |
| Human intervention | Higher levels | Minimised human intervention |
| Transparency | — | Enhanced transparency |
| Compliance burden | Documentation, follow-ups and physical interface | Reduced transaction costs and burden, particularly for MSMEs |
Expected benefits
According to the Commerce and Industry Ministry, the digital-record approach will shorten timelines and improve data accuracy while minimising human intervention. The ministry also expects faster processing, less avoidable correspondence, and greater consistency in decision-making across DGFT Regional Authorities.
For trade compliance officers, customs brokers and export managers, the practical consequence is that EODC applications under AA and EPCG schemes for voluntary duty payments made on or after 1 August 2026 should be filed without physical challans, and the authenticated digital payment record becomes the compliance artefact. Compliance teams should verify that payment records are captured digitally and that closure applications reference the digital record in line with DGFT Regional Authority practice.
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