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DGFT removes physical challans for exporters

NEW DELHI

India is making trade much easier for local businesses. The Directorate General of Foreign Trade has officially removed the rule requiring physical duty payment challans for exporters. This change applies to those applying for closure certificates under the Advance Authorisation and Export Promotion Capital Goods schemes.

Under this updated system, duty payment data from customs has been directly linked with digital platforms. Exporters making voluntary payments will no longer need to attach paper challans to their closure applications. Instead, verified payment records will show up automatically on the official customer portal, letting business owners check that their details match before filing paperwork.

Regional authorities will also see these verified digital records on their back office systems. This upgrade removes the old need for manual checking, which speeds up approvals and keeps decisions consistent across different offices. The digital setup works through a direct data exchange between customs and trade portals, ensuring that payment details flow smoothly without human errors.

By cutting out paper documents and face-to-face office visits, this new rule lowers daily costs and compliance stress. Small and medium business owners handling their own paperwork will benefit the most from this streamlined approach. This step supports the government’s broader vision of digital governance, allowing business owners to spend less time on red tape and more time growing their global trade footprint.

The Advance Authorisation scheme lets companies bring in raw materials without paying duty if used for export goods. Meanwhile, the capital goods scheme offers zero or low import duties on heavy equipment against specific export targets. If targets are missed, companies can pay back saved duties voluntarily and close their files. Previously, proving this payment required physical proof, but everything is now fully digital.

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