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DGFT Activates Online Module for Post Export EPCG Scrips: A Step Toward Digital Trade Facilitation

YAGAY andSUN
Digital EPCG scrip processing streamlines online issuance, revalidation, and customs transmission for faster export incentive use. Online processing has been introduced for Post Export EPCG duty credit scrips through a DGFT portal module linked with ICEGATE, replacing manual handling with a digital mechanism for issuance, re-issuance, revalidation and transmission. The system enables exporters to apply online, allows Regional Authorities to examine requests electronically, and generates scrips for automatic transmission to customs systems, reducing delays, synchronization issues and physical documentation in scrip utilisation. The module also covers revalidation of untransmitted or expired scrips and generation of electronic scrips where only manual scrips exist. (AI Summary)

On 21st April 2026, the Government of India, through the Directorate General of Foreign Trade under the Ministry of Commerce and Industry, issued Trade Notice No. 02/2026-27, introducing a significant reform in the handling of Post Export EPCG (Export Promotion Capital Goods) scrips.

This initiative aims to resolve long-standing operational challenges faced by exporters and streamline the issuance, re-issuance, and extension of validity of EPCG duty credit scrips through a fully digital mechanism.

Background: Challenges in Manual Scrip Handling

Exporters holding Post Export EPCG authorisations had raised concerns regarding the utilization of scrips issued manually or offline by Regional Authorities (RAs). These manual processes often resulted in:

  • Delays in transmission
  • Lack of synchronization with customs systems
  • Difficulty in utilization at ports

Recognizing these bottlenecks, DGFT has transitioned to a digital-first solution.

Introduction of the Online EPCG Module

To address these issues, DGFT has developed and deployed an online module on its portal. This system enables:

  • Electronic issuance of EPCG duty credit scrips
  • Seamless data exchange with ICEGATE (Indian Customs EDI Gateway)
  • Faster and more transparent processing

The integration ensures that exporters can utilize their scrips efficiently without procedural delays.

Role of Regional Authorities

Under the new system:

  • Exporters submit applications online
  • The concerned DGFT Regional Authority examines the request digitally
  • Approved scrips are generated electronically
  • Scrips are automatically transmitted to ICEGATE

This eliminates the need for physical documentation and manual intervention.

Key Scenarios Covered Under the Module

The newly activated system is designed to handle three primary scenarios:

1. Authorization Not Yet Closed

If a Post Export EPCG authorization is still open:

  • The exporter can apply online for closure
  • Submit required documents digitally
  • Upon approval, the EPCG scrip is generated and transmitted electronically

2. Scrip Generated but Not Transmitted or Expired

If a scrip exists but:

  • Has not been transmitted to ICEGATE, or
  • Has expired before transmission

Then:

  • The exporter must raise a Service Request Ticket on the DGFT portal
  • Upon approval, the same scrip is revalidated and transmitted with a new validity

3. Authorization Closed but No Electronic Scrip

In cases where:

  • Authorization is closed, but
  • No scrip was generated, or
  • Only a manual scrip exists

The exporter must:

  • Submit a Service Request Ticket
  • Provide utilization details of any manual scrip
  • Upload supporting documents

After approval:

  • An electronic scrip (full or partial) is generated
  • It is transmitted to ICEGATE for use

Handling Technical Issues

DGFT has advised stakeholders to report any operational or system-related issues to the Policy Cell-5 (EG&TF) at DGFT Headquarters for prompt resolution.

Impact on Exporters and Trade

This reform marks a major advancement in India's trade facilitation efforts:

  • Digitization reduces paperwork and human error
  • Integration with customs ensures real-time usability
  • Transparency improves tracking and accountability
  • Efficiency speeds up export incentive utilization

The move aligns with the Government's broader vision of enhancing ease of doing business and promoting exports.

Conclusion

The activation of the Post Export EPCG online module represents a critical shift toward a more efficient, transparent, and technology-driven export ecosystem. By eliminating manual bottlenecks and enabling seamless coordination between DGFT and customs systems, the government has taken a decisive step in strengthening India's trade infrastructure.

Exporters are encouraged to adopt the new system and utilize its features to ensure smoother operations and faster realization of benefits under the EPCG scheme.

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