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.
TaxTMI
TaxTMI