DGFT Rules: New Voluntary Disclosure Area for Export Obligations 2024

The Directorate General of Foreign Trade (DGFT) has enhanced the online module for voluntary disclosure of Export Obligation (EO) defaults. This advisory is critical for exporters using the Advance Authorization or EPCG schemes who have surpassed their delivery timelines. As per the Foreign Trade Policy 2023 and subsequent system updates, firms can now self-declare shortfalls in export performance through the DGFT portal to initiate the regularization process. ## What this means for exporters Exporters should utilize this window to avoid high-intensity audits or legal actions under the Foreign Trade (Development & Regulation) Act. By voluntarily disclosing non-fulfillment, companies can compute the required custom duty plus interest payments through the automated system. This proactive approach ensures a cleaner track record for future 'Status Holder' applications and prevents the blacklisting of IECs. We recommend all SME manufacturers review their pending authorization files against the actual E-BRC or Shipping Bill data available on the DGFT dashboard. The process is entirely digital, ensuring that the 'Red Flag' on the entity’s profile is removed promptly upon payment of the calculated differential duties. This mechanism provides a transparent path for businesses to correct compliance gaps without waiting for a formal Show Cause Notice (SCN) from regional authorities.