The Directorate General of Foreign Trade (DGFT) has mandated the online submission of replies to Show Cause Notices (SCNs) and the online payment of penalties under the Foreign Trade (Development & Regulation) Act, 1992 (FTD&R Act). This measure is part of the Government’s broader initiative to promote ease of doing business and transition towards a fully digital trade environment. 

Background 

The DGFT has progressively implemented paperless mechanisms for applications and authorization processes to improve efficiency and transparency. While many processes, such as Duty Exemption and Remission Authorizations, have already been digitized, the Enforcement-cum-Adjudication processes and related proceedings were still partly paper-based. To address this gap, the DGFT has now made digital submission mandatory for all adjudication, appeal, and review proceedings. 

Key Provisions: 

1. Mandatory Online Submission of Documents: Replies to SCNs and submissions related to adjudication, appeals, and reviews under the FTDR Act must now be filed exclusively through the DGFT portal. Physical (paper-based) submissions will no longer be entertained. 
2. Mandatory Online Payment of Fees: Penalties imposed under orders related to the FTD&R Act must be paid online against the corresponding Enforcement-cum-Adjudication (ECA), appeal, or review file. The “Miscellaneous Payments” feature should not be used for penalties to ensure proper accounting and avoid future complications. 

Impact 

1. Paperless Compliance – Enhances ease of doing business by eliminating physical document submissions. 
2. Better Tracking & Transparency – Ensures proper record-keeping of SCNs, appeals, and penalties. 
3. Faster Processing – Reduces delays caused by manual handling and accelerates case resolution. 
4. Improved Regulatory Oversight – Ensures proper accounting of penalties, reducing errors in enforcement. 

Applicants can refer to ECA-related help manuals available on the DGFT website under Learn → Application Help & FAQs for compliance guidance.