SION NORMS FIXATION

Under Advance Authorization scheme duty free import of inputs required for export production is permitted. For Indian goods to be competitive in the international market all the inputs that are used in the manufacturing of goods can be imported without payment of duty under the scheme known as duty exemption scheme. Advance Authorization scheme is one such duty exemption scheme which permits the import of raw materials, components, consumables, solvents, catalyst as well as packing material.
The inputs permitted are as per Standard Input-Output Norms (SION) published by Directorate General of Foreign Trade(DGFT) via Handbook of procedure volume-II.

There are almost eight thousand norms published which covers range of export products such as Chemicals, Engineering, Electronics, Plastics, Leather goods, textiles etc.

It is advisable to get the Standard Input-Output Norms (SION) fixed. An application needs to be filed for the fixation of SION for such product. Such application needs certification by an Independent Chartered Engineer.

The Chartered Engineer certified application is accepted by Directorate General of Foreign Trade(DGFT) and will be put to committee for approval and final publication.
Moreover the fixation of SION needs in-depth analysis of range of products being manufactured as family of products. As can be understood the SION should describe the product in more generic manner to cover range of products rather than a specific one, since fixation of each specific product is an impossible task.

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