The Standard Input Output Norms (SION) serve as the benchmark for India’s export incentive schemes, specifically the Advance Authorisation Scheme.

Introduced by the Directorate General of Foreign Trade (DGFT), SION defines exactly how much input (raw material) is technically required to produce a specific unit of output (export product). 

Whether you are in pharmaceuticals, engineering, or textiles, understanding these norms is crucial to claiming duty-free benefits without facing audits or penalties.

SION norms are standard ratios decided by the government that determine the quantity of inputs allowed for a given export product. They are designed to limit the misuse of duty-free schemes by ensuring exporters only import what is strictly necessary for production, including a standard allowance for wastage.

SION covers multiple sectors, including:

• Chemicals and Pharmaceuticals
• Engineering and Electronics
• Food Products (Fish & Marine)
• Plastics, Leather, and Handicrafts

The Advance Authorisation Scheme allows the import of inputs at 0% Customs Duty. However, the quantity of this import is dictated by SION.

• Duty-Free Access: If your product has SION entry, you can automatically import the specific inputs listed.
• Audit Safety: Adhering to SION ensures that Customs authorities accept your material utilisation without complex technical queries.
• Shipping Bill Verification: Customs officers check if the items in your import license match the description and quantity allowed for the export product in the Shipping Bill.

For example, if SION allows the import of BOPP Film against the export of Self-Adhesive Tape, you cannot use the license to import BOPP Film for a different product line. The “Actual User Condition” strictly applies.

What if your product is new, or the existing SION is outdated for your technology? The DGFT allows you to apply to the Norms Committee (NC) for:

• Fixation of New Norms: For products not yet listed.
• Modification of Existing Norms: If your manufacturing process requires different inputs or has higher wastage than the standard.

To achieve this, you must submit specific technical data.

We have categorically structured the requirements for norms fixation by different industries.

For engineering goods, the focus is on physical specifications and gross/net weight.

• Percentage of reliable Resin Content in the final product
• Percentage of Pigment Content
• Proportion of Volatile Content (solvents that evaporate)

• Registration Certificate from the Central Insecticides Board
• Stepwise manufacturing process and formulation details
• Purity percentage of the final product and raw materials

If your product does not have a standard norm, you must apply for Norms Fixation online. Here is the standard procedure to follow on the DGFT portal.

The Application Form: ANF 4B

All applications for fixation or modification of norms are filed using Form ANF 4B.

The Norms Committee meets periodically. To avoid rejection, ensure your “Input-Output Ratio” is certified by an independent Chartered Engineer before submission.

A significant update for Authorised Economic Operators (AEOs) is the Self-Ratification Scheme.

• The Benefit: AEO certificate holders can self-declare the norms for their products without waiting for the Norms Committee’s prior approval.
• The Risk: This is subject to post-audit verification. If the norms are found to be inflated during an audit, penalties and interest will apply.

Fixing or modifying norms is a highly technical process. A slight error in the Material Balance Sheet or a vague Wastage Claim can lead to the rejection of your application by the Norms Committee, stalling your Advance License benefits.

DGFT Guru specialises in SION Fixation and Ad-hoc Norms. We assist exporters in:

• Drafting Justifications: Creating precise technical documents that align with DGFT requirements.
• Analysing Ratios: calculating “Input-Output” ratios to maximise legitimate benefits.
• Representation: Personally representing cases before the Norms Committee to reduce error margins and speed up approval.

Navigating the complexities of SION is essential for any exporter looking to maximise the benefits of the Advance Authorisation Scheme. These norms not only define your import eligibility but also safeguard your business against future compliance audits. 

By ensuring your input-output ratios are accurate and technically justified, you can streamline your customs clearance process and avoid costly litigation. Whether you are using standard norms or applying for ad-hoc fixations, precision in documentation is the key to long-term success in international trade.

Where can I find the official list of SION norms? 

The complete list of SION is available in the Handbook of Procedures (Vol. 2) released by DGFT. It is updated periodically via Public Notices.

What if my product does not have a SION?

You can apply for an Advance License on a Self-Declared basis (Ad-hoc Norms). You must then submit data to the Norms Committee to get these norms ratified within a specific timeframe.

Can I claim higher wastage than SION allows?

Yes, but only if you apply for a Modification of Norms. You must provide strong technical justification and manufacturing data to prove why your specific process generates higher wastage