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How to Apply for Norms Fixation? DGFT Ad-Hoc Norms & Committee Process

The Advance Authorisation Scheme allows exporters to import raw materials duty-free. But for this, the DGFT needs to know exactly how much raw material is required to produce one unit of your Advance License export product. This ratio is defined by the Standard Input Output Norms (SION).

But what if your product is new? What if there is no SION for your specific technology? Or what if the existing SION waste limits are too low for your manufacturing process?

In such cases, you cannot use the standard route to get your Advance Authorisation License. You must apply for Norms Fixation.

This process involves convincing the Norms Committee (NC) at DGFT Headquarters to approve your specific “Input-Output” ratio. This comprehensive guide explains the complex procedure of Ad-Hoc Norms Fixation, the role of the Norms Committee, and the documentation required for an Advance License application under FTP 2023.

What is Norms Fixation, and When Do You Need It?

Norms Fixation is the procedure where the DGFT Advance Authorisation team evaluates and approves the raw material consumption ratio (including wastage) for a specific export product.

You need to apply for this if:

No SION Exists: Your export product is not listed in the SION Handbook (Vol. II).
Innovation: You are using a new technology that requires different inputs than what is listed for a standard advance import license.
Wastage Variation: Your manufacturing process generates higher wastage than the standard allowance, and you need official approval to claim it.

Types of Norms Fixation

Type	Description
SION	Standard norms applicable globally to all exporters for a specific product.
Ad-Hoc Norms	Specific norms fixed for a single exporter/license where SION does not exist. Valid for one authorisation only.
Self-Declared	Norms declared by the exporter while applying for a license, subject to later ratification by the Committee.

How Does the Norms Fixation Committee (NC) Work?

The Norms Committee (NC) is the technical body at DGFT Headquarters (New Delhi) responsible for fixing these ratios. Since different industries have different complexities, there are 7 specialised Norms Committees based on product groups:

NC-1: Engineering Products
NC-2: Chemicals & Allied Products
NC-3: Pharmaceuticals
NC-4: Textiles & Leather
NC-5: Plastics & Rubber
NC-6: Food Products
NC-7: Miscellaneous

The Review Process

When you submit an application, the NC reviews your technical data (yield, recovery, wastage). They often consult technical experts (like CSIR or Chemical Departments).

If they agree with your data, they ratify the norms. If they find your wastage claims excessive, they may reject or modify the quantity allowed. This is essential for determining your final advance license export obligation.

What is the Norms Fixation Procedure?

Under Paragraph 4.06 of the Handbook of Procedures (HBP), there are two ways to approach this:

Method A: Prior Fixation of Norms (Before License)

Application: You apply for norms fixation via Form ANF 4B online.
Scrutiny: The NC reviews the technical data before you get the Advance License.
Approval: Once fixed, you apply for the license based on these approved norms.

Pros: Certainty. You know exactly what you are allowed to import.
Cons: Time-consuming. Production might be delayed while waiting for approval.

Method B: Fixation Post-License (Self-Declared)

License Application: You apply for an Advance License on a “Self-Declared” basis.
Import & Export: You get the license immediately and start manufacturing/exporting.
Ratification: Simultaneously, your file goes to the Norms Committee. They review your declaration.
Adjustment:
Scenario 1: NC accepts your norms. (All good).
Scenario 2: NC reduces your claims. (You must pay duty and interest on the excess material you imported).

Most exporters choose Method B for speed, but it carries financial risk if the committee rejects your norms later, impacting your export obligation under the advance authorisation scheme.

What are the Documents Required for Norms Fixation?

The success of your advance authorisation procedure depends entirely on the technical strength of your documents. A vague write-up will lead to rejection.

Document	Purpose
Form ANF 4B	The primary application form for norms fixation.
Appendix 4K	Certificate from an Independent Chartered Engineer verifying the process.
Technical Write-up	Detailed manufacturing process flow, chemical reactions, and mass balance.
Wastage Data	Justification for wastage (e.g., evaporation loss, process residue).
Production Log	Last 3 years’ production and consumption data (if available).
Brochures/Drawings	Technical drawings or catalogues of the advance license export product.

How to Check Existing SION Norms?

Before applying for fixation, always double-check if a norm already exists.

Visit the DGFT Website.
Go to Regulatory Updates > SION.
Search by ITC (HS) Code or Export Product Group (e.g., Chemicals, Engineering).

Why Choose DGFT Guru for Norms Fixation?

Norms Fixation is a high-stakes technical process. If the committee rejects your wastage claim, you could face a demand notice for customs duty on tons of imported material.

DGFT Guru helps you effectively tackle this risk:

Technical Drafting: We help draft the Form ANF 4B and technical write-ups to align with NC expectations.
Representation: We personally represent your case before the Norms Committee to explain complex manufacturing nuances.
Wastage Justification: We analyse your process to ensure your wastage claims are scientifically defensible.

Conclusion

Securing the correct advance authorisation license is only half the task; the real challenge lies in proving your material consumption to the DGFT. Norms Fixation is the bridge that connects your unique manufacturing process with government compliance.

If you rely on incorrect norms or vague “Self-Declared” data, you risk defaulting on your export obligation under advance authorisation scheme, leading to heavy penalties. By proactively applying for Ad-Hoc norms or ensuring your SION aligns with reality, you secure your profit margins and ensure a hassle-free audit.

FAQs

Que: What is the validity of Ad-Hoc Norms?

Ans: Ad-Hoc norms are valid only for the specific authorisation (license) for which they were applied. You cannot use the same approval for a future license automatically; you must apply again or ask for the norms to be converted into SION.

Que: How long does the Norms Committee take to decide?

Ans: Typically, the committee meets once a month. The process can take 3 to 4 months, provided all technical queries are answered promptly.

Que: Can I appeal if the Norms Committee rejects my application?

Ans: Yes. You can file a representation to the Norms Committee again within 4 months of the rejection, providing fresh technical justification. If that fails, you can appeal to the Policy Relaxation Committee (PRC).

Que: What is Appendix 4K?

Ans: It is a mandatory certificate format signed by a Chartered Engineer. It certifies that the input-output ratio claimed by the exporter is technically correct and verified.

Que: Do I need norms fixation for “Self-Ratification Scheme”?

Ans: No. If you are an Authorised Economic Operator (AEO), you can opt for the Self-Ratification Scheme under FTP 2023, where you self-certify norms without immediate NC approval (subject to post-audit).