The Direct General of Foreign Trade introduced SION norms to limit the number of inputs to produce outputs for exporting. SION norms are pertinent for various products, including engineering, chemical, electronics, handicraft, plastic, leather, and others. These norms are applicable for food products such as fish, and other marine products. Under SION norms, advance licenses are issued, and the applicant needs to assure that the goods sought for import get utilized in the export product. However, SION norms can be modified by manufacturer exporter and merchant-exporter by applying DGFT.

The government issues advance authorizations for items for import and export based on SION norms. Advance authorization enables duty-free import of inputs that are subsumed in the products for exports. According to SION norms, the Special Advance Authorization Scheme allows the duty-free import of fabric. A Duty-Free Replenishment Certificate (DFRC) is also essential for the import of inputs according to the SION norms.

As per the SION norms, customs authorities are responsible for checking whether the items mentioned in the import license are included with the description of the export products in the shipping bill or not.

To simplify it, consider this example: if the SION norms allow the import of BOPP film against the trade of self-adhesive tape, only BOPP film essential for self-adhesive tape manufacturing will be allowed for shipping.

For modification of SION norms, the exporter is expected to produce some technical details:

Chemical Products, Drugs, and Pharmaceuticals

• Step-by-step manufacturing

• All chemical reactions in the manufacturing procedure along with molecular and structural formula, molecular weight, and percentage yields on a molar basis of every stage.

• Material balance of complete manufacturing process

• Step-wise utilization of essential and recovery of solvents in the manufacturing process.

• Genuine technical literature to back the percentage yield mentioned in the manufacturing process.

• Particulars of products formed during the chemical process including their quantities and values.

• Step-wise details of the solvents charged, recovered, and consumed.

• Guaranteed norms of the collaborator.

• Percentage of purity and moisture in the raw material and the final product to be exported.

• End utilization of the chemical intermediates.

• Legitimate license for manufacturing.

• Standardized technical literature regarding the procedure and yields if new drug molecules are formed.

• Pharmaceutical details of the export product such as the USP, B.P., etc.

Engineering Products

• Model number, technical details, quantity, and weight of each of the export products.

• Specifications of technicalities during the manufacturing process.

• Sketches/catalogs of export products.

• If the inputs include any raw material, the weight of each product.

Textile Products

• Comprehensive sketches of the manufactured export products.

• Specifications and reasons for wastage claimed.

• The relevant reason behind the import of inputs consumed.

Plastic/ Rubber Products

• Details of the manufacturing process with technical reasons for wastage Details of the manufacturing process with technical reasons for wastage are claimed at every step of manufacturing.

• Explanations with size, volume, and weight of plastic products to be exported with samples.

• Chemical terms for processing aid, blowing agent, and pigment was proposed for import.

• Percentage of rubber used in the export product, and rubber compounds in terms of distinctive constituents.

Pesticides

• The stepwise manufacturing process and its formulation.

• Details of material balance and chemical reactions including the molecular weight of reactants, percentage yield, and wastages with authentic technical literature.

• Details of byproducts that were formed, and their recovery in quantity and value (if any).

• Purity percentage of final product and raw materials along with the percentage of moisture in it.

• Registration Certificate from Central Insecticides Board for manufacturing pesticides (technical grade).

Paints, Surface Coatings, and Printing Inks

• Reliable resin content’s percentage in the final product.

• Final product’s interest in pigment content.

• A portion of volatile content in the final product.

Dyes and Dye Intermediates

• Flow chart. Material balance, and stepwise process of manufacturing.

• Balanced chemical reactions will detail all the reactants. products, and byproducts with their molecular formulae and weights.

• Percentage yield in each reactant with relevant justifications.

• Genuine and trustable technical literature to support the return to the number of items for import.

• Specifications of solvents charged during the manufacturing process, the recovered amount, and lost in the process.

• Standardization details and percentage dye content of the final product to be exported.

Paper and Paper Products

• GSM of the export product.

• The composition of coated paper and coating percentage in the final product.