Procedure for Norms Fixation for Advance Authorisation

If you are into export-import and want to Search existing SION norms, follow this procedure:

• Go to the website- https://www.dgft.gov.in/CP/
• Then go to Regulatory Updates
• Click on SION – you will find a list with Chapter notes 
• Go to the Chapter notes. Now the exporter can will be able to see the existing SION of that chapter notes
• Click on the Chapter notes and then the exporter can view the existing SION of that chapter notes

The exporter can also view the Application Master Data of SION, Ad-hoc Norms, No norms/Self Declaration Norms by following this procedure:

• Visit the DGFT website
• Go to Regulatory Updates
• Click on Application Master Data
• Then click on Standard IO Norms or Ad-hoc norms or SION Chapter-wise Notes
• Now the exporter can view the norms types, Export Product Group, ITS(HS Code) and its description

According to the Indian Trade Classification (Harmonised System)- ITC (HS) of export products (Annexure A)- there are 7 Norms Committees.

For different commodities, there are different Norms Committees.

Below are the details of the Norms Committees and the product groups dealt with by each Norms Committee and respective HS Chapters related to norms fixation.

Let us go through the core roles and responsibilities of the Norms Committee.

• The application includes project reports when submitting the ad-hoc form application. 
• The Norms Committee assesses the application of the ad-hoc norms and, in collaboration with various technical consultants, establishes the allowable wastage percentage for the exporter. 
• Exporters dissatisfied with the Norms Committee’s decisions can submit a representation to the relevant committee within four months from the date of the ad-hoc norm fixation decision.
• The SION List is established and overseen by the Norms Committee. 
• Efforts are made by the committee to transition ad-hoc norms to Standard Input-Output Norms (SION) within six months, with a goal of completing the process within 12 months from the date of ad-hoc norm ratification.

Exporters must have the following documents in order to get Norms Fixation under the Advance License:

• DGFT DSC
• Application fees receipt
• Copy of IEC
• Application form ANF – 4B
• Copy Valid RCMC
• Appendix – 4E – Chartered Engineer Certificate
• Copy of GST Certificate
• Appendix 4K
• Advance License copy if taken
• Production & Consumption data for the preceding 3 financial years
• Details of previous licenses obtained (if any) for the resultant product during the previous two licensing years.
• Copy of SSI/IEM/MSME.
• Detailed technical Notes with the manufacturing process along with technical justification for claimed wastage at every stage of the process

There are two ways through which exporters can get norms fixed:

In situations where norms haven’t been officially notified, and the applicant wishes to establish ad-hoc norms before applying for Advance Authorisation, it is referred to as Prior Fixation of Norms. 

• The applicant can physically submit the ANF 4B form and the required documents to the relevant Norms Committee at DGFT headquarters. 
• Alternatively, an online submission can be made, where the appropriate Norms Committee is automatically selected based on the specified products for SION/Ad-hoc norms fixation.
• It’s crucial to ensure the error-free preparation of ANF 4B and the prescribed documents. 
• Once all necessary data is provided in the application, it can be submitted. 
• The Norms Committee will then either set these norms or establish ad-hoc norms based on the application. 
• Decisions made by the Norms Committees will be accessible on the DGFT website.
• Any ad-hoc norm determined through this process is valid for a single authorisation for which the application is submitted, and no repeat authorisations will be issued. However, the Norms Committee has the authority to extend the validity period by two years from the date of fixation of such ad-hoc norms.
• The applicant will apply for Advance Authorisation, utilising the established adHoc norms. 
• Following this, the authorisation will be granted for the import, taking into account the specified ad-hoc norms. 
• Subsequently, the applicant can proceed to fulfil both the import and export obligations.

The process of prior fixation of norms is both time-consuming and expensive. In response to this, DGFT has decided, as outlined in Para 4.07 of the HBP, to streamline the Norms Fixation process by concurrently processing applications along with the Advance Authorisation application.

• An application for an Advance License, along with the required documents, is submitted to the DGFT, and simultaneously, a copy of the application is forwarded to the relevant Norms Committee. 
• This application must be certified by an Independent Chartered Engineer. 
• The Norms Committee reviews, approves, and finalises the application. 
• Subsequently, the committee prepares minutes of the decision, which are then uploaded on the DGFT website.
• During this process, the applicant has the flexibility to proceed with the import. 
• The remaining procedures, including the fulfilment of export obligations within the stipulated period, remain unchanged for the exporter.

Now you must have developed a good understanding of SION, Ad-hoc norms and the procedure of norms fixation, you might have felt things to be quite complicated right? So what you can do is connect with professional DGFT consultants who would help you smoothly get through the entire process.

DGFT consultants who have been in the field for years have a trustworthy and reliable network, they can easily coordinate with the Norms committee and the technical members for proper presentation of the cases. Also, they can help you effectively analyse the products that are being manufactured.