SION Fixation in India: How Exporters Can Get New Input-Output Norms Approved by DGFT

For exporters and manufacturers using the Advance Authorisation Scheme, one of the most important questions is often overlooked:

What happens when there is no existing SION for your export product?

This situation is common for manufacturers dealing with new products, customised products, specialised formulations or products for which the notified Standard Input Output Norm (SION) does not accurately reflect actual input consumption.

SION, or Standard Input Output Norms, specify the standard quantity of inputs that may be permitted against a particular export product under applicable export-promotion schemes. DGFT maintains a database of notified SIONs covering different product groups, including chemicals, engineering products, electronics, textiles and other categories.

But what if your product is not covered?

This is where SION fixation, Ad-hoc Norms and the DGFT Norms Committee become important.

In this guide, we explain what SION fixation means, when an exporter may need it, what information and documents are important, how the DGFT process works and how professional DGFT assistance can make the process easier.

What Is SION?

SION stands for Standard Input Output Norms.

These norms establish the standard quantity of inputs that may be required to manufacture a specified export product.

For example, a notified norm may specify that a certain quantity of raw material or input is allowed for manufacturing a particular quantity of an export product.

SION can therefore help determine the permissible input entitlement under schemes such as Advance Authorisation.

DGFT provides an online facility through which exporters can search available Standard Input Output Norms, notes and norms fixed by the Norms Committee.

The important point is that SION is product-specific.

A manufacturer cannot simply select a SION for a similar product and assume that it will automatically apply to a different product.

The technical specifications, manufacturing process, input consumption and export product all matter.

What Is SION Fixation?

SION fixation is the process through which the applicable input-output norm for an export product is determined by the competent DGFT Norms Committee when an existing notified norm does not adequately cover the product or when a new norm needs to be established.

Under the DGFT Handbook of Procedures, where norms have not been notified, an applicant may seek fixation of SION/Ad-hoc norms through the prescribed procedure. The relevant application is submitted to the concerned Norms Committee along with the required information and supporting documents.

The purpose is to establish a reasonable relationship between:

Inputs consumed → Manufacturing process → Export product

The Norms Committee examines the information submitted by the exporter before deciding the appropriate norm.

When Does an Exporter Need SION Fixation?

An exporter may need to consider SION fixation in situations such as:

1. No SION Exists for the Product

The product is new or specialised and no applicable notified SION is available.

2. Existing SION Does Not Match Actual Consumption

The exporter has an existing SION, but the actual manufacturing process requires different inputs or quantities.

3. Product Specifications Have Changed

Changes in formulation, technology, composition or manufacturing specifications may make an existing norm unsuitable.

4. New Manufacturing Technology Is Used

A new production process may consume different quantities of raw materials than the standard process considered under an older norm.

5. Exporter Requires Ad-hoc Norms

Where a notified SION is unavailable, an exporter may need to approach the Norms Committee for fixation of an appropriate Ad-hoc norm.

The DGFT framework specifically provides for exporters/EPCs to submit data to the concerned Norms Committee for fixation of SION or Ad-hoc norms.

SION vs Ad-hoc Norms: What Is the Difference?

These terms are often confused.

SION

A Standard Input Output Norm is a notified standard applicable to the relevant export product.

It provides a standard input-output relationship that can be used where the product falls within the notified norm.

Ad-hoc Norm

An Ad-hoc norm is determined for a particular situation where a suitable notified SION may not exist.

Under the DGFT procedure, an Ad-hoc norm fixed on the basis of an exporter’s application can be valid for the authorisation for which it was sought. The Norms Committee may also specify an extended validity period, subject to the applicable provisions.

Therefore, exporters should not assume that an Ad-hoc norm automatically becomes a permanent SION.

The two concepts serve different purposes.

How Does SION Fixation Work?

The exact requirements can depend on the product and circumstances, but the process generally involves several important stages.

Step 1: Identify the Export Product

The exporter first needs to establish exactly what product is being exported.

This may include:

• Product description
• Technical specifications
• ITC(HS) classification
• Composition
• Grade
• Model
• Size
• Manufacturing process

Accurate product identification is essential because the applicable Norms Committee depends on the relevant product group.

DGFT’s current Handbook of Procedures allocates different product groups to different Norms Committees based on ITC(HS) chapters.

Step 2: Search Existing SION

Before applying for a new norm, the exporter should check whether an appropriate SION already exists.

DGFT provides an online search facility for Standard Input Output Norms and Ad-hoc Norms.

This step is important because applying for a new norm when a suitable notified SION already exists may create unnecessary complications.

The exporter should examine:

• Product description
• Input description
• Input quantity
• Output quantity
• Notes
• Restrictions
• Applicable conditions

The closest-looking SION is not necessarily the correct one.

Step 3: Analyse Actual Input Consumption

This is one of the most important parts of a SION fixation application.

The exporter should be able to explain:

How much input is actually required to manufacture the export product?

For example:

A manufacturer exports 1,000 kg of a specialised chemical product.

The production process may consume:

• Raw Material A
• Raw Material B
• Additive C
• Processing chemical D
• Other permitted inputs

The exporter should establish the relationship between the quantity of inputs consumed and the quantity of finished export product produced.

The stronger the production and consumption evidence, the easier it can be for the authorities to evaluate the proposed norm.

Step 4: Prepare Production and Consumption Data

Historical manufacturing data can become extremely important.

The DGFT procedure states that industry/manufacturers/EPCs are required to provide production and consumption data for the past three years, as may be required for SION fixation.

This means exporters should maintain proper records of:

• Production quantities
• Raw-material consumption
• Input wastage
• Process loss
• Yield
• Finished-goods output
• Batch records
• Export quantities

A manufacturer with organised production records is generally in a much stronger position to substantiate its proposed input-output ratio.

Step 5: Submit the Application and Supporting Information

Where fixation of norms is required, the prescribed application and supporting information are submitted to the concerned Norms Committee.

The DGFT framework provides for an application in ANF 4B for fixation of SION/Ad-hoc norms in the circumstances covered by the procedure.

The application should present the technical and commercial facts clearly.

An incomplete or poorly supported submission can lead to requests for additional information and potentially delay the process.

Step 6: Norms Committee Examination

The concerned Norms Committee examines the information submitted by the exporter.

The Committee may evaluate:

• Manufacturing process
• Input consumption
• Production records
• Technical specifications
• Wastage
• Process loss
• Industry practices
• Export product specifications
• Supporting evidence

DGFT’s procedure states that Norms Committees endeavour to fix SION or Ad-hoc norms upon receipt of complete data.

In some cases, additional clarification or information may be required.

Therefore, exporters should be prepared to explain their manufacturing process in technical and quantitative terms.

What Documents Can Support a SION Fixation Application?

The exact documentation can vary depending on the product and case.

However, exporters should be prepared with information such as:

• IEC details
• Export product description
• ITC(HS) classification
• Product specifications
• Manufacturing process
• Bill of materials
• Input-output statement
• Raw-material consumption data
• Production records
• Wastage details
• Process-loss calculations
• Past export data
• Purchase invoices
• Input invoices
• Export invoices
• Shipping documents
• Technical literature
• Laboratory reports, where relevant
• Product formulation, where applicable
• Supporting declarations
• Industry/EPC information, where applicable

For technical products, a simple commercial description may not be enough.

The exporter should be able to demonstrate why the proposed input quantity is technically necessary.

Why Actual Consumption Data Matters

Imagine a manufacturer produces 10,000 units of an export product.

Its historical production records show:

Input A: 12,000 kg
Input B: 4,000 kg
Input C: 800 kg

If the exporter proposes a significantly different ratio without supporting evidence, the Norms Committee may require clarification.

On the other hand, consistent historical production data can help establish a reasonable relationship between inputs and output.

This is why SION fixation is not simply an administrative form-filling exercise.

It involves technical, production and consumption analysis.

Can SION Be Revised or Amended?

Yes, exporters may need to seek revision or amendment where an existing norm no longer reflects actual manufacturing conditions or where changes in the product or production process justify reconsideration.

DGFT’s Norms Committees are responsible for fixation, revision and amendment of norms for the relevant product groups.

For example, a manufacturer may introduce:

• New technology
• New raw materials
• New formulation
• Improved manufacturing efficiency
• Different product specifications

If these changes materially affect the input-output relationship, the exporter may need to examine whether the existing norm remains appropriate.

What If There Is No SION for Your Product?

This is one of the most important questions exporters ask.

The absence of a notified SION does not necessarily mean that the exporter cannot explore the Advance Authorisation route.

The DGFT framework provides for self-declared authorisations where SION does not exist, subject to the applicable conditions and subsequent examination/fixation requirements.

This means exporters should examine whether the product qualifies for the relevant mechanism and whether Ad-hoc norms or self-declared norms are applicable in their particular case.

Because the conditions can depend on the product and authorisation, exporters should verify the current DGFT requirements before filing.

Common SION Fixation Mistakes

Mistake 1: Not Checking Existing SION

Some exporters immediately seek a new norm without thoroughly checking the DGFT database.

Mistake 2: Providing Weak Consumption Data

A proposed norm without supporting production evidence can be difficult to substantiate.

Mistake 3: Ignoring Process Loss

Manufacturing loss and wastage can be relevant to understanding actual input consumption.

Mistake 4: Giving Generic Product Descriptions

Technical products require sufficiently clear descriptions and specifications.

Mistake 5: Incorrect ITC(HS) Classification

An incorrect classification can lead to the application being considered under the wrong product group.

Mistake 6: Inconsistent Records

Differences between production records, purchase data, export documents and proposed norms can create questions.

Mistake 7: Treating Ad-hoc Norms as Permanent SION

An Ad-hoc norm and a notified SION are not necessarily interchangeable.

How SION Fixation Can Affect Advance Authorisation

The Advance Authorisation Scheme allows eligible exporters to import inputs required for producing export products subject to the applicable conditions.

DGFT states that Advance Authorisation applications can be filed where SION has been notified, or on the basis of Ad-hoc norms or self-declaration where permitted under the Handbook of Procedures.

Therefore, SION and Advance Authorisation are closely connected.

An exporter should understand the applicable input-output norm before planning:

• Import quantity
• Input requirement
• Export obligation
• Value addition
• Authorisation quantity
• Duty exemption benefits

A correct norm can help align the authorisation with the actual manufacturing requirement.

How Professional SION Fixation Support Can Help

SION fixation can involve technical production data, DGFT procedures, classification, documentation and interaction with the relevant Norms Committee.

For exporters who are unfamiliar with the process, professional assistance can help with:

• Existing SION research
• Product and input analysis
• ITC(HS) classification review
• Production and consumption data preparation
• ANF 4B documentation
• SION/Ad-hoc norm application support
• DGFT procedural guidance
• Advance Authorisation coordination
• Clarification and documentation support
• Compliance follow-up

CargoMate Logistics provides DGFT consultancy and export-import compliance support for businesses dealing with specialised trade requirements.

If your product is not covered by an existing SION, or the notified norm does not match your actual input requirement, CargoMate Logistics can help you understand the available DGFT route and prepare the relevant documentation and application support.

For exporters dealing with Advance Authorisation, SION fixation, Ad-hoc norms, DGFT compliance and import-export documentation, getting the process reviewed before filing can help reduce avoidable errors and delays.

Conclusion

SION fixation is an important process for exporters whose products are not adequately covered by existing Standard Input Output Norms.

It is particularly relevant for manufacturers with new products, specialised formulations, customised goods or manufacturing processes where actual input consumption differs from an existing norm.

The process requires more than simply submitting an application. Exporters should be prepared to establish their actual input-output relationship through reliable production, consumption and technical data.

DGFT’s current framework provides mechanisms for SION fixation, Ad-hoc norms and, where applicable, self-declared norms, while the relevant Norms Committee examines the information and supporting evidence submitted by the exporter.

For businesses planning to use Advance Authorisation, getting the input-output norms right can be an important part of effective export planning.

Need help with SION Fixation, Ad-hoc Norms or Advance Authorisation? CargoMate Logistics can assist with DGFT consultancy, documentation and export-import compliance support tailored to your business requirements.