Standard-Input-Output-Norms

Standard Input-Output Norms (SION)

Standard Input-Output Norms (SION)

The Direct General of Foreign Trade (DGFT) has published the Standard Input Output Norms (SION) to specify the required amount of inputs needed to produce a unit of outputs for exporting. SION is applicable for numerous products, including electronics, engineering, chemical, handicraft, plastic, leather, and many more; it is also suitable for various food products such as fish and other marine products. Advance licenses are issued based on the inputs and export items given under SION, and the applicant’s exporter needs to ensure that the goods sought for import and imported are used in the export product. The manufacturer exporter and merchant-exporter can modify these norms by applying DGFT.

SION for Advance Authorizations

As explained above, based on the Standard Input Output Norms (SION), the Government issues the advance authorizations for inputs and export items. The Advance Authorization allows duty-free import of inputs, which are physically incorporated in the export product. As per SION, the duty-free import of fabric is permitted under the Special Advance Authorization Scheme for the export of Articles of Apparel and Clothing Accessories.

Duty-Free Replenishment Certificate (DFRC) also shall be issued for import of inputs as per SION as indicated in the shipping bills.

Condition for Exports

The applicant’s exporter needs to ensure that the goods sought for import and imported used in the export product. According to SION, the customs authority will check whether the items allowed in the import license is co-related with the description of the export product in the Shipping Bill. For better understanding kindly go through this example:

If the input allowed in the SION is ‘relevant fabrics,’ only the specific types of fabric that are Polyester or nylon used in the products will be approved for export. Similarly, if the input-output norms provide for import of BOPP film against the trading of self-adhesive tape, only BOPP film required for the manufacture of Self Adhesive Tape will be allowed for shipping.

SION in Textile Product Group

SION for ‘Dipped Belting Fabrics (E.P.) Conveyor Duck/Synthetic Fabrics of Nylon 6/66 and Polyester 840 Denier in the Textiles Product is as follows:

Export ProductImport itemQuantity allowed
Dipped Belting Fabrics Conveyor Duck/Synthetic Fabrics Of Nylon 6/66 & Polyester 840Pet Chips (Polyester chips)782.25 kg
Spin Finish Oil6.71 kgs
Relevant Industrial Yarn (Nylon 6/66)305.00 kgs
V.P. Latex65.00 kgs
Resorcinol7.00 kgs
Formaldehyde10.00 kgs
Bonding Agent (Grill Bond, Vulca bond, ISO-bond PC45)5.00

SION in Golf Gloves made of Knitted/Crocheted/Woven/Non-woven fabric

Export itemImport itemQuantity allowed
Gloves’ made of Knitted/Crocheted/Woven/Non-woven fabricRelevant knitted, Crocheted, Woven, non-woven fabric or relevant inner lining materials0.112 square meters
Elastic TapeNet content + 1% wastage
Binding tapeNet content + 1% wastage
VelcroNet content + 1% wastage
LogoNet content + 1% wastage
Snap FastenersNet content + 1% wastage
Lycra0.02 Square meter
Relevant Knitted Ribbed fabric for Cuff1.01 kg/kg of content in the export product

SION in Rubber Products

Export itemImport itemQuantity allowed
All Types of Steel Truck Radial Tyres (Tube TypeMiscellaneous Chemicals

  • Microcrystalline
  • Wax
  • Resorcinol
  • Paraffin
  • Wax
  • Pigments
  • Softeners
  • Sulphur
  • Stearic Acid,
  • Process Oil
  • Dip
  • Chemicals
  • Mould
  • Release agents
  • Tackifiers
6.6425 Kg

Maximum Value Limit for Products

In respect of the following products, advance license or the duty-free replenishment certificate will be issued based on the maximum value limit indicated against each product.

Sl.NoProductsMaximum value limit
1Perfumery compounds, chemicals, Natural essential oils, Resinods or Aromatic chemicalItem wise value limit, as indicated in the relevant norm.
2Rubber ChemicalUpto 7% of FOB value of exports.  However, in the case of Break Diaphragms for Automobiles – Upto 5% of FOB value of export
3Miscellaneous Chemicals

  • Break Diaphragms for Automobiles
  • Bicycle Tyres
  • Transmission Rubber Belting
  • Rubber pads
  • Rubber Polished Brakes
  • Synthetic Rubber Sheets
Upto 5% of FOB value of exports,
4DyesItem wise limit as provided in the relevant norm
5Spin Finish Oil (Including Surface Active Agent u as a finishing oil in the manufacture of Polyester)

Upto 5% of FOB value of exports.

 

FOB: Freight On Board or Free On Board

Classification of Tile and Slab as per SION

For distinguishing tile from the slab in the SIONs for export products of Marble, Granite, Serpentine, consider the following parameters for classifying the product as Tile or Small be adopted:

Sl.NoProductThickness
1TileUpto 12  mm
2SlabMore than 12 mm

For getting more details regarding the Standard Input Output Norms, kindly access the official website of DGFT.

Application for Modification of Standard Input Output Norms (SION)

The manufacturer exporter and merchant-exporter can furnish a request for modification of existing Standard Input-Output norms to the Directorate General of Foreign Trade (DGFT). The format of the application is as follows:

b248f37bc4631d524680c20d8277989a

Along with the form, the applicant needs to furnish the following documents for modifying the Standard Input Output Norms (SION):

  • Technical Details of the Export Products
  • Chartered Engineer certificate certifying the import requirements of raw materials
  • Production and Consumption data of the manufacturer of the preceding three licensing years, duly certified by the Chartered accountant/ Cost & Works Accountant/ Jurisdictional Excise Authority.

Technical Details of the Export Products – For Modifying SION

The exporter need to produce the following technical details of the product to modify the norms:

Chemicals Products, Drugs, and Pharmaceuticals

  • Step-wise Manufacturing Process
  • Complete Chemical reactions of the manufacturing process with molecular and structural formula molecular weight along with stage-wise % yields on a molar basis.
  • Material balance for the entire manufacturing process
  • Essential and recovery of solvents used in the whole manufacturing process at each step
  • Authentic technical literature in support of percentage yield claimed in the manufacturing process as a whole
  • Details of products formed in the chemical process with their quantities and values
  • Information regarding the solvents charged, recovered and consumed in each step of the manufacturing process
  • Collaborator’s guaranteed norms
  • Percentage purity of the finished product and raw materials and percentage of any moisture in the export product
  • The end use of the chemical intermediates
  • Valid drug manufacturing license
  • Standard technical literature about the process as well as yields in case of new drug molecules
  • Pharmaceutical references such as the details of the export product – USP, B.P., etc

Engineering Products

  • The model number of the item, technical specification and specific quantity-both in terms of quantity and weight, of each export product
  • Details technical Note on the manufacturing process
  • Drawings/catalogues of each export product
  • Weight of each engineering product (if the inputs include raw material)

Textile Products

  • Detailed drawings of the items of manufacture that is an export product
  • Justification for wastages claimed regarding the items
  • Reason for import of particular grade of the raw material applied

Plastic or Rubber Products

  • Detailed manufacturing process along with the technical basis for wastages claimed at each stage of the manufacturing process
  • Technical descriptions including size, thickness and weight range of plastic of the products to be exported along with small samples of export product
  • The chemical name of Processing Aid, Blowing Agent, and pigment proposed to import
  • Percentage of rubber in the export product
  • Percentage of the composition of rubber compound in terms of different constituents

Pesticides

  • The manufacturing process for pesticides for both technical grade as well as formulation
  • Detailed material balance and chemical reactions along with the molecular weight of the reactants, % yield, and wastages at different stages of the manufacturing process supported by authentic technical literature.
  • Details of byproducts, if any, formed during the reaction along with its recovery in terms of quantity and value
  • Percentage purity of the finished product and raw materials and percentage of any moisture in the export product
  • Registration Certificate from Central Insecticides Board for the manufacture of pesticides (technical grade)

Paints, Surface Coatings and Printing Inks

  • Percentage of reliable resin content in the export product
  • The interest of pigment content in the export product
  • A portion of volatile content in the export product

Dyes and Dye Intermediates

  • Manufacturing process, material balance and flow chart
  • The balanced chemical reaction of the process showing all the reactants, product and byproducts (s) with the molecular formulas and molecular weights
  • Stage-wise percentage yield in respect of each reactant along with justification
  • Authentic technical literature in support of return or quantity of items applied for import
  • Details of solvents charged during the process, the amount recovered and loss in-process and recovery
  • Aspects of byproducts formed during the process and their improvement in terms of amount and value.
  • Details of standardization and % dye content of the export item

Paper and Paper Products

  • GSM of a product of export
  • The coating composition of coated paper and percentage coating weight in the export product

Format of the Chartered Engineer certificate certifying the import requirements of raw materials is as follows:

32B

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Renu is experience content writer specialised in compliances and company rules.