Tax, GST & International Trade Blog

A change in Standard Input Output Norms (SIONs) is rarely cosmetic. When norms are revised, exporters who continue operating on old assumptions risk application rejections, quantity disallowances, or post-authorisation objections.

The Directorate General of Foreign Trade (DGFT), exercising powers under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy (FTP) 2023, has issued Public Notice No. 38/2025-26 revising specific SIONs applicable to Chemical and Allied Products.

Alongside product-specific revisions, Serial No. 8 of the General Note applicable to all Export Product Groups has also been amended. These changes are effective immediately and are binding on exporters availing benefits under Advance Authorisation and related schemes.

What Are SIONs and Why Exporters Cannot Ignore Them

Standard Input Output Norms (SIONs) define the permissible quantity of inputs that may be imported duty-free for manufacturing export products. They form the technical backbone of export incentive compliance.

SIONs directly impact:

• Approval of Advance Authorisation applications
• Permissible input–output ratios
• Post-export audit and scrutiny by DGFT and Customs authorities

Even minor revisions can alter eligibility thresholds or documentation expectations. Operating with outdated norms exposes exporters to avoidable compliance risk.

Revised SIONs for Chemical and Allied Products

As per the DGFT Public Notice, the following SIONs have been revised in accordance with Annexure ‘A’

The introduction of new SION entries A3696 and A3697 reflects formal inclusion of additional export products or revised manufacturing configurations within the Chemical and Allied Products category.

Exporters operating under these SIONs must rely only on the revised input–output norms specified in Annexure ‘A’ for all future applications, imports, and export fulfilments.

 Amendment to General Note for All Export Product Groups

In addition to SION-specific changes, the DGFT has amended Serial No. 8 of the General Note applicable to all Export Product Groups, as detailed in Annexure ‘B’ of the Public Notice.

General Notes apply uniformly across all SION categories, regardless of sector. Any change here can influence:

• Interpretation of eligibility conditions
• Procedural compliance requirements
• Scrutiny standards during audit or examination

This amendment therefore has implications beyond chemical exporters, potentially affecting exporters across multiple product groups.

 Effect of the Public Notice:

With immediate effect:

• Revised SIONs for Chemical & Allied Products are enforceable
• Serial No. 8 of the General Note stands amended
• All pending and future applications must align with the revised norms

Applications based on outdated norms may face:

• Rejections
• Amendments
• Post-authorisation objections during audit

Notably, no transition period has been prescribed, making prompt compliance critical.

 Conclusion

The DGFT’s revision of SIONs for Chemical and Allied Products, along with the amendment to the General Note under FTP 2023, is a substantive regulatory change, not a procedural update.

Exporters relying on Advance Authorisations must reassess their input planning, documentation, and application strategy in line with the revised norms. Continuing operations under earlier SION assumptions may create compliance gaps that surface during DGFT or Customs scrutiny.

A careful review of Annexure ‘A’ and Annexure ‘B’ before proceeding with new or ongoing authorisations is essential to avoid avoidable objections or delays.

Notification Reference: DGFT
Public Notice No. 38/2025-26
17 /12 /2025