SION is used to determine the eligibility of a product for export and the amount of duty drawback that can be claimed by the exporter. 

The Standard Input Output Norms system is an attempt to standardize the valuation of goods and make the export process more transparent.  

It is a comprehensive system that covers a wide range of products from textiles to rubber products. The system provides a maximum value limit for each product and classifies tile and slab products as per SION.  

The system also allows for the application for modification of standard input output norms and provides a list of frequently asked questions to help exporters navigate the system. 

Standard Input-Output Norms (SION) 

The Standard Input-Output Norms (SION) is a set of guidelines published by the Direct General of Foreign Trade (DGFT) that specifies 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.

Under SION, advance licenses are issued based on the inputs and export items given, and the applicant’s exporter needs to ensure that the goods sought for import are used in the export product.  

The manufacturer, exporter, and merchant-exporter can modify these norms by applying to DGFT 

SION for Advance Authorizations

The Indian government issues Advance Authorizations based on the Standard Input Output Norms (SION).

The authorization allows the duty-free import of inputs that are physically incorporated into the export product.

Under the Special Advance Authorization Scheme for the export of Articles of Apparel and Clothing Accessories, duty-free import of fabric is permitted as per SION.

Condition for Exports

To ensure that the goods sought for import and importation are used in the export product, the applicant’s exporter must comply with the Customs authority’s regulations. The authority will verify whether the items allowed in the import license are related to the description of the export product in the Shipping Bill.

For example, if the input allowed in the SION is “relevant fabrics,” only the specific types of Polyester or nylon used in the products will be approved for export.

Similarly, if the input-output norms provide for the 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.

Therefore, it is essential to follow the regulations strictly to avoid any discrepancies and ensure smooth export operations. 

Technical Details of the Export Products – For Modifying SION

Some of the details needed to modify the norms for Chemical Products, Drugs, and Pharmaceuticals:

• The exporter must provide a 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;  
• Percentage of any moisture in the export product;  
• The exporter must also provide the end use of the chemical intermediates, valid drug manufacturing license, and standard technical literature about the process as well as yields in case of new drug molecules.  

Engineering Products

Some of the details needed to modify the norms for Engineering Products : 

• The exporter must provide the model number of the item, technical specification; 
• Specific quantity-both in terms of quantity and weight of each export product; 
• Details of technical notes on the manufacturing process, drawings/catalogs of each export product;  
• Weight of each engineering product (if the inputs include raw material). 

Textile Products

Some of the details needed to modify the norms for Textile products:  

• Detailed drawings of the items of manufacture that 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

Some of the details needed to modify the norms for 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. 

Paints, Surface Coatings, and Printing Inks

Some of the details needed to modify the norms for Paints, Surface Coatings, and Printing Inks: 

• Require the percentage of reliable resin content in the export product, 
• Pigment content in the export product;  
• Portion of volatile content in the export product. 

Dyes and Dye Intermediates

Some of the details needed to modify the norms for Dyes and Dye Intermediates:  

• Require the manufacturing process, material balance, and flow chart;  
• Balanced chemical reaction of the process showing all the reactants, products, and by products(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 lost in-process, and recovery;  
• Aspects of byproducts formed during the process and their improvement in terms of amount and value, and details of standardization and % dye content of the export item. 

Paper and Paper Products 

Some of the details needed to modify the norms Paper and Paper Products: 

• GSM of a product of export;  
• Coating composition of coated paper;  
• Percentage coating weight in the export product. 

The DGFT scheme list includes a range of initiatives designed to support businesses in India. These schemes cover a variety of areas, from duty exemption and remission to export promotion and capital goods. By taking advantage of these schemes, businesses can reduce costs, increase competitiveness, and expand their reach in the global marketplace. However, it’s important to understand the eligibility criteria and application process for each scheme, as well as any associated obligations and restrictions. 

Key Takeaways 

• Understanding the DGFT and its schemes is essential for exporters and importers in India. 
• The DGFT scheme list covers a range of initiatives aimed at promoting exports and facilitating imports. 
• To take advantage of these schemes, businesses must understand the eligibility criteria, application process, and associated obligations and restrictions. 

Understanding DGFT 

DGFT Full Form and Meaning 

DGFT stands for Directorate General of Foreign Trade. It is an agency of the Ministry of Commerce and Industry, Government of India. The DGFT is responsible for the implementation of the foreign trade policy of India. The agency is also responsible for the regulation and promotion of foreign trade in India. 

The DGFT is headed by the Director-General of Foreign Trade. The agency has its headquarters in New Delhi, India. The DGFT has regional offices in major cities across India. These offices are responsible for implementing the foreign trade policy in their respective regions. 

Role of Directorate General of Foreign Trade 

The Directorate General of Foreign Trade plays a crucial role in the development of India’s foreign trade. The agency is responsible for formulating and implementing the foreign trade policy of India. The foreign trade policy is a set of guidelines that govern the import and export of goods and services in India. 

The DGFT is also responsible for issuing licenses to exporters and importers. These licenses are required to import and export certain goods and services. The agency also provides various incentives and benefits to exporters to promote exports from India. 

In addition to this, the DGFT also plays a role in resolving trade disputes. The agency has a mechanism in place to resolve disputes between exporters and importers. The DGFT also works closely with other government agencies to ensure the smooth functioning of foreign trade in India. 

Overall, the Directorate General of Foreign Trade is a crucial agency in the development of India’s foreign trade. The agency plays a key role in promoting exports from India and ensuring the smooth functioning of foreign trade in the country. 

DGFT Scheme List Overview 

As a comprehensive guide to the Directorate General of Foreign Trade (DGFT) and its schemes, here is an overview of the schemes offered by the DGFT. 

Export Promotion Schemes 

The DGFT offers several export promotion schemes to incentivize and support exporters in India. These schemes are designed to boost exports and enable Indian exporters to compete with their counterparts in other countries. 

One such scheme is the Remission of Duties or Taxes on Export Products Scheme (RODTEP). The scheme aims to encourage the export of products from India and to increase India’s share in the global services market. 

Import Management Schemes 

The DGFT also offers import management schemes to regulate the import of goods into India. These schemes are designed to ensure that imports do not harm the domestic industry and that they are in line with India’s foreign trade policy. 

One such scheme is the Advance Authorization Scheme, which allows the duty-free import of inputs required for export production. The scheme aims to make Indian exports more competitive by providing duty-free inputs to Indian manufacturers. Another scheme is the Export Promotion Capital Goods (EPCG) Scheme, which allows the duty-free import of capital goods required for the production of export goods. The scheme aims to promote the manufacture of export goods in India by providing duty-free capital goods to Indian manufacturers. 

In conclusion, the DGFT offers a range of schemes to support Indian exporters and regulate imports into India. These schemes are an essential part of the DGFT’s mandate to promote India’s foreign trade and enhance its competitiveness in the global market. As an exporter or importer, it is essential to understand these schemes and take advantage of them to grow your business. 

DGFT Certification Process 

As an exporter, obtaining a DGFT certificate is essential for availing of various benefits and concessions provided by the government. The Directorate General of Foreign Trade (DGFT) is responsible for issuing these certificates. In this section, I will explain the process of obtaining a DGFT certificate. 

Obtaining DGFT Certificate 

To obtain a DGFT certificate, the exporter needs to follow the following steps: 

1. Register on the DGFT website and obtain an Import Export Code (IEC). The IEC is a unique 10-digit number issued by the DGFT to importers and exporters in India. 

2. Submit the required documents, such as proof of address, PAN card, bank details, and other relevant documents, to the DGFT. The documents may vary depending on the type of certificate required. 

3. Once the documents are verified, the DGFT will issue the certificate. 

It is important to note that the process may take some time, and the exporter should plan accordingly. Additionally, the certificate needs to be renewed periodically, and the exporter should keep track of the expiry date. 

Consultants and Assistance 

For urgent required DGFT export consultants in Mumbai, exporters can seek the assistance of Curated Exim. Our expert team of consultants can help with the entire process of obtaining the DGFT certificate, including document preparation, submission, and follow-up 

In conclusion, obtaining a DGFT certificate is an important process for exporters in India. By following the above steps and seeking the assistance of reliable consultants, exporters can avail themselves of the various benefits and concessions provided by the government. 

Resources and Support 

As an exporter or importer in India, it is essential to have access to resources and support to navigate the complex process of foreign trade. DGFT India offers a range of resources and support to help businesses succeed in international trade. 

DGFT India Resources 

DGFT India provides a comprehensive list of resources for exporters and importers, including information on trade policies, procedures, and regulations. The website also offers a range of e-services, including online applications for import-export licenses, status inquiries, and more. 

One of the most useful resources offered by DGFT India is the Foreign Trade Policy (FTP), which outlines the government’s policy on foreign trade and provides guidelines for exporters and importers. The FTP includes information on export promotion schemes, duty exemption and remission schemes, and other incentives for exporters. 

DGFT India also offers a variety of publications, including handbooks and manuals, to help businesses understand the intricacies of foreign trade. These resources cover topics such as export-import procedures, customs regulations, and trade agreements. 

Official Site and E-Services 

The DGFT official site is the primary source of information and support for exporters and importers in India. The website offers a range of e-services, including online applications for import-export licenses, status inquiries, and more. 

The site also provides access to important documents and information, such as the Foreign Trade Policy (FTP), notifications, and circulars. Businesses can also use the site to track the status of their applications and licenses and to communicate with DGFT officials. 

In addition to the official site, DGFT India offers a range of e-services to help businesses streamline their operations. These services include the Electronic Data Interchange (EDI) system, which allows businesses to submit their import-export documents electronically, and the Online Payment Gateway, which enables businesses to pay their fees and duties online. 

Overall, DGFT India is committed to providing the resources and support that businesses need to succeed in international trade. By taking advantage of these resources and services, exporters and importers can navigate the complexities of foreign trade with ease. 

Frequently Asked Questions 

What are the current rates under the RoDTEP Scheme? 

The current rates under the RoDTEP Scheme are available on the official website of the Directorate General of Foreign Trade (DGFT). The rates are subject to change from time to time, and it is advisable to check the latest notifications before claiming benefits under the scheme. 

Where can I find the latest DGFT notifications regarding export schemes? 

The latest DGFT notifications regarding export schemes can be found on the official website of the DGFT. The notifications provide information on the latest policies, guidelines, and procedures related to the export of goods and services from India. 

How can I obtain the list of HSN codes applicable under the RoDTEP scheme? 

The list of HSN codes applicable under the RoDTEP scheme can be obtained from the official website of the DGFT. The list is updated periodically, and it is advisable to check the latest version before claiming benefits under the scheme. 

What is the procedure to obtain a Bank Realization Certificate (BRC) from DGFT? 

Exporters can obtain a Bank Realization Certificate (BRC) from the DGFT by submitting the necessary documents and details related to the export transaction. The BRC is a proof of receipt of payment for goods or services exported from India. 

What are the primary functions and responsibilities of the DGFT? 

The primary functions and responsibilities of the DGFT include formulating and implementing policies related to the export and import of goods and services, issuing licenses and authorizations for exports and imports, and monitoring the compliance of exporters and importers with the relevant laws and regulations. 

How can exporters access and use the DGFT portal for their benefit? 

Exporters can access and use the DGFT portal by registering on the website and obtaining a Digital Signature Certificate (DSC). The portal provides various services such as online submission of applications, tracking of applications, and online payment of fees. Exporters can also access various trade-related information and resources on the portal.