Standard Input-Output Norms (SION) is a system that was implemented in India to regulate import and export of goods. It is a document that specifies the quantity and value of inputs required to produce a unit of output.
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.
