DGFT Notifies New and Revised SION Norms for Advance Authorisation — Benefits for Pharma and Chemical Exporters

SION Revision: Pharma and Chemical Exporters to Benefit from Updated Advance Authorisation Norms

The Norms Committee of DGFT has published updated Standard Input Output Norms (SION) for product categories under the Advance Authorisation (AA) scheme. The revision covers pharmaceutical formulations, specialty chemicals, and plastic/rubber products — sectors that had previously raised concerns about outdated SION norms not reflecting current manufacturing processes.

What is SION and Why It Matters

SION specifies the permissible quantity of duty-free inputs that can be imported per unit of exported output under the Advance Authorisation scheme. Outdated or unrealistic norms result in under-importation of inputs, forcing exporters to pay duty on additional imports — reducing the scheme's benefit. Revised SION norms that accurately reflect manufacturing reality allow exporters to maximise duty-free imports and reduce input costs.

Key Revisions

• Pharmaceutical formulations: Updated API-to-formulation conversion ratios for several oncology, cardiovascular, and antibiotic active pharmaceutical ingredients, aligned with WHO GMP standards.
• Specialty chemicals: New SION entries for high-purity reagents, electronic-grade chemicals, and agricultural chemical intermediates.
• Plastic products: Revised scrap and waste allowances for injection-moulded and extruded plastic export items.

Self-Declared Norms Option

Exporters who do not find their product in the SION list or whose product specifications differ from listed SION can apply for Advance Authorisation on self-declared norms, with post-export verification by DGFT. AEO-T2 and T3 holders can self-ratify norms without prior DGFT approval. Samarth EXIM assists with SION analysis, Advance Authorisation applications, and norms fixation petitions.