SION Fixation – Standard Input Output Norms for Exporters
SION Fixation is an essential process under the Foreign Trade Policy (FTP) of India, managed by the Directorate General of Foreign Trade (DGFT). It defines the Standard Input Output Norms (SION) for various export products, specifying the quantity of inputs required to produce a specific quantity of export goods.
This process is vital for exporters applying under schemes like Advance Authorization or DFIA License, where duty-free import of inputs is allowed. By fixing accurate SION, exporters can ensure they receive the correct entitlements and stay compliant with DGFT norms.
What is SION in DGFT? SION stands for Standard Input Output Norms, which are pre-determined norms notified by DGFT for thousands of export products. They define:
- The type and quantity of raw materials allowed for duty-free import.
- The expected output quantity after processing.
When no pre-existing SION is available for a specific product, exporters can apply for SION fixation to determine their eligibility for duty-free imports.
Importance of SION Fixation for Exporters
- Duty-Free Import Accuracy – Ensures exporters import only the required quantity of raw materials.
- Compliance with DGFT Norms – Avoids legal and financial penalties.
- Smooth Advance Authorization Process – Helps in faster license approval.
- Cost Optimization – Accurate SION ensures reduced import costs.
- Fair Entitlements – Prevents under or over-claiming of benefits.
When is SION Fixation Required?
When your export product does not have a pre-fixed SION in DGFT’s list.
- For new or innovative products being exported.
- When existing norms do not match the actual input-output ratio.
- For exporters under customized manufacturing processes that differ from standard norms.
Procedure for SION Fixation
- Application to DGFT – Submit the request through the DGFT online portal.
- Technical Data Submission – Provide details of raw materials, wastage, and production process.
- Norms Committee Review – The DGFT Norms Committee examines the technical details.
- Industry/Expert Consultation – In some cases, expert verification is done.
- Notification of SION – Approved norms are notified and made available for future reference.
Documents Required
- IEC (Importer Exporter Code) Certificate
- Company Registration Documents
- Manufacturing Process Flow Chart
- Input & Output Ratio Statement
- Chartered Engineer’s Certificate
- Past Export/Import Data (if available)
- Technical Justification for Norms
Role of SKJ Business Solutions LLP in SION Fixation
With 45+ years of foreign trade consultancy expertise, SKJ Business Solutions LLP offers end-to-end assistance in SION fixation. Our services include:
- Preparing & filing SION fixation applications.
- Drafting accurate technical documentation.
- Liaising with the DGFT Norms Committee.
- Resolving queries during the approval process.
- Ensuring quick fixation to avoid shipment delays.
Our in-depth DGFT knowledge and industry network ensure a smooth, error-free, and faster SION approval process. Contact us
Challenges & Our Solutions
- Technical Data Errors – We prepare accurate input-output statements.
- Delays in DGFT Approvals – Our liaison team ensures faster follow-ups.
- Rejections due to Insufficient Justification – We provide strong technical backing.
- Mismatch in Input-Output Ratios – We work with chartered engineers to correct data.
Benefits of Accurate SION Fixation
- Prevents Overuse or Shortage of Inputs
- Avoids Disputes with Customs/DGFT
- Improves Cost Control in Production
- Strengthens Export Competitiveness
- Ensures Legal Compliance in EXIM Trade
GST : 19ACTFS5720J1ZG
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Mr. Sanjay Kumar Jain & Mr. Siddharth Jain (SKJ Business Solutions LLP)
6, Dr. Sundari Mohan Avenue, Chittaranjan Hospital, Kolkata, West Bengal - 700014, India
https://www.skjbusinesssolutions.co.in
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