Primer on Standard Input Output Norms For Export Promotion Schemes of India

Dated 09th February 2013

  1. The SION norms have been prescribed with a view to facilitate determination of the proportion of various inputs which can be used or are required in the manufacture of different resultant products. In many cases, the resultant products and the inputs required have been described in generic terms. The applicants shall, therefore, ensure that the goods sought for import and actually imported are those, which are used/required in the export product. The items allowed for import in the licence shall be co-related with the description of the export product in the Shipping Bill by the exporter to be authenticated by Customs. For example, if the input allowed in the norms is ‘relevant fabrics’, only the specific types of fabric i.e. polyester or nylon etc. used in the export product shall be allowed. Similarly, if the norms provide for import of BOPP film against export of self adhesive tape, only BOPP film required for manufacture of Self Adhesive Tape will be allowed and not those, which are required as packing material.
  2. Wherever a specific norm has been provided, the same will prevail over the generic norm laid down, if any. If the application is based on the generic norm, specific reason for applying under the generic norm should be clearly stated.
  3. In some norms, two or more alternative inputs have been permitted for import for the manufacture of a specific resultant product. In such cases, the applicant shall be required to opt for only one alternative and the advance licence/duty free replenishment certificate shall be issued accordingly. In case, more than one alternative input is required, the same could be allowed based on the specific declaration from the applicant about their requirement in the resultant product, at the time of filing application and the licence will be issued indicating the specific quantity of each input.
  4. All the inputs allowed for import under advance licence/duty free replenishment certificate are required to be indicated in terms of quantity. Where an input has been permitted in the norms or specifically allowed for import by the ALC in terms of value as a limiting factor only, such items shall be indicated in the licence in terms of value only. However, if quantity and value of inputs is a limiting factor, the same shall be applicable.
  5. In case of norms wherein the inputs have been allowed based on a percentage content of inputs in the export product with some wastage or on net to net basis or on net plus wastage basis, the exporter shall account for the quantity(s) allowed for import minus the wastage permitted, if any, in the product exported. In such cases, the net quantity shall be reflected in the export product description by the Licensing Authority and also in the Shipping Bill by the exporter duly endorsed by the Customs Authorities.
  6. Unless specified, otherwise, the import of components wherever allowed shall be permitted on net to net basis i.e., without any wastage, with accountability clause and the type, technical specifications (including part No., if any), etc., of the components sought for import should conform to those utilized in the manufacture of the resultant product, which should be reflected in export documents (Shipping Bills) also. A condition to this effect shall be imposed on the licence.
  7. An applicant need not apply for all the inputs indicated in the norms for the grant of advance licence/ duty free replenishment certificate provided all other conditions for grant of licence in the Exim Policy and the Handbook of Procedure are fulfilled. For advance licence, the applicant shall indicate the source of procurement of the remaining inputs, that is, whether they are indigenous or imported, in the application.
  8. In respect of the following inputs, advance licence/duty free replenishment certificate requiring any of these items will be issued subject to the imports being restricted upto a maximum value limit indicated against each input. However, where quantity is also indicated for these inputs in the norms, the imports shall be restricted both in terms of quantity and value as limiting factor.

SOURCE: GOVT. OF INDIA, Ministry of Commerce and Industry


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