Advance Authorisation Norm: Made Simple for Exporters
If you're an exporter using the Advance Authorisation Scheme, you've likely come across terms such as SION, Net-to-Net, Adhoc Norms, and Self Declaration. While these terms may seem technical, they simply determine how much duty-free raw material you can import for manufacturing export products.
Understanding the correct Advance Authorisation norms helps exporters obtain approvals faster, remain compliant with DGFT regulations, and successfully fulfil their Export Obligation.
What Are Advance Authorisation Norms?
Under the Advance Authorisation Scheme, the Directorate General of Foreign Trade (DGFT) specifies the quantity of inputs that can be imported duty-free for manufacturing export products. These input-output ratios are known as Norms.
Depending on your product and manufacturing process, one of the following norm categories will apply.
1. SION (Standard Input Output Norms)
SION (Standard Input Output Norms) are pre-approved norms notified by DGFT for thousands of export products.
These norms specify the exact quantity of raw materials, components, and consumables required to manufacture one unit of the export product. Since they are already approved, exporters can obtain an Advance Authorisation quickly without applying for separate norm fixation.
Best for: Products already covered under the DGFT SION schedule.
Net-to-Net norms are applicable when imported components are directly incorporated into the exported product without any manufacturing loss or wastage.
The imported component retains its identity in the finished product, making this method common in electronics, engineering products, machinery, and assembly-based industries.
Best for: Assembly operations where imported components are used on a one-to-one basis.
If your export product is new, innovative, or not covered under SION, and you are not eligible for Self Ratification or Self Declaration, you must apply for Adhoc Norms.
The exporter submits a detailed application to the DGFT Norms Committee, including the manufacturing process, technical specifications, and input consumption details. After examination, DGFT fixes product-specific norms before issuing the Advance Authorisation.
Best for: New products without existing DGFT norms.
Under the Self Declaration route, there are no pre-fixed norms.
The exporter declares their own input-output consumption while applying for the Advance Authorisation. The authorisation is issued based on this declaration, and the proposed norms are later examined and approved by the DGFT Norms Committee during the redemption process.
Best for: Products where no standard norms exist and self-declared consumption is appropriate under DGFT provisions.
Which Norm Should You Choose?
The applicable norm depends on your export product and manufacturing process:
SION – When DGFT has already notified standard norms.
Net-to-Net – When imported components are directly incorporated into the exported product.
Adhoc Norms – When no SION exists and prior DGFT approval is required.
Self Declaration – When exporters declare their own consumption norms, subject to approval during redemption.
Selecting the correct Advance Authorisation Norm is essential for smooth imports, timely exports, and hassle-free DGFT compliance. Whether your product falls under SION, Net-to-Net, Adhoc Norms, or Self Declaration, understanding the applicable route can save both time and cost while ensuring successful redemption of your Advance Authorisation.
If you need expert assistance with Advance Authorisation, Norms Fixation, DGFT Licensing, or Export Obligation Compliance, our team is here to help.
Advance Authorisation Norm: Made Simple for Exporters
If you're an exporter using the Advance Authorisation Scheme, you've likely come across terms such as SION, Net-to-Net, Adhoc Norms, and Self Declaration. While these terms may seem technical, they simply determine how much duty-free raw material you can import for manufacturing export products.
Understanding the correct Advance Authorisation norms helps exporters obtain approvals faster, remain compliant with DGFT regulations, and successfully fulfil their Export Obligation.
What Are Advance Authorisation Norms?
Under the Advance Authorisation Scheme, the Directorate General of Foreign Trade (DGFT) specifies the quantity of inputs that can be imported duty-free for manufacturing export products. These input-output ratios are known as Norms.
Depending on your product and manufacturing process, one of the following norm categories will apply.
1. SION (Standard Input Output Norms)
SION (Standard Input Output Norms) are pre-approved norms notified by DGFT for thousands of export products.
These norms specify the exact quantity of raw materials, components, and consumables required to manufacture one unit of the export product. Since they are already approved, exporters can obtain an Advance Authorisation quickly without applying for separate norm fixation.
Best for: Products already covered under the DGFT SION schedule.
Net-to-Net norms are applicable when imported components are directly incorporated into the exported product without any manufacturing loss or wastage.
The imported component retains its identity in the finished product, making this method common in electronics, engineering products, machinery, and assembly-based industries.
Best for: Assembly operations where imported components are used on a one-to-one basis.
If your export product is new, innovative, or not covered under SION, and you are not eligible for Self Ratification or Self Declaration, you must apply for Adhoc Norms.
The exporter submits a detailed application to the DGFT Norms Committee, including the manufacturing process, technical specifications, and input consumption details. After examination, DGFT fixes product-specific norms before issuing the Advance Authorisation.
Best for: New products without existing DGFT norms.
Under the Self Declaration route, there are no pre-fixed norms.
The exporter declares their own input-output consumption while applying for the Advance Authorisation. The authorisation is issued based on this declaration, and the proposed norms are later examined and approved by the DGFT Norms Committee during the redemption process.
Best for: Products where no standard norms exist and self-declared consumption is appropriate under DGFT provisions.
Which Norm Should You Choose?
The applicable norm depends on your export product and manufacturing process:
SION – When DGFT has already notified standard norms.
Net-to-Net – When imported components are directly incorporated into the exported product.
Adhoc Norms – When no SION exists and prior DGFT approval is required.
Self Declaration – When exporters declare their own consumption norms, subject to approval during redemption.
Selecting the correct Advance Authorisation Norm is essential for smooth imports, timely exports, and hassle-free DGFT compliance. Whether your product falls under SION, Net-to-Net, Adhoc Norms, or Self Declaration, understanding the applicable route can save both time and cost while ensuring successful redemption of your Advance Authorisation.
If you need expert assistance with Advance Authorisation, Norms Fixation, DGFT Licensing, or Export Obligation Compliance, our team is here to help.