The Advance Authorisation Scheme, governed by the Foreign Trade Policy (FTP) 2023 , is a vital export promotion tool. It allows duty-free import of inputs that are physically incorporated in export products. But at the heart of this scheme lies a critical process known as norms fixation — a mechanism that determines the quantity of inputs allowed for a given export product. In this blog, we’ll break down the norms fixation process, its types, regulatory framework, and how exporters can ensure compliance while maximising benefits.
What is Norms Fixation?
Norms fixation refers to the process of determining the input-output norms – that is, the quantity of inputs required to produce a specific quantity of an export product. These norms ensure that duty-free imports are permitted only to the extent necessary for manufacturing the export product.
The norms fixation system under the Advance Authorisation Scheme operates through:
- Standard Input Output Norms (SION)
- Ad Hoc Norms (also known as self-declared norms or norms applied on a case-to-case basis)
1. Standard Input Output Norms (SION): SIONs are pre-determined norms published by the Directorate General of Foreign Trade (DGFT) for various products across sectors. If your export product falls under an existing SION category, you can simply apply using those norms.
👉 Key Benefit: No need to go through the norms fixation process; quicker issuance of Advance Authorisation.
Where to check?
You can find SION norms in the Handbook of Procedures, FTP or on the DGFT website under the Norms section.
2. Ad Hoc Norms Fixation: If your export product isn’t covered under existing SION norms, you must apply for Ad Hoc Norms Fixation. This process involves submitting a detailed application to the Norms Committee at DGFT headquarters or Zonal Offices, depending on jurisdiction.
Documents Required:
- Technical specifications of the export product and raw materials
- Input-output ratio supported by production data
- Chartered Engineer Certificate
- Sample invoices and past export performance (if any)
Once approved, these norms are applicable only to your authorisation and are not automatically notified for others. However, DGFT may choose to adopt them as new SION norms if deemed suitable.
Regulatory Framework
Norms fixation under the Advance Authorisation Scheme is governed by:
- Foreign Trade (Development & Regulation) Act, 1992
- Foreign Trade Policy (FTP) 2023
- Handbook of Procedures (HBP), 2023
- DGFT Public Notices, Trade Notices, and Circulars
Relevant clauses:
- FTP Para 4.03 – Advance Authorisation eligibility
- HBP Para 4.10 – 4.12 – Norms fixation and ad hoc norms
Common Challenges in Norms Fixation:
- Technical discrepancies in input-output ratios
- Rejection due to insufficient supporting documents
- Delay in review by Norms Committee
- Lack of clarity on product classification
Recent Updates:
As per FTP 2023, DGFT has streamlined the norms fixation process using digital tools, enabling faster processing and higher transparency. Exporters are encouraged to file online through the DGFT Services Portal. Additionally, sector-specific facilitation cells have been created to fast-track norms for sectors like electronics, textiles, and pharmaceuticals.
Conclusion
Norms fixation is a backbone of the Advance Authorisation Scheme, ensuring that duty-free imports are justified and proportionate. By understanding the process and staying compliant, exporters can significantly reduce input costs, boost competitiveness, and gain a strategic edge in global markets.
📌 Need Help with Advance Authorisation or Norms Fixation?
Whether you’re a first-time exporter or an established brand looking to streamline compliance, our team of experts can help you file Advance Authorisation applications, get norms fixed, and represent you before DGFT for efficient approvals.
