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Advance License Norms Fixation

For Indian exporters, obtaining an Advance Authorisation is an important step toward reducing input costs and improving export competitiveness through duty-free import of eligible raw materials, components, and other inputs. However, one of the most critical aspects that is often overlooked is Norms Fixation.

Norms Fixation plays a vital role in determining the permissible quantity and specifications of inputs that can be imported against a particular export product. Where applicable Standard Input Output Norms (SION) are not available, or where an exporter requires additional or specific inputs, fixation of norms by the Norms Committee becomes particularly important.

What is Advance Authorisation License Norms Fixation?

Advance Authorisation License Norms Fixation is the process of determining the quantity and specifications of inputs—such as raw materials, consumables, fuel, and other eligible inputs—required to manufacture a specified quantity of an export product under the Advance Authorisation Scheme.

Norms Fixation ensures that the quantity of duty-free inputs permitted for import is properly assessed and aligned with the actual manufacturing requirements of the export product. It helps maintain transparency, accountability, and regulatory compliance by establishing the permissible input-output ratio for duty-free imports under the scheme.

Norms Fixation is particularly important when Standard Input Output Norms (SION) are not available or when an exporter requires inputs beyond the prescribed SION. In such cases, the applicable norms may need to be fixed by the DGFT Norms Committee based on the exporter's manufacturing process, technical details, input consumption, and supporting documentation.

Standard Input Output Norms (SION)

Standard Input Output Norms (SION) are pre-defined input-output norms notified by the DGFT for various commonly exported products. These norms specify the permissible quantity of inputs that can be imported duty-free against a specified quantity of export product.

If the export product is covered under the applicable SION, the exporter can apply for Advance Authorisation based on the prescribed norms and generally does not need to undergo separate Norms Fixation.

Ad-hoc / Self-Declared Norms

Where SION is not available for a particular export product, or the prescribed SION does not adequately cover the exporter's specific manufacturing requirements, the exporter may seek fixation of Ad-hoc Norms.

For this purpose, the exporter is required to submit the necessary application and supporting documents to the DGFT Norms Committee, including details such as the export product, input requirements, manufacturing process, input-output ratio, consumption norms, and wastage.

The Norms Committee examines the technical and manufacturing details before determining the permissible quantity of inputs that can be imported duty-free under the Advance Authorisation.

Why Is Advance Authorisation Norms Fixation Important?

Norms Fixation is a critical component of the Advance Authorisation Scheme, as it establishes and justifies the permissible quantity of duty-free inputs required to manufacture a specified quantity of export product. Proper fixation of norms helps exporters maintain regulatory compliance while ensuring that the benefits of the scheme are utilised correctly.

It also helps in:

  • Ensuring compliance: Establishing a clear input-output ratio helps prevent misuse of duty-free benefits and discrepancies in input consumption or import quantities.
  • Smoother Customs clearance: Clearly defined and approved input norms can help minimise queries, objections, and deficiency memos during the import clearance process.
  • Accurate and timely redemption: Properly established norms make it easier to account for the inputs used and meet the applicable export obligations, supporting the smooth redemption and closure of the Advance Authorisation.
  • Optimising duty-free benefits: Accurate norms ensure that exporters can claim the appropriate quantity of eligible inputs without unnecessary restrictions or excess claims.

Common Mistakes to Avoid in Advance Authorisation Norms Fixation

Norms Fixation requires accurate technical, manufacturing, and input-consumption details. Even minor errors or inconsistencies in the application can lead to queries, deficiency memos, or delays in processing.

Some common mistakes that exporters should avoid include:

Submitting incomplete or inaccurate data

Ensure that all technical, production, consumption, and input details are complete and consistent.

Incorrect or mismatched HS Codes

Verify the HS Codes of both the export product and the proposed inputs before submitting the application.

Failure to justify abnormal input consumption

Any higher-than-normal consumption or wastage should be properly supported with technical justification and relevant documentation.

Submitting the application without the required Chartered Engineer Certificate

Where applicable, ensure that the required certificate and supporting technical documents are obtained and submitted correctly.

Delaying the Norms Fixation application

Initiate the process well in advance to avoid delays in Advance Authorisation processing and subsequent compliance.

Providing an incorrect manufacturing process

The manufacturing process submitted to DGFT should accurately reflect the actual production process and clearly explain the consumption of each input.

Avoiding these mistakes can help reduce processing delays, minimise queries and deficiency memos, and facilitate smoother Export Obligation Discharge Certificate (EODC) processing, ultimately supporting the timely closure of Advance Authorisations.

Expert Tips for Smooth Norms Fixation

Check for existing SION

Always verify whether an applicable Standard Input Output Norm (SION) is already available for your export product before applying for separate Norms Fixation.

Maintain detailed production and consumption records

For new or specialised products, maintain accurate records of input consumption, production quantities, wastage, and output.

Prepare accurate technical and costing data

Ensure that the input-output calculations, manufacturing process, technical specifications, and costing details are properly prepared and supported by relevant documents.

Seek professional assistance where required

Consulting a DGFT professional or technical expert can help ensure that the application and supporting documents are prepared accurately and in accordance with applicable requirements.

Stay updated with DGFT notifications

Regularly monitor the latest DGFT notifications, public notices, policy changes, and procedural updates that may affect Norms Fixation requirements, documentation, or submission formats.

Why Kelular

Kelular Consulting provides end-to-end professional assistance for Norms Fixation under the Advance Authorisation Scheme, helping exporters navigate DGFT procedures, technical requirements, and Norms Committee proceedings efficiently.

Our team supports clients throughout the process, from documentation and application preparation to coordination with DGFT authorities and post-approval compliance.

Our Norms Fixation Services Include:

  • Application & Documentation: Assistance in preparing and submitting the required documents for Norms Fixation applications at DGFT Headquarters.
  • DGFT & Norms Committee Coordination: Coordination with the Norms Committee and relevant technical officers/members for proper presentation and processing of the case.
  • Ad-hoc Norms Fixation: Assistance in obtaining ad-hoc norms for products where standard SION norms are not available or applicable.
  • Norms Committee Approval: Support in presenting the case before the Norms Committee and obtaining Norms Fixation.
  • Post-Approval Compliance Guidance: Guidance on procedural requirements and compliances to be followed after issuance of the Norms Fixation.
  • Amendment Support: Assistance with amendments to approved norms based on changes in product specifications, inputs, or requirements.
  • Rejection Handling: Support in reviewing and addressing deficiencies or rejections related to Norms Fixation applications.

Ad-hoc Norms Fixation for Exported Goods

We also assist in obtaining Ad-hoc Norms Fixation for Advance Authorisations where exports have already been completed and redemption is pending due to Norms Fixation. Our team helps assess the case, prepare the necessary justification and supporting documents, and coordinate with the concerned authorities.

SION Norms Fixation – Industry Expertise

Fixation of Standard Input-Output Norms (SION) requires an in-depth understanding of the manufacturing process, product specifications, input-output ratios, wastage, and the complete range of products being manufactured.

At Kelular Consulting, we have professionals with industry-specific expertise who can analyse manufacturing processes and technical requirements and assist in developing a comprehensive case for Norms Fixation.

With our end-to-end support, Kelular Consulting helps exporters simplify the Norms Fixation process and ensure proper documentation, technical presentation, and regulatory compliance.

Why Choose Kelular Consulting for Advance Authorisation Norms Fixation?

  • Expert DGFT Knowledge: Our team has in-depth knowledge of DGFT procedures, Advance Authorisation, SION, and Ad-hoc Norms Fixation requirements.
  • Industry-Specific Expertise: We understand that Norms Fixation varies across industries and manufacturing processes. Our professionals analyse product specifications, inputs, output ratios, and manufacturing processes to build a strong case.
  • End-to-End Support: From documentation and application preparation to DGFT coordination, Norms Committee proceedings, approval, and post-approval compliance, we provide comprehensive support.
  • Strong Technical Presentation: We assist in presenting the technical justification and input-output requirements clearly before the concerned authorities and Norms Committee.
  • Ad-hoc Norms Expertise: We assist exporters in obtaining Ad-hoc Norms Fixation where SION is not available or where the prescribed norms do not adequately cover their requirements.
  • Existing Export Cases: We also support cases where exports have already been completed and redemption is pending due to Norms Fixation.
  • Deficiency & Rejection Handling: Our team assists in addressing DGFT queries, deficiencies, objections, and rejected Norms Fixation applications.
  • Amendment & Post-Approval Support: We provide guidance for amendments to approved norms and help clients understand the compliance requirements after Norms Fixation.

Your Trusted Partner for Norms Fixation

At Kelular Consulting, we combine DGFT expertise, technical understanding, documentation support, and industry knowledge to help exporters navigate the Advance Authorisation Norms Fixation process smoothly and efficiently.

Standard Input-Output Norms (SION) under DGFT specify the standard quantity of inputs required to manufacture or process a specific export product. SION helps determine the permissible input quantities for obtaining duty-free inputs under the Advance Authorisation Scheme.

Ad Hoc Norms are Input-Output Norms prescribed for an export product for which no Standard Input-Output Norm (SION) has been notified by the DGFT. These norms are determined specifically for the applicant’s export product and are generally used for obtaining an Advance Authorisation.

Ad-Hoc Norms Fixation is the process of determining specific Input-Output Norms for an export product for which no Standard Input-Output Norm (SION) has been notified by the DGFT.

In such cases, the applicant may initially obtain an Advance Authorisation based on self-declared input-output norms, subject to applicable provisions. The declared norms are subsequently examined and approved by the Norms Committee (NC). This process is known as Ad-Hoc Norms Fixation.

Fixation of Norms refers to the process of determining the permissible Input-Output Norms in cases where no norms have been notified by the DGFT, or where the applicant wishes to have Ad-Hoc Norms fixed before applying for an Advance Authorisation.

This enables the applicant to obtain the applicable norms in advance and use them while submitting the Advance Authorisation application.

The exporter/applicant must ensure that the imported inputs are actually used in the manufacture or processing of the corresponding export products.

If the exporter intends to use additional inputs in the manufacturing process or claim higher wastage than permitted under the existing SION, the prescribed Input-Output Norms may need to be revised or fixed.

In such cases, the applicant is required to apply for Norms Fixation with the DGFT to obtain approval for the proposed input quantities and wastage.

The Norms Committee (NC) is a committee constituted at the DGFT Headquarters for the fixation and approval of Input-Output Norms. At present, there are seven Norms Committees, organized according to different industry sectors, for the fixation of Ad-Hoc Norms.

The committee comprises DGFT officials, representatives from the Department of Revenue, and technical experts from relevant ministries/departments.

The Norms Committee determines the quantity and type of inputs required to manufacture a specified quantity of an export product and accordingly fixes the Input-Output Ratio (Input-Output Norms).

The Norms Committee also approves Ad-Hoc Input-Output Norms where no SION has been notified for the export product, including cases where an applicant wishes to have the norms fixed before applying for an Advance Authorisation.

Fixation of Norms is required when no Standard Input-Output Norm (SION) is available for an export product, or when the applicant proposes to use additional inputs or claim higher wastage than permitted under the existing norms.

It enables the applicant to obtain approval for the required Input-Output Norms from the Norms Committee before or as part of the Advance Authorisation process.

An application for Norms Fixation can be submitted to the Norms Committee at DGFT Headquarters, New Delhi, through the prescribed DGFT online process.

The Norms Committee examines the application and determines the applicable Input-Output Norms based on the details and supporting documents submitted by the applicant.

Self-Declared Norms allow an exporter to apply for an Advance Authorisation based on self-declared Input-Output Norms when the required export product is not covered under the existing SION or when the applicant requires input quantities different from those prescribed under the applicable SION.

Under this method, the applicant declares the type and quantity of inputs required for manufacturing the export product based on their actual manufacturing requirements.

The applicant is subsequently required to approach the Norms Committee (DGFT), New Delhi, for fixation and ratification of the Ad-Hoc Norms. The Advance Authorisation can be closed only after the declared norms are duly ratified/approved by the Norms Committee.

If the Norms Committee does not approve the proposed norms, the applicant may be required to pay the applicable Customs Duty along with interest on the excess quantity of inputs imported and complete the closure of the Advance Authorisation, as per the applicable DGFT and Customs provisions.

Prior Fixation of Norms is a process where the exporter first approaches the Norms Committee (DGFT) to obtain approval for the applicable Input-Output Norms before applying for an Advance Authorisation.

Once the Norms Committee fixes and approves the norms, the exporter can apply for an Advance Authorisation based on the approved norms.

The DGFT then issues the Advance Authorisation in accordance with the norms fixed by the Norms Committee.

 
     
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