DGFT Norms Fixation is a crucial process in India's foreign trade policy that helps regulate the import and export of goods in a way that promotes fair and compliant business practices. At the heart of this process is the fixation of Standard Input Output Norms (SION), which are guidelines set by the Directorate General of Foreign Trade (DGFT) to standardize the quantity of inputs required to produce a particular exportable product. These norms play a key role in determining the duty exemption or remission schemes, particularly under Advance Authorization schemes.
The DGFT SION Norms are essential for businesses seeking to import raw materials for the production of export goods. By following these standards, exporters can ensure that they meet the requirements for various duty benefits under India's trade policies. The fixation of norms allows for efficient calculation of the duty remission that exporters are entitled to, ultimately facilitating smoother trade operations.
One of the main aspects of DGFT Norms Fixation is its impact on Advance Authorization, where exporters can obtain duty-free imports of raw materials needed for manufacturing export goods. The SION norms for advance authorization define the quantity and types of raw materials permissible, ensuring that only necessary inputs are imported, and minimizing misuse of trade benefits.
