New SIONs for Chemical Exports Notified by DGFT: What Exporters Should Know
The focus keyphrase “new SIONs for chemical exports” takes centre stage this month with DGFT issuing three new Standard Input Output Norms (SIONs) for the chemical and allied sector. This update is crucial for Indian exporters availing benefits under the Advance Authorisation Scheme. Here’s a simplified breakdown.
What Are SIONs and Why They Matter
Standard Input Output Norms (SIONs) specify the quantity of inputs allowed for the manufacture of a unit of export product. These norms are critical for:
- Availing duty-free import of inputs under Advance Authorisation
- Reducing cost of raw materials for exporters
- Streamlining export documentation with pre-approved input norms
DGFT’s Notification No. 57/2025 dated 5 July 2025 introduced three new SIONs under Chemical & Allied Product Group, allowing exporters to import key raw materials duty-free against export obligations.
Snapshot: New SIONs for Chemical Exports
| SION Code | Export Product Description | Inputs Allowed | Remarks |
|---|---|---|---|
| C-2934 | Triethyl Phosphate | Phosphorus Oxychloride, Ethanol, Caustic Soda | High purity grade applicable |
| C-2935 | Methyl Ethyl Ketone Peroxide (MEKP) | Hydrogen Peroxide, MEK, Sulphuric Acid | Industrial use – limited shelf life |
| C-2936 | Diethyl Carbonate | Ethanol, Urea, Sodium Hydroxide | For pharma & specialty chemicals |
These additions simplify the process for exporters previously stuck with Ad Hoc Norms or needing to file self-declarations under Norms Committee procedures.
Legal & Procedural Basis
- Authority: Notified by DGFT, under powers granted via Para 4.10 of FTP 2023
- Linked Scheme: Advance Authorisation Scheme, governed by FTP 2023 and HBP 2023
- Notification Reference: DGFT Notification No. 57/2025 dated 05.07.2025
- Official Source: dgft.gov.in
Expert View:
Exporters who previously filed Ad Hoc Norm applications for these products should now shift to standard SION-based applications, which are faster, system-recognised, and more cost-effective.
Benefits for Exporters
- Quicker Authorisation: No need for Norms Committee approval
- Cost Saving: Duty-free import of specified inputs
- Reduced Compliance: Avoids repetitive justification of input-output ratios
- Ease of Filing: Direct online application via DGFT portal using updated SIONs
How to Avail the New SIONs
Step-by-step process under Advance Authorisation Scheme:
- Log in to DGFT portal → Services → Advance Authorisation
- Select the relevant SION Code (C-2934, C-2935, or C-2936)
- Upload export contract, technical specifications, and firm details
- Apply and await online authorisation
- Use the license to import allowed inputs duty-free
Practical Tip
If your product uses substitute or derivative chemicals, consider applying for a modification or clubbing request via the SION amendment route. This avoids rejection due to input mismatch.
Related Update
Check our latest blog on Advance Authorisation Compliance Tips to avoid common pitfalls and delays in DGFT licensing.
FAQs
Q1. Can I still apply under Ad Hoc Norms if my input is not listed in SION?
Yes, but it will take longer and require committee approval. Prefer SION-based filing if available.
Q2. What happens if I import a different grade of chemical?
Only inputs matching SION descriptions and purity levels are eligible. Deviations need justification or amendment.
Q3. Can these SIONs be used for Deemed Exports?
Yes, if the inputs are eligible under deemed export provisions and approved by DGFT.
Summary
New SIONs for chemical exports notified by DGFT (C-2934 to C-2936) simplify duty-free import under Advance Authorisation. Exporters can now avoid Ad Hoc norms and save time and cost.
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