DGFT Notifies New SIONs for Chemical and Allied Products Under FTP 2023

The Directorate General of Foreign Trade (DGFT) issued Public Notice No. 14/2025-26 dated 8 July 2025, introducing three new Standard Input Output Norms (SIONs) under the ‘Chemical and Allied Product’ group (Product Code ‘A’) as part of the Foreign Trade Policy (FTP) 2023.

This important update sets new guidelines for exporters dealing with chemical and pharmaceutical products, allowing them to import key raw materials duty-free while fulfilling their export obligations. These norms aim to reduce manufacturing costs, promote ease of doing business, and boost India’s global trade competitiveness.

Let’s explore the details of these new SIONs and what they mean for exporters.

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What are SIONs and Why Do They Matter?

Standard Input Output Norms (SIONs) specify the quantity of inputs (raw materials) allowed to be imported duty-free for the manufacture of a particular export product under the Advance Authorization Scheme.

Key benefits of SIONs:
✅ Predictable and transparent input-output ratios.
✅ Lowered production costs through duty exemptions.
✅ Enhanced competitiveness for Indian exporters in global markets.

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Highlights of the New SIONs Notified by DGFT:

🔹 SION A-3687 (Pharmaceutical Sector)

• Export Product: Azithromycin Dihydrate (1 kg)
• Allowed Import: Azithromycin Amine – 0.9434 kg

This SION supports pharmaceutical exporters dealing with Azithromycin, a commonly used antibiotic.

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🔹 SION A-3688 (Chemical Sector)

• Export Product: Aldehyde C10 (Capric Aldehyde) (1 kg)
• Allowed Import: Fatty Alcohol C10 (98% purity) – 1.40 kg

This SION benefits industries involved in producing fragrances, flavors, and specialty chemicals.

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🔹 SION A-3689 (Pharmaceutical Sector)

• Export Product: Ceftazidime Powder (1000 mg unit for IM/IV solution)
• Allowed Import: Ceftazidime for Injection Bulk Sterile – 1280 mg

Focused on exporters of injectable antibiotics, this SION facilitates cost-effective pharmaceutical exports.

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How Does This Help Exporters?

These newly announced SIONs allow eligible exporters to:

✅ Import specified raw materials without paying customs duties.
✅ Reduce production costs significantly.
✅ Apply for Advance Authorization immediately using these new norms.
✅ Improve price competitiveness in international markets.

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How to Apply for Advance Authorization Using New SIONs:

1️⃣ Visit the DGFT portal and file an application under the Advance Authorization Scheme.
2️⃣ Mention the relevant SION code (A-3687, A-3688, A-3689) based on your export product.
3️⃣ Import the raw materials within the specified quantity limits.
4️⃣ Fulfill the export obligation within the prescribed timeline.

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Why Timely Updates Like This Matter:

The DGFT’s timely updates through Public Notices play a crucial role in:

✔️ Removing ambiguity for exporters regarding input quantities.
✔️ Providing clarity and transparency in policy execution.
✔️ Boosting exports in sectors like chemicals and pharmaceuticals, which are key drivers of India’s global trade growth.

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Conclusion:

The notification of these new SIONs for Chemical and Allied Products under FTP 2023 reflects the government’s commitment to supporting exporters and simplifying trade processes. Exporters are encouraged to make use of these new norms to maximize duty savings, remain competitive, and contribute to India’s export growth.

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FAQs:

Q1: What is the main purpose of SIONs in DGFT policy?
To define duty-free input quantities for manufacturing specified export products.

Q2: What is Public Notice No. 14/2025-26 about?
It introduces three new SIONs for chemical and pharmaceutical exports under FTP 2023.

Q3: Can these SIONs be used immediately?
Yes, they are effective immediately from 8 July 2025.

Q4: How do SIONs help reduce costs?
They allow import of raw materials without customs duty, lowering production costs.

Q5: Where can I apply for Advance Authorization using these SIONs?
Applications can be made through the official DGFT online portal.

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📅 Published on: 10 July 2025
✍️ Author: CS Chhavi Goyal