Public Notice 20/2025-26, Dated 26-08-2025
1. Introduction to the Public Notice
The Directorate General of Foreign Trade (DGFT) has recently issued a public notice announcing the suspension of certain Standard Input Output Norms (SIONs). The suspension, which takes effect immediately, applies to the food product categories specified in Annexure ‘A’ of the notice. By suspending these norms, DGFT has temporarily withdrawn the standardised input-output ratios that exporters previously relied upon for claiming duty exemptions and other benefits under the Advance Authorisation scheme.
2. Scope of the Suspension
The suspension specifically impacts exporters dealing with food products covered under the identified SIONs in Annexure ‘A’. This means that exporters of these items cannot currently use the pre-determined input-output norms to claim duty-free import of raw materials. Instead, they may need to adopt alternative methods under the policy framework until further clarification or revised norms are issued by DGFT.
3. Alternative Options for Exporters
Even though the SIONs have been suspended, exporters of the affected food product categories still have recourse under the Advance Authorisation scheme. As clarified in the public notice, they may continue to apply for benefits in line with the provisions of Para 4.03(b)(ii), 4.03(b)(iii), or 4.03(b)(iv) of the Foreign Trade Policy. These clauses provide flexibility to exporters by allowing them to establish and justify their own input-output requirements through self-declaration, adhoc norms, or application to the Norms Committee.
4. Implications for the Export Sector
The immediate suspension of SIONs may temporarily create compliance and procedural challenges for exporters of food products, as they will no longer have the certainty of fixed input-output norms. However, the option to seek authorisation under the specific provisions of Para 4.03 ensures that trade activity can continue, albeit with additional documentation and procedural steps. Over the longer term, this move may signal DGFT’s intention to revisit and possibly update the SION framework to better reflect current industry practices, cost structures, and trade dynamics.
