DGFT Moves to Suspend 544 Unutilised SIONs

The Directorate General of Foreign Trade (DGFT) has proposed pruning its norms database of hundreds of long-dormant entries. In Trade Notice No. 26/2026-27 dated 7 September 2026, DGFT says a review of usage found 544 Standard Input Output Norms (SIONs) that have remained unutilised under the Advance Authorisation (AA) and Duty-Free Import Authorisation (DFIA) schemes over the last three financial years, and it proposes to suspend them. Any exporter who still relies on one of the listed norms — or plans to — has a 15-day window from issuance to object with supporting evidence. After that, the norms may be suspended.

What Happened

SIONs are the government-published standard input–output ratios that tell an exporter how much duty-free input can be imported for a given quantity of export product. DGFT reviewed which SIONs were actually being used to obtain AA/DFIA authorisations, identified 544 that saw no utilisation across the last three financial years, and listed them in an annexure to the Trade Notice. Stakeholders can send comments — including reasons for retaining any specific SION and details of actual or proposed utilisation — within 15 days. Comments received after the deadline may not be considered.

Why / Background

The Advance Authorisation scheme lets exporters import inputs duty-free where those inputs are physically incorporated into an export product; DFIA is a transferable variant with a minimum value-addition condition. Both lean on SIONs to fix the permissible input quantities. Over time the SION list has accumulated norms for products no longer exported or superseded by newer norms. Suspending dormant SIONs is a housekeeping exercise that keeps the database current and reduces the risk of outdated ratios being misused — but it can pinch a niche exporter who uses a rarely invoked norm.

Who's Affected

Exporters and manufacturer-exporters who apply for Advance Authorisations or DFIAs against a standard norm; DFIA traders who transfer authorisations; and Export Promotion Councils whose members use specialised norms. The impact is concentrated: most exporters use a small set of active SIONs and will be unaffected, but any business dependent on one of the 544 listed norms needs to act.

Operational Detail

The list spans norms across multiple product groups (the annexure enumerates SIONs coded across the A, B, C, D, E, F, G, H, I, J, K and M series). If a listed SION is suspended, exporters would no longer be able to obtain an AA/DFIA on that standard norm and would instead need to route their requirement through the Norms Committee for ad-hoc / self-declared norms fixation — a slower path that requires justifying input consumption case by case. Existing authorisations already issued against a norm are a separate question from the availability of the norm for fresh applications; exporters holding live authorisations should confirm their status with their Regional Authority.

What Exporters, Importers, Forwarders and CHAs Should Do Now

• Check the annexure now: cross-reference the 544 listed SION codes against every norm your business uses for Advance Authorisation or DFIA applications.
• If you rely on a listed SION, file a comment within 15 days stating the reason for retention and giving details of actual or proposed utilisation — this is your best chance to keep the norm alive.
• Plan a fallback: if a norm you use is likely to be suspended, prepare for an ad-hoc norms / self-declaration application to the Norms Committee, and assemble the input-consumption data that route requires.
• Review your pipeline: check whether any authorisation you intend to apply for in the coming weeks depends on a norm at risk, and file before any suspension takes effect.
• CHAs and consultants: flag affected clients proactively so objections are filed inside the short window.

The Bigger Picture

This is part of DGFT's continuing effort to keep the FTP toolkit lean and digitised. For the vast majority of exporters it is invisible; for the minority using specialised inputs it is a reminder that a dormant norm can disappear. The episode underscores a practical truth of scheme-based exporting: relying on a rarely used SION carries administrative risk, and keeping utilisation data in order is the best insurance.

Frequently Asked Questions

Are the 544 SIONs already suspended? No. Trade Notice 26/2026-27 only proposes suspension and invites objections. Suspension would follow after the 15-day window and consideration of comments.

How do I know if a SION I use is on the list? The Trade Notice carries an annexure listing all 544 SION codes. Match your norm code against it; if in doubt, consult your Regional Authority or Export Promotion Council.

What happens if my SION is suspended? You can still seek an Advance Authorisation, but through the ad-hoc norms fixation route (self-declared norms placed before the Norms Committee) rather than the standard norm.

Does suspension affect authorisations already issued? Suspension concerns availability of the norm for fresh applications. Holders of live authorisations should confirm their specific position with the Regional Authority.

Conclusion

Trade Notice 26/2026-27 is low-profile but consequential for exporters using specialised inputs. The safe move is simple: check the list against your norms today, and if any of them matter to you, file a reasoned objection with utilisation details before the 15-day window closes.

This summary is for general guidance only. Verify the SION list and deadline against the official Trade Notice on the DGFT portal (dgft.gov.in) before acting.