DGFT Proposes Suspending 544 Unutilised SIONs: Advance Authorisation and DFIA Users Should Check Their Exposure

The Directorate General of Foreign Trade (DGFT) has proposed suspending 544 Standard Input Output Norms (SIONs) that it found had gone unused under the duty-exemption schemes over the last three years. Issued as Trade Notice No. 26/2026-27, dated 7 September 2026, the notice invited stakeholder comments within 15 days before any suspension is finalised. Exporters who rely on Advance Authorisation (AA) or Duty-Free Import Authorisation (DFIA) should check whether any of their norms are on the list and prepare for the possibility that they will have to apply for ad-hoc norms instead.

What Happened

SIONs are the standard input-output norms that fix how much of each input is allowed, duty-free, to produce a unit of a given export product. They are the backbone of the Advance Authorisation and DFIA schemes, letting exporters import inputs without duty against an export obligation.

Following a utilisation review, DGFT identified 544 SIONs that remained unutilised under the AA and DFIA schemes "during the last three financial years" and proposed suspending them. The trade notice asked stakeholders to submit, within 15 days, "reasons for continued retention of any SION(s), along with details of actual or proposed utilization under the AA/DFIA Schemes." It warned that comments received after the deadline "may not be considered." The notice was issued under the authority of the Deputy Director General, with the approval of the DG, DGFT.

Because the comment window ran for 15 days from 7 September 2026, it has in all likelihood already closed. Exporters should therefore treat this as advance warning of a probable suspension list and watch for the final decision, rather than assuming the norms remain available.

Why / Background

DGFT periodically prunes SIONs that are no longer used, both to keep the norms database current and to reduce the risk of misuse of stale or over-generous norms. A norm that has seen no AA/DFIA activity for three years is a natural candidate for suspension. The practical consequence for an exporter who still needs such a norm is significant: if a SION is suspended, you can no longer claim duty-free inputs automatically against it and must instead apply to the Norms Committee for ad-hoc norms, which takes time and documentation.

Who's Affected

The proposal affects Advance Authorisation and DFIA holders and applicants whose products are covered by any of the 544 listed SIONs — potentially spanning multiple sectors, since the list is drawn purely on the basis of non-utilisation. Exporters who use these schemes for duty-free inputs, and the consultants and CHAs who file their authorisations, need to confirm their norms are unaffected.

What Exporters Should Do Now

• Check the 544-SION list (annexed to Trade Notice 26/2026-27) against every SION you use or plan to use under AA/DFIA.
• If a norm you need is listed, assume it may be suspended and prepare an ad-hoc norms application with full input-consumption data and technical justification.
• Pull forward pending authorisations that depend on a listed norm where feasible, before any suspension takes effect.
• Watch for the final notice confirming which SIONs are actually suspended, and from what date.
• Document actual consumption rigorously — ad-hoc norm fixation turns on verifiable input-output data.

What Consultants and CHAs Should Do Now

• Audit clients' active SIONs against the proposed list and flag at-risk authorisations.
• Advise on timing of filings so clients are not caught between a suspended SION and an un-fixed ad-hoc norm.

The Bigger Picture

Cleaning up unused SIONs is routine housekeeping, but it carries a real operational edge for the minority of exporters who still rely on a rarely-used norm. The episode is a reminder that duty-exemption schemes depend on live, maintained norms, and that exporters should not assume a SION will be there indefinitely simply because it exists today. Keeping consumption data and norm justifications ready is the best insurance against a suspension that forces a switch to ad-hoc norms.

Frequently Asked Questions

What is a SION? A Standard Input Output Norm specifies the quantity of inputs allowed duty-free to make a unit of an export product under the Advance Authorisation and DFIA schemes.

What happens if a SION I use is suspended? You can no longer claim inputs automatically against it. You would need to apply to the Norms Committee for ad-hoc norms, supported by actual input-consumption data.

Can I still comment? The 15-day window from 7 September 2026 has most likely closed. If you missed it, focus on preparing ad-hoc norm applications and on the final suspension notice.

Where do I find the list? In the annexure to DGFT Trade Notice No. 26/2026-27 on the DGFT portal.

Conclusion

DGFT's proposal to suspend 544 unutilised SIONs is low-impact for most exporters but potentially disruptive for those still using a listed norm. Check the list against your authorisations now, and if you are exposed, line up an ad-hoc norms application and consumption records before any suspension takes effect.

This summary is for general guidance only and describes a proposal. Verify the SION list, status and any final decision against DGFT Trade Notice No. 26/2026-27 and the Norms section on the DGFT portal (dgft.gov.in) before acting.