Paragraphs 4 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
This article is on the Handbook only; these paragraphs have no Policy paragraph of their own, although paragraph 4.03(b) of the Policy refers to norms. They set up the Norms Committees of DGFT, say how ad hoc norms and Standard Input Output Norms (SION) are fixed, consulted on and challenged, and how a SION is standardised, modified, amended or revised. No norm of any product is given in this article.
The procedure is taken from Chapter 4 of the Handbook of Procedures, 2023 as published on the DGFT website (file of July 2026), consulted on 2 October 2026. Later Public Notices should be checked. A norm that cannot be settled by the Regional Authority may need legal help; see our legal consultation service.
An application for an ad hoc norm or SION goes online in ANF 4B to the concerned Norms Committee (paragraph 4.06). The Committee forwards it for views within three days, and the other bodies may reply within 45 days; with no reply in 90 days the Committee may decide on the record (paragraph 4.14). A representation against the decision must be filed within 90 days, with a composition fee of Rs. 5000/- beyond that, and none after 12 months (paragraph 4.17).
Paragraph 4.06: fixation of norms
Paragraph 4.06(i): where to apply
Where norms have not been notified, or where the applicant wants ad hoc norms fixed before making an application for an Advance Authorisation, an application in ANF 4B with prescribed documents is uploaded online to the concerned Norms Committee (NC) in DGFT headquarters. The paragraph sets out seven Norms Committees in a table. Each committee deals with product groups defined by chapters of ITC(HS), and each has its own e-mail address for communication. This article does not reproduce the table; find the committee for your product on the DGFT website.
Paragraph 4.06(ii) to (vii)
- (ii) Publication. The decisions of the Norms Committees are available periodically on the DGFT website, and applicants must update themselves on the status of norms fixation.
- (iii) Data and validity. Exporters or Export Promotion Councils provide data to the Committee. The Committee endeavours to fix SION or ad hoc norms on receipt of complete data. An ad hoc norm fixed on an exporter's application is valid for one authorisation and no repeat authorisations are issued; however, the Committee can specify an extended validity period of not more than two years from the date of fixation for grant of further authorisations under that norm.
- (iv) SION notification. Norms Committees also function as the recommendatory authority for notification of SION, which DGFT may notify from time to time.
- (v) Three years of data. It is mandatory for industry, manufacturers and Export Promotion Councils to provide production and consumption data for the past three years, as required by DGFT, for fixation of SION. Otherwise, applicants are not allowed to take benefit of the scheme for repeat Advance Authorisations on self-declared basis. The Committee may seek data from the Department of Revenue.
- (vi) Experts. Experts may be invited from scientific and technological institutions as members.
- (vii) Conversion. Where ad hoc norms have already been arrived at, the Committee may recommend notification of SION case by case.
Paragraph 4.14: consultation
- (i) An application filed online is forwarded electronically by the Norms Committee to the concerned Technical or Administrative Ministry, Department, scientific institution or other agency within three days.
- (ii) The body consulted may communicate its views online within 45 days. If no comments are received within 90 days, the Norms Committee may take a view on the facts available on record.
- (iii) Ad hoc input output norms may also be decided in a rule based IT environment without reference to the Norms Committee. A certain percentage of cases flagged by the risk management system may be referred to the Committee for validation or review.
Paragraph 4.15: undertaking
The applicant gives an undertaking to abide by the norms fixed by the Norms Committee and to take the following actions without demur.
- (i) Pay the customs duty saved, with interest as notified by the Department of Revenue, on excess inputs as per the norms fixed, or, if the Committee allows lower norms, undertake additional export obligation in proportion to the excess inputs.
- (ii) If the application is rejected, pay the duty saved with interest; for domestically procured inputs, the amount is based on the exemptions or refund availed by the domestic supplier.
- (iii) Deposit the amount under paragraph 4.49(a)(ii) of the Handbook if the inputs were not importable without an authorisation, in addition to (i).
Paragraph 4.49 is named as printed and is not explained here.
Paragraph 4.16: fixation by Norms Committees
- (i) All Norms Committees endeavour for the earliest fixation of norms.
- (ii) If an application is rejected for non-furnishing of required documents or information, the holder is liable to pay customs duty with interest as notified by the Department of Revenue, and the amount under paragraph 4.49(a)(ii). If the SION for the product is notified, it applies for wastage norms and export obligation.
- (iii) Where the entitlement under paragraph 4.12 was lower than the inputs applied for and the export obligation is completed while fixation is pending, the entitlement may be re-credited on documentary evidence. Bond waiver or redemption is not allowed pending fixation.
Paragraph 4.17: time limit for representation
An applicant may file a representation against the decision of the Norms Committee on fixation of norms within 90 days from the date of uploading of the decision on the DGFT website. A representation beyond 90 days is subject to payment of a composition fee of Rs. 5000/-. No representation against the decision after the period of 12 months from the date of uploading will be entertained.
| Time point after the decision is uploaded | Position under paragraph 4.17 |
|---|---|
| Within 90 days | Representation may be filed |
| After 90 days, within 12 months | Representation subject to composition fee of Rs. 5000/- |
| After 12 months | No representation entertained |
Paragraphs 4.22 to 4.25: standardisation, modification, amendment and revision
- 4.22 Standardisation of ad hoc norms. Filed online in ANF 4B with complete data. Import of fuel may be allowed on the actual user condition under SION, only to a manufacturer with a captive power plant; where SION does not cover fuel, the general fuel policy applies.
- 4.23 Modification of SION. Filed online in ANF 4B to the concerned Norms Committee.
- 4.24 Amendment of export item and inputs. Filed online in ANF 4B with a justification; the Regional Authority considers it with the approval of the Head of Office. A major change in input, or more wastage than allowed, is referred to the Norms Committee.
- 4.25 Revision of SION. The Committee may identify SIONs for review. Exporters submit revised data in ANF 4B; production and consumption data are mandatory, failing which the applicant is not allowed the benefit of the scheme.
ANF 4B is named only; nothing inside the form is described here.
The Handbook rests on the Director General's power described in our article on section 6 of the FTDR Act, and the Policy it serves on section 5; see section 5 of the FTDR Act.
A worked example
Quartz Instruments Private Limited, an invented manufacturer, has no SION for a new product. It applies online in ANF 4B to the Norms Committee for its product group. The Committee forwards the application within three days (paragraph 4.14(i)), and receives the technical Ministry's views within 45 days. The Committee fixes ad hoc norms, valid for one authorisation, with extended validity of not more than two years if the Committee so specifies (paragraph 4.06(iii)). Quartz thinks a wastage figure is too low. It files a representation within 90 days of the upload; had it waited six months it would have had to pay the composition fee of Rs. 5000/-, and after 12 months it could not have been heard (paragraph 4.17).
Need help with norms fixation or a representation?
Timelines in this procedure are short and the consequences of a late representation are fixed. Our team can prepare the data and the representation through our legal consultation service.
Key takeaways
- Apply in ANF 4B to the concerned Norms Committee; an ad hoc norm is valid for one authorisation, with extended validity of not more than two years if specified (paragraph 4.06).
- Consultation: forwarded within three days; views within 45 days; the Committee may decide after 90 days (paragraph 4.14).
- Representation within 90 days; composition fee of Rs. 5000/- after that; nothing after 12 months (paragraph 4.17).
- Production and consumption data for the past three years are mandatory (paragraph 4.06(v)).
- Modification, amendment and revision of SION run through ANF 4B (paragraphs 4.22 to 4.25).
Read next
- Paragraph 4.11 of the Foreign Trade Policy, 2023: self-declared authorisations and entitlement
- Paragraph 4.06 of the Foreign Trade Policy, 2023: Self Ratification Scheme
- Advance Authorisation inputs, SION and minimum value addition
- Advance Authorisation export obligation, clubbing and EODC
Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.