Advance Authorisation License Norms Fixation: Everything You Need to Know in 2025

For Indian exporters, obtaining an Advance Authorisation license is very important for duty-free import of raw materials. However, one of the most important aspects often overlooked is Norms Fixation. In this blog, lets break down what it means, why it matters, the latest DGFT updates around it, and how to navigate the process efficiently in 2025.

What is Advance Authorisation License Norms Fixation?

Advance Authorisation License Norms Fixation is a process of calculating the quantity of inputs (raw materials, consumables, fuel, etc.) that are required to produce a particular quantity of export product under Advance Authorisation scheme.

Norms fixation ensures proper functioning of the advance authorisation scheme to calculate by maintaining accountability of the specific quantity of duty free inputs imported under the scheme. It is a compulsory requirement under the Advance License Scheme.

Types of Norms Under Advance Authorisation License Norms Fixation

There are two categories under which Advance Authorisation License Norms Fixation may fall:

1.⁠ ⁠Standard Input Output Norms (SION):

These are pre-fixed norms by the DGFT for commonly exported products. If you products fall under SION then there is no need to apply for Norms Fixation.

2.⁠ ⁠Ad-hoc Norms (Self-declared):

If there are no SION for the export product. Then an exporter can apply for customised norms by submitting an application to the Norms Committee, New Delhi along with the technical details of the export product, inputs required, the manufacturing process, and wastage.

Latest DGFT Updates on Advance Authorisation License Norms Fixation

DGFT Public Notice No. 16/2015-2020 (Dated 29.01.2024):

This notice streamlining the process of Advance Authorisation License Norms Fixation and eliminating paper-based delays and allowing online submission of Norms Fixation Application.

DGFT Policy Circular No. 01/2024 (Dated 12.04.2024):

This circular notifies that the procedure for norms fixation will be handled meeting both DGFT and Customs requirements and notification in conjunction with each other.

DGFT Handbook of Procedures (Appendix 4J & ANF-4B):

With these new procedures, the DGFT updated formats and guidelines for application of Advance Authorisation License Norms Fixation, which also includes detailed data submission and sample formats.

Why is Advance Authorisation License Norms Fixation Important?

Norms Fixation is very important since it justifies the quantity of duty free import of inputs for manufacturing a specific quantity of export product. Additionally, it helps in:

•⁠  Checking compliance status to prevent misuse of duty-free benefits and over-invoicing

•⁠  ⁠Faster customs clearance with no deficiency memos

•⁠  Ensuring correct and accurate redemption of advance license without delays.

Documents Required for Advance Authorisation License Norms Fixation

Below are the documents required for Norms Fixation:

•⁠  ⁠Export product technical details

•  Manufacturing flowchart

•⁠  ⁠Manufacturing input (raw material) consumption data

•⁠  ⁠Factory consumption data/records (for past 3 financial years)

•⁠  ⁠Chartered Engineer (CE) Certificate

Step-by-Step: How to Apply for Advance Authorisation License Norms Fixation

1.⁠ ⁠Login to www.dgft.gov.in using your credentials.

2.⁠ ⁠Go to Apply for Norms Fixation.

3.⁠ ⁠Upload required documents including Chartered Engineer Certificate and other supporting data.

4.⁠ ⁠Pay the requisite fee.

Once the application is submitted, the Norms Committee will either approve, issue query or reject the application. If approved, your license will be processed accordingly.

Common Mistakes to Avoid in Advance Authorisation License Norms Fixation

•⁠  ⁠Submitting incomplete data

•⁠  ⁠Wrong or mismatch in HS Codes of inputs and export product

•⁠  ⁠Failure to justify abnormal over-consumption of inputs

•⁠  ⁠Submission of application without the Chartered Engineer certificate

•⁠  ⁠Late application for Norms Fixation

•⁠  Submitting an incorrect manufacturing process

The above mentioned mistakes should be avoided and corrected for faster processing of EODC (Export Obligation Discharge Certificate) application processing which will thereby result in faster closure of Advance Licenses.

Expert Tips for Smooth Norms Fixation

•⁠  ⁠Always check for a pre-existing SION for your export product

•⁠  ⁠ Maintain detailed consumption and production data for new products

•⁠  ⁠Get professional/consultant assistance to prepare accurate technical and costing data.

•⁠  ⁠Always stay updated with latest DGFT updates and notifications that may alter norms fixation criteria or submission formats.

How can we help you?

A V International is India’s leading DGFT consultancy with over 30 years of experience. We have assisted more than 500 companies in norms fixation cases and secured approval from the Norms Committee in New Delhi. We handle both new and rejected norms fixation cases, providing end-to-end solutions from documentation and application to follow-up with the norms committee and timely fixation.