Norms Fixation
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What are Norms? What is Fixation of Norms?
Norms are specifications issued and developed by the Directorate General of Foreign Trade (DGFT) in consultation with industry stakeholders and technical experts. These norms specify the quantity of inputs that are required to produce a unit of output in various industries.
Norms are issued for various products and industries, and are based on the best practices and technologies available in the industry. They are revised from time to time to ensure that they reflect the current technological and industrial practices.
Norms help in calculating the duty drawback (refund of duties paid on inputs used in the export product) and to fix the export obligation (EO) for Advance Authorization (AA)/DFIA Scheme and Export Promotion Capital Goods (EPCG) schemes.
There are cases where norms have not been notified by the DGFT or where the applicant wants to get their ad-hoc norms fixed before making an application for Advance Authorization. This is called as Norms Fixation.
Categories of Norms
There are two categories of norms including – Standard Input-Output Norms (SION) and Ad-hoc norms
Standard Input Output Norms (SION) Norms
Sion Norms are published by DGFT to specify the required number of inputs needed to produce a unit of outputs for exporting under Advance Authorization Scheme or DFIA Scheme. Advance licenses/DFIA Licenses are issued on the basis of inputs and export items given under SION published by DGFT.
Ad-hoc Norms
In case there are no SION norms for a particular export product, then the exporter has to approach the norms committee in DGFT and get the norms fixed for his particular export product. These norms are fixed by the exporter and hence these are called ad-hoc norms.
Which products are covered by the Norms Committee?
There are different Norms Committee looking after different product groups. There are 7 Norms Committee according to the ITC(HS) of the Export Products.
The 7 Norms Committee and their concerning products are as follows:
Norms Committees (NC) | Export Products under following ITC HS Chapters |
NC-1 | Chapters 81 to 84 and 86 to 93 |
NC-2 | Chapters 72 to 76, 78 to 80, 85 |
NC-3 | Chapters 29 and 30 |
NC-4 | Chapters 27 to 28, 31 to 38, 44 to 49 and 68 to 71 |
NC-5 | Chapters 41 to 43, 50 to 67 |
NC-6 | Chapters 1 to 26 and 94 to 98 |
NC-7 | Chapters 39 and 40 |
|
Documents Required for Trademark Registration:
Copy of IEC
DGFT Digital Signature Certificate (DSC)
Application form ANF - 4B
Valid RCMC
GST Certificate
Appendix - 4E (Technical Details)
Appendix 4K (Chartered Engineer Certificate)
Application fee Receipt
Production & Consumption data of the last 3 financial years
Copy of Advance License (if available)
Details of earlier licenses obtained (if any) for the product during the licensing years for the past two years
Copy of Udyam Registration
Detailed technical Notes on manufacturing process along with technical justification for wastage claimed at each stage of the process
The Norms Fixation Procedure
The Norms Fixation Procedure involves the following steps:
Step 1
Apply for the Advance Authorisation with the required documents and apply for the request of Norms Fixation.
Step 2
Get the Advance Authorisation from the DGFT Regional Authority.
Step 3
- Import of Duty-Free Raw Materials under Advance Authorisation for manufacturing.
Step 4
- Manufacture the finished product using the raw materials imported and export it.
Step 5
Complete the Norms Fixation Procedure by approaching the Norms Committee, New Delhi.
Step 6
Proceed for the process of EODC / Redemption of Advance Authorisation from the DGFT, RA.
Step 7
- Obtain EODC / Redemption against the Advance License from the DGFT, RA.
Step 8
- Submit the EODC / Redemption with the Customs for Bond Cancellation / BG Release.
Day 1:
- Collection of required information
- Classification of Trademark Class
- Checking availability of Trademark
Day 3:
- Filing of online Trademark Registration application
- Sharing the filed application & receipt
Day 2:
- Preparing the required documentation
Day 4:
- Government processing time
How can we help you?
Documentation
Collection of the required documentation from the clients.
Preparation and Submission
Verification of the documents and preparation of application as per the DGFT and Norms Committee mandates.
Follow up
Follow-up with DGFT and the Norms Committee, if the process is delayed or slowed down.
Quick Assistance
For Future related Licenses and queries.
Frequently Asked Questions
All you need to know before applying for Norms Fixation:
Standard Input-Output Norms (SION) under DGFT, it specifies the required amount of input to produce the output for export
Ad-hoc norms are specific Input-Output norms for an export product for which there is no SION (Standard Input Output Norms).
Norms Committee is the Committee in the DGFT for endorsing the Input Output norms that are notified by the Director General of Foreign Trade.
There are 7 Norms Committee looking after various groups of products under Norms Fixation.
There are cases where norms have not been notified by the DGFT or where the applicant wants to get their ad-hoc norms fixed before making an application for Advance Authorization. This is called as Norms Fixation.
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