DGFT Notice Regarding Reinstatement and Amendment of SION C-888

DGFT Notice Regarding Reinstatement and Amendment of SION C-888. The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, Government of India, has issued Public Notice No. 05/2025 dated 6 May 2025, declaring the reinstatement and amendment of Standard Input Output Norms (SION C-888). This reinstatement marks an important development in India’s foreign trade policy, particularly for exporters of stainless-steel washers. This article breaks down the notice, its context, technical implications, and its broader impact on trade facilitation.
Public Notice
The public notice begins by establishing its legal basis. It cites the authority vested in the Director General of Foreign Trade under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy (FTP) 2023, as amended from time to time. These paragraphs empower the DGFT to notify, modify, or suspend SIONs to streamline import-export norms and ensure consistency with industrial requirements and international trade dynamics.
This specific public notice deals with Standard Input Output Norms (SION) Code C-888, which applies to manufacturers and exporters of stainless-steel circular washers of varying grades and sizes.
What Are Standard Input Output Norms (SION)?
Standard Input Output Norms (SION) are guidelines issued by the DGFT that specify the quantity of input(s) required to manufacture a unit of output. These norms are particularly important for manufacturers availing benefits under the Advance Authorization Scheme. The scheme allows duty-free import of inputs, provided the final product is exported.
For instance, if an exporter produces stainless-steel washers, they can import stainless-steel sheets or coils without paying customs duty—provided the input-output ratio is within the SION norms and the finished washers are exported.
SION ensures transparency, predictability, and uniformity in determining the permissible quantity of inputs. It also prevents misuse of import benefits by over-declaring input consumption.
Why Was SION C-888 Suspended?
SION C-888 was earlier suspended via Public Notice No. 56 dated 14.01.2020. The exact reasons for suspension are not detailed in this current notification. However, suspensions typically occur due to:

Misuse of norms by certain exporters or traders.

Inconsistency with actual input-output ratios as verified by technical committees or field reports.

Discrepancies noticed by the customs or DGFT offices.

Need for recalibration based on updated industry standards or product modifications.

During the suspension period, exporters would not have been allowed to use the SION route under C-888, and may have had to apply for individual norms fixation (Ad-hoc Norms).
What the Reinstatement Implies?
The reinstatement means that the SION C-888 is once again valid and exporters can use this standard to claim advance authorization without going through the ad-hoc route. It simplifies and accelerates the process for those dealing with stainless-steel washers.
Additionally, the reinstatement has come with amendments, which suggests that the DGFT has updated the input-output ratio or modified the input materials allowed, to make them more reflective of current manufacturing requirements.
Detailed Description of Export and Import Items Under SION C-888
Let us now understand the table of items as per the reinstated and amended norms:
Item of Export: Stainless-Steel Washers
The product covered under this SION is:

Small and large-size circular stainless-steel washers.

These washers can be of different grades, implying the norm applies to a wide range of stainless-steel washer types.

These washers are widely used in industrial applications such as automotive parts, heavy machinery, electronics, and construction materials.
Quantity of Export: 1.0 Kg
This means the SION ratio is being defined per 1 kilogram of finished stainless-steel washers.
Item of Import: Stainless-Steel Inputs
The permitted import inputs under the revised norm are:

Prime or secondary stainless-steel sheets

Sheet cutting

Coils

Strips

Plates

These inputs must be of the relevant grade and thickness required for the production of the washers.
This provision allows flexibility in sourcing raw materials of various forms, which helps manufacturers optimize procurement based on cost and availability.
Quantity of Import Allowed: 1.60 Kg
To manufacture 1 kg of washers, exporters are now allowed to import 1.60 kg of stainless-steel raw materials. This import quantity accounts for:

Material wastage during cutting and shaping

Manufacturing losses

Scrap generated in the process

This updated ratio indicates that the DGFT has considered industry feedback and current technological standards for material utilization.
Effect of the Public Notice
The reinstatement and amendment of SION C-888 come with the following official statement:
"The SION (C-888) which was suspended vide PN No. 56 dated 14.01.2020, has been reinstated and amended."
This means that exporters who were earlier restricted from using this norm can now resume applying under it. The amendment part reflects DGFT's responsiveness to evolving industry norms, especially regarding raw material efficiency and wastage in the washer manufacturing sector.
Benefits for Exporters
The reinstated SION offers multiple benefits to manufacturers and exporters:

Streamlined Approvals: With a standard norm back in place, exporters can obtain advance authorization without submitting detailed consumption data each time.

Time and Cost Efficiency: Avoids delays and costs associated with applying for ad-hoc norms or justifying technical specs.

Duty-Free Imports: Enables import of stainless-steel inputs without incurring customs duties, reducing the cost of production.

Predictability: Exporters can plan their production and procurement with greater certainty.

Flexibility in Inputs: Inclusion of various forms of stainless-steel (sheets, coils, strips, etc.) enhances choice for manufacturers.

Challenges and Compliance Responsibilities
While the reinstatement simplifies trade, exporters must also ensure:

Proper use of materials within the defined input-output ratio.

Accurate documentation during customs clearance and DGFT filings.

Avoidance of diversion of duty-free inputs to domestic markets, which can result in penalties or blacklisting.

Moreover, manufacturers must maintain production records to prove conformity with the authorized norms during audits or inspections.
Strategic Significance for India's Steel Sector
Stainless-steel washers are a significant sub-sector within India’s larger metal and components industry. Reinstating this norm has the following implications:

Boost to MSMEs: Many micro and small units manufacture washers for exports. The norm reinstatement supports them with smoother trade facilitation.

Export Promotion: Lower input costs and simplified procedures promote competitiveness in global markets.

Make in India Push: Encouraging domestic value addition through export of finished goods aligns with national manufacturing goals.

Legal Framework Supporting the Notification
The notification draws its authority from the Foreign Trade Policy, 2023, particularly:
Paragraph 1.03 – DGFT’s Power to Issue Notifications
This paragraph empowers the DGFT to issue public notices, amend policy conditions, and create procedures as needed to implement the FTP effectively.
Paragraph 2.04 – Advance Authorization and SION
This section allows the DGFT to define norms and issue authorizations based on standard or ad-hoc consumption ratios. It also provides scope for revising or suspending norms where required.
The legal backing ensures that the reinstatement carries binding effect and is enforceable at all customs ports and DGFT offices across India.
Conclusion
The reinstatement and amendment of SION C-888 is a welcome move for India's stainless-steel component exporters. It reflects the government’s intention to simplify export-related procedures, improve ease of doing business, and support domestic manufacturing. By aligning the norms with industry realities, the DGFT not only restores an essential facilitative provision but also strengthens the trade ecosystem that supports thousands of MSMEs and large exporters alike.
Exporters dealing with stainless-steel washers are advised to review the amended norms and integrate them into their compliance planning, ensuring adherence to all regulatory requirements while leveraging the benefits under the Foreign Trade Policy.

FAQs on Reinstated SION C-888
Q1. What is SION C-888?
Ans. It is a standard input-output norm defining the allowed import of stainless-steel raw materials to produce stainless-steel circular washers for export.
Q2. Why was SION C-888 suspended earlier?
 Ans. It was suspended under Public Notice No. 56 dated 14.01.2020, possibly due to misuse, outdated ratios, or technical inconsistencies.
Q3. What is the new input-output ratio?
 Ans. To export 1 kg of washers, an exporter can now import 1.60 kg of stainless-steel inputs like sheets, coils, and plates.
Q4. What types of washers are covered?
 Ans. All small and large-size circular washers made from stainless steel of different grades.
Q5. Is it mandatory to follow this norm?
 Ans. It is applicable for those seeking duty-free imports under the Advance Authorization Scheme. It simplifies the process for eligible exporters.
Q6. Can this norm be used for non-circular washers?
 Ans. No, the norm specifically mentions circular stainless-steel washers.
Q7. What happens if an exporter exceeds the allowed input quantity?
 Ans. It may result in penalties, withdrawal of benefits, or legal actions under the Customs Act and Foreign Trade Policy guidelines.

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, Government of India, has issued Public Notice No. 05/2025 dated 6 May 2025, declaring the reinstatement and amendment of Standard Input Output Norms (SION C-888). This reinstatement marks an important development in India’s foreign trade policy, particularly for exporters of stainless-steel washers. This article breaks down the notice, its context, technical implications, and its broader impact on trade facilitation.

Public Notice

The public notice begins by establishing its legal basis. It cites the authority vested in the Director General of Foreign Trade under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy (FTP) 2023, as amended from time to time. These paragraphs empower the DGFT to notify, modify, or suspend SIONs to streamline import-export norms and ensure consistency with industrial requirements and international trade dynamics.

This specific public notice deals with Standard Input Output Norms (SION) Code C-888, which applies to manufacturers and exporters of stainless-steel circular washers of varying grades and sizes.

What Are Standard Input Output Norms (SION)?

Standard Input Output Norms (SION) are guidelines issued by the DGFT that specify the quantity of input(s) required to manufacture a unit of output. These norms are particularly important for manufacturers availing benefits under the Advance Authorization Scheme. The scheme allows duty-free import of inputs, provided the final product is exported.

For instance, if an exporter produces stainless-steel washers, they can import stainless-steel sheets or coils without paying customs duty—provided the input-output ratio is within the SION norms and the finished washers are exported.

SION ensures transparency, predictability, and uniformity in determining the permissible quantity of inputs. It also prevents misuse of import benefits by over-declaring input consumption.

Why Was SION C-888 Suspended?

SION C-888 was earlier suspended via Public Notice No. 56 dated 14.01.2020. The exact reasons for suspension are not detailed in this current notification. However, suspensions typically occur due to:

Misuse of norms by certain exporters or traders.
Inconsistency with actual input-output ratios as verified by technical committees or field reports.
Discrepancies noticed by the customs or DGFT offices.
Need for recalibration based on updated industry standards or product modifications.

During the suspension period, exporters would not have been allowed to use the SION route under C-888, and may have had to apply for individual norms fixation (Ad-hoc Norms).

What the Reinstatement Implies?

The reinstatement means that the SION C-888 is once again valid and exporters can use this standard to claim advance authorization without going through the ad-hoc route. It simplifies and accelerates the process for those dealing with stainless-steel washers.

Additionally, the reinstatement has come with amendments, which suggests that the DGFT has updated the input-output ratio or modified the input materials allowed, to make them more reflective of current manufacturing requirements.

Detailed Description of Export and Import Items Under SION C-888

Let us now understand the table of items as per the reinstated and amended norms:

Item of Export: Stainless-Steel Washers

The product covered under this SION is:

Small and large-size circular stainless-steel washers.
These washers can be of different grades, implying the norm applies to a wide range of stainless-steel washer types.

These washers are widely used in industrial applications such as automotive parts, heavy machinery, electronics, and construction materials.

Quantity of Export: 1.0 Kg

This means the SION ratio is being defined per 1 kilogram of finished stainless-steel washers.

Item of Import: Stainless-Steel Inputs

The permitted import inputs under the revised norm are:

Prime or secondary stainless-steel sheets
Sheet cutting
Coils
Strips
Plates

These inputs must be of the relevant grade and thickness required for the production of the washers.

This provision allows flexibility in sourcing raw materials of various forms, which helps manufacturers optimize procurement based on cost and availability.

Quantity of Import Allowed: 1.60 Kg

To manufacture 1 kg of washers, exporters are now allowed to import 1.60 kg of stainless-steel raw materials. This import quantity accounts for:

Material wastage during cutting and shaping
Manufacturing losses
Scrap generated in the process

This updated ratio indicates that the DGFT has considered industry feedback and current technological standards for material utilization.

Effect of the Public Notice

The reinstatement and amendment of SION C-888 come with the following official statement:

"The SION (C-888) which was suspended vide PN No. 56 dated 14.01.2020, has been reinstated and amended."

This means that exporters who were earlier restricted from using this norm can now resume applying under it. The amendment part reflects DGFT's responsiveness to evolving industry norms, especially regarding raw material efficiency and wastage in the washer manufacturing sector.

Benefits for Exporters

The reinstated SION offers multiple benefits to manufacturers and exporters:

Streamlined Approvals: With a standard norm back in place, exporters can obtain advance authorization without submitting detailed consumption data each time.
Time and Cost Efficiency: Avoids delays and costs associated with applying for ad-hoc norms or justifying technical specs.
Duty-Free Imports: Enables import of stainless-steel inputs without incurring customs duties, reducing the cost of production.
Predictability: Exporters can plan their production and procurement with greater certainty.
Flexibility in Inputs: Inclusion of various forms of stainless-steel (sheets, coils, strips, etc.) enhances choice for manufacturers.

Challenges and Compliance Responsibilities

While the reinstatement simplifies trade, exporters must also ensure:

Proper use of materials within the defined input-output ratio.
Accurate documentation during customs clearance and DGFT filings.
Avoidance of diversion of duty-free inputs to domestic markets, which can result in penalties or blacklisting.

Moreover, manufacturers must maintain production records to prove conformity with the authorized norms during audits or inspections.

Strategic Significance for India's Steel Sector

Stainless-steel washers are a significant sub-sector within India’s larger metal and components industry. Reinstating this norm has the following implications:

Boost to MSMEs: Many micro and small units manufacture washers for exports. The norm reinstatement supports them with smoother trade facilitation.
Export Promotion: Lower input costs and simplified procedures promote competitiveness in global markets.
Make in India Push: Encouraging domestic value addition through export of finished goods aligns with national manufacturing goals.

Legal Framework Supporting the Notification

The notification draws its authority from the Foreign Trade Policy, 2023, particularly:

Paragraph 1.03 – DGFT’s Power to Issue Notifications

This paragraph empowers the DGFT to issue public notices, amend policy conditions, and create procedures as needed to implement the FTP effectively.

Paragraph 2.04 – Advance Authorization and SION

This section allows the DGFT to define norms and issue authorizations based on standard or ad-hoc consumption ratios. It also provides scope for revising or suspending norms where required.

The legal backing ensures that the reinstatement carries binding effect and is enforceable at all customs ports and DGFT offices across India.

Conclusion

The reinstatement and amendment of SION C-888 is a welcome move for India's stainless-steel component exporters. It reflects the government’s intention to simplify export-related procedures, improve ease of doing business, and support domestic manufacturing. By aligning the norms with industry realities, the DGFT not only restores an essential facilitative provision but also strengthens the trade ecosystem that supports thousands of MSMEs and large exporters alike.

Exporters dealing with stainless-steel washers are advised to review the amended norms and integrate them into their compliance planning, ensuring adherence to all regulatory requirements while leveraging the benefits under the Foreign Trade Policy.

FAQs on Reinstated SION C-888

Q1. What is SION C-888?

Ans. It is a standard input-output norm defining the allowed import of stainless-steel raw materials to produce stainless-steel circular washers for export.

Q2. Why was SION C-888 suspended earlier?

Ans. It was suspended under Public Notice No. 56 dated 14.01.2020, possibly due to misuse, outdated ratios, or technical inconsistencies.

Q3. What is the new input-output ratio?

Ans. To export 1 kg of washers, an exporter can now import 1.60 kg of stainless-steel inputs like sheets, coils, and plates.

Q4. What types of washers are covered?

Ans. All small and large-size circular washers made from stainless steel of different grades.

Q5. Is it mandatory to follow this norm?

Ans. It is applicable for those seeking duty-free imports under the Advance Authorization Scheme. It simplifies the process for eligible exporters.

Q6. Can this norm be used for non-circular washers?

Ans. No, the norm specifically mentions circular stainless-steel washers.

Q7. What happens if an exporter exceeds the allowed input quantity?

Ans. It may result in penalties, withdrawal of benefits, or legal actions under the Customs Act and Foreign Trade Policy guidelines.