In a significant step, the Directorate General of Foreign Trade (DGFT) has announced amendments to Standard Input Output Criteria (SION) A-1294, effective immediately. The changes focus exclusively on imported goods under SION, which will provide clarity on the quantities and types of raw materials needed to produce specific export goods. This amendment will affect businesses involved in the production of certain chemicals and ethanol-based products.

Major Amendments to Imported Items under SION A-1294

The Director General of Foreign Trade (DGFT) has revised the details of import items for a specific export product listed under SION A-1294. The purpose of the change is to optimize the amount of raw materials used in the production process, increase efficiency, and align with industry needs. Here is a breakdown of the changes:

What Does This Amendment Mean for the Industry?

The new amendment will directly affect industries that use phthalic anhydride and denatured ethyl alcohol to make products such as Di-Ethyl Phthalate (DEP). This includes chemical and ethanol plants. Updates in raw material quantities can save costs and streamline production processes. Companies with a DGFT license should review their operations and imports to ensure they comply with the new rules. Exporters and manufacturers should update their inventories and supply chains according to the new volume limit. The ethanol plant sector will particularly benefit, as a clear definition of the denatured ethyl alcohol import limit will simplify production and reduce regulatory issues. Overall, these updates aim to make operations more efficient for industries that rely on these raw materials.

Why are These Changes Necessary?

This amendment reflects the government’s commitment to simplifying the import-export process, making it more transparent for businesses. For industries involved in chemical and ethanol production, aligning their operations with these revised norms ensures smoother compliance, better access to international markets, and reduced bureaucratic hurdles. Additionally, the updated SION provides exporters with a clearer understanding of raw material requirements, increasing overall supply chain efficiency. 

The latest revision of the DGFT is an important step towards improving the ease of doing business in India’s export sector. It brings clarity to industries that rely on chemical and ethanol production and will help maintain a smooth and cost-efficient process. With these changes, businesses operating with a DGFT license should adapt their operations accordingly, to ensure compliance with the updated SION A-1294.