## Report on Amendment to Foreign Trade Policy 2015-2020 Regarding Standard Input Output Norms (SION) for Engineering Products
**1. Executive Summary:**
This report analyzes a public notice issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, dated July 27, 2022. The notice constitutes an amendment to the Foreign Trade Policy (FTP) 2015-2020, specifically addressing the Standard Input Output Norms (SION) for certain engineering products. The core purpose of this amendment is to suspend SIONs for specified carbon alloy and stainless steel seamless tubes and pipes. This report details the implications of this suspension, the affected stakeholders, and potential impacts on export activities.
**2. Introduction:**
The purpose of this report is to provide an informative analysis of the Public Notice No. 19/2015-2020, issued on July 27, 2022, which amends the Foreign Trade Policy (FTP) 2015-2020. This analysis is based solely on the provided text and focuses on the implications of the amendment related to the suspension of specific Standard Input Output Norms (SIONs) for engineering products.
**3. Policy Overview:**
* This public notice amends the Foreign Trade Policy (FTP) 2015-2020.
* **Core Objective:** The core objective of this amendment, as inferred from the text, is to temporarily suspend the applicability of Standard Input Output Norms (SIONs) for a specific set of carbon alloy and stainless steel seamless tubes and pipes, impacting the export process for these items.
**4. Background and Rationale:**
The amendment likely aims to address a specific issue related to the established SIONs for the listed engineering products. Although the exact reason for the suspension is not explicitly stated, it can be inferred that there may be a need to re-evaluate or adjust these norms due to factors like changing market conditions, discrepancies in input-output ratios, or quality control concerns with the specified products. The amendment may be a temporary measure taken to prevent misuse of the SION framework.
**5. Key Provisions / Changes:**
This public notice introduces the following specific changes to the Foreign Trade Policy (FTP) 2015-2020:
* **Specific Part of Original Policy Changed:** This amendment directly affects the Standard Input Output Norms (SIONs) listed under the "Engineering Product Group."
* **New Rule/Provision:** The SIONs for the following export items are suspended with immediate effect:
* C594: Carbon Alloy Steel Seamless Tubes Cold Finished
* C791: Seamless Stainless Steel Tubes Cold Finished
* C792: Seamless Stainless Steel Tubes Cold Finished (Stainless steel grade 304/304L/321)
* C793: Seamless Stainless Steel Tubes Cold Finished (Stainless steel grade 316/316L/316 TI)
* C794: Seamless Stainless Steel Tubes Pipes Hot Finished
* C795: Seamless Stainless Steel Tubes Hot Finished (Stainless steel grade 304/304L/321)
* C796: Seamless Stainless Steel Tubes Hot Finished (Stainless steel grade 316/316L/316TI)
* C831: Stainless Steel Seamless Tubes/Pipes Cold Finish
* **Effect of the Change:** The suspension means that exporters can no longer automatically avail the benefits associated with these SIONs. Exporters who wish to import inputs for manufacturing these export items will now have to apply for Advance Authorisation under Para 4.07 of the Handbook of Procedures 2015-20. This introduces a procedural change, requiring exporters to seek prior approval on a case-by-case basis instead of relying on pre-defined norms.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders directly affected by this amendment are:
* Manufacturers and exporters of carbon alloy steel and stainless steel seamless tubes and pipes falling under the specified categories (C594, C791 to C796, and C831).
* Entities involved in the supply chain of these products, including raw material suppliers.
* The Directorate General of Foreign Trade (DGFT) and related agencies responsible for implementing and monitoring export regulations.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Directorate General of Foreign Trade (DGFT) is the responsible agency for implementing this amendment.
* **Timelines and Procedures:** The suspension of SIONs is effective immediately from July 27, 2022. Exporters seeking to import inputs for manufacturing the specified products must apply for Advance Authorisation under Para 4.07 of the Handbook of Procedures 2015-20. The handbook contains further procedures which exporters now need to follow, which they did not need to follow prior to this amendment.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of this amendment are:
* **Stricter Scrutiny:** By requiring Advance Authorisation, the DGFT can exercise stricter scrutiny over the import of inputs used in the manufacturing of the specified export items.
* **Reduced Misuse:** The suspension of SIONs aims to curb potential misuse or irregularities associated with the earlier norms.
* **Potential Impact on Exporters:** Exporters may face increased administrative burden and potential delays in obtaining Advance Authorisation, which could temporarily impact export volumes. However, the change is likely intended to ensure fair trade practices and prevent exploitation of the SION framework in the long run.
**9. Conclusion:**
The amendment to the Foreign Trade Policy (FTP) 2015-2020, as detailed in Public Notice No. 19/2015-2020, suspends the Standard Input Output Norms (SIONs) for specific carbon alloy and stainless steel seamless tubes and pipes. This change requires exporters to apply for Advance Authorisation, indicating a move towards stricter oversight of import activities related to these products. The suspension is likely a temporary measure intended to address potential issues with the existing SIONs and promote fair trade practices. While it may introduce short-term challenges for exporters, it ultimately aims to ensure a more robust and transparent export environment.
Key Entities Referenced
Foreign Trade Policy FTP, 20152020: A trade policy for the period 2015-2020, which is being referenced in the notification.
Director General of Foreign Trade: The issuing authority making amendments to the Standard Input Output Norms.
Standard Input Output Norms SION: Norms being amended in the notification, specifically related to engineering product groups.
C594: Standard Input Output Norms code for Carbon Alloy Steel Seamless Tubes Cold Finished, which is being suspended.
C791: Standard Input Output Norms code for Seamless Stainless Steel Tubes Cold Finished, which is being suspended.
C792: Standard Input Output Norms code for Seamless Stainless Steel Tubes Cold Finished Stainless steel grade304304L321, which is being suspended.
C793: Standard Input Output Norms code for Seamless Stainless Steel Tubes Cold Finished Stainless steel grade316316L316 TI, which is being suspended.
C794: Standard Input Output Norms code for Seamless Stainless Steel Tubes Pipes Hot Finished, which is being suspended.
C795: Standard Input Output Norms code for Seamless Stainless Steel Tubes Hot Finished Stainless steel grade 304304L321, which is being suspended.
C796: Standard Input Output Norms code for Seamless Stainless Steel Tubes Hot Finished Stainless steel grade 316316L316TI, which is being suspended.
C831: Standard Input Output Norms code for Stainless Steel Seamless TubesPipes Cold Finish, which is being suspended.
Handbook of Procedures 201520: A document related to export/import procedures, specifically referenced in relation to Advance Authorisation.
SANTOSH KUMAR SARANGI: Director General of Foreign Trade ExOfficio Addl. Secy issuing the notification.
MINISTRY OF COMMERCE AND INDUSTRY: The government ministry to which the Department of Commerce and Directorate General of Foreign Trade belong.
Department of Commerce: The department under which the Directorate General of Foreign Trade operates.
New Delhi: Location of publication of the Public Notice, Delhi, India
Mayapuri, New Delhi: Location of Dte. of Printing at Government of India Press in Delhi, India
Delhi: Location of the Controller of Publications in India