Amendments in Standard Input Output Norms (SION) A1294

## Policy Analysis Report: Amendment to Standard Input Output Norms SION A1294 **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 May 7, 2025. This Public Notice constitutes an amendment to Standard Input Output Norms (SION) A1294, specifically modifying the description and quantity of import items allowed for export production. The key change involves adjustments to the allowed quantities of Phthalic Anhydride and Ethanol used in the production of DiEthyl Phthalate (DEP). The amendment takes immediate effect and directly impacts manufacturers and exporters utilizing SION A1294. **2. Introduction:** This report aims to provide a detailed overview of the Public Notice No. 06202526, issued on May 7, 2025, regarding amendments to Standard Input Output Norms (SION) A1294. The analysis is based solely on the provided text of the Public Notice and focuses on understanding the rationale, key changes, and potential impact of these amendments. **3. Policy Overview:** * **Original Policy:** Foreign Trade Policy 2023. SION A1294 operates under the framework of this policy. * **Core Objective(s):** Based on the text, the amendment's objective appears to be fine-tuning the import allowances under SION A1294 to ensure efficient and appropriate input quantities for export production, specifically concerning DiEthyl Phthalate (DEP). **4. Background and Rationale:** This Public Notice amends existing import allowances for SION A1294. The rationale for this specific amendment likely stems from a need to adjust the input requirements for DiEthyl Phthalate (DEP) production. The adjustment of Phthalic Anhydride and Ethanol quantities suggests a possible reevaluation of the optimal input ratios required for efficient DEP manufacturing under the SION framework. The specific reasons for the change (e.g., changes in manufacturing processes, material quality, or pricing) are not detailed in the text but are the most likely drivers for needing adjustment. **5. Key Provisions / Changes:** This Public Notice introduces changes to the import items specified under Sl. No. 2 of Standard Input Output Norms SION A1294. Specifically: * **Part of Original Policy Being Changed:** The description and quantity of allowed import items listed under Sl. No. 2 within SION A1294. * **New Rule/Provision:** The amended import items and their respective quantities allowed are: * Phthalic Anhydride: 0.700 kg (replacing the previous allowance which is not explicitly stated but implied to be 1 kg, based on the DiEthyl Phthalate output of 1kg) * Ethanol Denatured Ethyl Alcohol: 0.435 kg (replacing the previous allowance which is not explicitly stated) * **Difference/Effect of Change:** The amendment reduces the allowed import quantity of Phthalic Anhydride per unit of DiEthyl Phthalate (DEP) produced. Also, the type of Ethanol has been specified as Denatured Ethyl Alcohol. The effect of the adjustment of quantities likely aims to align import allowances with actual production needs, potentially preventing over-importation or addressing imbalances in the input-output ratio. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders affected by this amendment are: * Manufacturers and exporters of DiEthyl Phthalate (DEP) who utilize Standard Input Output Norms SION A1294 for importing raw materials. * Customs officials responsible for verifying import quantities under SION A1294. * The Directorate General of Foreign Trade (DGFT), responsible for administering and enforcing the Foreign Trade Policy. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Directorate General of Foreign Trade (DGFT) is responsible for implementing this amendment. Customs officials will be involved in enforcing the revised import quantities. * **Timelines/Procedures:** The amendment is effective immediately, as stated in the Public Notice. Manufacturers must adhere to the revised import quantities for Phthalic Anhydride and Ethanol Denatured Ethyl Alcohol when utilizing SION A1294. The exact procedures for demonstrating compliance (e.g., documentation, reporting) are not detailed in the provided text but would likely be consistent with existing SION procedures. * **Amendment Specific Implementation:** From the day of the notice, all imports of Phthalic Anhydride and Ethanol against SION A1294 must adhere to the new quantities outlined in the notice. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these specific changes is to: * Optimize the import allowances for Phthalic Anhydride and Ethanol Denatured Ethyl Alcohol under SION A1294. * Reduce the chances of over-importation, ensuring that import quantities align more closely with actual production requirements. * Potentially lower import costs for manufacturers, assuming the revised quantities accurately reflect their needs. * Streamline customs clearance processes by ensuring greater accuracy in import declarations. The impact will be that manufacturers may need to adjust their import orders and potentially their production processes to accommodate the revised input quantities. **9. Conclusion:** The Public Notice issued by the DGFT represents a targeted amendment to Standard Input Output Norms SION A1294. By adjusting the allowed import quantities of Phthalic Anhydride and Ethanol, the amendment aims to refine import allowances and align them more closely with actual production needs for DiEthyl Phthalate (DEP). This change is significant for manufacturers and exporters utilizing SION A1294 and highlights the ongoing efforts to optimize trade policies and ensure efficient resource utilization.

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