In exercise of the powers conferred under Paragraph 103 of the Foreign Trade Policy

## Report on Public Notice Regarding Standard Input Output Norms (SIONs) **1. Executive Summary:** This report analyzes a public notice issued by the Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce and Industry, Government of India, dated June 25, 2021. The notice amends the Foreign Trade Policy 2015-2020 by fixing two new Standard Input Output Norms (SIONs) for the export of Phenol and Acetone under the Chemical Allied Product Group. The key finding is the establishment of specific import quantity allowances for Benzene when exporting Phenol and Acetone. This will directly affect manufacturers and exporters of Phenol and Acetone. **2. Introduction:** The purpose of this report is to provide information and analysis regarding Public Notice No. 10/2015-20, issued by the Directorate General of Foreign Trade on June 25, 2021, pertaining to the fixation of two new Standard Input Output Norms (SIONs). This analysis is based solely on the provided text of the notice. **3. Policy Overview:** * **Amendment:** This notice constitutes an amendment to the Foreign Trade Policy 2015-2020. * **Core Objective(s):** The core objective, as inferred from the text, is to regulate and standardize the import of specific raw materials (Benzene) required for the export of particular chemical products (Phenol and Acetone). This aims to streamline export procedures and provide clarity regarding allowable import quantities. **4. Background and Rationale:** The amendment likely addresses the need for specific guidelines regarding the import of Benzene for the production of Phenol and Acetone for export. The previous Foreign Trade Policy 2015-2020 likely lacked specific provisions for these products, leading to potential ambiguity or challenges for exporters in determining allowable import quantities for these specific export items. The establishment of SIONs addresses this by providing clear and standardized norms. **5. Key Provisions / Changes:** This public notice amends the Foreign Trade Policy 2015-2020 by adding the following: * **Specific Part of Original Policy Changed:** The notice adds to Para 1.03 of the Foreign Trade Policy 2015-2020. * **New Rule/Provision:** The notice establishes two new SIONs: * **SION No. A3678:** For the export of 1 kg of PHENOL, a maximum of 0.87 kg of BENZENE can be imported. * **SION No. A3679:** For the export of 1 kg of ACETONE, a maximum of 0.522 kg of BENZENE can be imported. * **Effect of the Change:** The creation of these SIONs provides clarity and certainty to exporters of Phenol and Acetone regarding the permissible quantity of Benzene that can be imported for manufacturing these export products. This change aims to simplify the export process by standardizing input-output norms. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * Manufacturers and exporters of Phenol. * Manufacturers and exporters of Acetone. * Businesses involved in the import of Benzene for the production of Phenol and Acetone intended for export. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Directorate General of Foreign Trade (DGFT) is the responsible agency for implementing and enforcing these new SIONs. * **Timelines or Procedures:** No specific timelines or procedures are outlined within the provided text. However, it can be inferred that these SIONs are effective immediately upon the publication of the notice. The procedures for utilizing these SIONs would likely be governed by existing regulations and guidelines under the Foreign Trade Policy. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes and impact of these changes are: * **Increased Clarity and Predictability:** The new SIONs provide clear guidelines for the import of Benzene, reducing ambiguity and increasing predictability for exporters of Phenol and Acetone. * **Streamlined Export Procedures:** By standardizing input-output norms, the export process for Phenol and Acetone should become more efficient. * **Enhanced Competitiveness:** Clear and standardized norms can potentially reduce costs associated with regulatory compliance, potentially enhancing the competitiveness of Indian exporters in the global market. **9. Conclusion:** The Public Notice issued by the DGFT establishes two new SIONs for the export of Phenol and Acetone. These amendments to the Foreign Trade Policy 2015-2020 are significant as they provide clear guidelines regarding allowable Benzene imports, aiming to streamline export processes and improve the competitiveness of Indian manufacturers and exporters within the Chemical Allied Product Group. This change is significant for manufacturers and exporters of Phenol and Acetone.

Key Entities Referenced