The EximLabh Brief

Can Your Advance Authorisation Still Claim Duty Exemption After the New SION Fixation?

DGFT fixes SIONs A-3687 to A-3689 for Azithromycin Dihydrate, Aldehyde C10, and Ceftazidime. Existing authorisations stay valid on their original terms, but voluntary alignment with the new norms can create claim mismatches.

The question DGFT has fixed three new SIONs, A-3687 to A-3689, for Chemical and Allied Products under Public Notice No. 14/2025-26 dated 8 July 2025. Exporters holding an existing Advance Authorisation for Azithromycin Dihydrate, Aldehyde C10, or Ceftazidime now face a practical question: does the new fixation change what they can claim, or does their old authorisation still govern? ## The short answer Your existing Advance Authorisation remains valid on the terms printed on it. Paragraph 4.02 of the Foreign Trade Policy 2023 states that an authorisation is issued "in accordance with the Policy and Procedures in force on the date of issue of the Authorisation." A new SION fixation does not, by itself, rewrite the input-output entitlement already granted. The risk is not invalidation. The risk is self-inflicted mismatch when an exporter voluntarily tries to align a pending claim with the new norm. ## What the new SIONs cover Public Notice No. 14/2025-26 fixes three norms under Product Code 'A'. The notice names the export products Azithromycin Dihydrate, Aldehyde C10, and Ceftazidime. The permitted import items and the input-output ratios and wastage percentages for each norm are not reproduced in the source material and must be read off the primary instrument itself. ## The compliance trap Three specific risks sit between an exporter and a clean discharge claim. First, the amendment trigger. If your AA was issued before 8 July 2025 against an ad-hoc norm or an older SION, the new fixation does not automatically amend it. But if you file a request for enhancement or reduction under paragraph 4.37 of FTP 2023, the Regional Authority will apply the norms in force on the date of that request. That can trigger a full re-examination of the authorisation, including wastage allowances, and potentially a differential duty demand if the new norm is less generous. Second, SION is a quantity test, not a cash rate. The SION fixes the permissible input-output ratio. The actual duty exemption is computed on the Bill of Entry against the Basic Customs Duty applicable to the specific imported item. If the new SION permits a different input item than the one actually imported under your existing AA, the exemption claim will fail at the Customs end even if the DGFT authorisation is technically valid. Third, the Drawback interaction. Inputs imported duty-free under Advance Authorisation are not eligible for Duty Drawback. If you decide to pay duty on an input and claim Drawback instead, the shipping bill must not simultaneously reference the AA for the same input. A mixed claim is permissible only with clear segregation on the shipping bill. ## SCOMET overlay The structured lookup flags HS 3687 as a possible SCOMET-controlled item under Appendix 3. If your export product falls within a SCOMET entry, a separate licence may be required regardless of the AA. The new SION fixation does not address this overlay. Confirm before filing. ## Before you file a claim, Pull your AA and note its date of issue and the input-output norm referenced.