Foreign Trade Policy: New Norms for Advance Authorization for Desalination

The Directorate General of Foreign Trade (DGFT) has expanded the scope of the Advance Authorization Scheme by notifying new Standard Input Output Norms (SION) specifically for industrial units utilizing seawater desalination. This move under the Foreign Trade Policy 2023 aims to streamline the duty-free import of critical inputs like membranes and specialty chemicals required for high-capacity water treatment in export-oriented manufacturing zones. ## What this means for exporters Industrial units can now claim duty-free imports for inputs proportionate to the output of potable or industrial-grade water used in the production of export goods. As per DGFT updates to the SION handbook, manufacturers no longer need to approach the Norms Committee for ad-hoc approvals for these specific desalination components, significantly reducing lead times. This is particularly beneficial for chemicals and textile clusters located in coastal regions where fresh water is scarce. Exporters should ensure that their technical specifications align with the newly prescribed input-output ratios to avoid audit discrepancies. The integration of these norms into the electronic filing system ensures faster processing of authorizations for sustainable water management projects within manufacturing premises.