What is Advance Authorisation under Adhoc Norms?
Advance Authorisation under Adhoc Norms is a facility under the DGFT Advance Authorisation scheme where the quantity of inputs permitted for duty-free import is determined based on an Adhoc Input-Output Norm fixed by the Norms Committee.
Not adequately covered by a SION
The export product is not adequately covered by an existing Standard Input Output Norm (SION).
SION doesn’t reflect actual inputs
The prescribed SION does not reflect the actual inputs required in the manufacturing process.
The Adhoc Norm specifies the relationship between the export product and the eligible imported inputs, including the quantity of inputs and, where applicable, the wastages.
The main feature of this type of Advance Authorisation is that the permissible quantity and description of inputs are determined with reference to the applicant’s actual manufacturing process and its technical requirements.
No SION for your product, or one that doesn’t fit? Talk to our DGFT consultants today.
WhatsApp 91004 44999Key highlights of Adhoc Norms
- Scheme type
- A norm-fixation mechanism under the Advance Authorisation scheme, not a separate duty benefit. The underlying benefit is still duty-free import of inputs against an export obligation.
- Governing framework
- FTP 2023, Chapter 4, and Handbook of Procedures 2023, Chapter 4, Para 4.06.
- Application forms
- ANF 4B for Adhoc Norms fixation with the Norms Committee; ANF 4A for the Advance Authorisation itself, filed electronically with the DGFT Regional Authority.
- Who decides the norm
- The appropriate Norms Committee (NC-1 to NC-7) at DGFT Headquarters, based on ITC(HS) chapter.
- Value addition
- The standard Advance Authorisation requirement applies: generally 15%.
- Export Obligation
- An authorisation issued against an Adhoc Norm carries the same EO requirement as any other Advance Authorisation; fixation of the norm does not by itself change EO conditions.
- Representation window
- 90 days from the date the Norms Committee’s decision is uploaded, to file a representation against it.
- Process update
- DGFT introduced a system-driven, faceless process for Adhoc Norm fixation via Public Notice No. 51/2023-24 dated 14 March 2024. This improves efficiency but does not mean automatic approval.
What is an Adhoc Norm?
An Adhoc Norm is an input-output norm determined for a specific export product on the basis of the technical and manufacturing data submitted to DGFT. Its purpose is to establish a reasonable, technically justified relationship between the inputs consumed, the manufacturing process and the resultant export product.
Export side
- 1Export product
- 2ITC(HS) classification of the export product
- 3Description/specification of the export product
Input side
- 4Input description
- 5Input ITC(HS) classification
- 6Quantity of input permitted
- 7Wastage, wherever applicable
The Norms Committee may consider the actual consumption pattern and technical justification before determining the permissible input entitlement. An Adhoc Norm is subject to the validity specified under the applicable HBP provisions and any specific condition imposed by the Committee, which may also restrict a particular norm from being used by other applicants.
When is an Adhoc Norm required?
Before applying for a fresh Adhoc Norm, the exporter should search the DGFT SION/Adhoc database to determine whether an existing applicable norm is already available.
Application for an Adhoc Norm should be considered only when:
No SION is available for the export product
The existing SION does not cover the actual manufacturing process
The exporter requires inputs which are not covered by the applicable SION
The quantity of inputs required differs from the quantity prescribed under the SION
The product/process has technical characteristics for which a standard norm is not available, particularly important where different grades, specifications, compositions or manufacturing processes result in different input requirements
Who can apply?
Manufacturer Exporters
An exporter capable of manufacturing and exporting the finished good.
Merchant Exporters
An exporter exporting with the support of a supporting manufacturer endorsed on the AA authorisation.
Using an existing norm vs fixing a fresh one
Wherever a valid Adhoc Norm is already available and applicable to the exporter’s product, the exporter can apply for Advance Authorisation based on that norm, without having to establish a fresh input-output norm. Where none exists, a fresh fixation is required, following Para 4.06 of the HBP 2023.
Advance Authorisation against an existing Adhoc Norm
The key advantage: the exporter doesn’t have to establish a fresh input-output norm for every application where an applicable, valid Adhoc Norm is already available for use by other applicants.
The exporter should still ensure the proposed export product and its inputs conform exactly to the existing norm, and confirm the norm is still valid before relying on it.
Requirements for a fresh Adhoc Norms application
Filed in Form ANF 4B, with supporting production and consumption data. The exporter should provide complete technical information concerning:
- Manufacturing process and export product
- Raw materials, inputs, and input consumption
- Input-output relationship and process loss/wastage
- Technical specifications and quantity of each input
- Justification for the quantity claimed, and supporting technical documents
Norms Committees and the product groups they handle
Details of the Norms Committees at DGFT Headquarters, along with the product groups (by ITC HS Chapter) dealt with by each, are as follows:
- NC-1ITC HS Chapters81 to 84, 86 to 93
- NC-2ITC HS Chapters72 to 76, 78 to 80, 85
- NC-3ITC HS Chapters29, 30
- NC-4ITC HS Chapters27, 28, 31 to 38, 44 to 49, 68 to 71
- NC-5ITC HS Chapters41 to 43, 50 to 67
- NC-6ITC HS Chapters1 to 26, 94 to 98
- NC-7ITC HS Chapters39, 40
Adhoc Norms & Advance Authorisation process
Our engagement runs from checking the SION/Adhoc database through norms fixation, the Advance Authorisation application, import compliance, and on to redemption. Select a stage.
Prior fixation of Adhoc Norms
- 1
Identify the requirement
Confirm your export product and inputs, and the input-output relationship your manufacturing process actually needs.
- 2
Check SION / existing valid Adhoc Norms
Search the DGFT database first. If a suitable norm already exists, you can skip straight to the Advance Authorisation application.
- 3
File ANF 4B for fixation of norms
If no suitable norm is available, file Form ANF 4B with the appropriate Norms Committee at DGFT Headquarters, along with technical and consumption data.
- 4
Norms Committee examines the data
The Committee reviews the technical, production and consumption data submitted, and may fix the norm at a ratio different from the one proposed.
- 5
Adhoc Norm is fixed
Once fixed, the norm is subject to the validity and any restrictions specified by the Committee and the applicable HBP provisions.
Advance Authorisation application
- 6
Apply in ANF 4A
Once suitable Adhoc Norms are fixed (or an existing valid norm applies), the exporter applies electronically for Advance Authorisation to the concerned DGFT Regional Authority.
- 7
Regional Authority issues the authorisation
The Advance Authorisation is issued under the Adhoc Norm, specifying the eligible inputs, permitted quantity, wastage and other conditions.
Import and Actual User compliance
- 8
Import within the specified limits
The imported inputs must correspond to the description, specification, quantity, permissible wastage and other conditions of the authorisation. The exemption is linked only to the authorised input requirements and the related export obligation, not a general import exemption.
- 9
Meet the Actual User condition
Duty-free imported inputs must be used for manufacture of the resultant export product in accordance with the authorisation and the applicable input-output norms. Maintain proper records of import, receipt, consumption, manufacture and export.
The role of Kireeti Group
Database check
We check the SION/Adhoc database first, so you don’t apply for a fresh norm you don’t need.
Technical data compilation
We help you assemble the production, consumption and technical justification for ANF 4B.
ANF 4B & ANF 4A filing
Managing Norms Committee filing through to the Advance Authorisation application with the Regional Authority.
Export obligation tracking
Monitoring EOP timelines, value addition and shipping bills against the authorisation.
Amendments & representations
Assistance with amendments and, where needed, representations against a Norms Committee decision.
Closure support
Preparing the EODC/redemption application once the export obligation is fulfilled.
Export Obligation & value addition
An Advance Authorisation issued against an Adhoc Norm carries the applicable Export Obligation (EO). The exporter must fulfil the EO within the prescribed period and comply with the value addition and other conditions applicable to the authorisation. The fact that an authorisation is based on an Adhoc Norm does not by itself eliminate or alter the normal export-obligation requirements of the Advance Authorisation scheme.
The exporter should therefore monitor
- Date of issue of authorisation
- Date of expiry of EOP
- Quantity exported
- FOB value
- Quantity/value of inputs imported
- Value addition
- Shipping bills
- Export realisation
- Other prescribed conditions
The Advance Authorisation holder must satisfy the applicable value addition requirement, which is generally 15%. For general Advance Authorisation purposes, value addition is calculated broadly as:
- A
- FOB value of exports / FOR value of supplies, as applicable
- B
- Value of imported inputs used for manufacture, subject to the applicable policy provisions
The exact calculation must be made with reference to the applicable FTP/HBP provisions and the specific export/supply transaction. This should be checked at the planning stage itself, because fulfilment of export obligation alone does not necessarily mean that all conditions of the Advance Authorisation have been fulfilled.
Records, monitoring & redemption
The licence holder must maintain a proper record of consumption and utilisation of duty-free imported/domestically procured inputs. Records may need to be verified/certified as prescribed by the HBP, including verification by Customs or the prescribed Chartered Engineer/Chartered Accountant route. These records matter most at redemption/bond waiver, when the Regional Authority compares actual consumption with the inputs permitted under the authorisation.
Authorisation-wise file to maintain
- Advance Authorisation and Adhoc Norms decision
- ANF 4B and ANF 4A
- Chartered Engineer certificate, where applicable
- Production and consumption records
- Import Bills of Entry and Shipping Bills
- Export invoices and e-BRC/FIRC or other realisation evidence
- Input utilisation and wastage records
- Job-work records, wherever permitted
- Amendment and extension orders
- Correspondence with DGFT/Customs
Redemption / closure application
- After fulfilment of the Export Obligation and other conditions, apply to the concerned DGFT Regional Authority for EODC/redemption and bond waiver
- Establish fulfilment of export obligation and value addition
- Establish utilisation of imported inputs and compliance with the Adhoc Norms
- Establish compliance with actual-use requirements
- Payment/regularisation of any shortfall, and compliance with other conditions
Representation against a Norms Committee decision
- If aggrieved by the Committee’s decision on fixation of norms, the HBP provides a mechanism for filing a representation
- Prescribed time limit: 90 days from the date of uploading of the decision
- A delayed representation may be entertained subject to the prescribed composition fee
- Representations beyond the HBP’s outer limit are not entertained
Repeat Advance Authorisation under an existing Adhoc Norm
One of the most important practical advantages of a valid Adhoc Norm is that the same norm may be used for subsequent applications during its permitted validity, subject to the HBP conditions and the Norms Committee decision. Don’t assume every historical Norms Committee decision can automatically be reused. Check:
The 2026 amendment expressly preserves the facility for repeat applications during the validity of the applicable norms, subject to the stated exclusions.
- Is the norm still valid?
- Does the export product exactly match?
- Do the technical characteristics match?
- Do the inputs and specifications match?
- Is the input quantity identical/applicable?
- Is there an express restriction on repeat applications?
- Does Appendix 4P apply?
Consequences of non-compliance, audit & verification
The FTP/HBP framework permits examination and audit of manufacturing and consumption data; misdeclaration or claiming inputs not actually used in manufacture can result in recovery and penal consequences.
Duty recovery & interest
Recovery of applicable customs duty, levy of interest penalty, and payment relating to duty/tax benefits availed.
Statutory action
Consequences under the Foreign Trade (Development and Regulation) Act, 1992, and action under the Customs Act, 1962, where applicable.
Authorisation action
Cancellation, suspension or other action against the authorisation, plus penalties for misdeclaration or misuse.
Future benefits at risk
Inability to obtain further benefits where the applicable policy conditions so provide. The precise consequence depends on the nature of the default.
What gets audited
- Production records
- Input consumption
- Input-output ratio
- Wastage
- Manufacturing process
- Import/export records
- Stock records
- Utilisation of imported inputs
Applicable mechanisms & schemes
Adhoc Norms is one of three ways to establish the input-output norm your Advance Authorisation runs on. Here is where each one fits:
SION-based Advance Authorisation
Used when a Standard Input Output Norm already covers the export product. No norm fixation needed, so this is the fastest route where it applies.
See SION-based services →Adhoc Norms
Used when no SION exists or fits. The Norms Committee fixes an input-output norm based on the applicant’s actual technical and consumption data, via ANF 4B.
Self-Declared Norms
The Regional Authority may issue the authorisation on self-declared norms, subject to conditions. If the Norms Committee later revises or rejects them, duty and interest become payable within 30 days of the decision being hosted.
See Self-Declared Authorisation services →All three sit under the same Advance Authorisation Scheme. If capital goods rather than inputs are the concern, that’s a separate scheme:
EPCG
Duty-free import of capital goods against a separate, multi-year export obligation tied to the authorisation. A different scheme from Advance Authorisation, which covers inputs.
See EPCG Scheme Services →MOOWR (Section 65)
Duty deferment on imported inputs and capital goods used in licensed warehouse manufacturing, with no mandatory export obligation.
See MOOWR Scheme Services →When no SION entry exists for your export product, or an existing SION doesn’t reasonably fit your input-output combination. Check the DGFT’s notified Standard Input Output Norms (SION) to determine whether the export product and required inputs are already covered by an existing norm, since Adhoc fixation is a longer process than applying under an existing SION.
It is the online application form used to request Adhoc Norms fixation from the concerned Norms Committee, as per HBP 2023, Para 4.06(i).
There is no general requirement under the current DGFT provisions that an applicant must have three years of business or export standing to apply for fixation of Adhoc Norms. However, the Norms Committee may require supporting production and consumption data, including historical data where available, to substantiate the proposed input-output norms. A newly established applicant may apply, but must provide sufficient technical and other supporting evidence to enable the Committee to examine and determine the norms.
Yes. The input-output ratio proposed by the applicant is subject to examination by the Norms Committee. The Committee reviews the technical, production, consumption and other supporting data submitted by the applicant and may fix the Adhoc Norms at a ratio different from the one proposed, based on its assessment of the actual input requirements and applicable norms.
Not by default. An Adhoc Norm fixed on an applicant’s request is ordinarily applicable only to the Advance Authorisation for which it was fixed. It can be used for subsequent Authorisations only where the Norms Committee has specifically granted extended validity, subject to the prescribed maximum validity period.
HBP 2023 does not prescribe a fixed number of days for fixation of Adhoc Norms. It provides that the Norms Committee shall endeavour to fix the norms on receipt of complete data. The actual timeline may therefore vary depending on the completeness of the application, the technical complexity of the case and the information required for examination by the Committee.
Under the Adhoc Norms route, where no applicable SION or valid Adhoc Norm exists, the applicant seeks fixation of norms by the Norms Committee, which examines the applicant’s technical, production and consumption data. Under Self-Declared Authorisation, the Regional Authority may issue the Advance Authorisation on the applicant’s self-declared input-output norms, subject to prescribed conditions. The applicant must undertake to abide by the Committee’s subsequent decision, and if it later revises or rejects the self-declared norms, the applicant must pay the applicable duty and interest within 30 days from the date the Committee’s decision is hosted on the DGFT website.
Not automatically. Adhoc Norm fixation and Self-Declared Norms are separate mechanisms under HBP 2023, with their own eligibility and procedural conditions. Whether different mechanisms can be used for different inputs under the same Advance Authorisation depends on the specific facts and the applicable DGFT provisions, so the proposed combination should be examined before filing. We’d recommend consulting us for an in-depth analysis of your requirements to arrive at the best applicable norms.
Not necessarily. A Chartered Engineer Certificate is not a mandatory requirement in every Adhoc Norm application. However, where the nature of the product or manufacturing process requires independent technical verification, the applicant may be required to provide appropriate technical certification or supporting evidence. Check the current ANF 4B requirements and case-specific documentation requirements before filing.
An Adhoc Norm fixed on an applicant’s request is ordinarily applicable only to the Advance Authorisation for which it was fixed. If the applicant subsequently requires another Advance Authorisation and the Adhoc Norm is no longer available for use, a fresh fixation of norms may be required, subject to the applicable DGFT provisions. Where repeat export orders are anticipated, the applicant may consider requesting extended validity of the Adhoc Norm at the time of its fixation, subject to the conditions and maximum validity period prescribed under HBP 2023.
No. DGFT has introduced a system-driven and faceless process for Adhoc Norm fixation through Public Notice No. 51/2023-24 dated 14 March 2024 to improve processing efficiency. However, the application and supporting technical data remain subject to examination under the applicable procedure, including consideration by the Norms Committee where required. The system-driven process does not mean automatic approval or guarantee a fixed processing time.
Official DGFT source provisions
- Foreign Trade Policy, 2023: Chapter 4, Duty Exemption / Remission Schemes.
- Handbook of Procedures, 2023: Chapter 4, including Para 4.06 (fixation of Adhoc Norms).
- ANF 4A: Advance Authorisation application form.
- ANF 4B: Adhoc Norms fixation application form.
- Appendix 4P: restrictions applicable to repeat use of fixed norms, where notified.
- DGFT Public Notice No. 51/2023-24, dated 14 March 2024: system-driven, faceless process for Adhoc Norm fixation.
- 2026 amendment preserving the facility for repeat applications during the validity of applicable norms, subject to stated exclusions.
This page gives general information on Advance Authorisation under Adhoc Norms under FTP 2023 and HBP 2023. It is not legal advice. Rules change through DGFT public notices and Customs notifications, so confirm the current position for your case with us or on the official portals before acting.
