ANNOUNCEMENT 03 Jan 2018

The Directorate General of Foreign Trade amended the Standard Input Output Norms (SION) by increasing the input quantity of raw sesame seeds for producing hulled sesame seeds for exports.
 

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 03 Jan 2018 | Removal date: open ended

Tax-based export incentive

The Standard input for producing 1 kg. of hulled sesame seeds for exports has been increased from 1.01 kg. to 1.33 kg. The Standard Input Output Norms (SION) prescribe the standard quantity of inputs that are used for producing specified quantities of output. Under various export schemes that provide duty exemption on import of raw materials for producing export products, the SION quantities are used to limit the quantity of inputs that can be imported by the export producer without paying import duties.

The increase in duty-free input quantity is expected to increase the incentive to import for export production.

 

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 03 Jan 2018 | Removal date: open ended

Import tariff

The Standard input for producing 1 kg. of hulled sesame seeds for exports has been increased from 1.01 kg. to 1.33 kg. The Standard Input Output Norms (SION) prescribe the standard quantity of inputs that are used for producing specified quantities of output. Under various export schemes that provide duty exemption on import of raw materials for producing export products, the SION quantities are used to limit the quantity of inputs that can be imported by the export producer without paying import duties.

The increase in duty-free import allowance of input materials is expected to increase the imports of the same.