DGFT issues New SION for Exportable 'Propionic Anhydride', Seeks to Bolster High-Value Chemical Trade [Read Notification]
The SION for Propionic Anhydride has been classified under the ‘Chemical and Allied Product’ Group
DGFT – Propionic Anhydride – Bolster High-Value Chemical – Taxscan
DGFT – Propionic Anhydride – Bolster High-Value Chemical – Taxscan
The Directorate General of Foreign Trade ( DGFT ) recently made changes to the Standard Input Output Norm ( SION ) for 'Propionic Anhydride' meant for export, as a means to effectively boost the international export of chemical trade with high market value.
The DGFT, functioning under the Union Ministry of Commerce and Industry, has introduced the latest change, notifying the SION of Propionic Anhydride to Serial Number A-3683 under the ‘Chemical and Allied Product’ Group as a means to bolster foreign trade operations in relation to pharma-production.
Propionic anhydride is a crucial chemical compound that serves as a propionylating agent and is widely used in the pharmaceutical, fragrance, and specialty chemical industries. It is extensively used in the production of antibiotics, testosterone propionate, and anticancer drugs such as hydroxymethyl androsterone. Beyond pharmaceuticals, propionic anhydride is essential in organic synthesis processes, production of alkyd resins and dyes and functions as a dehydrating agent in nitration and sulfonation reactions.
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Under this norm, the input-output ratios have been clearly defined to facilitate exports. Specifically, for every kilogram of propionic anhydride exported, the proportional import quantities have been notified at 1.15 kilograms of propionic acid and 0.500 kilograms of glacial acetic acid.
This structured framework allows exporters to avail duty exemptions on the import of propionic acid and glacial acetic acid inputs under the Advance Authorization Scheme, which had not been possible prior to the issuance of this Public Notice. The Scheme permits producers to reduce input costs on customs duties, thereby increasing their competitiveness in international markets, all while contributing to the continuous growth of the Indian economy.
The Advance Authorization Scheme comes as a boon to domestic manufacturers and exporters, bring added clarity while determining the quantities of the concerned goods, all while permitting duty-free import of goods that may be utilized or reformulated to produce goods for export.
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The Public Notice was undersigned by Santosh Kumar Sarangi, Director General of Foreign Trade and Ex-Officio Additional Secretary to the Government of India.
To Read the full text of the Notification CLICK HERE
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