For EOUs, wastage as per SION or 2%; else, norms must be fixed

For items having no SION, consumption of inputs shall be allowed subject to generation of waste, scrap and remnants up to two per cent of the input quantity

We are an EOU (export oriented unit). Our items are not covered under SION (Standard Input Output Norms). The wastage is more than two per cent but we do not have any domestic sales, even of wastage. Are we still required to get the norms fixed?

As per CBEC Circular no. 12/2008-Cu dated July 24, 2008, SION should be applicable not only for waste cleared in the DTA on payment of duty but also for accounting of input consumption for manufacture of export products. For items having no SION, consumption of inputs shall be allowed subject to generation of waste, scrap