The Gujarat High Court held that maize/corn starch qualifies for duty-free import under DFIA as an immediate input for manufacturing liquid glucose under SION Entry E22.
Maize Starch Eligible for DFIA Duty-Free Import
In a ruling favorable to manufacturers, the Gujarat High Court determined that imported maize/corn starch is entitled to duty-free import benefits under the Duty-Free Import Authorization (DFIA) scheme, as it qualifies as an 'immediate input' for the production of liquid glucose under Standard Input-Output Norms (SION) Entry E22.
The court rejected the customs authorities' contention that starch did not meet the criteria for SION E22, observing that the use of starch in hydrolysis for manufacturing glucose constituted a direct and essential stage in the production process. The tribunal relied on technical documentation and process flow charts to establish that starch was not merely a secondary component but a principal input.
The mere classification of an article as 'starch' does not disqualify it if empirically it is used as an immediate input in a notified process,the court held. This decision clarifies the scope of SION norms and may benefit other manufacturers claiming DFIA benefits where inputs undergo chemical transformation.
For practitioners, the order underscores the need to present technical evidence alongside commercial records when invoking SION-based duty exemptions. Importers in the food processing and sweetener manufacturing sectors should review their current DFIA applications in light of this interpretation.
