The Gujarat High Court held that maize/corn starch qualifies as an immediate input under SION Entry E22, entitling importers to duty-free benefits under the Duty-Free Import Authorisation scheme for manufacturing liquid glucose.
Maize Starch Eligible for DFIA Duty-Free Import: Gujarat HC
The Gujarat High Court has ruled that maize or corn starch, when used as an immediate input in the production of liquid glucose, qualifies for duty-free import benefits under Scheme of Specific Inputs (SION) Entry E22 of the Foreign Trade Policy. The decision affirms eligibility for Duty-Free Import Authorisation (DFIA), allowing manufacturers to import starch without payment of customs duty.
The Court emphasized that the term “immediate input” must be interpreted functionally rather than literally. Since starch undergoes direct and uninterrupted processing into liquid glucose without intermediate commercial use, it constitutes an immediate input within the meaning of SION Entry E22. Documentary evidence, including process flow diagrams and analytical reports, supported the functional linkage between the imported starch and end-product.
The substance used in the very first stage of manufacturing, without which the final product cannot be produced, qualifies as an ‘immediate input’ irrespective of its commercial classification.
This judgment provides clarity for food and industrial sweeteners manufacturers relying on imported raw materials. It underscores the importance of establishing technical and documentary evidence to demonstrate process integration. Practitioners should ensure that application for DFIA includes process validation to strengthen future claims under similar SION entries.
Citations
- Gujarat High Court Order, 31 October 2026
