DFIA input description prevails over tariff classification where walnuts match flavouring and dietary fibre uses in biscuit manufacture.

Walnuts in shell imported under a transferable DFIA for biscuit manufacture were treated as covered by the specified input descriptions of relevant food flavour, flavouring agent, flavour improver and dietary fibre. The authority read the DFIA and customs notification by reference to the description of inputs in the authorisation, accepted technical material showing walnuts could be used in biscuit production for flavouring or dietary fibre, and found no contrary technical opinion from Revenue. Separate ITC (HS) classification was not decisive where the goods otherwise matched the DFIA description, and denial of exemption was therefore unjustified.

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Issues: Whether walnuts in shell imported against a transferable DFIA issued for export of biscuits under SION E-5 were covered by the described inputs "relevant food flavour/flavouring agent/flavour improvers" or "dietary fibre", and whether exemption could be denied on the ground that the ITC (HS) classification of walnuts did not match the input descriptions in the DFIA.

Analysis: The DFIA and the relevant customs notification were read on the basis of the description of inputs specified in the authorisation. The imported walnuts were supported by technical material, an IIT certificate and reference literature showing that walnuts could be used in biscuit manufacture as flavouring or as a source of dietary fibre. No contrary technical opinion was produced by the Revenue. The fact that walnuts are classifiable under a separate ITC (HS) heading was held not to be determinative where the goods otherwise fell within the DFIA description. The reasoning also accepted that "materials" for manufacture may include items usable with some processing, and that the actual user condition was not the decisive issue in the present dispute.

Conclusion: Walnuts in shell were held to fall within the DFIA description of relevant food flavour/flavouring agent/flavour improvers and dietary fibre, and denial of exemption was held to be unjustified.

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