On 21 August the International Trade Administration Commission of South Africa (ITAC) called for comment on the review of the description of Rebate Item 304.07/0404.10/01.06 for demineralised whey powder for the manufacture of prepared infants’ food in Part 1 of Schedule no.1 to the Customs and Excise Act, 1964, which reads “demineralised whey powder, for the manufacture of prepared infants food”. Comment is due by 18 September.
The purpose of the review is to review the conditions of Rebate Item 304.07/0404.10/01.06 and clarify the limitation to demineralised whey powder considering the practices of the infant foodstuffs industry.
The application was lodged by South African Revenue Service (SARS) who reasoned that:
- The rebate item is currently contentious due to the lack of clarity as to what constitutes demineralised whey powder (DWP) and what the parameters are of its constituents.
- It has become increasingly difficult for SARS to administer the rebate item in view of the fact that some local manufacturers of infant food utilise whey protein concentrate (WPC) as a substitute for DWP as WPC has a similar composition to DWP.
- There is no consistency insofar as the specification for DWP and WPC is concerned and there is a possible overlap, in some instances, depending on which standard is being used.
- The said standards do not aid in providing a clear distinction between DWP and WPC.
- Trade data shows that goods imported under Rebate Item 304.07/0404.10/01.06 have been decreasing and ceased completely in 2019.
The Notice is accessible at:
https://www.gov.za/sites/default/files/gcis_document/202008/43632gen446.pdf
Story by: Riaan de Lange