Review of demineralised whey powder rebate

On 21 August 2020, the International Trade Administration Commission (ITAC)  initiated an investigation to review the conditions of rebate item 304.07/0404.10/01.06. The investigation has been initiated following a request by SARS.

The reasons for the review are 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

Are you impacted by this investigation and want to make submissions?
Contact us on infor@tradesolutions.co.za.