SARS initiated a review of rebate item 304.07/0404.10/01.06, which is for a rebate of duty (R4.50 per kg) on demineralised whey powder used in the manufacture of infant’s food.

A number of problems have been identified by SARS regarding the rebate, being:

  1. 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.
  2. 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.
  3. 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.
  4. Trade data shows that goods imported under rebate item 304.07/0404.10/01.06 have been decreasing and ceased completely in 2019.

Looking at the trade statistics for the period July 2019 to June 2020, less than 97% of all imports of whey powder were imported from the EU, which attracts no duty and hence has no need for the rebate. Before 2019, the bulk of the imports were still from the EU, but in 2018, imports from elsewhere accounted for 10% of the imports. and thus would have potentially benefitted from the rebate.

If you are interested in importing demineralised whey powder from outside the EU, for use in the manufacture of infant’s food, then contact us on for assistance.

Interested parties have until 21 September 2020 to respond. If there are no responses, then it is very likely this rebate will be removed.



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