Oleum’? Any guesses? It’s a Latin word, derived from the Ancient Greek word ‘élaion’, meaning ‘olive oil’, which evolved to simply ‘oil’. ‘Wtanan’ is the Germanic root word meaning “to see”. From this, the late fourteenth-century word ‘guideline’ emerged, meaning “to guide or lead”.

By now, you would have deduced that the column is about an ‘oil guideline’. But which ‘oil’? It is ‘palm oil’. But it is not a singular guideline; there are two guidelines.

During September, the International Trade Administration Commission of South Africa (Itac) published its guidelines. The first was published on September 12 and was for refined, bleached and deodorised (RBD) palm oil. The second, published on September 26, was for hydrogenated palm oil.

For context, according to AI Overview, RBD palm oil is a widely used vegetable oil in the food industry, produced by physically refining crude palm oil through three steps to remove impurities and produce a neutral-tasting oil. While RBD palm oil can be used directly in products such as snacks and baked goods, it is often further processed through fractionation to create RBD palm olein (a liquid used in cooking oil) and RBD palm stearin (a solid fat used in margarine and shortening).

Hydrogenated palm oil is a solid, semi-solid or paste-like oil created by adding hydrogen to liquid palm oil through a process called hydrogenation, which enhances its stability, texture and shelf life. It is widely used as an ingredient in processed foods, margarines, shortenings and cosmetic products for its emollient, emulsifying and thickening properties. While beneficial for product stability and consistency, it may contain trans fats. For health reasons, health experts recommend consuming it in moderation and prioritising liquid vegetable oil instead.

The September 12 guideline relates to “guidelines, rules and conditions pertaining to permits issued under Rebate Item 460.06/1511.90.90/01.08 for rebate on palm oil, not fractionated, refined, bleached and deodorised, but not chemically modified, classifiable in tariff subheading 1511.90.90, for use in the manufacture of soap and organic surface-active products and preparations, in the form of bars, cakes, moulded pieces or shapes, classifiable in tariff subheading 3401.1, in such quantities, at such times and subject to such conditions as Itac may allow by specific permit, provided that the goods are not available in the Southern African Customs Union (Sacu)”.

Meanwhile, the September 26 guideline relates to “guidelines, rules, and conditions pertaining to permits issued under Rebate Item 460.06/1516.20.90/01.08 for rebate on facility on palm oil, not fractionated, partly or wholly hydrogenated, whether or not refined, but not further prepared, classifiable in tariff subheading 1516.20.90, for use in the manufacture of soaps and organic surface-active products and preparations in the form of bars, cakes, moulded pieces or shapes, classifiable in tariff heading 3401.1, in such quantities, at such times and subject to such conditions as Itac may allow by specific permit, provided that the goods are not available in the Sacu market”.

The application procedures, among other things, require that applications must be made well in advance of the shipment of the goods, as rebate permits will not be issued retrospectively. It is recommended that at least 14 days be allowed for Itac’s processing of applications and the issuing of permits.

Further, each rebate permit issued will define the period during which the goods concerned can be cleared with a duty rebate. The period shall be for a calendar year starting from the date on which the permit was issued, or a shorter period as requested by the applicant, or as decided upon by Itac. The rebate permit may not be transferred in any manner by the holder to any other person, or be used for the benefit of any person not named on the permit.

Finally, any request for an amendment to a rebate permit must be forwarded to Itac for consideration and will only be considered if the error to be corrected was made by Itac or if the applicant used the incorrect tariff subheading. The latter will only be processed if the request is accompanied by a confirmation from the South African Revenue Service.