What’s new?
27 June 2025 – Simplified claiming process of diesel refunds for foodstuff manufacturers scheme (DRFMS)
In alignment with SARS’s strategic objective to modernise systems to provide digital and streamlined online services, the refund claims for the Diesel Refund for Foodstuff Manufacturers Scheme (DRFMS) will be automated under the Customs and Excise Refunds and Drawbacks (CERD) system.  This will replace the current process, which is manual, requiring physical submission of the DA66 form at SARS Excise branch offices.
See the letter shared with industry.
What is it?
In the 2023 budget speech, the Minister of Finance announced a tax relief measure, in the form of Diesel Refunds for Foodstuff Manufacturers Scheme (DRFMS), to address the load shedding challenge the country was facing. A diesel refund, limited to 80% of the Road Accident Fuel (RAF) levy, was extended to the manufacturers of foodstuffs for the use of diesel in generating electricity for manufacturing facilities. The Minister stated that the aim for this relief was to limit the impact of power cuts on food prices.
The DRFMS falls under rebate item 670.05 and it is different and separate from the Diesel Refund System which is reflected in rebate item 670.04 of Schedule 6 Part 3 of the Customs and Act No. 91 of 1964 (C&E Act) for the primary users on land (mining, forestry, farming), offshore activities, harbour vessels, rail freight and certain electricity generating plants.
Who can apply?
The Diesel Refunds for Foodstuff Manufacturers Scheme (DRFMS) is governed by the C&E Act read with Schedule No. 6, Note 14 in Part 3 of the same Act. The pre-requisite for application for the Diesel Refunds for Foodstuff Manufacturers requires registration for VAT, although it is not administered on the VAT system.
The application to register as a refund user is done via the DA 185 form accompanied by Annexure DA185.4A3 form and the supporting documents, which are to be submitted via SARS Online Query System (SOQS). The opening date for registration applications was 29 September 2023 and refund claims for approved applications was backdated to 1 April 2023 as the date of registration. Approval for registration is subject to meeting the legislated qualification criteria and requirements.
For assistance to complete the DA 185 and DA185.4A3, see the short tutorial video on the SARS TV channel:
What activities are qualifying?
Only the manufacturers of foodstuffs classifiable under Chapter 2 to 21 of Schedule No. 1, Part 1 of the C&E Act (with exclusions) are eligible to register and apply for diesel refunds under this scheme.
What activities are excluded?
The manufacturers of the following chapters under Schedule No. 1, Part 1 are excluded from the Diesel Refund for Foodstuff Manufacturers Scheme.
- a) Any products and preparation for making of any beverages classifiable under Schedule No. 1, Part 7, Section A
- b) Any items listed under Chapter 5, 6, 13 and 14
- c) Any items listed from Chapter 22 to 99.
For more information on this diesel refund, see the Diesel Refund for Food Manufacturers Webinar or presentation.
How to claim
Once the registration is approved, foodstuff manufacturers may claim diesel refunds using the CERD01 form via eFiling.
For details on the use of the CERD system, see Automated Refunds and Drawbacks.
