These guidelines provide comprehensive guidelines on nutrition information, food labeling requirements, nutrient content claims, compliance criteria, and regulations related to food products in Malaysia.
It emphasizes the importance of accurate labeling to provide clear information to consumers and ensure compliance with regulations.
The guidelines cover a wide range of topics such as nutrient function claims, labeling of irradiated or genetically modified foods, minimum amounts required for health claims, and the importance of nutrition labeling for consumer information and product competitiveness.
What are the key guidelines outlined in the document regarding making nutrient content claims on food labels?
The key guidelines outlined in the document regarding making nutrient content claims on food labels include:
Understanding Permitted Claims: Food manufacturers must be aware of the types of nutrient content claims that are allowed and the specific conditions under which these claims can be made. This includes knowing the types of claims and the required conditions for each type of claim.
Prohibited Claims: Certain claims are explicitly prohibited, such as claims that food provides an adequate source of all essential nutrients, claims that cannot be substantiated, and claims suggesting that food can prevent, treat, or cure diseases.
Additionally, claims that cause consumers to doubt the safety of similar foods or exploit fear are not allowed.
Voluntary Nutrition Labelling: Foods not required to have mandatory nutrition labeling can still list their nutrients, provided they comply with the format and requirements stipulated in the nutrition labeling and claims regulations. The mandatory nutrients that must be declared include energy, protein, carbohydrate, and total sugars.
Comparative Claims: When making comparative claims about the nutrient content of foods, the difference in energy or nutrient content between the compared foods must be at least 25%, and the minimum absolute difference must meet the value required for a claim as “low in” as stipulated in the regulations.
Use of the Word “Nutritious”: The use of the word “nutritious” or similar terms in food advertisements is restricted to foods that meet specific criteria regarding the range of nutrients they contain, their energy content, protein content, and the presence of at least four vitamins and two minerals.
Conditions for “Source of” or “High in” Claims: The document specifies the minimum nutrient content required for a food to claim it is a “source of” or “high in” certain nutrients, such as protein, vitamins, and minerals. These conditions are based on a percentage of the Nutrient Reference Value (NRV) per 100 g, 100 ml, or 100 kcal.
Comparative Claims for Unlisted Nutrients: Nutrients not listed in the specified appendices for making nutrient content claims are not permitted to make nutrient comparative claims. This is because there are no established conditions for these nutrients to meet the requirements for making such claims.
These guidelines ensure that nutrient content claims on food labels are accurate, substantiated,
How do the guidelines specify the requirements for labeling food products that have been irradiated or contain genetically modified organisms?
The guidelines specify the requirements for labeling food products that have been irradiated or contain genetically modified organisms (GMOs) as follows:
1. Irradiated Foods: Packages containing irradiated food for sale must bear a written statement indicating the treatment. The statement can be in one of the following forms: “TREATED WITH IONIZING RADIATION,” “TREATED WITH IRRADIATION,” “TREATED BY IRRADIATION,” or “IRRADIATED”.
2. Genetically Modified Organisms (GMOs):
For food and food ingredients composed of or containing GMOs, the label must include the words “genetically modified (name of the ingredient)”.
If the food and food ingredients are produced from but do not contain GMOs, the label should state “produced from genetically modified (name of the ingredient”.
The labeling requirements apply only to the three main ingredients in the ingredient list. Foods containing, consisting of, or produced from GMOs in a proportion not more than 3% of the food ingredients considered individually or food consisting of a single ingredient, provided that this presence is adventitious or technically unavoidable, are exempt from these labeling requirements.
For single-ingredient foods, the GMO information should appear on the principal display panel near the name of the food and in not less than 10-point lettering. For multi-ingredient foods, the GMO information should appear in the list of ingredients immediately following the ingredients. Additionally, the statement “contains the genetically modified ingredient” must be stated on the principal display panel close to the name of the food and in not less than 10-point lettering.
These requirements ensure that consumers are informed about the presence of irradiated components or genetically modified organisms in their food, allowing them to make informed choices.
Why is accurate nutrition labeling important for both consumers and manufacturers according to the guidelines provided in the document?
Accurate nutrition labeling is important for both consumers and manufacturers for several reasons according to the guidelines provided in the document:
1. For Consumers: Accurate nutrition labeling provides consumers with essential information about the nutritional content of food products, enabling them to make informed choices regarding their diet and health.
It helps consumers understand the contents of the products they are purchasing and assess their quality, thereby aligning with their health and dietary needs.
2. For Manufacturers: For food manufacturers, accurate nutrition labeling serves as a powerful tool to differentiate their products in the market by highlighting the nutritional qualities of their products. It also enhances the product profile and provides an effective communication tool between the manufacturers and consumers. Furthermore, accurate nutrition labeling can increase international trade opportunities by ensuring compliance with the nutrition labeling regulations of different countries, thereby making their products more globally acceptable.
Moreover, implementing proper nutrition labeling and claims can benefit the food industry by increasing its competitiveness in the market.
Accurate labeling is also crucial for manufacturers to ensure that they comply with the regulations and avoid misleading consumers, which is essential for maintaining consumer trust and avoiding legal issues.
Conclusion
Businesses in the food industry should take the following advice to ensure compliance and leverage the benefits of accurate food labeling:
1. Stay Informed and Compliant: Regularly review and stay updated with the Food Regulations 1985 and any amendments to ensure all products meet the current legal requirements for labeling and advertising. This includes understanding the specifics of labeling for irradiated foods, GMOs, and making nutrient content claims.
2. Utilize Labeling Services: Consider using the available services such as self-screening, independent consultants, label screening, and label advisory services offered through the Fosim System to ensure compliance. These resources can provide valuable guidance and prevent potential regulatory issues.
3. Emphasize Transparency: Be transparent in labeling and advertising practices. Declare all ingredients, allergens, country of origin, and any treatments such as irradiation or genetic modification. This transparency builds trust with consumers and can differentiate your products in a competitive market.
4. Highlight Nutritional Benefits: Accurately calculate and declare the nutritional content of your products. Use nutrient content claims (e.g., “low in” or “free of” certain nutrients) responsibly and only when they meet the specified criteria. This not only complies with regulations but also caters to the growing consumer demand for healthier food options.
5. Educate Your Consumers: Use food labels and advertising as tools to educate consumers about the nutritional benefits and quality of your products. Clear, accurate, and informative labels can help consumers make informed dietary choices, enhancing customer satisfaction and loyalty.
6. Ensure Quality Control: Implement rigorous quality control measures to ensure that the nutritional content of your products is consistent with what is declared on the labels. This is crucial for maintaining compliance and avoiding penalties.
7. Prepare for Global Markets: If you’re considering international trade, ensure your product labeling meets the requirements of the target markets. Accurate nutrition labeling and adherence to international standards can open up new opportunities and increase competitiveness.
8. Monitor and Adapt: The food industry and consumer preferences are constantly evolving. Stay attentive to trends, such as the increasing interest in non-GMO and minimally processed foods, and adapt your product development and labeling accordingly.
By following these guidelines, businesses in the food industry can not only ensure compliance with current regulations but also position their products favorably in the market, catering to the health-conscious consumer and leveraging accurate labeling for competitive advantage.
The Income Tax (Exemption) (No. 3) Order 2024, which takes effect from 1 January 2024 to 31 December 2026, provides tax exemptions for certain entities in Malaysia on gains or profits received from the disposal of foreign-sourced capital assets.
Key points from the order:
1. Companies, limited liability partnerships, trust bodies, and co-operative societies resident in Malaysia are exempted from income tax on gains or profits from disposing of capital assets arising from outside Malaysia, which are received in Malaysia.
2. To qualify for the exemption, these entities must meet conditions set by the Minister, including employing an adequate number of employees and incurring sufficient operating expenditures in Malaysia.
3. Gains or profits from the disposal of intellectual property rights are excluded from this exemption.
4. The order does not apply to entities in the banking, insurance, sea transport, or air transport businesses.
Advice for businesses:
1. Assess whether your business qualifies for this tax exemption based on the criteria mentioned in the order.
2. Ensure compliance with the conditions set by the Minister, such as maintaining adequate employment and operational expenditure in Malaysia.
3. Keep accurate records of foreign-sourced capital asset disposals and related gains or profits received in Malaysia during the relevant period.
4. Consult with tax professionals to determine the applicability and implications of this order for your specific business situation.
By taking advantage of this tax exemption, eligible businesses can potentially reduce their tax liabilities and improve their financial position. However, it is crucial to carefully review the order’s provisions and seek professional advice to ensure compliance and maximize benefits.
The Income Tax (Exemption) (No. 10) 2018 (Amendment) Order 2024 [P.U. (A) 84/2024] amends the Income Tax (Exemption) (No. 10) Order 2018, which provides tax exemptions for qualifying companies with Multimedia Super Corridor (MSC) status in Malaysia.
The amendments are deemed to have come into effect on 1 January 2019, except for certain subparagraphs that are effective from 25 March 2022.
Key points from the amended order:
1. Qualifying companies are those incorporated under the Companies Act 2016, resident in Malaysia, and awarded MSC status by the Government of Malaysia on or after 1 January 2019.
2. The order introduces the concept of “core income generating activities,” which are activities undertaken by qualifying companies in Malaysia to provide services related to promoted activities for MSC, as approved under the award of MSC status and by the Minister.
3. If a qualifying company has a related company that has been granted an exemption for the same core income generating activities, the qualifying company will not be eligible for the exemption.
4. The Minister may allow a qualifying company to surrender the exemption granted under this order, subject to certain conditions.
5. Existing qualifying companies with MSC status awarded before 1 January 2019 may continue to enjoy the tax exemption for an extended period of five years, subject to meeting specific requirements.
Advice for businesses:
1. Companies interested in applying for MSC status should carefully review the eligibility criteria and application process, as outlined in the amended order.
2. Qualifying companies should ensure that their core income generating activities are in line with the promoted activities for MSC and have been approved under the award of MSC status and by the Minister.
3. Companies should be aware of the provisions related to related companies and the potential impact on their eligibility for tax exemptions.
4. Existing qualifying companies with MSC status should assess their eligibility for the extended five-year exemption period and ensure compliance with the specified requirements.
5. Companies should seek professional advice to understand the implications of the amended order on their specific business circumstances and to ensure compliance with the relevant provisions.
By understanding the key amendments and provisions of this order, businesses can make informed decisions regarding their MSC status applications, core income generating activities, and tax planning strategies.
The Customs (Prohibition of Exports) (Amendment) Order 2024, which comes into effect on 1 May 2024, amends the Customs (Prohibition of Exports) Order 2023 about the export of certain goods from Malaysia.
Key points from the amended order:
1. The Ministry of Investment, Trade and Industry (MITI) replaces the Ministry of International Trade and Industry as the issuing authority for licenses related to the export of waste and scrap and recovered (waste and scrap) paper or paperboard under items 13 and 14 of the Second Schedule.
2. Item 15 of the Second Schedule is amended to prohibit the export of all goods falling under Chapters 1 to 98 of the Customs tariff to Israel, with MITI as the issuing authority for licenses.
3. In Part I of the Third Schedule, MITI replaces the Ministry of International Trade and Industry as the issuing authority for licenses related to the export of Rough Diamond under item 34.
Advice for businesses:
1. Exporters of waste and scrap and recovered (waste and scrap) paper or paperboard should note the change in the issuing authority for export licenses from the Ministry of International Trade and Industry to MITI, effective 1 May 2024.
2. Companies planning to export any goods to Israel should be aware of the prohibition under the amended order and the requirement to obtain a license from MITI for such exports.
3. Exporters of Rough Diamond should note the change in the issuing authority for export licenses from the Ministry of International Trade and Industry to MITI.
4. Businesses should review their export plans and ensure compliance with the amended order, including obtaining necessary licenses from the relevant authorities.
5. Companies should stay informed about any further amendments or updates to the Customs (Prohibition of Exports) Order and other related regulations to ensure ongoing compliance.
By understanding the key amendments and their implications, businesses can take appropriate measures to comply with the revised export prohibitions and licensing requirements, avoiding potential disruptions to their export activities.
References:-
Customs (Prohibition of Exports) (Amendment) Order 2024
The Customs Duties (Exemption) (Amendment) (No. 2) Order 2024, which is deemed to have come into effect on 1 January 2024, amends the Customs Duties (Exemption) Order 2017 by inserting a new item 121 in Part I of the Schedule.
This new item provides customs duty exemptions for certain manufacturers on the import or purchase of manufacturing aids and cleanroom equipment.
Key points from the amended order:
1. The exemption applies to manufacturers licensed under section 65A of the Customs Act 1967 or manufacturers in free industrial zones declared under section 3 of the Free Zones Act 1990.
2. The exempted goods are manufacturing aids and cleanroom equipment, which must be used directly or indirectly in the manufacture of the manufacturer’s finished goods.
3. If the goods are used indirectly, prior approval from the Director General of Customs is required.
4. The goods must be imported or purchased from a licensed warehouse under section 65 of the Customs Act 1967 or from a free industrial zone.
5. The exempted goods shall not be part of the manufacturer’s finished goods and must be stored at the manufacturer’s approved premises.
6. The goods cannot be sold, disposed of, transferred, exported, or taken out of the manufacturer’s premises without the Director General’s approval.
7. If the goods are damaged, destroyed due to unavoidable accidents, or do not meet the specified quality, the manufacturer may export, transport, or return the goods to the supplier without any duty levied.
Advice for businesses:
1. Manufacturers licensed under section 65A of the Customs Act 1967 or operating in free industrial zones should assess whether the manufacturing aids and cleanroom equipment they import or purchase qualify for the customs duty exemption.
2. Ensure compliance with all the conditions specified in the amended order, such as obtaining prior approval from the Director General for goods used indirectly in manufacturing and storing the goods at approved premises.
3. Maintain accurate records of the imported or purchased goods, their usage, and storage to demonstrate compliance with the exemption conditions.
4. Follow the prescribed procedures for handling damaged, destroyed, or substandard goods to avoid any customs duty liabilities.
5. Consult with customs specialists or tax advisors to ensure a clear understanding of the exemption provisions and to develop appropriate compliance strategies.
By leveraging this customs duty exemption, eligible manufacturers can potentially reduce their import costs and improve their competitiveness in the market. However, strict adherence to the specified conditions is crucial to avoid any non-compliance issues.
