Manufacture of beverages

The manufacture of beverages is categorized as a Qualifying Activity under the production of goods. Forensic focus remains on the 'Substantial Transformation' test; the process must result in a new product with a different name, character, or use (HS Code shift). If the activity is deemed mere 'trading' without manufacturing, it may fail the Qualifying Income test unless conducted with a Qualifying Person.

Audit Red Flag

Misclassifying 'simple assembly' or 're-packaging' of imported concentrates as 'Manufacturing' without achieving substantial transformation.

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