South Africa has applied a 5% customs duty on imported newsprint in rolls or sheets since 16 October, replacing previously duty-free entry, according to the tariff amendment published by the country's tax authority.
The measure, classified under customs subheading 4801.00, responds to a request from Sappi Southern Africa for its Ngodwana mill in Mpumalanga province. The group had cited falling global demand, overcapacity and low-priced imports to justify protecting local production and jobs.
The South African International Trade Administration Commission says it found a decline in the domestic industry's production, sales, capacity utilisation, market share and profitability over the period examined. It also noted a price disadvantage against imports.
For importers subject to the general rate, the levy adds 5% to the customs value of the paper concerned. The increase protects the local manufacturer but raises the supply cost for publishers and printers using foreign paper, before transport and other levies.
The Ngodwana site produces, among other things, pulp, packaging paper and newsprint for the South African and international markets. ITAC plans to review the mechanism three years after it takes effect to assess its effectiveness and its consequences for downstream users and the entire value chain.