The International Trade Administration Commission of South Africa (Itac) has published an application for an increase in the rate of duty on and creation of a temporary rebate provision for (i) Coated paper and paper board, classifiable under tariff subheading 4810.92.90, from free of duty to 5 per cent ad valorem; and (ii) Temporary rebate of full duty on “Other paper and paperboard, coated on one or both sides with kaolin (China clay) or other inorganic substances, with or without a binder, and with no other coating, whether or not surface-coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size, multiply paper and paper board classifiable in tariff subheading 4810.92.90, containing less than 50 per cent by mass of pulps of fibres derived from recovered (waste and scrap) paper or paperboard or of other fibrous cellulosic material classifiable in tariff heading 47.06, in such quantities at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit provided the Commission is satisfied that the products are not available in the SACU region”.
Note: On 22 September 2017 the applicant’s request for an increase in the rate of customs duty was published in the Government Gazette for comments. In the course of the preliminary investigation, Itac decided to also consider the possibility that if an increase in the rate of customs duty on the abovementioned products was recommended, that a temporary rebate provision, as set out above, be considered subject to an Itac permit.
The published draft guidelines are available on request.
The application was lodged by Mpact Operations (Pty) Ltd t/a Mpact Paper’s Springs Mill who reasoned that it required the increase in the rate of duty to (i) Stimulate further development of the Southern African Customs Union (SACU) paper manufacturing sector and the associated industry/sector pipeline; (ii) Compensate industry for certain competitive disadvantages it experiences; (iii) Level the playing field vis-à-vis customs duties protection in the exporter countries by aligning the SACU customs duties on subject product/s to levels that are justifiable and comparable to those in competing/similar economies; (iv) Provide a small but critically important “buffer” against increasingly rapid fluctuations of market conditions in the global economy; and foreign exchange fluctuations influencing the local economy; and (v) Protect SACU producers’ capacity and market share in the domestic market to provide an effective and stable base market to support local manufacturing and substantial on-going investment to ensure industry sustainability.
Comment is due by 13 April.