On 02 October 2026, the International Trade Administration Commission of South Africa (ITAC) published a Government Gazette notice “Outcome of Tariff Amendment Investigation ITAC Report No. 679: Application for an Increase in the Rate of Customs Duty on Other Paper and Paperboard Classifiable Under Tariff Subheadings 4802.55.20, 4802.56.90 and 4802.57.20”.
ITAC has completed its reconsideration of the application lodged by Mondi South Africa (Pty) Ltd for an increase in the rate of ordinary customs duty on certain uncoated paper and paperboard products used mainly for office printing, photocopying and conversion purposes.
The application sought an increase in the rate of customs duty on other paper and paperboard, not containing fibres obtained by a mechanical or chemi-mechanical process or of which not more than 10% by mass of the total fibre content consists of such fibres classifiable under tariff subheadings 4802.55.20 and 4802.57.20 from free of duty to 20% ad valorem, through the creation of additional eight-digit tariff subheadings and tariff subheading 4802.56.90 from 10% ad valorem to 20% ad valorem, respectively.
The matter was reconsidered after the former minister of trade, industry and competition (the ‘former minister’) referred ITAC’s earlier recommendation back for further investigation and consideration. The referral asked ITAC to consider, among other things, updated trade statistics following the recovery from the COVID-19 pandemic, prevailing domestic and international market conditions, and other relevant factors affecting the industry.
During its investigation, ITAC considered information submitted by the applicant, comments from interested parties, updated market and trade information, production and employment trends, import data, cost developments, price competitiveness and South Africa’s international trade obligations, including applicable World Trade Organization (WTO) bound tariff commitments.
ITAC found that the domestic industry operated in a market characterised by long-term structural decline linked to digitisation, changing consumer behaviour, weak economic growth and subdued demand for paper products.
ITAC further found that A4 paper import volumes had increased during the period under review, with a growing share originating from the European Union (EU), while imports under the ‘General’ tariff column had declined.
ITAC also found no prima facie evidence that imports entering under the ‘General’ column pose the primary threat to the applicant.
Furthermore, most import competition, at the time, originated from the EU, which benefits from preferential trading arrangements with South Africa. Consequently, increasing the ‘General’ rate of customs duty would not effectively address the source of import competition. It could have raised costs for downstream industries and consumers.
In light of the information available at the time, including stakeholder comments, market analysis and WTO-bound rate considerations, ITAC recommended that no increase be made to the customs duty applicable to the subject products. ITAC further considered that trade-remedy instruments, such as anti-dumping and/or safeguard duties, may constitute more appropriate measures should evidence of injurious import competition re-emerge in future.
The minister of trade, industry and competition approved ITAC’s recommendation not to increase the customs duty on paper and paperboard classifiable under tariff subheadings 4802.55.20, 4802.56.90 and 4802.57.20.
However, the minister simultaneously requested ITAC, in terms of Section 16(1) of the International Trade Administration Act, Act No.71 of (ITA Act), to undertake a sector-wide paper and paper products industry investigation and recommend appropriate trade policy instruments that can drive the industry towards sustainability and resilience.
Reasons for the review are set out below:
(a) The South African pulp and paper industry is under tremendous strain, particularly in the uncoated paper, newsprint, packaging, and tissue segments. The sector has raised concerns about the growing challenges of rising import penetration, declining demand for print paper and the slowdown in the domestic economy.
(b) In addition, increasing input costs, particularly electricity and transportation, are placing significant pressure on local manufacturers and squeezing local producers’ profit margins. However, if these challenges are not effectively addressed, the economy risks losing significant industrial investments, employment opportunities and the economic sustainability of many rural communities that depend on the sector.
(c) The South African pulp and paper industry has made substantial investments in recent years and currently possesses technological innovation, sufficient installed production capacity, and
(d) Over the past seven years, over R33 billion has been invested in the sector. The sector’s processing capacity is highly intertwined with the virgin fibre production as well as the recycled fibre, supporting a wide range of enterprises and employment.
The minister indicated that ITAC may consider, inter alia, potential injury to the industry and its upstream activities due to the concern of rising imports; the latest trade statistics following the United States of America (USA) trade policy; the recent war in the Middle East; the conditions in the domestic and global markets; exchange rate fluctuations; and other related factors.
Stakeholders are encouraged to consult ITAC Report No. 679 as well as Government Gazette No. 55409, Notice 4154 of 2026 published on 18 September 2026 for a detailed account of the investigation and the Commission’s findings and the initiated review, available on the ITAC website: www.itac.org.za