On 18 November 2022, the International Trade Administration Commission of South Africa (ITAC) invited comment, by 18 December 2022, on the proposed increase in the ‘General’ rate of customs duty on thermal paper rolls of a width not exceeding 150 mm, from free of duty to 5% ad valorem, classifiable under various tariff subheadings in Chapter 48 of the Customs and Excise Act, 1964, through the creation of additional 8-digit tariff subheadings, which reads as follows:
48.10 4810.13.xx Paper and paperboard of a kind used for writing, printing or other graphic purposes, not containing fibres obtained by a mechanical or chemi-mechanical process or of which not more than 10 per cent by mass of the total fibre content consist of such fibres: In rolls: Thermocopy paper: Of a width not exceeding 150 mm.
4810.14.xx In sheets with one side not exceeding 435mm and the other side not exceeding 297mm in the unfolded state: Thermocopy paper: Thermocopy Paper: Of a width not exceeding 150mm.
4810.19.xx Thermocopy paper: Of a width not exceeding 150mm.
4810.29.xx Other :Thermocopy Paper: Of a width not exceeding 150mm.
48.11 4811.60.xx Paper, paperboard, cellulose wadding and webs of cellulose fibres, coated, impregnated, covered, surface-coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size (excluding goods of the kind described in heading 48.03, 48.09 or 48.10): Paper and paperboard, coated, impregnated or covered with wax, paraffin wax, stearin, oil or glycerol: Coated with a thermosensitive layer: In rolls of a width not exceeding 150mm.
4811.90.xx Other: Other paper, paperboard, cellulose wadding and webs of cellulose fibres: Coated with a thermosensitive layer: In rolls of a width not exceeding 150mm.
The application was lodged by the Printing Industries Federation of South Africa (PIFSA NPC) on behalf of Rotunda (Pty) Ltd who reasoned that:
- lmport volumes of finished thermal paper rolls into the Southern African Customs Union (SACU) market have increased over the past few years and have resulted in a decline in local converters’ domestic market share;
- The poor-quality imports are slowing down the growth of local converters that can make a real difference to the South African economy by providing employment. Paper quality, including manufacturing processes such as sources of pulp and chemistry contained are ignored, including the basic metrics of the finished rolls such as grammage, length, width and outer and core diameters;
- These rolls are often low priced and do not comply with any standards and local converters compromised as they are not able to compete on price against these imported products.