Itac imposes 21% provisional safeguard duties on imports of A3, A4 office paper
JSE-listed packaging and paper company Mondi South Africa, supported by papermaker Sappi, has made an application to the International Trade Administration Commission of South Africa (Itac) for remedial action against imports of A3 and A4 office paper.
These papers are commonly used for writing, printing and graphic purposes.
Mondi South Africa is a major producer of A3 and A4 office paper in the Southern African Customs Union (Sacu).
After reviewing the information available, Itac says it made a preliminary finding that unforeseen developments and the effect of obligations incurred under the General Agreement on Tariffs and Trade of 1994 led to increased imports of the subject product in both absolute and relative terms.
The commission says it further found that the Sacu industry is experiencing serious injury and that there is a causal link between the increased imports and the serious injury suffered by the industry.
As a result, Itac has requested the Commissioner of the South African Revenue Service (SARS) to impose a provisional safeguard measure in the form of a 21% ad valorem duty on imports of A3 and A4 office paper classified under tariff subheadings 4802.56.20 and 4802.56.90, pending the finalisation of the investigation.
These provisional safeguard measures were implemented by SARS on October 30.
The provisional measures apply to imports originating from all countries, except developing countries whose individual imports account for less than 3% of total imports of the subject product into Sacu and whose collective imports do not exceed 9% of total imports, in accordance with the applicable safeguard provisions.
Itac says it is now inviting comments on its preliminary findings.
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