Sappi wins approval for 5% tariff on print roll, sheet imports

SOUTH AFRICA – The International Trade Administration Commission has approved a 5% customs duty on imported newsprint in rolls or sheets, following an application by Sappi Southern Africa to protect its Ngodwana Mill from low-priced imports.

The tariff amendment, gazetted under ITAC Report No. 784, substitutes tariff subheading 4801.00 in Part 1 of Schedule No. 1 to the Customs and Excise Act, raising the general rate from free of duty to 5% ad valorem. 

The increase does not apply to imports from the European Union, United Kingdom, European Free Trade Association, Southern African Development Community or African Continental Free Trade Area, where the rate remains at zero, while Mercosur is already at 5%. 

The duty structure will be reviewed after three years to assess its effectiveness on the domestic industry, downstream users and the broader value chain.

Sappi Cited Financial Losses at Ngodwana Mill

Sappi submitted that sustained financial losses arising from declining global newsprint demand, global overcapacity and increasing low-priced imports were threatening the viability of its Ngodwana Mill, necessitating tariff protection to safeguard employment and preserve domestic newsprint manufacturing capacity. 

The mill is the only operational newsprint facility in South Africa and across the Southern African Customs Union, with newsprint capacity of 110,000 tonnes representing about 20% of the mill’s overall capacity.

Import Volumes and Market Share Shifts Documented

ITAC found that declining global newsprint demand, persistent excess capacity and increased low-priced imports had weakened the domestic industry’s operational and financial performance. 

Import volumes increased on average by 13% between 2021 and 2025, with Canada emerging as the leading source at 47.2% in 2024/25, followed by Brazil at 19.8% and Norway at 18.3%. 

Domestic production decreased by about 11.7% over the period, while capacity utilisation declined from 68.5% in 2021/22 to 46.1% in 2024/25.

Packaging and Downstream Sectors Watch Tariff Impact

The decision arrives amid broader pressure on South Africa’s paper and packaging sector. Packaging manufacturer Mpact earlier issued retrenchment notices in its carton board business, citing cheaper imports and the strengthening rand. 

The Ngodwana Mill’s annual contribution to Mpumalanga’s GDP was R9.9 billion (US$613.4 million) in 2025, supporting 1,500 direct and 5,000 indirect jobs. 

For newspaper printers and advertising insert producers, the 5% duty raises input costs on imported newsprint while potentially supporting domestic supply stability. 

Whether the tariff achieves its intended effect on local manufacturing capacity will be assessed at the three-year review.

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