A customs duty of 5% has been introduced in South Africa on most imported newsprint. This decision was made after the International Trade Commission (Itac) supported the application by Sappi to protect production equipment at the Ngodwane plant in the Mpumalanga province from cheaper imports.
The overall duty rate on newsprint in rolls or sheets increased from zero to 5% on October 16. This change was formalized as part of an amendment to the tariff signed by Finance Minister Enoch Godongwana and published by the South African Revenue Service (SARS).
Largest share of imported newsprint
Sappi applied for the introduction of the duty back in March, arguing that the Ngodwane plant is the only operating facility for newsprint production in South Africa and the Southern African Customs Union. According to Itac, the company claimed that sustained losses caused by declining global demand for newsprint, global overproduction, and rising low-cost imports threaten the viability of the PM2 machine at the Ngodwane plant. Protection, according to Sappi, is necessary to preserve jobs and maintain newsprint production in the country.
The Itac investigation confirmed the company's arguments. It was found that local industry production, sales, capacity utilization, and market share have decreased, and it faces a 'significant price disadvantage compared to imports.' Furthermore, the industry's profitability has steadily declined during the investigation period. This duty will be reviewed in three years.
According to data cited by Business Day on Wednesday, Sappi's share of the domestic market decreased from 60.8% in 2021/2022 to 51.1% in 2024/2025. Meanwhile, the capacity utilization rate fell from 68.5% to 46.1% over the same period. The Ngodwane plant has the capacity to produce 110,000 tons of newsprint annually, which accounts for about one-fifth of the plant's total output. The plant itself supports 1,500 direct jobs.
Canada pays, Europe does not
Not all types of imports are affected by the new duty. Newsprint from the European Union (EU), the United Kingdom (UK), the European Free Trade Association (EFTA), the Southern African Development Community (SADC), and the African Continental Free Trade Area continues to be imported without duties according to the SARS schedule. Imports falling under the general rate, as well as imports from the South American trade bloc Mercosur, are subject to a 5% duty.
However, these exceptions slightly mitigate the impact, as South Africa sources the majority of its newsprint from abroad. According to Itac data cited by Business Day, in 2024/2025, 47.2% of imports were supplied by Canada, 19.8% by Brazil, and 18.3% by Norway. Canadian newsprint will now be subject to the duty. Brazil falls under the Mercosur category, which is also set at 5% in the schedule. Norway, being an EFTA member, is exempt from paying the duty.