New Tariff Application: 15% Duty Proposed for Medium-density Fibreboard

PG Bison (Pty) Ltd has applied to Itac for an increase in the customs duty on medium-density fibreboard (MDF), classified under tariff heading 44.11. The application proposes raising the duty from 10% ad valorem to 15% ad valorem.

The application follows a sharp increase in imports, particularly from China.  PG Bison states that Chinese imports rose by 114% between 2021 and 2023 and now account for 32% of total imports. Additionally, the applicant claims that import prices are significantly below local production costs, raising concerns about under-declaration and price undercutting.

The duty increase is meant to protect local investment, including the expansion of the Mkhondo plant. It is also intended to support job creation and sustain domestic MDF production for the SACU and AfCFTA markets.