This follows the PaperlinX announcement that it will be closing most of its north-west manufacturing plants in Tasmania by March 2010 including the Wesley Vale mill and part of the Burnie operations.

Philip Andersen CEO of Printing Industries says the rationale for the existence of the five per cent duty was to assist local industry but following PaperlinX’s decision to close most of its manufacturing plants in north-west Tasmania the reason no longer existed.

He says, “Imported paper that has no locally available substitute should be automatically permitted to enter Australia duty free. Such an initiative will help improve the competitiveness of the local printing industry given that paper costs can account as high as 45 per cent of total manufacturing costs.”

Andersen also says that following discussions with printing companies, Printing Industries believed that the current system was both bureaucratic and archaic.

“It seems the requirements associated with using the Tariff Concession System for many printers are so onerous that they prefer instead to pay the 5 per cent tariff on the imported paper.”

The Association outlines that while the Government would be reviewing and assessing the impact of the PaperlinX decision, it would like to see the five per cent tariff removed as soon as it is possible, preferably before the forthcoming Federal Budget.

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