SRA tightens noose on artificial sugar imports

MANILA, Philippines — The Sugar Regulatory Administration (SRA) hiked the import clearance fee for high fructose corn syrup (HFCS) by 20-fold to P30 per bag to discourage the consumption of the artificial sweetener, which is used as a substitute for raw sugar.

The SRA board chaired by Agriculture Secretary Francisco Tiu Laurel Jr. recently approved the increase of the import clearance fee which previously stood at a measly P1.50 per bag.

The SRA explained that the import clearance fee for HFCS was originally set at P30 per bag in 2017 but was lowered to P1.50 per bag in the same year.

Various sugar industry groups called the attention of the SRA on the rampant use of artificial sweeteners in the market, arguing that this displaces raw sugar.

“The SRA immediately acted on the concern,” SRA administrator and CEO Pablo Luis Azcona said yesterday.

“Thus, while the collection of data on the use of artificial sweeteners is ongoing, we discovered this and decided to immediately raise the SRA fees for HFCS,” Azcona added.

The SRA disclosed that a sugar order is being drafted aimed at addressing the unabated entry of “other sugars” classified under harmonized system code 1702.

“This entails requiring importers of items under HS 1702 to secure an import clearance from SRA and this has been under board discussion since August,” Azcona said.

Azcona said more stakeholders are also lobbying for more stringent government oversight on imports of other sugars that could be eating up the market share of locally produced raw sugar.

“We welcome that more stakeholders are actually concerned about this issue and has decided to support the alarms initially raised by other sugar federations,” he said.

The SRA estimates the volume of imports under HS 1702 to be around 200,000 metric tons. The volume is still being verified by government officials, noting that the importation has been happening as far back as 10 years ago.

“This will give us an accurate view and determine whether these other sugars have caused the demand for sugar to decline in the past few years,” Azcona said. — Gilbert Bayoran