No plan to regulate imports of sugar alternatives – SRA

MANILA, Philippines — The Sugar Regulatory Administration (SRA) clarified that its plan to impose clearance fees on imported sugar alternatives is intended to monitor the volume of shipments and not to regulate the importation of so-called “other sugar” products.

SRA administrator and CEO Pablo Luis Azcona said certain industry players, including food manufacturers and beverage makers, have raised concerns regarding their plan to require importers of sweetener under Tariff Line 1702 to pay an import clearance fee before their shipments could be released at the port.

Azcona earlier revealed that the SRA board is set to sign an order that would impose a P10 per 50-kilogram bag equivalent of raw sugar clearance fee on imported sweeteners like glucose and fructose as part of its efforts to monitor the entry of sugar alternatives in the country.

“The proposed order is not about controlling or regulating the importation of these other sugars. The purpose is to get accurate data on the amount of other sugar that enters the country,” Azcona said.

“We are explaining to them that the very purpose of this is just to gather data. We need to know exactly the total volume coming in before we make a policy or a plan for the industry,” he added.

The SRA chief emphasized that they are avoiding coming up with future policies for the sugar industry that would be based on incorrect data, that is why there is a need to monitor the import figures of sugar alternatives.

Some of the concerns raised by the users of the other sugars were clarificatory in nature, Azcona said. “They are concerned with the purpose of the proposed [import clearance fee imposition],” he added.

Furthermore, Azcona pointed out that the proposed import clearance fee is “very minimal” and would not cause a price uptick on manufactured goods like beverages and sweets that use “other sugar” as an ingredient. “It is not an issue,” he said.

The SRA board would still push to have the sugar order signed before the end of the year so that it would be implemented soon or by the start of next year, Azcona said.

Commodities under Tariff Line 1702 include glucose, fructose, artificial honey, palm sugar and maltose, among others. Imports under the tariff line are roughly estimated to be around 300,000 metric tons (in raw sugar equivalent), Azcona said.

The SRA board is also considering slapping the same regulatory measure on artificial sweeteners like sucralose and aspartame, Azcona said. He added that it would be a different sugar order should the board decide to push through with this.

“We would also want to monitor the volumes (of artificial sweeteners) coming in. Based on informal information, it is around 200,000 metric tons to 300,000 metric tons,” he said.

The SRA board also wants to check the health issues concerning artificial sweeteners by coordinating with the Department of Health to see the health effects of these sugar alternatives.