SRA defers import clearance fee on sugar alternatives

MANILA, Philippines —  The Sugar Regulatory Administration (SRA) has deferred the imposition of clearance fee on imported sugar alternatives after certain quarters led by candy and beverage makers opposed the measure for its detrimental effects.

SRA administrator and CEO Pablo Luis Azcona said  yesterday the implementation of Sugar Order (SO) 6, supposed to take effect on Feb. 1, has been deferred following concerns raised by industry players.

The implementation of SO 6, which sets an import clearance fee of P60 per metric ton on every sugar alternative, would be deferred until a dialogue with industry players has been conducted.

Azcona said some of the concerns that were raised to the SRA by industry stakeholders were the possibility of delays in processing of the import clearance fees and the costs stipulated under SO 6.

Azcona reassured the industry players that the import clearance fee would be issued within two to three working days to prevent any delays in the release of their imported raw materials.

“We have been issuing import clearances for fructose under the same 1702 code since 2017, and there have been no reports of delays or disruptions to business operations,” he said.

As for the costs, Azcona pointed out that the import clearance fee under SO 6 is very minimal at only P0.06 per kilo.

Azcona emphasized that the goal of SO 6 is to provide accurate data for better supply and demand planning, ultimately benefiting both local farmers and consumers.

SO 6 outlined the imposition of import clearance fees on sugar alternatives and sugar-based items under tariff headings 1701, 1702 and 1704.

Commodities belonging to 1701 include sucrose, specialty sugar, flavored syrup while those under 1702 include so-called “other sugars” like lactose, glucose, maltose, maple syrup, honey and caramel.

Goods under tariff heading 1704 are sugar confectionery items such as chewing gum and white chocolate not containing cocoa.

The measure is intended to capture the volume of imported sugar alternatives and sugar-based products that enter the country after various quarters clamored for such regulatory policy as they claimed that these items displace the use of locally produced sugar.