SRA to cut proposed import fee on sugar alternatives

MANILA, Philippines — The Sugar Regulatory Administration (SRA) board is looking at reducing the proposed clearance fee on imported sugar alternatives after beverage makers and industrial users complained that the initial P10 amount could be “inflationary.”

Agriculture Secretary Francisco Tiu Laurel Jr. said the SRA board has decided to lower the prospective import clearance fee by a “considerable” amount so that it would no longer be “inflationary.”

“The soft drinks and beverage manufacturers complained (about the initial) regulatory fee that we proposed,” Tiu Laurel, who chairs the SRA board, said yesterday.

The agriculture chief said the Sugar Order (SO) imposing the import clearance fee would still be issued before the year ends. He did not provide the final amount of the clearance fee to be imposed on the imported sweeteners.

The prospective order aims to collect accurate data on the volume of sugar alternatives, such as fructose, artificial honey, palm sugar and others.

Various sectors of the sugar industry have called on the government to regulate the importation of these sweeteners, as they displace the use of locally-produced raw and refined sugar.

“The first thing we need to do (to address the issue) is to know and get real accurate data,” Tiu Laurel said.

SRA administrator and CEO Pablo Luis Azcona earlier clarified that the plan to impose clearance fees on imported sugar alternatives is intended to monitor the volume of shipments and not regulate the importation of the products.

Azcona explained that certain industry players, including food manufacturers and beverage makers, have raised concerns regarding the plan to require importers of sweeteners under Tariff Line 1702 to pay an import clearance fee before their shipments can be released at the port.

Azcona said the SRA board was initially considering imposing a clearance fee of P10 per 50-kilo bag equivalent of raw sugar.

Some of the concerns raised by the users of these 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 in manufactured goods like beverages and sweets that use “other sugar” as an ingredient. “It is not an issue,” he said.

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