BOC tightens rules on pre-mix sugar imports

MANILA, Philippines - The Bureau of Customs (BOC) has tightened its rules governing all importations of pre-mix sugar products.

Customs Commissioner Angelito Alvarez said that all importations of pre-mixed sugar concentrates and pre-mix sugar products will no longer be released by the BOC without a validating certification issued by the Sugar Regulatory Administration (SRA).

The new directive was issued in the wake of reports that unscrupulous importers were misdeclaring their cane or beet sugar importations as pre-mixed sugar products to evade the payment of duties and taxes.

Imported cane and beet sugar, on the other hand, is assigned a tariff rate of 50 percent if covered by a Minimum Access Volume Import Certification (MAVIC) and a much higher 65 percent if imported   outside the prescribed quota.

“There is a need to stop the practice of misdeclaring cane or beet sugar as sugar-based food preparations not only to plug a major leak in the BOC’s revenue collection but also to help maintain a balanced and rationalized supply of sugar vis-à-vis demand which is vital to the viability and survival of the local sugar industry,” Alvarez said.

In a Customs Memorandum Order dated March 3, Alvarez said “import shipments declared as premix commodities/food preparations but are actually raw sugar or refined/white sugar shall be recommended for seizure.”

SRA, the state-owned regulatory agency is mandated to monitor and validate the declared classification and quantities of all imported pre-mix commodities, their dates of arrival, countries of origin and the names of their importers and consignees.

The BOC said that the sugar agency is also mandated to assist the BOC and the Bureau of Internal Revenue (BIR) in the determination of the appropriate classification of sugar and sugar products for purposes of imposing proper import duties and /or assessing value-added or other taxes thereon.