Customs to slap 38% tariff on refined sugar premixes

MANILA, Philippines - The Bureau of Customs (BOC) plans to slap a 38 percent tariff on refined sugar with other ingredients, or refined sugar premixes with very high sugar content.

Customs Commissioner Angelito A. Alvarez, in a meeting with heads of different sugar farmers’ federations and with Sugar Regulatory Administration (SRA) chief Regina Bautista-Martin, gave his assurance that he would collect the 38 percent tariff and duties from these refined sugar premixes.

The sugar industry representatives conveyed to Alvarez their concern about the continued technical smuggling of sugar, complaining about the increasing volume of imports of refined sugar that contain other ingredients.

They informed Alvarez that laboratory analysis conducted by SRA on the samples taken were found to contain more than 99 percent, to a high of 99.7 percent, of refined sugar.

“This refined sugar premixes have the physical appearance, color and texture of refined sugar. It is used the same way as sugar and SRA considers it as sugar. This should be taxed by the Customs as sugar,” according to Confederation of Sugar Producers Associations Inc. (CONFED) director Bernardo C. Trebol.

Imports of refined sugar premixes are subject to zero tariff. The sugar industry has asked the BoC to assess a higher tariff of 38 percent on the sugar premixes, based on the SRA laboratory findings of more than 99 percent refined sugar content.

National Federation of Sugarcane Planters Inc. president Enrique Rojas Jr. said, “the SRA has determined it to be sugar. And as of now, no impartial, convincing and sufficient proof is proffered to counter the findings of SRA. We in the sugar industry are asking Commissioner Alvarez to lend credence on the findings of a fellow agency of government and subject these imports to a higher tariff. After all, the primary function of the Bureau of Customs is to collect revenue.”

Alvarez acknowledged that with the SRA findings of more than 99.5 percent refined sugar content, there is basis for the imposition of a 38 percent tariff on refined sugar premixes.

 He said he would immediately refer the matter to the Post Entry Audit Group and Assessment Division for the collection of deficiency and current duties.