Philippines to slap P60/MT fee on imported sugar alternatives

MANILA, Philippines — The government will slap a clearance fee of P60 per metric ton (MT) on imported sugar alternatives and other sugar-based products, including sucrose, flavored syrups and even white chocolates, as part of its efforts to monitor the entry of these imported commodities.

The Sugar Regulatory Administration (SRA) board approved and issued Sugar Order (SO) 6 that would slap a clearance fee on imported commodities under the 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 SRA board has set the clearance fee at P3 per 50-kilogram bag or P60 per MT, significantly lower than its initial proposal of P10 per bag or P200 per MT.

Agriculture Secretary Francisco Tiu Laurel Jr., who chairs the SRA board, earlier disclosed that they would reduce the clearance fee after beverage makers and industrial users complained that the initial fee amount is “inflationary.”

The SRA has been in consultation with the sugar industry stakeholders for months before issuing the SO that is aimed at collecting accurate data on the volume of sugar alternatives that enter the country.

Various quarters of the sugar industry have lobbied for the government to intervene on the unabated entry of these sugar alternatives that they claim displaces the use of locally-produced sugar thus contributing to the decline in farmgate prices.

“During a consultative meeting, sugar industry stakeholders have expressed their grave concern on the effects upon the welfare and sustainability of the sugar industry of the long-practiced unregulated importation into the country of certain ‘sugars’ and ‘sweeteners’ and the Department of Agriculture and the SRA find the same impresser with merit,” read SO 6, a copy of which was obtained by The STAR.

The new clearance fee will take effect 30 days after its filing at the Office of the National Registrar at the UP Law Center.

In a separate statement, SRA administrator and CEO Pablo Luis Azcona lamented that certain groups in the sugar industry are “misinforming” the public about the implementation of the clearance fee on imported sugar products.

The Sugar Council group and the National Congress of Unions in the Sugar Industry of the Philippines earlier claimed that the reduction of the clearance fee from P10 per P50-kg bag would encourage the entry of more sugar alternatives to the detriment of the industry.

“Let me reiterate that we are not proposing a lower import clearance fee for sweeteners to displace locally-produced sugar as these groups say, rather we are now requiring fees and import clearance that the previous SRA ran by people from the Sugar Council never did,” Azcona said.

“There are currently no measures against any of these (products) and it is the first time that fees and clearances will be imposed. From zero fees and no clearance to a fee and clearance - how is that encouragement?” Azcona added.