24 February 2025
https://businessmirror.com.ph/2025/02/24/sra-to-impose-fees-on-sweeteners-in-march/
Bacolod City—The government will start implementing in March a sugar order (SO) that calls for the imposition of import clearance fees on alternative sweeteners, according to the Sugar Regulatory Administration (SRA).
SRA Administrator Pablo Luis Azcona said a draft SO consisting of amended guidelines would take effect next month.
He added that the draft order would be sent to industry groups this week for comments.
“We’re ready [to implement it],” Azcona told reporters in an interview here.
The SRA had issued SO 6, which imposes a clearance fee of P60 per metric ton (MT) on imported goods under Harmonized System (HS) codes 1701, 1702, and 1704.
Some of these items include sucrose, lactose, maltose, glucose, maple syrup, honey, caramel, and sugar confectionery items, such as chewing gum and white chocolate not containing cocoa.
Importers of items under these tariff codes should first secure a clearance before their shipments are released by the Bureau of Customs (BOC).
However, the supposed implementation of the measure last February 1 was deferred after confectionery and beverage makers voiced their concerns about possible shipment delays.
Azcona confirmed that some of the amended rules decided by the regulatory agency and industry groups are the immediate approval of import clearances when not acted on by SRA in five days and the “green lane” which would streamline the application process for legitimate importers.
He noted that they are in the process of organizing an online portal that would make the application process “more efficient.”
The importers should also secure a new license for other sugars or the shipments under HS 1702 to collect a database on those importing these items.
“We told them [that] to avoid the red tape, we will give them six months to finish their license application…or the meantime, they can continue importing,” Azcona said.
Last month, the Federation of Philippine Industries (FPI) warned of a possible spike in prices of confectionery and beverages due to the implementation of SO 6.
FPI said the order could trigger a ripple effect, such as congestion at the ports that would result in additional demurrage charges. Such fees would eventually put pressure on the prices of sweet treats and beverages.
However, Azcona said the P60 per MT clearance fee would not make a dent in the manufacturers’ margins.
“Their average shipment cost is P75,000 per ton. Given the P60 per MT import clearance fee, that would only be 0.08 percent of their cost.”
Azcona said the goal of SO 6 is “to provide accurate data for better supply and demand planning, ultimately benefiting both local farmers and consumers.”