Regulator holds off import permits, fees for sugar stand-ins

Regulator holds off import permits, fees for sugar stand-ins

MANILA, Philippines — The Sugar Regulatory Administration (SRA) has suspended the implementation of its order that requires firms to secure permits and pay fees for importing sugar alternatives, responding to concerns from industry stakeholders about potential trade disruptions and higher consumer prices.

In a statement on Thursday, SRA Administrator Pablo Luis Azcona announced that SRA is postponing the enforcement of Sugar Order (SO) No. 6, which outlines the guidelines on importing certain “sugars” and sugar confectionery.

“We have received letters and are actively reaching out to set up meetings with the concerned groups,” Azcona said, adding the Department of Agriculture (DA) will facilitate the dialogues to address their specific fears and concerns.

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READ: SRA to issue rules on local sugar purchase program

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According to the SRA, two key issues were identified during the consultation process — processing delays and the associated costs of complying with the order.

Azcona said the SRA processes over a thousand sugar-related import clearances every year, with typical processing times averaging just two to three working days.

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“We have been issuing import clearances for fructose under the same 1702 code since 2017, and there have been no reports of delays or disruptions to business operations,” Azcona said.

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The SRA is set to launch an online portal to further streamline the processing of import applications.

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Azcona said the processing fee for sugar imports under SO 6 is “minimal” as it amounted to a mere P0.06 per kilogram, representing about 0.8 percent of the total cost of importing other types of sugar.

He also said the directive’s objective is to obtain accurate data for improved supply and demand planning, benefiting both local farmers and consumers.

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“SRA and the DA are very careful that policies made do not affect the consumers as well,” he said.

“Again, their fears are unfounded as these are all speculative at the moment, since the order has not been implemented yet, and we welcome the opportunity to sit with them and find solutions to their concerns,” he added.

The SRA issued SO 6 following the “grave concern” raised by sugar industry stakeholders over the alleged unregulated importation of certain “sugars” and “sweeteners” into the country.

Since its issuance, various industry groups have sent separate letters to the DA and SRA to express their apprehensions regarding this directive.

Before the SRA made this announcement, the Federation of Philippine Industries (FPI) wrote a letter to President Marcos and Azcona asking them to reconsider the imposition of SO 6.

FPI chair Jesus Arranza said the SRA order is “another form of red tape” that could hurt several local industries and their hundreds of thousands of workers nationwide.

Arranza said the SRA order will merely result in bureaucratic inefficiencies; increase the cost of doing business, particularly on the part of Philippine Confectionery Biscuit Snack Food Association members and raise selling prices of beverage and confectionery products.

FPI also said that the order’s intention is “to regulate the importation and shipment” of other types of sugar and confectioners sugar, “which are clearly non-sugar materials not envisioned for regulation under SRA’s charter.”

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Further, Arranza said this could trigger a ripple of ill effects, such as port congestion leading to additional demurrage fees since local confectionery and beverage manufacturers might encounter production delays and pay additional costs.

TAGS: Import, sugar

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