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The Philippine Chamber of Commerce and Industry welcomed the deferment of implementation of a Sugar Regulatory Administration order regulating imports of sugar substitutes
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PCCI president Enunina Mangio said while the intention of SO No. 06 was valid, such regulatory measure should not be to the detriment of other quarters in the industry
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Stakeholders called on SRA to conduct proper consultation with stakeholders and a regulatory impact assessment on any policy changes
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SRA administrator Pablo Luis Azcona earlier said they were postponing the enforcement of SO No. 06 pending consultation with stakeholders
The Philippine Chamber of Commerce and Industry (PCCI) welcomed the deferment of implementation of Sugar Regulatory Administration (SRA) Order No. 6 regulating imports of sugar substitutes.
“We are glad that the SRA has listened to and considered valid the concerns of the sugar manufacturers, and acted upon immediately on the postponement of the order’s implementation,” PCCI president Enunina Mangio said.
In an earlier round table discussion organized by the American Chamber of Commerce and Industry, participants composed of food and beverage manufacturers, industry associations and chambers of commerce called on SRA to conduct proper consultation with stakeholders and a regulatory impact assessment on any policy changes, as well as to align its regulations with the Anti-Red Tape Authority’s ease of doing business policy for “simplified, efficient, and transparent governance.”
While the intention of SO No. 6 was valid, essentially to protect the local producers by strictly monitoring the entry of imported sugar-based products and alternatives, Mangio said such regulatory measure should not be to the detriment of other quarters in the industry that are legitimately doing business.
“There will always have good results in open dialogues and proper consultations. The government and private sector should work together for the benefit of both the local farmers and consumers,” Mangio added.
In response to industry stakeholders’ concerns on processing delays and higher cost of compliance, SRA administrator Pablo Luis Azcona earlier said they were postponing the enforcement of SO No. 06 pending consultation with stakeholders.
The SRA will also soon launch an online portal to further streamline the processing of import applications.
SO No. 06 series of 2023-2024 amends SO No. 03 series of 2016-2017 to now include certain “sugars” and “sugar confectionery” under Chapter 17 of the 2022 Association of Southeast Asian Nations (ASEAN) Harmonized Tariff Nomenclature (AHTN) — specifically all “sugars,” “other sugars,” and “sugar confectionery” under Headings 17.01, 17.02, and 17.04 of the AHTN, respectively.
Goods 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. Commodities with tariff heading 1704 include sugar confectionery items such as chewing gum and white chocolate not containing cocoa.
Previously, the coverage of SO Nos. 03 and 04 was limited to “fructose” covered under Heading 17.02 of Chapter 17 of the AHTN.
SO No. 06 was issued by the SRA after sugar industry stakeholders expressed grave concern over the reported unregulated importation of certain sugars and sweeteners into the country.
Raw and refined sugar, as well as certain specific products under Chapter 17 of the 2022 AHTN are excluded from the coverage of SO No. 06 as they are already regulated by SRA and covered by other issuances.
Among others, SO No. 06 requires importers of sugar substitutes to secure permits and pay clearance fees.
The requirements for application of clearance of release of the covered imported goods under SO No. 06 are the same as those required by SO No. 03 and SO No. 04, except for the addition of packing list and commercial invoice.
With the expansion of coverage, SRA has set the SRA clearance for release fee at P3 per 50-kilo bag or P60 per metric ton.
For fructose, the clearance for release fee remains at P30 per 50-kilo bag of raw sugar equivalent of the fructose.
