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The Sugar Regulatory Administration expanded the coverage of types of sugar subject to import regulation
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SRA Sugar Order No. 06 now includes all “sugars,” “other sugars,” and “sugar confectionery” for regulation
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The previous order which SO No. 6 amended, referred only to “fructose”
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The order is in response to concerns of sugar industry stakeholders who have complained against “long-practiced unregulated importation” of certain sugars and sweeteners
The Sugar Regulatory Administration (SRA) has expanded the coverage of types of sugar subject to import regulation.
SRA Sugar Order (SO) No. 06 series of 2023-2024, dated November 18 and recently published online, is in direct response to industry stakeholders complaining about the “long-practiced unregulated importation into the country of certain sugars and sweeteners.”
SO No. 6 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.
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 amends the coverage under SO No. 03, to cover the importation in whatever form and sugar content for all “sugars” covered under Heading 17.01 of the AHTN, including, but not limited to, sucrose, specialty sugar, flavored syrups; and “all other sugars” covered under Heading 17.02 of the AHTN, including, but not limited to fructose, lactose, glucose, dextrose, maltose, maltodextrin, maple sugar and maple syrup, sugar syrup, palm sugar, coconut sap sugar, honey, caramel; and all “sugar confectionery” covered under Heading 17.04 of the AHTN.
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.
The requirements for application of clearance of release of the covered imported goods under SO No. 6 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.
Importers or consignees of goods, products, ingredients covered under SO No. 06 have six months from its effectivity to comply with requirements.
Provisions on clearance and classification of covered goods, products, ingredients; shipping permit; monitoring; and sanctions remain the same as with SO No. 03, except for a few amendments, including in wording, to reflect the expansion of coverage.
SO No. 06 also amended SO No. 03 sections that pertain to clearance and classification of the covered goods, products, ingredients; shipping permit; monitoring; and sanctions to reflect the inclusion of other sugar types.
The clearance for release should indicate classification of the goods, products, and ingredients covered under SO No. 06 and will still be either “B” for the domestic market, “C” for reserved, and “D” for world market. However, SO No. 06 now requires withdrawal of the imported product to an SRA-registered warehouse/storage facility of the importer or consignee instead of to a customs bonded warehouse under SO No. 03.
Under SO 06, if the classification is “C”, the covered products may be withdrawn from the Bureau of Customs (BOC) but only for warehousing in an SRA-registered warehouse/storage facility of the importer or consignee.
No covered products may come from an SRA-registered warehouse/storage facility of the importer or consignee unless reclassified by SRA into either “B” or “D.”
If the classification or reclassification is “B” or “D,” the covered products may be withdrawn by the importer or consignee from BOC or SRA-registered warehouse/storage facility for consumption or export, as the case may be.
Any coastwise movement or transport of the imported foods, products, and ingredients covered by SO No. 06, whether for warehousing or consumption, will still require a shipping permit and payment of the corresponding fee to SRA.
In terms of monitoring, the importer or consignee of covered products classified as “C” should still inform the SRA Regulation Department in writing at least three working days in advance of the date of withdrawal of the goods from BOC, the detailed address/es of the warehouse/s or destination/s.
Non-compliance with provisions of SO No. 06 remain subject to penalties provided under SO No. 10 series of 2009-2010, as amended by SO No. 10-A series of 2009-2010, and all other issuances on the matter, without prejudice to any other administrative and/or legal action that the SRA may pursue. – Roumina Pablo
