Philippines : Deferred sugar order may take effect in March
The Sugar Regulatory Administration (SRA) plans to implement Sugar Order (SO) 06 in March, imposing import clearance fees on sugar-based products. Initially delayed due to industry concerns, stakeholders and the SRA have agreed on a five-day automatic approval rule and invoice-based applications. The SRA is also developing an online portal and considering green-lane clearance for compliant importers.
DEFERRED import clearance fees for sugar alternatives and sugar-based items including flavored syrup, lactose, glucose, maltose, maple syrup, honey, and caramel — or Sugar Order (SO) 06 — may finally be implemented in March, Sugar Regulatory Administration (SRA) Administrator and CEO Paulo Luis Azcona told the media.
The order, originally set to take effect on Feb. 1, was put on hold due to concerns raised by Federation of Philippine Industries (FPI) members, Philippine Confectionery Biscuit and Snack Association (PCBSA), and the Beverage Industry Association of the Philippines (BIAP).
The SRA had explained that the order was for monitoring and recording an accurate database on the entry of sugar-based products, and would improve the agency’s supply and demand planning to benefit farmers and consumers.
The order comes with a clearance for release fee of P3.00 per 50-kilogram bag or P60.00 per metric ton (MT), except for fructose.
FPI members balked, saying the order would “merely result in bureaucratic inefficiencies,” hike the cost of doing business, increase selling prices of beverage and confectionery products, and “adversely affect the Filipino consumer.”
During a meeting between SRA officials and FPI members, Azcona said the stakeholders’ main concern was red tape, specifically the release of the bill of lading (BL) — a receipt, contract of carriage or proof of ownership of shipped items — which is at times delayed, taking days to process.
Azcona said the stakeholders agreed that, if their papers were not processed in five days, their import clearances would be deemed approved.
“They were surprised. It’s not normal for a government [office] to do that. But I was telling them, it only takes me three working days [to issue a clearance]. And five days is too long,” he added.
It was also agreed that stakeholders “can apply using their invoices first, if their BL is not yet available. Upon application using the invoices, they can compute the SRA clearance for release fee. The importers and/or consignees of these ‘other sugars’ can then pay to proceed with the process,” Azcona explained, adding that the SRA was also working on using an online portal for clearance applications.
Green-lane service application
The stakeholders have likewise asked for green-lane service for their imports. This is granted to low-risk and historically compliant shipments to fast-track customs clearance, allowing shipments to pass through without physical inspection or thorough document review .
Azcona concurred in principle, but said the importers needed to apply first to be given green-lane courtesy.
In the meantime, he stressed, stakeholders must secure a new license within six months to import their sugar ingredients.
The SRA will issue a new SO draft for the concerned FPI members to comment on this week. Barring any more concerns, the SO will take effect starting March.
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Source : The Manila Times
