Import clearance fee on sugar alternatives to push through

February 11, 2025 | 12:00am

MANILA, Philippines — The imposition of a clearance fee on imported alternative sugars will soon push through after the government resolved the concerns of industry stakeholders regarding the measure, particularly on possible red tape.

Sources familiar with the matter told The STAR that the Sugar Regulatory Administration (SRA) held multiple dialogues last week with various industry stakeholders, from candy makers to beverage manufacturers, about Sugar Order (SO) 6.

SRA administrator and CEO Pablo Luis Azcona met with the industry groups, which included the Federation of Philippine Industries as well as those involved in the confectionery and beverage sectors. The SRA leadership also met with Nestlé Philippines Inc., sources said.

The primary concern of the industry stakeholders was the additional red tape SO 6 would create, resulting in possible delays in the release of shipments that could affect manufacturing of candies, beverages and other products.

The industry stakeholders and the SRA agreed to resolve the former’s concerns by implementing various measures that would prevent additional red tape to ensure that production of their goods would not be hampered.

Some of the measures agreed upon by the parties were allowing the advanced application and payment of the import clearance fee and the automatic approval of the clearance within five working days from payment.

Industry stakeholders may also begin filing their application for import clearance once they have secured a sales invoice or delivery receipt with their trade partners.

The SRA will honor a soft copy of the bill of lading for the issuance of the final import clearance.

The agency will establish an online portal and a “green lane” for importers to ease the application process. Under the green lane, importers with proven track record and with no violations will be prioritized in the processing of the fee.

Furthermore, the industry stakeholders agreed to allow the SRA to conduct spot inspections of their shipments, according to sources.

“The biggest concern of the industry players really was the red tape because it would impact their manufacturing processes. So SRA and the industry players came to an agreement on how to resolve the issues,” a source said.

“The industry players agreed that the imposition of the import clearance fee is necessary to separate the legitimate from the illegitimate importers,” the source added.

Agriculture Secretary Francisco Tiu Laurel Jr., who chairs the SRA board, has been briefed about the recent developments, sources said. They noted that the instruction of Tiu Laurel was to resolve the concerns of the industry so that the policy measure could be implemented.

The SRA will rescind the earlier issued SO 6 to reflect the agreements made with the industry stakeholders, another source said. The SRA board will then be expected to issue a new sugar order.

SO 6 outlined the imposition of import clearance fees on sugar alternatives and sugar-based items under tariff headings 1701 (sucrose, flavored syrup), 1702 (lactose, glucose, maltose, honey, etc.) and 1704 (chewing gum and white chocolate not containing cocoa).

The measure is intended to capture the volume of imported sugar alternatives and sugar-based products that enter the country after various quarters clamored for such regulatory policy as they claimed that these items displaced the use of locally produced sugar.

The issuance of the new policy stemmed from complaints from some quarters of the sugarcane industry, especially planters, that demand for raw sugar has dropped and has been replaced by the use of imported alternatives and other sugars by industry users and manufacturers.

The SRA deferred the Feb. 1 implementation of SO 6 after certain quarters led by candy and beverage makers opposed the measure for its detrimental effects such as red tape and possible price spike.