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Sugar Alternatives to Face Import Clearance Fees in Effort to Monitor Imports

by Geraldine S.
11/28/2024
in Tariffs & Duties

The Sugar Regulatory Administration (SRA) is moving forward with plans to impose import clearance fees on sweeteners such as glucose and fructose, as part of an effort to monitor the influx of raw sugar alternatives into the country. This measure aims to address concerns regarding the impact of these imports on local sugar farmers.

SRA Administrator and CEO, Pablo Luis Azcona, announced that the SRA board is set to approve the new regulation next month. The proposed rule will require importers of sweeteners classified under Tariff Line 1702 to pay an import clearance fee before their shipments are released at the port.

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Azcona emphasized that the SRA board, the agency’s highest decision-making body, has discussed the matter thoroughly, and all members are in agreement with the proposal. The board, chaired by Agriculture Secretary Francisco Tiu Laurel Jr., includes members from the sugar milling and sugarcane planter sectors.

The import clearance fee will be set at P10 per 50-kilogram bag, equivalent to raw sugar. This measure is aimed at enabling the SRA to more effectively monitor the entry of imported sweeteners, which some stakeholders in the local sugar industry have cited as contributing to the reduced demand for local raw sugar.

“Our goal is not to regulate at this stage, but rather to collect accurate data to better understand the volume of imports entering the country,” Azcona explained. “The clearance fee is minimal and will help us gather necessary information.”

Sweeteners included under Tariff Line 1702 are glucose, fructose, artificial honey, palm sugar, and maltose. It is estimated that imports under this category amount to approximately 300,000 metric tons (in raw sugar equivalent).

Additionally, the SRA board is considering extending this regulatory measure to artificial sweeteners like sucralose and aspartame. Azcona noted that the volume of these imports is estimated to range between 200,000 to 300,000 metric tons. Should the board move forward with this, it would involve a separate sugar order.

In addition to monitoring the volume of imports, the SRA board is also working with the Department of Health to assess the potential health effects of artificial sweeteners.

Find the best supply chain logistics news at The Supply Chain Report. Free international trade tools are available at ADAMftd.com.

#SugarIndustry #ImportRegulation #Sweeteners #SupplyChainNews #SugarAlternatives

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