MAJOR industry groups are urging the Sugar Regulatory Administration (SRA) to reconsider its new order requiring permits and fees for importing sugar alternatives, warning that the new policy could disrupt trade and jack up consumer prices.
In separate letters to SRA administrator Pablo Luis Azcona, the Food Industry Asia (FIA) and the International Council of Beverages Associations (ICBA) urged the sugar regulator to suspend the implementation of Sugar Order No. 6 until an âinclusiveâ and âproperâ consultation with stakeholders is conducted.
The Joint Foreign Chambers of the Philippines (JFC) and the Beverage Industry Association of the Philippines called on the government to address the broader implications of the SRA order and notify the World Trade Organization (WTO) about the new rules.
Azcona confirmed receiving these letters, copies of which were obtained by the Inquirer, and said the SRA had reached out to them to discuss the issue, claiming that their concerns were âunfounded.â
To recall, the SRA issued SO No. 6 in response to sugar industry stakeholdersâ âgrave concernâ over the alleged unregulated importation of certain âsugarsâ and âsweetenersâ into the country.
The SRA repeatedly said the SO was intended for monitoring and generating accurate data on the inbound volume of other types of sugar.
The industry groups, however, pointed out that the SRA can just use existing data from concerned government agencies such as the Bureau of Customs instead of imposing additional fees and documentation requirements.
But for Azcona, the additional requirements âwill provide SRA and the DA the accurate data we need that will enable us to effectively plan supply and demand, and ensure that we effectively serve our local farmers and the more than five million Filipinos dependent on the sugar industry.â
While the FIA, a group representing the food and beverage (F&B) sector across Asia, understands the rationale behind the sugar order, it said this may pose challenges such as delays in shipment processing, increased operational costs, and logistical bottlenecks.
The ICBA, an international non-governmental organization comprised of national and regional beverage associations as well as international beverage companies, flagged the lack of consultation on the directive and its scope which included products not considered as sugar substitutes.
The JFC, a coalition of American, Canadian, European, Japanese, and Korean business chambers and the Philippine Association of Multinational Companies Regional Headquarters Inc. raised similar apprehensions that such an order will undermine the Philippinesâ competitiveness as a trade and investment destination.
Meanwhile, the BIAP, an association of 12 of the countryâs largest manufacturers of commercially available beverages, argued that the SO contravenes the principles of the Anti-Red Tape Act since it may cause delays in shipment releases and port congestion, among others.
On shipment issues, Azcona said they have not received any complaints about delays or effects on ease of doing business since the SRA began issuing import clearances to fructose in 2017.
On the additional cost, the SRA head said the processing fee was âa minuscule amountâ as opposed to other types of sugar, as they only need to pay P0.06 per kilogram. (Jordeene B. Lagare © Philippine Daily Inquirer)
