SRA streamlines procedures for importing sweeteners

The Sugar Regulatory Administration is revising its import rules for sugar alternatives to reduce red tape– a common complaint of industry stakeholders– to be later augmented by the use of an online portal for better access to import data, supply and other relevant information.

The streamlining stemmed from consultations with users, which surfaced concerns over bureaucratic inefficiencies and the lobby against plans to impose new import clearance fees for some non-sugar sweeteners.

“We listened to their concerns. Their most basic concern is delay, red tape,” SRA Pablo Luis Azcona told media during a mill visit in Negros Occidental. Azcona said that it usually takes three to five working days for the SRA to issue import clearances.

“We will include in the sugar order that if the SRA still has no response after five working days, the application is deemed approved,” he said, adding that the order will be released in March.

The SRA in late January decided to shelve Sugar Order (SO) No. 6, that imposes P60 per metric ton clearance fee on imported sweeteners like sucrose, lactose, glucose, maltose, maple syrup, honey and caramel, and flavored syrups.

Food and beverage manufacturers, industry associations and chambers of commerce have cited the order’s impact on confectionery and beverage prices.

They asked the SRA to conduct a Regulatory Impact Assessment before any policy changes, and urged that it adopt the Anti-Red Tape Authority’s (ARTA) ease of doing business framework on timelines for approving permits based on the complexity of the transaction. The ARTA also deems as approved those applications which processing  exceeds the prescribed timelines.

Azcona said the new rules will allow prospective importers to present a sales invoice from the supplier to kick off the application process.

The SRA will also require a soft copy of the bill of lading or the contract between a carrier and a shipper to issue the import clearance, he added.

“Since our import clearances is on a per bill of lading basis, sometimes there is a delay in the BL. It takes a few days for the BL to come out. So, we agreed. They can apply using their invoices first,” Business World quoted him saying.

The idea is to “get the process going,” he added. “And then finalize once the BL is there.”

Additionally, the SRA is working on developing the online portal for importers, Azcona said. He did not comment on whether the proposed fee will still be imposed.

Consultations are expected to conclude in time for the new rules to go into force by March.

In another report, the Federation of Philippine Industries (FPI) warned of a possible spike in prices of confectionery and beverages due to the implementation of SO 6, Business Mirror said.

FPI said the order could trigger a ripple effect, such as congestion at the ports that would result in additional demurrage charges. Such fees would eventually put pressure on the prices of sweet treats and beverages.

However, Azcona said the P60 per MT clearance fee would not make a dent in the manufacturers’ margins.

“Their average shipment cost is P75,000 per ton. Given the P60 per MT import clearance fee, that would only be 0.08 percent of their cost.”

Azcona said the goal of SO 6 is “to provide accurate data for better supply and demand planning, ultimately benefiting both local farmers and consumers.”