Sugar industry leaders want tariff impose on HFCS, other sweeteners

BACOLOD CITY, Philippines — Sugar producers are now pushing also for imposition of tariffs on high-fructose corn syrup (HFCS) and other sweeteners, which may enter into the country.

This was after the Sugar Regulatory Administration (SRA) issued a Sugar Order regulating the importation of HFCS to the country.

Manuel Lamata, president of the United Sugar Producers Federation of the Philippines, said President Rodrigo Duterte will be convening the National Economic Development Authority (NEDA) to study on how to put tariff on HFCS.

Sugar producers blamed the importation and use of HFCS by beverage companies and food processors, instead of utilizing locally-produced sugar, for the continued plunge of prices of sugar in the country.

Lamata said they will also seek further clarification from SRA Administrator Ana Rosario Paner over the 15-day “delay” in the effectivity of the Sugar Order. He said it only take three days for a shipment of HFCS from China, to reach the Philippines.

The observation of Lamata was also shared by Enrique Rojas, president of the National Federation of Sugarcane Planters, who said the SRA can rectify the Sugar Order and enforce it immediately, to ensure that there will be no chance for additional HFCS importation.

Paner however clarified that the 15-day period before the Order takes effect “ is not a delay,” but she called it compliance.

Lamata said the Sugar Alliance of the Philippines is also planning to meet with Bureau of Customs chief Nicanor Faeldon to discuss with the latter the deputation of Sugar Anti-Smuggling Organization (SASO) to help monitor the entry of smuggled sugar into the country.

Sugar industry stakeholders had sought the help of the President RodrigoDuterte and the SRA, amid mounting concern that food and beverage firms were shifting towards the use of HFCS and driving down the prices of domestically produced can sugar to the detriment of local producers.

Francis de la Rama, president of the Confederation of Sugar Producers Associations, said he was however happy that Paner came out with the Sugar Order because “as far as its effectivity is concerned she has her reasons.”

The SRA, in a statement, said it issued a Sugar Order Friday on the issuance of clearance for the release of HFCS and chemically pure fructose in whatever intensity or form. An importer or consignee of imported HFCS must be an international trader duly-registered with the SRA at the time of the application for clearance for release, it added.

The Sugar Order further provides that the clearance for the release shall indicate the classification of the fructose as either “B” for domestic market, “C” for reserved, and “D” for world market.

Non-compliance with the provisions of the Sugar Order will subject the importer or consignee to the penalties provided under Sugar Order No. 10, series of 2009-2010, as amended by Sugar Order No. 10-A, series of 2009-2010, without prejudice to any other administrative and/or legal action that SRA may purse, the press release added.

During a recent meeting with sugar industry leaders in Davao City, Duterte committed to stop sugar smuggling and directed the NEDA to discuss measures on how to stop HFCS importation, including the possibility of increasing tariff on the commodity. (FREEMAN)