MANILA — In a decisive move to curtail the influx of artificial sweeteners, the Philippines has significantly increased the import clearance fee for high fructose corn syrup (HFCS). The Sugar Regulatory Administration (SRA) announced the fee hike from PHP 1.50 to PHP 30 per equivalent bag of sugar, a measure aimed at protecting domestic sugar producers.
According to Philippines News Agency, SRA Chief Pablo Luis Azcona stated that this decision was made following concerns raised by the United Federation of Sugar Producers (UNIFED) and other sugar leaders from Luzon and Mindanao. These concerns were brought to Agriculture Secretary Francisco Tiu Laurel, prompting immediate regulatory action by the SRA under Sugar Order (SO) 4.
The initial fee of PHP 30 per bag was reduced to PHP 1.50 in early 2017, shortly after its introduction. The reduction was suspected to contribute to the stagnant demand for domestically produced sugar in recent years. The recent fee adjustment aligns with efforts to control the entry and impact of HFCS and other artificial sweeteners categorized under the Harmonized System (HS) tariff code 1702.
Azcona also noted that a new Sugar Order is in preparation following a meeting on August 6, which discussed the regulation of imports under HS1702. This includes a mandate for importers to secure an SRA clearance, reflecting heightened scrutiny over sugar imports estimated at 200,000 tons—far exceeding earlier federation reports.
The ongoing verification of import data, some of which spans back 10 years, aims to provide a clearer picture of the impact these imports have had on local sugar demand. The SRA’s move has garnered support from various stakeholders, including the Sugar Council and the National Congress of Unions in the Sugar Industry in the Philippines, signaling a unified front against threats to the local sugar industry.