The Sugar Regulatory Administration (SRA) is calling on importers of sugar alternatives to register as international sugar traders, as part of the agency’s efforts to crack down on smuggled sugar products that deprive the government of tariff collections.

Under Memorandum Circular No. 6, the SRA said importers covered by Chapter 17 of the 2022 ASEAN Harmonized Tariff Nomenclature (AHTN) must register with the agency as international sugar traders (other sugars and sugar confectionery).

The AHTN is an eight-digit harmonized system commodity nomenclature within the Association of Southeast Asian Nations (ASEAN), which the Philippines then applies alpha-numeric codes to provide for its local tariff lines.

The SRA said the registration will allow importers to secure a clearance for the release of imported commodities for their sugar alternatives.

Importers will have until Nov. 30 to register.

SRA Administrator Pablo Luis Azcona stated that the primary purpose of the order is to collect accurate data on the so-called other sugars, which fall under tariff heading 1702.

“We just want accurate data, we just also want the government to earn the proper tariffs,” he said in a television interview.

Last week, the SRA and the Department of Agriculture (DA) inspected smuggled goods earlier flagged by the Bureau of Customs (BOC) at the Port of Manila.

Two of the four seized containers were found to have imported 88 percent refined sugar, instead of the declared initially sweetener mix. The sugar commodity falls under tariff heading 1701.

Azcona said the misdeclaration, if not seized, would have cost the government about four percent in tariffs.

At the same time, the administrator stated that accurate data from the importers will be crucial for the government in planning future policies and measures regarding the country’s sugar supply.

He noted that this will strengthen regulatory measures on imported sugar alternatives, which have steadily risen in recent years, leading to a drop in demand for locally produced sugar.

Azcona added that the government should be able to identify the importer, the product being imported, its destination, and the industry that will use the product.

“This will make the planning side of the whole sugar industry easier,” he said.

Beginning Dec. 1, all importers who are not registered with the SRA will not be granted a release clearance for their commodities.

Azcona said the sugar agency can only release import clearances for importers who are certified as international sugar traders.