The Philippines has tightened its import policy on artificial sweeteners in response to growing concerns raised by the sugar industry over the continued threat to local producers.
With effect from 8 August, the Sugar Regulatory Administration (SRA) requires all imports of artificial sweeteners to have a clearance for release under Sugar Order 5.
All applicants must now pay Pesos 25 (US$0.40) per kg in release fees, along with submitting their letters of application, bill of lading, commercial invoices, packing list and the certificate of origin and analysis for the release of the imported product.
The regulator said importers or consignees of the imported goods, products and ingredients must be a duly registered international trader of sweeteners with the SRA at the time of the application for clearance for release.
An SRA agency spokesperson said, “No applications for clearance for release shall be accepted for processing unless all requirements are duly complied with.”
This regulation applies to covered sweeteners include sucralose, aspartame, saccharin, acesulfame potassium and processed stevia in any form or concentration. They are commonly used in the manufacture of beverages, concentrates, ice cream, coffee/tea mixes, sugar substitutes, food preparation and supplements.
SRA highlighted that sugar industry stakeholders have expressed grave concern on the effects of unregulated artificial sweeteners on the local industry’s sustainability.
The agency also stressed that artificial sweeteners have a sweetness level that could reach up to 500 times more than cane sugar, making it vital to weigh its impact on both the sugar industry’s competitiveness and the health of Filipinos.
Industry groups have raised concerned that unregulated imports of artificial sweeteners have dampened demand for locally produced sugar. The use of artificial sweeteners and sugar alternatives has caused a drop in the farmgate prices of locally produced cane sugar, resulting in lower incomes for planters and millers.
In a related development, the Beverage Industry Association of the Philippines has also called for the government to review its proposed taxes on sugary drinks, warning that new levies could raise prices of everyday goods and offset the benefits of planned income tax relief, while the public is grappling with high inflation.
The Department of Finance aims to raise revenue from the proposed tax hike, to offset the revenue losses from the ProGRESS tax relief.
Under the proposed measure, excise tax on beverages using caloric or noncaloric sweeteners will be raised to Pesos 20 (US$0.32) per litre from the current Pesos 6 (US$0.10), while the tax on beverages using high-fructose corn syrup will be hiked to Pesos 40 (US$0.64) per litre from Pesos 12 (US$0.19 ). The proposed sweetened beverage tax rates would be indexed by 5% annually.
