THE Department of Agriculture (DA) said on Monday the importer of sweeteners intercepted by authorities in March declared the shipment using a tariff code that charged less than the rate for sugar and did not require regulatory approval.
In a statement, the DA said the commodity declared by importers as “sweet mixed powder” under Tarriff Code 1702 pays a tariff of 1%, rather than the 5% charged under Tariff Code 1702 for shipments from members of the Association of Southeast Asian Nations Tariff Code 1702 covers “other sugar.” The shipment arrived in 14 20-foot container vans.
“It appears the consignee used the classification under tariff code 1702 since importing sugar requires clearance from the Sugar Regulatory Administration (SRA) and the DA/SRA has not authorized any imports so far,” Secretary Francisco Tiu Laurel, Jr. said.
Each 20-foot van holds approximately 25 metric tons of sugar in sacks, according to the DA.
“That places the volume of the three shipments at 350 metric tons or 350,000 kilos worth around P30 million.”
Citing a physical inspection by authorities, the DA said the product, labeled as “TTC Sugar,” is manufactured by Vietnam’s Bien Hoa Consumer Joint Stock Co.
“The sweet mixed powder was found to bear a striking resemblance to refined sugar, further deepening suspicions that it may not match the declared classification,” it said.
It added that the product was found to contain 88% white granulated sugar and 12% glucose.
The SRA has collected three sets of samples from the separate shipments for further analysis, according to the DA.
“The outcome of the laboratory tests will be critical in determining whether the shipment was misdeclared and whether further action will be necessary,” the DA said.
“This case highlights the importance of maintaining precise tariff classifications and underscores the vital role of regulatory bodies in protecting the integrity of the domestic sugar market,” it added.
The SRA has yet to issue a sugar import order for this year, Administrator Pablo Luisa S. Azcona said.
The regulatory body in February said it is enhancing its database of importers as it clamps down on technical smuggling. — Kyle Aristophere T. Atienza