By Dominique Gabriel G. Bañaga

The Sugar Anti-Smuggling Organization (SASO), an organization which coordinates with the Bureau of Customs (BOC) and the Sugar Regulatory Administration (SRA), has sued Coca-Cola FEMSA Philippines for alleged “outright smuggling” of high fructose corn syrup (HFCS) into the country.
In an e-mail sent to the press yesterday, SASO Deputy Chief Edgardo Lumanog Jr. was on record to have accused Coca-Cola FEMSA of withdrawing several shipments of HFCS from the People’s Republic of China without the required clearance from the SRA.
Based on the guidelines of SRA’s Sugar Order No. 3, an importer or consignee of HFCS should register as an international trader with the SRA at the time of application for clearance of release.
It says only HFCS with clearance for release that indicated classification “B” for Domestic market and “D” for World Market may be withdrawn by the importer or consignee from the BOC or from its customs bonded warehouse.
Based on Customs declarations, there are eight instances where HFCS arrived at the port of Manila from March 10 to March 15, valued by the BOC at P8,617,233.
However, Lumanog stated Coke withdrew five shipments illegally on March 10.
“It was explained to me by counsel that Coke’s continued importation of HFCS without SRA clearance constitutes ‘outright smuggling’ under section 102(ff) and section 1401 of RA 10863 or the Customs Modernization and Tariff Act,” Lumanog said.
Lumanog added, since the appraised value of the HFCS unlawfully imported dutiable amounts to around P70,162,244, the respondents should be held criminally liable, in which the penalty carries 12-20 years imprisonment and a fine of P15 to 50 million.
Among the respondents named in the case are Coca-Cola FEMSA Director Washington Fabricio Garcia; Directors Francisco Colunga, Jerri Liu, Juan Pablo Rodriguez, Sunil Ghatnekar, Johan Willem Maarten Jansen, and Macaria Saldua; and Coca-Cola Chief Finance Officer Sunil Gupta.
The complaint was received by the BOC last May 11./WDJ