Cost of compliance: SRA suspends SO6 pending stakeholders consultation

Posted by siteadmin
January 31, 2025
Posted in HEADLINE

The Sugar Regulatory Administration (SRA) has suspended the implementation of Sugar Order (SO) No. 6, which sets the guidelines for the importation of certain sugars and sugar confectionery, pending further consultations with industry representatives.

SRA Administrator Pablo Azcona said the decision to suspend SO6 was in response to concerns raised by stakeholders in the sugar industry during the SRA board meeting on January 23.

Azcona said the stakeholders’ concerns had been communicated through letters to the Department of Agriculture (DA) and SRA, prompting the board to delay SO6’s implementation until dialogue with the affected parties could take place.

“We have received letters and are actively reaching out to set up meetings with the concerned groups,” Azcona said.

He further clarified that the DA had been tasked with facilitating the discussions to address the industry’s specific fears and concerns.

Two key issues were identified during the consultation process: Concerns about processing delays and the associated costs of compliance.

Azcona reassured the industry that the SRA processes more than a thousand sugar-related import clearances each year, with typical processing times averaging just two to three working days.

“We have been issuing import clearances for fructose under the same 1702 code since 2017, and there have been no reports of delays or disruptions to business operations,” he stated.

Regarding costs, Azcona said the processing fee for sugar imports under SO6 is minimal — only P0.06 per kilo, which represents about 0.08 percent of the total cost of importing other sugars.

To further streamline the process, he announced that SRA is set to launch an online portal for applications.

Azcona emphasized that the goal of SO6 is to provide accurate data for better supply and demand planning, ultimately benefiting both local farmers and consumers.

“SRA and the DA are very careful that policies made do not affect the consumers as well,” Azcona said.

“Again, their fears are unfounded as these are all speculative at the moment. Since the order has not been implemented yet, we welcome the opportunity to sit with them and find solutions to their concerns,” he added./WDJ

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