THE Department of Trade and Industry (DTI) said it is considering a tariff protection or quantitative restriction on sugar shipments, as part of a broader plan to relax the current sugar import process.
Trade Secretary Ramon M. Lopez said in a mobile message on Monday when sought for comment on the agency’s proposed importation scheme: “Proposals on mechanics still being discussed. But should consider user industries and retailers/ consumers and (should) be facilitated, liberalized thru an auction system to determine which companies can import. Again principles pa lang (for now). Being discussed.”
Mr. Lopez said he is for liberalizing the permitting process and is considering to put in place some “tariff protection” or regulation on imports volume.
“I mentioned there has to be some control on quantity to protect sensitive product without jeopardizing end users retailer importation process,” Mr. Lopez said.
“So must study quantitative restrictions but liberalize the process,” he added.
Budget Secretary Benjamin E. Diokno earlier cited the need to “deregulate or relax” sugar importation rules due to locally-sourced sugar being more expensive compared with those bought abroad.
The Budget chief also expressed the need to put sugar tariffs at 30% to 40%, much higher than the current 5%.
Philippine Biscuit and Snack Association (PBSA) President Kissinger Sy had noted that domestic sugar costs of P2,200.00 per 50-kilo bag (lkg), or roughly one and a half times the world market price at P1,500.00 per lkg, includes the 5% tariff.
Industrial players who make use of the sweetener, including the PBSA, have been clamoring government to allow them to directly import as traders. Current laws only allow importations from internationally registered importers. — Janina C. Lim
