Sugar and food preparations (principally made of sugar in general)
- Document symbol
- G/LIC/N/3/PHL/15/Rev.1
- Original language
- English
- Published on
- 21/02/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
Import permits are required for the importation of cane or beet sugar or chemically pure sucrose in solid form, cane molasses, crystalline fructose, high fructose corn syrup (HFCS) and food preparations (that are principally made of sugar in general), whey powder, sugar confectionery and cocoa powder.
Applications to import regulated commodities must be submitted to the SRA, Quezon City with complete requirements upon the issuance of import permit.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The permits are required for the following:
(a) HS 17.01 – Cane or beet sugar or chemically pure sucrose in solid form;
(b) HS 17.02 – Other sugars (High Fructose Corn Syrup (HFCS) and Chemically Pure Fructose (Crystalline Fructose);
(c) HS 17.03 – Cane molasses;
(d) HS 17.04.90.20 and 17.04.90.99 – Sugar confectionery (White Chocolate and Other);
(e) HS 0404.10.00; 0404.90.00 – Whey powder;
(f) HS 1806.10.00; 1806.20.10; 1806.31.00; 1806.32.00 – Cocoa powder; chocolate confectioner; in blocks, slabs, bars; filled; not filled; and
(g) HS 2106.90.54; 2106.90.55; 2106.90.59; 2106.90.69; 2106.90.71; 2106.90.72; 2106.90.91; 2106.90.99 – Food preparations.
Q3. The system applies to goods originating in and coming from which countries?
The permit system applies to products coming from all countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The permit system aims to monitor the importation and utilization of cane or beet sugar, cane molasses, crystalline fructose, high fructose corn syrup (HFCS) and food preparations (that are principally made of sugar in general) that displaces the locally-produced sugar and thereby negatively affects the balance of production, threatens the livelihood of industry workers, and impedes the growth of the industry.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The relevant regulations are the following:
(a) Sugar Order No. 08, series of 2017-2018, Amendment to Sugar Order No. 9, series of 2007-2008 and Sugar Order No. 8, series of 2014-2015.
(b) Molasses Order No. 01, series of 2014-2015, Rules and Regulations on Molasses Importation.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
For Quota Products: HS 17.01 – Cane Sugar. See Answers 6.1-6.11
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
All regulations are circulated and made available to interested parties. They are also published in the Official Gazettes (e.g. Office of the National Registrar, U.P. Law Centre, Diliman, Quezon City) and/or in the newspaper of general circulation.
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
a) For CBW (Customs Bonded Warehouse) food processors/manufacturers of sugar- based products for export utilizing cane sugar, import quotas are determined on an annual basis and are subject to the approval of the SRA Sugar Board. Permits issued for imports are issued per shipment and have a validity period of one month.
b) Imported sugar quotas for domestic consumption are issued with applicable Sugar Orders with its corresponding Implementing Rules and Regulations (IRR).
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Any portion of the allocation not taken within the quota year shall be forfeited. Quotas allocated under the name of the importers are not published in order to avoid possible disclosure of confidential information. However, they can be made known to the government, upon request and when necessary and appropriate.
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Applicants may submit their applications for import permit upon approval of their quota and submission of the requirements for the issuance of import permit.
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Under normal circumstances, an application for an import permit with complete requirements can be granted within two-three working days.
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Permits issued for imports are issued per shipment and have a validity period of one month. The importer may apply anytime for the issuance of the import permit provided that the volume of importation does not exceed the quota and the application must be received within the last working day of the current year.
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Only one administrative body considers the application for license.
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
For CBW (Customs Bonded Warehouse) food processors/manufacturers of sugar-based products for export utilizing cane sugar, HFCS and Crystalline Fructose, import quotas are determined by past year performance. Increase in quotas must be strongly justified and subject to the approval of the SRA Sugar Board.
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
For CBW (Customs Bonded Warehouse) food processors/manufacturers of sugar-based products for export utilizing cane sugar, the finished products must be exported.
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Where there is no quantitative limit on the importation of products, application must be filed with complete requirements upon the issuance of import permit.
Q7.b. Can a licence be granted immediately on request?
Depending on the urgency of the request, permits could be granted immediately provided the requirements are complete.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Applications may be filed on any working day of the year.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Generally, consideration of application for import permit is affected by only one administrative body – Sugar Regulatory Administration (SRA), North Avenue, Diliman, Quezon City.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Are the reasons for any refusal given to applicants?
In the event of denial or disapproval by the pertinent administrative body of an application for import license, other than meet the ordinary requirements, the applicant is informed of the reason for such disapproval.
Have applicants a right of appeal in the event of refusal to issue a licence?
In the event of denial or disapproval by the pertinent administrative body of an application for import license, other than meet the ordinary requirements, the applicant is given the right to make a written appeal for consideration of the decision.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
International Sugar, HFCS and Molasses Trader
The information usually required in the applications include name and address of importer, business information, names and positions of authorized representatives, location and capacity of warehouse/s. The documents required to support the application, usually include, among others: SEC/DTI/CDA Registration, Tax Identification Number (TIN), Business Permit, Corporate Income Tax Return (ITR) and Financial Statement and track record of domestic and export transaction.
For CBW (Customs Bonded Warehouse) food processors/manufacturers of sugar-based products for export
The information usually required in the applications include name and address of applicant, business information and names and positions of authorized representatives. The documents required to support the application, usually include, among others: SEC/DTI/BOI Registration, BIR/VAT Registration, Tax Identification Number (TIN), Business Permit, Corporate Income Tax Return (ITR) and Financial Statement, DOST Formula of conversion and CBW Certificate of Accreditation.
Q11. What documents are required upon actual importation?
Upon importation, the documents required include, among others: Duly notarized application letter, Bill of Lading, commercial invoice and packing list.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Is there any licensing fee or administrative charge?
Yes
What is the amount of the fee or charge?
For the list of licensing fees and administrative charges, please refer to table below:
Table A. Schedule of Registration Fees/Charges (In Philippine Peso)
| Product | Amount |
|---|---|
| Registration Fee | |
| International Sugar, HFCS and Molasses Trader (New and Renewal) | PhP 20,000.00/year |
| Food Processors of Sugar-based Products for Export (New and Renewal) | PhP 5,000.00/year |
| Food Processors of Sugar-based Products for Export (Additional Allocation) | PhP 3,000.00/year |
| Import Clearance Fee | |
| Food Processors of Sugar-based Products for Export | PhP 25.00/50 Kg-Bag |
| Molasses | PhP 450.00/Metric Ton |
| High Fructose Corn Syrup (HFCS) | PhP 30.00/Metric Ton |
| Crystalline Fructose | PhP 36.00/Metric Ton |
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
There is no deposit or advance payment requirement associated with the issuance of licenses.
Please refer to https://www.sra.gov.ph for further information.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Licenses for International Sugar, HFCS and Molasses Trader is only valid for one Crop Year (September of the current year until August of the following year) while for CBW (Customs Bonded Warehouse) food processors/manufacturers of sugar-based products for export is valid for one Calendar Year.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilization of a license subject to quota.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licenses are non-transferable, since the licenses issued are made under the name of the applicant-importer.