The Department of Agriculture (DA) has directed the Sugar Regulatory Administration (SRA) to analyze shipments from Vietnam suspected of containing misdeclared sugar, following a Bureau of Customs (BOC) inspection that raised red flags, it was learned.
The three shipments, totaling 14 container vans, were initially declared as “sweet mixed powder” under Tariff Code 1702, which applies to “other sugar,” according to a news release from the DA.
However, the BOC suspects the cargo may actually be refined sugar, which falls under Tariff Code 1701 and is subject to stricter import regulations.
Each 20-foot container van can hold roughly 25 metric tons of sugar, putting the total shipment at an estimated 350 metric tons, valued at around P30 million. The tariff disparity is significant: under ASEAN trade agreements, imports under Code 1701 are taxed at 5%, while those under Code 1702 are levied at just 1%.
Agriculture Secretary Francisco Tiu-Laurel suggested the consignee may have deliberately misclassified the shipment to bypass SRA clearance, noting that no sugar importations have been authorized by the DA or SRA to date.
A joint task force comprising the BOC’s Customs Intelligence and Investigation Service (CIIS), SRA regulators, and Subic Bay Metropolitan Authority (SBMA) officials inspected the shipment. Preliminary findings showed the product contained 88% white granulated sugar and 12% glucose and was branded as “TTC Sugar,” manufactured by Bien Hoa Consumer Joint Stock Company.
During physical inspections, the “sweet mixed powder” bore a striking resemblance to refined sugar, deepening suspicions. As a result, the SRA collected samples from the shipment for laboratory testing to determine its true composition.
Key personnel from the DA, BOC, SBMA, and security teams oversaw the sampling process, with a high-level discussion taking place between the agencies and the District Collector of the Port of Subic.
The results of the tests will be crucial in determining whether the shipments were misdeclared, potentially leading to enforcement actions against the consignee. The case underscores the ongoing efforts of regulatory agencies to curb illicit import practices and protect the integrity of the Philippine sugar market.
