MANILA - The Valuation and Classification Review Committee of the Manila International Container Port under the Bureau of Customs has ruled that Coca Cola Bottler’s Philippines Inc. misclassified its imports as “premixes”, when what the company actually imported was refined sugar, Lucio Barcelona, director of the Confederation of Sugarcane Producers Associations Negros Panay chapter, said last night.

Barcelona said he secured a copy of the VCRC resolution from the Bureau of Customs yesterday on instructions of Raymond Montinola , CONFED Negros Panay chapter chairman.

CONFED thanked Customs Commissioner Ruffy Biazon for seeing to a resolution of the matter.

“Premixes” carry a zero duty while refined sugar should be slapped a 38 percent tariff,” Barcelona said.

The VCRC ruled that CCBPI’s imports of “premixes” C-100, E-61 and C-200, even though a mixture consisting of refined sugar and citric acid, should be classified as if they consisted of the material or component that gives them their essential character which is that of refined sugar, Barcelona said.

The VCRC went on further to state that these “premixes” are raw materials in the production of beverages and the added ingredients did not sufficiently alter the essential character of the sugar, he said.

In short, the mixture did not attain the purpose or objective for which the mixture was made. Thus the VCRC found that the correct classification of CCBPI’s imports should be under Asean Harmonized Tariff Nomenclature (AHTN) tariff heading 1701.99 or white refined sugar with a tariff of 38 percent, Barcelona said

This Resolution is a result of the information supplied March 7, 2011 by several CONFED members to then Deputy Customs Commissioner Gregorio Chavez of the Assessment and Operations Coordinating Group, and concurrent head of the Run After The Smugglers Program (AOCG-RATS) of the Bureau of Customs.

Acting in their individual capacities, they informed him of the possible Misclassification and technical smuggling of Coca Cola Bottlers Philippines, Inc. of their sugar “pre-mix” imports, Barcelona said.

It was their position that Coke had imported what was declared as “premixes” at zero tariff when the company actually brought in refined sugar, he added.

Acting on the information from the CONFED members, Chavez immediately issued alert orders on all “pre-mix” shipments of the CCBPI, and the case was heard and submitted to the VCRC, he said.

Several farmers groups from Bacolod City had held protest actions in front of the Coke plant at Mansilingan and also called for a boycott of all Coke products due to their position that the massive importation of these “premixes” was the cause of the drop in sugar prices at that time. Farmers groups from Tarlac, Pampanga, and Bataan also held a protest in front of Coca Cola Bottlers Philippines plant in San Fernando, Pampanga.

The CONFED members acting as informants in the case were Raymond Montinola, Roberto Cuenca, Aurelio Valderrama Jr., Jose Maria Montinola, Rodolfo Gamboa, Lucio Ma. Barcelona Jr., Jose Luis Tongoy, and Enrique Barcelona.*CPG

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