Coke loses on
pre-mix imports

Well. Good news come in bunches sometimes, as in the case of the sugar stories yesterday. First, there was the announcement by Sugar Regulatory Administrator Ma. Regina Martin Bautista that the Philippines had bagged an additional 75,540 metric tons under US Revised 2012 Tariff Rate Quota Allocation for raw sugar.

The second, just as big as sofar as the Confederation of Sugarcane Producers Association is concerned was the report that the Bureau of Customs, upholding that the Coca Cola Bottles Association Philippines Inc., had brought into the country misclassified “premixes” passed off as such when they were refined sugar.

The latter was a long-expected ruling by the Valuation and Classification Reviews Committee of the Manila International Container Port of the customs bureau.

It had long been expected by Confed labor unions which had launched last year a boycott against Coca Cola for the suit which reportedly deprived the government million of pesos in lost revenues due to the tariff of 38 percent slapped on refined sugar.

Lucio Barcelona, a Confed Panay-Negros Chapter director, was the one who secured a copy of the VCRC resolution on instruction of Raymond Montinola, Confed chapter chairman.

The guarantee headed by Lucio Barcelona, with Jose Luis Tongoy with Barcelona hand the case from start to finish. And they hailed Customs Commissioner Ruffy Biazon in upholding the Confed position backed by the Sugar Regulatory Administration these on the issue which also was supported by trade union members.

Montinola said it is a landmark case that may earn the government millions in revenue the difference between free tariff and the 38 tariff due to refined sugar.

The 73,373,653 met could serve as a breather to sugar producers and it may increase the buying price of raw sugar which are to be refined yet.

In short, we can expect a relief for sugar producers at the end of the milling season it could boost the price of raw sugar.

Alleluia was the chorus sang by sugar producers with the present developments on the sugar front.

At least, both events provide relief for the country's sugar producers who been lamenting the low price of raw sugar since last year.

I had been monitoring the premix case against Coke by Confed since last year. And had faint hopes that it would succeeded when the boom was lowered on for Commissioner Gregorio Chavez, head of the assessment and operations Coordinating Group and concurrent head of the Run After The smugglers program of the Bureau of Customs.

The VCRC found that the correct classification of CCBPI's imports should be under the ASI Harmonized Tariff Nomenclature (AHTN) heading 1701.99 or white refine sugar with a tariff of 38 percent.

Barcelona said Coke had imported what was declared as premixes at zero tariff when the company actually brought in refined sugar.

The SRA laboratory also upheld the position by the Confed protestants. This was late taken up by the farmers' group of Negros Occidental who picketed the Coca Cola Bottling, plant in Mansilingan and also launched province-wide bought of the soft drinks.

Well, all's well that ends well. For the moment, sugar men of the province can heavy a such of relief.

Now it is Coke that will have a headache over the Customs bureau's decision hiding the VCRC findings.

***

Despite expectations of sabre-rattling moves, the Scarborough Shoal issue, at least the Philippines is showing a statesman approach to settle that issue.

But, at the same time, it also insists on showing the flag over the shoal it will consist the United States State and defence department on the issue.

So, instead of the inevitability of an armed skirmish, what we have is the spectacle of the Philippines understanding peaceful moves to clarify the issue and reach an agreement with China over the latter's claim of sovereignty over the Shoal.

As it is, Del Rosario has been somewhat hobbled by his sprain. And he cannot effectively discharge the duties of both our envoy to Beijing and as secretary of foreign affairs.

Alleluia. Finally the President has agreed to accept the withdrawal of his nomination of former Ambassador D. Lee.*

back to top