Senator Francis Escudero yesterday said he is seeking an explanation from the Department of Finance and the Bureau of Customs for the entry of imported sugar into the country in the guise of premixes at zero tariff.

He will decide whether to seek a Senate inquiry on the matter after he gets an answer from the DOF and Customs, said Escudero, who was in Bacolod City for its celebration of the country’s 113th Independence Day.

“Depending on their answer, we’ll take it up from there, we are in recess so I can’t file a resolution to that effect yet, anyway,” he told the DAILY STAR.

Sugar Watch, a multi-sectoral group, is set to launch a boycott against Coca-Cola this week for its importation of sugar in the guise of premixes that enter the country at zero tariff.

Imported sugar is subjected to a 38 percent tariff.

Sugar Watch leaders claim that the entry of sugar in the guise of premixes has driven down the millgate prices of domestic sugar and deprived government of millions of pesos in revenue.

Escudero said he supports the call of Gov. Alfredo Marañon for government action against sugar smuggling and the entry of sugar in the guise of premixes.

The Senator noted that it is driving down millgate prices and affecting Negros Occidental that is the prime producer of sugar.

The rules and regulations on the entry of premixes need to be reviewed, he said.

Meanwhile, the United Sugar Producers Federation of the Philippines is joining the Sugar Watch boycott on Coca-Cola, UNIFED president Manuel Lamata said yesterday.

“These Americans want us Filipinos to buy Coca-Cola but they don’t want to buy our local sugar,” Lamata said.

Sugar Regulatory Administration chief Ma. Regina Bautista-Martin said she expects the Valuation and Classification and Review Committee of the Bureau of Customs to come out with a decision whether to tax Coca-Cola for its premixes soon.

Coca-Cola’s premix sugar has been classified as “C” or reserve sugar to prevent its release domestically while the Customs’ hearing is ongoing, she said.

Since January, Coca-Cola’s premix imports have reached 24,000 metric tons that on testing were found to be more than 99.5 percent sugar with the remaining amount being flavoring and or coloring, SRA findings show.

The SRA wants Customs to classify the Coke premix imports as sugar that should be subjected to a 38 percent tariff, Martin said.

Martin said the Sugar Master Plan Foundation, which is composed of various sugar industry groups, has been assisting and closely monitoring the case against Coca Cola, with the SRA providing the technical information.

Catherine Avelino, Coca Cola Philippines corporate communications director, earlier said they will wait for the VCRC ruling, “At this point all we can say is our premix importations are legal.”

Coke has informed her that it will not bring in high fructose corn syrup for the next quarter since it is now more expensive than the current price of sugar in the country, Martin said.

The firm has indicated that if the price of sugar is at P1,300 to P1,500 per lkg it will be more viable for it to source its sugar domestically.

Martin said she will meet with the leaders of the Sugar Watch to discuss their concerns.

The SRA chief maintains that she is against the  Department of Trade and Industry bid to  issue a suggested reference price for sugar noting that the retail prices do not reflect the current millgate prices that have gone down.*CPG

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