Question & AnswerQ&A (SRA SUGAR ORDER NO. 8, S. 2013-2014)
The main purpose of SRA Sugar Order No. 8, Series of 2013-2014 is to require the storage of raw or refined sugar only in warehouses registered with the Sugar Regulatory Administration (SRA) to monitor and regulate sugar inventory and prevent smuggling and tax evasion.
Owners or operators of warehouses that store or keep raw and/or refined sugar are required to register their warehouses with the SRA and renew the registration every crop year, except those already covered by existing SRA orders or circulars such as accredited sugar traders, custom bonded warehouses of food processors for export, and sugar mills and refineries.
Requirements include a notarized application form with owner/operator details and warehouse addresses, passport size photos of owners/operators/representatives, SEC or DTI registration documents, barangay permit, mayor's permit, latest BIR registration, and other documents as may be required by SRA.
The registration fee is P2,000 payable upon approval of the registration application. For applications filed during the remaining months of the current crop year, only 50% of the fee is required.
The registration is valid for one crop year only and can be renewed by filing the necessary documents and complying with registration requirements at least two months before the crop year starts.
Sugar stored in unregistered warehouses is presumed undocumented. The penalty is a fine of P300 per bag for the first offense and no less than P500 per bag for subsequent offenses. The sugar will be placed under SRA control until fines are paid.
They face fines as stated in Section 8 for undocumented sugar storage. If the warehouse owner is also the owner or consignee of the sugar, a double penalty applies, including the fine for undocumented sugar.
The SRA has visitorial authority to conduct unannounced inspections at reasonable working hours. Refusal to allow inspection presumes the sugar is undocumented and subject to penalties.
A Notice of Registration issued and signed by the SRA Deputy Administrator must be posted conspicuously showing warehouse name/number, address, owner/operator name, registration validity, and SRA control number.
The Notice of Registration will be removed and the warehouse will be considered unregistered, making sugar stored there subject to penalties as undocumented sugar.