The Sugar Regulatory Administration (SRA) will allow exporters of raw sugar to the United States to import refined sugar to ensure that the country would have ample supply of the sweetener.
The SRA recently issued Sugar Order 4, which established an “A” sugar-export replenishment program for Crop Year 2019-2020.
“To replenish the volume when exported to the US, and restore domestic supply of sugar with more processed and valued refined sugar, an A sugar-export replenishment program has to be implemented,” the SO read. The order took effect on Thursday, January 9.
Furthermore, the SRA noted that the A sugar-export replenishment program will “benefit farmers, particularly small farmers as it will increase the value of their A sugar quedans.”
Under the replenishment program, exporters of A sugar “may import a corresponding volume of sugar exported at a ratio of 1:1 [raw equivalent],” according to the SO.
“If the replenishment shall be in raw form, SRA shall require the imported raw sugar to be tolled in a local refinery prior to reclassification,” it added.
“As used in this order, an Lkg [50 kg] of refined sugar shall be equivalent to 1.08 Lkg of raw sugar, if replenishment shall be in refined form,” it added.
The SO pointed out that only A sugar quedans issued for the current crop year, and exported to the US sugar quota for Fiscal Year 2019-2020 are covered by the replenishment program.
Furthermore, the exporters of A sugar may start importing once the SRA Board “determines that the replenishment is needed through the issuance of a separate sugar order/circular on guidelines of importation for the replenishment.”
The separate order shall outline the arrival date and requirements for issuance of clearance for release, and other pertinent rules on the importation of sugar through the replenishment program.
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