Table 3.

Design implications for SSB tax implementation in the Solomon Islands context

Policy options		Implications for implementation
1	Target all products coded under a selection of HS codes	Relatively simple to administer because of the adoption of the Automated System of Customs Data and thus the ability to ‘flag’ products for special treatment (e.g. special taxes). Requirements: Review of the HS codes to ensure that all ‘problematic’ SSBs are captured by targeted codes (e.g. beverages section and dairy section) ‘Splicing’ (disaggregation) of HS codes to avoid flagging non-SSBs within existing HS codes (e.g. sweetened coffee mix is targeted, but instant coffee is not), generating codes for all beverages with added sugar.
2	Target all beverages under a selection of HS codes containing more than a certain percentage of sugar, as defined by a nutrient threshold	Uses nutrient composition information to identify products containing sugar content above a designated threshold Requirements: Splicing of HS codes to define codes with sugar content above nominal threshold), with compliance checks by trained nutrition professionals Mandatory display of nutrient composition data to the exterior of shipping crates and cartonsa Training to enable customs officials to interpret nutrition composition panels and nutrient thresholds.
3	Target of all beverages with any ‘added sugar’ or ‘free sugar’ in the ingredients list	Uses ingredients lists to classify food. Requirements: Mandatory display of ingredients lists on manifest shipping crates and carton exteriora Review of the HS codes to ensure that all ‘problematic’ SSBs were captured under a set of codes being targeted Training to enable customs officers to identify sugar-containing beverage products (i.e. sugar added under different ingredient names)
4	Apply a volumetric tax based on sugar content by volume	A variable tax based on sugar content and product volume Requirements: Mandatory display of nutrient composition data to the exterior of shipping crates and cartonsa Training to enable customs officers to undertake detailed calculations to determine the rate of tax
5	Apply an ad valorem tax based on product value	A tax applied to the product value outlined on the manifest Requirements: Splicing of HS codes to avoid flagging non-SSBs within existing HS codes (e.g. sweetened coffee mix is targeted, but instant coffee is not)

SSBs include all liquid and powdered beverages (including carbonated, milk-based, flavoured powders, cordials and juice drinks) that have been sweetened with any form of added sugar.

^aThese could possibly be addressed by requiring the exporting country to outline nutrition composition or ingredients lists of each product in the shipping manifest.