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(NAR) VOL. 7 NO. 2 / APRIL-JUNE 1996
[ SRA SUGAR ORDER NO. 6, December 22, 1996 ]
RECLASSIFICATION OF 1992-1993 AND 1993-1994 "D" OR WORLD MARKET SUGAR TO "B" OR DOMESTIC SUGAR UNDER CERTAIN CONDITIONS
WHEREAS, there was a shortfall in sugar production for Crop year 1994-1995 resulting in a shortage in domestic supply;
WHEREAS, SRA records show that a considerable quantity of 1992-1993 and 1993-1994 "D" or World Market sugar has remained unshipped;
WHEREAS, after due consultations with the private sector of the sugar industry, it has been recommended that the aforesaid "D" sugar be reclassified as "B" or Domestic Sugar, subject to certain conditions;
WHEREAS, the aforesaid recommendation will redound and prove beneficial to the national interest;
NOW, THEREFORE, under and by virtue of the powers vested in the Sugar Regulatory Administration, it is hereby ordered that:
SECTION 1. All sugar quedanned as "D" or World Market sugar of the 1992-1993 and 1993-1994 crop which do not appear from the records of the SRA either to have been exported to the world market or legitimately sold to bonafide processors of sugar-based export products are hereby reclassified as "B" or Domestic sugar upon payment by the quedan holder of a “Price Differential, subject to certain conditions and in accordance with this Sugar Order and its implementing rules and guidelines.
The foregoing paragraph shall likewise apply to the 1992-1993 and 1993-1994 "D" sugar which had been withdrawn from mill warehouses by any party who cannot present proof of export to the world market nor legitimate sale to bonafide processors of sugar-based export products.
SECTION 2. The amount collected as "Price Differential" is constituted for and shall insure to the benefit of all planters and millers and shall be distributed in the manner as follows:
a. The amount collected from the crop year 1992-1993 "D" sugar shall be distributed pro-rata on the basis of their respective "D" sugar production for said crop year; and
b. The amount collected from the crop year 1993-1994 "D" sugar shall be distributed pro-rata on the basis of their respective "D" sugar production for said crop year.
SECTION 3. The parties mentioned in Section 1 hereof shall file with the SRA the corresponding "Application for Reclassification" of their sugar from "D" to "B" not later than January 26, 1996, by accomplishing the appropriate forms prescribed by the SRA.
SECTION 4. Upon Filing of the Aforesaid Application for Reclassification, the applicant shall pay a "Price Differential" of P175.00 per 50-kilogram (LKg.) — bag to a "Depository Bank" to be designated and in the manner as hereinafter provided.
Any party who fails to file an application on or before January 26, 1996, or files an inaccurate application shall, upon being required to do so by the SRA, show cause why he should be exempt from the requirement. If found to be accountable, the said party shall pay an additional "Price Differential" of P25.00 per LKg.-bag.
Should there be any question as to the volume of sugar and/or identity of party subject to such payment of the "Price Differential," the SRA shall resolve the issue upon proper audit and determination of said volume and/or identity of the party accountable therefor.
SECTION 5. Upon filing of the aforesaid application, the SRA shall issue an "Authority to Accept Payment" addressed to the Depository Bank advising said bank to accept payment of the "Price Differential" due from the applicant, which payment shall be made not later than ten (10) days after issuance of the "Authority to Accept Payment."
Upon payment of the "Price Differential," the applicant shall present to the SRA proof of payment thereof and the surcharging of quedans and/or issuance of appropriate documents for reclassification of the volume of "D" sugar covered by the Application and the "Authority to Accept Payment" shall follow accordingly.
The issuance to a party of an "Authority to Accept Payment" and the payment made thereunder do not constitute a waiver or quit-claim of further accountability if, upon proper audit, the said party is found to be accountable for additional volumes.
SECTION 6. The "Price Differential" shall constitute a trust fund, to be known as the "Producers Trust Fund," which shall be established with a reputable commercial bank (the "Depository Bank") to be designated by the "National Council of Sugar Producers" (NCSP), composed of the four (4) national organizations in the sugar industry, namely: the Philippine Sugar Millers Association, the Association of Integrated Millers, the Confederation of Sugar Producers Associations and the National Federation of Sugarcane Planters. The NCSP shall determine the services which the Depository Banks shall render in the custody, management, disposition and distribution of the "Producers Trust Fund" and the service fees in connection therewith, as well as appropriate administrative and other related expenses.
The amount collected as "Price Differential" may be released to the beneficiaries thereof either partially or totally in accordance with the pro-rata distribution under Section 2 hereof.
SECTION 7. The SRA Administrator is hereby authorized to promulgate and issue circulars, rules and guidelines in the implementation of this Sugar Order.
SECTION 8. Provisions of sugar orders, circular, letters, rules and regulations contrary to or inconsistent with this Sugar Order are hereby revised, amended or revoked accordingly.
Adopted: 22 Dec. 1995
(SGD.) RODOLFO A. GAMBOA
Administrator
WHEREAS, SRA records show that a considerable quantity of 1992-1993 and 1993-1994 "D" or World Market sugar has remained unshipped;
WHEREAS, after due consultations with the private sector of the sugar industry, it has been recommended that the aforesaid "D" sugar be reclassified as "B" or Domestic Sugar, subject to certain conditions;
WHEREAS, the aforesaid recommendation will redound and prove beneficial to the national interest;
NOW, THEREFORE, under and by virtue of the powers vested in the Sugar Regulatory Administration, it is hereby ordered that:
SECTION 1. All sugar quedanned as "D" or World Market sugar of the 1992-1993 and 1993-1994 crop which do not appear from the records of the SRA either to have been exported to the world market or legitimately sold to bonafide processors of sugar-based export products are hereby reclassified as "B" or Domestic sugar upon payment by the quedan holder of a “Price Differential, subject to certain conditions and in accordance with this Sugar Order and its implementing rules and guidelines.
The foregoing paragraph shall likewise apply to the 1992-1993 and 1993-1994 "D" sugar which had been withdrawn from mill warehouses by any party who cannot present proof of export to the world market nor legitimate sale to bonafide processors of sugar-based export products.
SECTION 2. The amount collected as "Price Differential" is constituted for and shall insure to the benefit of all planters and millers and shall be distributed in the manner as follows:
a. The amount collected from the crop year 1992-1993 "D" sugar shall be distributed pro-rata on the basis of their respective "D" sugar production for said crop year; and
b. The amount collected from the crop year 1993-1994 "D" sugar shall be distributed pro-rata on the basis of their respective "D" sugar production for said crop year.
SECTION 3. The parties mentioned in Section 1 hereof shall file with the SRA the corresponding "Application for Reclassification" of their sugar from "D" to "B" not later than January 26, 1996, by accomplishing the appropriate forms prescribed by the SRA.
SECTION 4. Upon Filing of the Aforesaid Application for Reclassification, the applicant shall pay a "Price Differential" of P175.00 per 50-kilogram (LKg.) — bag to a "Depository Bank" to be designated and in the manner as hereinafter provided.
Any party who fails to file an application on or before January 26, 1996, or files an inaccurate application shall, upon being required to do so by the SRA, show cause why he should be exempt from the requirement. If found to be accountable, the said party shall pay an additional "Price Differential" of P25.00 per LKg.-bag.
Should there be any question as to the volume of sugar and/or identity of party subject to such payment of the "Price Differential," the SRA shall resolve the issue upon proper audit and determination of said volume and/or identity of the party accountable therefor.
SECTION 5. Upon filing of the aforesaid application, the SRA shall issue an "Authority to Accept Payment" addressed to the Depository Bank advising said bank to accept payment of the "Price Differential" due from the applicant, which payment shall be made not later than ten (10) days after issuance of the "Authority to Accept Payment."
Upon payment of the "Price Differential," the applicant shall present to the SRA proof of payment thereof and the surcharging of quedans and/or issuance of appropriate documents for reclassification of the volume of "D" sugar covered by the Application and the "Authority to Accept Payment" shall follow accordingly.
The issuance to a party of an "Authority to Accept Payment" and the payment made thereunder do not constitute a waiver or quit-claim of further accountability if, upon proper audit, the said party is found to be accountable for additional volumes.
SECTION 6. The "Price Differential" shall constitute a trust fund, to be known as the "Producers Trust Fund," which shall be established with a reputable commercial bank (the "Depository Bank") to be designated by the "National Council of Sugar Producers" (NCSP), composed of the four (4) national organizations in the sugar industry, namely: the Philippine Sugar Millers Association, the Association of Integrated Millers, the Confederation of Sugar Producers Associations and the National Federation of Sugarcane Planters. The NCSP shall determine the services which the Depository Banks shall render in the custody, management, disposition and distribution of the "Producers Trust Fund" and the service fees in connection therewith, as well as appropriate administrative and other related expenses.
The amount collected as "Price Differential" may be released to the beneficiaries thereof either partially or totally in accordance with the pro-rata distribution under Section 2 hereof.
SECTION 7. The SRA Administrator is hereby authorized to promulgate and issue circulars, rules and guidelines in the implementation of this Sugar Order.
SECTION 8. Provisions of sugar orders, circular, letters, rules and regulations contrary to or inconsistent with this Sugar Order are hereby revised, amended or revoked accordingly.
Adopted: 22 Dec. 1995
Administrator