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WHEREAS, there is now a weak or soft demand for locally produced sugar resulting to slow withdrawal from the mills/refineries causing congestion of sugar thereat;

WHEREAS, the slow withdrawal of raw sugar from the mills for refining will put into jeopardy the operations of the refineries;

WHEREAS, there is a need to allow transfer of sugar for the following cases, namely: i) raw/refined sugar from the mill/refinery to subsidiary warehouse/s located in another port to decongest the mill/refinery, ii) raw sugar from mill to a refinery located within or in another port to sustain the operation of our refineries, and iii) as deemed necessary for the benefit of the stakeholders of the sugar industry;

NOW, THEREFORE, under and by virtue of the authority vested in the Sugar Regulatory Administration (SRA) it is hereby ordered that:

SECTION 1. The transfer of raw/refined sugar from the mill/refinery to subsidiary warehouse/s in another port and/or raw sugar from mill to a refinery within or in another port is hereby allowed.

SECTION 2. Only "B" or Domestic sugar covered by the corresponding quedan-permits shall be allowed transfer to specified subsidiary warehouse/s or mill/refinery.

SECTION 3. A Letter of Application for transfer shall be filed with the SRA, Quezon City indicating therein the following:

1. Reason/s for transfer
2. Name and location of subsidiary warehouse/s or mill/refinery.
3. Volume of "B" sugar subject of transfer.
4. Memorandum of Undertaking by the applicant mill/refinery (copy hereto attached).

SECTION 4. A processing Fee of P1.00/LKg-Bag of "B" sugar for transfer shall be paid to SRA by the miller/refiner upon approval of the application for transfer.

SECTION 5. A Letter Authority, signed by the Administrator, addressed to the concerned mill/refinery, copy furnished the SRA Sugar Production Regulation Officer (SPRO) assigned thereat, allowing/authorizing the  transfer of the "B" sugar to specified subsidiary warehouse/s in another port or mill/refinery located within or in another port shall be issued by the SRA.

SECTION 6. Close monitoring of the "B" sugar for transfer shall be implemented through the following:

1. A copy of the Waybill issued by the mill/refinery and Letter Authority issued by the SRA shall be attached by the miller/refiner (in lieu of the SRO) when applying for a Shipping Permit with the SRA in case of coastwise movement in transferring sugar.
    
2. The SRA SPRO assigned at the subsidiary warehouse or the SPRO at the mill/refinery shall monitor the initial volume of transferred "B" sugar stored thereat and its succeeding withdrawals.
    
   In the case of transfer to the refinery, the Letter Authority issued by the SRA, in lieu of the SRO, shall be presented to the refinery to allow refining of same. The refinery shall not issue the corresponding refined sugar quedan to cover the volume of sugar transferred for refining but instead an acknowledgment receipt only.
    
3. The subject "B" sugar stored at the subsidiary warehouse or mill/refinery shall only be withdrawn upon presentation of the SRO (covering the said sugar) attached to a letter request for withdrawal addressed to SRA/SPRO assigned thereat.
    
   In the case of the refinery, upon presentation of the SRO and the acknowledgment receipt, the refinery shall issue the refined sugar quedan corresponding to the volume indicated in the SRO/acknowledgment receipt to effect withdrawal therefrom.
   
   
4. Weekly reports shall be submitted to the Office of the Administrator by the SPRO concerning: i) volume of transfer, ii) withdrawals, attached thereto the SRO issued by the mill/refinery as approved by the SPRO assigned thereat, and iii) balance or stock to-date.
   
   
5. The unwithdrawn volume of the subject "B" sugar shall still be part of the mill's refinery's stock balance (raw or refined sugar balance).

SECTION 7. Unauthorized/illegal withdrawals from mill/refinery and/or its subsidiary warehouse/s shall be subject to a penalty of requiring the concerned mill/refinery and/or the party withdrawing to pay the sum of money equivalent to twice (2 times) the prevailing millsite price of the sugar, without prejudice to the Undertaking subscribed and sworn to by the mill/refinery as mentioned herein.

SECTION 8. This Order shall take effect immediately and shall be valid and binding only up to and until 31 October 2003.

SECTION 9. Provisions of Sugar Orders, Circular Letters, Memoranda and/or other rules and regulations contrary to or inconsistent with this Sugar Order are hereby amended, modified or revoked.

Adopted: 07 May 2003

BY AUTHORITY OF THE SUGAR BOARD

(SGD.) JAMES C. LEDESMA
  Administrator