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(NAR) VOL. 10 NO. 4 / OCTOBER - DECEMBER 1999

[ DOLE DEPARTMENT ORDER NO. 05, October 25, 1999 ]

IMPLEMENTATION OF THE AUTOMATIC ADDITIONAL LIEN OF P1.00 PER PICUL OF RAW SUGAR PRODUCED EFFECTIVE CROP YEAR 1999-2000



Pursuant to Section 7 of Republic Act No. 6982, also known as the Sugar Amelioration Act of 1991 and its implementing rules and regulations and acting on the recommendation of the Sugar Tripartite Council (STC) during its meeting on August 25, 1999 at Digos, Davao del Sur, the following shall be observed by all concerned in the implementation of the additional P1.00 Social Amelioration lien effective crop year 1999-2000.

SECTION 1. Coverage. — Effective crop year 1999-2000 the automatic additional lien of P1.00 per picul (or its corresponding amount in LKG) shall be imposed on gross production of raw sugar in all mill districts, except in the Binalbagan-Isabela mill district where implementation was suspended pursuant to Department Order No. 32 (series of 1993) and which has not been revoked or lifted.

SECTION 2. Amount and Allocation of the Increase SAP lien. — Effective crop year 1999-2000, the total amount of the SAP lien shall be increased from P8.00 to P9.00 per picul (or 7.1146 per LKG) to be allocated as follows:

a. Eighty percent (80%) of the lien or P7.20 picul (equivalent to P5.69168 per LKG) including any and all incomes and interest derived therefrom as cash bonus to sugar workers.

b. Twenty percent (20%) of the lien or P1.80 per picul (equivalent to 1.42292 LKG) including any and all incomes and interest derived therefrom as Socio Economic Project Related Funds (SEPRF) to be utilized in accordance with sections 1/b of Rule VI of the Implementing Rules and Regulations of RA 6982.

SECTION 3. Collection of the Lien. — All covered sugar mills shall collect the additional lien in accordance with the collection procedure provided under Section 2/a of Rule VI of the Implementing Rules and Regulations of RA 6982 which states "All sugar mills shall collect the lien upon withdrawal or release of the sugar from the mill warehouse but in no case beyond one hundred eighty (180) days from the date of issuance of the corresponding sugar quedans: Provided, that after said one hundred eighty (180) days, the miller shall advance whatever amount is necessary to pay such lien to all concerned within five (5) working days counted from the end of the one hundred eighty (180) day period and charge the holder of said sugar quedan the amount so paid at such reasonable rate of interest as may be prevailing in the local banking community. Holders of quedans may advance the lien prior to the withdrawal of sugar from mill warehouse: Provided, the amount paid shall tally with the quedans issued.

SECTION 4. Monitoring of the Fund. — All sugar mills shall furnish the concerned DOLE Regional Offices monthly reports on sugar production and lien collection (RSPLC) and monthly statement of fund balances with the authorized depository bank.

SECTION 5. Effectivity. — This Order shall take effect starting crop year 1999-2000 and until revoked or modified pursuant to RA 6982.

Adopted: 25 Oct. 1999

(SGD.) BIENVENIDO E. LAGUESMA
Secretary
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