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WHEREAS, Executive Order No. 18, dated 28 May 1986, creating the Sugar Regulatory Administration (SRA), mandates certain declared policies and objectives to and vests certain powers in the SRA;

WHEREAS, in compliance with and in pursuance of the said declared policies and objectives and the exercise of said powers, it is in the national interest that the SRA shall promulgate rules and regulations which will cover the importation of sugar and sugar by-products intended for the domestic market and the disposition thereof;

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

SECTION 1. This Sugar Order shall apply to all imported sugar, whether raw of refined, except as hereinafter provided.

Sugar, whether raw or refined, imported by or consigned to and exclusively for the use of local processors/manufacturers as ingredients of sugar-based products for export shall be subject to separate rules and regulations which the SRA may from time to time promulgate.

SECTION 2. The importer/consignee of the imported sugar covered by this Sugar Order shall apply for clearance from the SRA prior to the release of the commodity by the Bureau of Customs (BOC) by submitting to the SRA a letter-request for clearance, attaching to the application all pertinent documents of importation and by paying the following liens:

a. Price Stabilization Fee	-	P0.79 per LKg.
b. Special Milling Fee	-	0.0079 per LKg.
c. Milling Permit Fee	-	0.250 per LKg.
d. Milling License Fee	-	0.0028 per LKg.
e. Monitoring Fee	-	1.20       "      "
f. Sugar Industry Foundation, INC. (SIFI)	-	4.75       "      "
g. Sugar Market Development Fund (SMDF)	-	0.70       "      "

The importer/consignee shall pay the abovementioned liens directly to the SRA. In the case of the SIFI lien, the payment thereof shall be by checks in the name of SIFI. In the case of the SMDF lien, the payment thereof shall be by checks in the name of the Philippine Sugar Millers Association, Inc., as Trustee of said fund.

SECTION 3. In the issuance of the SRA clearance addressed to the BOC confirming that the importer/consignee has paid the required liens, the SRA will also indicate therein the classification of the imported sugar, whether it is "B" or Domestic Sugar or "C" or Reserve Sugar, the classification of which shall depend upon the current sugar supply situation in the country as determined by the SRA.

SECTION 4. If the SRA classifies the imported sugar as indicated in the clearance issued by the SRA as "B" or Domestic Sugar, the imported sugar may immediately be released by the BOC to the importer/consignee.

However, if the SRA shall classify the imported sugar as "C" or Reserve Sugar, the BOC shall turn over to the SRA the constructive custody of the sugar stored in. a particular BOC bonded warehouse. In such case, the SRA shall issue "C" sugar quedan-permits or similar documents in the name of the importer/consignee in such denominations of 50-kilogram bags per quedan as the SRA may deem appropriate.

SECTION 5. The release by the BOC to the importer/consignee or his authorized representative of the imported sugar which has been classified as "C" or Reserve Sugar shall be subject to the following conditions:

a. The SRA if and when deemed necessary and appropriate, shall partly or totally re-classify or convert the imported sugar into "B" or Domestic Sugar, which may then be released to the domestic or local market upon surrendering the sugar quedan-permits to the SRA representative assigned thereat.

b. A periodic inspection of the bonded warehouse shall be conducted by the SRA to monitor the stocks therein.

SECTION 6. The BOC shall be furnished with a copy of this Sugar Order and the BOC is hereby enjoined that no imported sugar shall be released without clearance from the SRA as prescribed herein.

SECTION 7. This Sugar Order shall take effect immediately.

SECTION 8. Provisions of Sugar Orders, Circular, Letters, rules and regulations inconsistent with or contrary to this Sugar Order are hereby revoked, amended or modified accordingly.

Adopted: 17 May 1995

(SGD.) RODOLFO A. GAMBOA
Administrator