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This Circular Letter is hereby issued to revoke Circular Letter No. 23, dated 07 March 2006 re: Implementing Guidelines in the Liquidation of “B-2” or NFA Sugar, and new guidelines are hereby promulgated, as requested by the National Food Authority, for the information and guidance of all concerned pursuant to Sugar Order No. 7, Series of 2005-2006, to wit:

1. Making Available the “B-2” Sugar to NFA

1.1 The sugar producers (planters and milers) shall make available their consolidated (block quedanning) “B-2” quedans on a weekly basis to the National Food Authority (NFA) through the Sugar Regulatory Administration (SRA).

1.2 The issuing mill companies shall on a weekly basis transmit and/or submit the consolidated “B-2” quedan-permits (attached thereto the list of producers) to the SRA Sugar Production Control and Regulation Officers (SPROs) assigned thereat for liquidation by the NFA through its Regional Offices.

1.3 Failure of the mill companies to transmit and/or submit the “B-2” quedans to the SRA SPROs, assigned thereat immediately after having been signed by the SPROs, shall render the subject quedans to remain as “B-2” sugar and cannot be withdrawn therefrom without the authority/approval of the SRA.

2. Liquidation of the “B-2” Sugar Through the SRA SPROs.

2.1 The SRA SPROs assigned at the millsites shall have the following functions in the liquidation of the “B-2” sugar:

a) Shall prepare list of “B-2” quedans submitted by the mills, by planters’ associations/cooperatives to include the “B-2” quedans of the mills with the corresponding volume of “B-2” sugar for liquidation for the week to serve as acknowledgment receipt for the quedans received and liquidated by NFA representatives.

b) Shall release the “B-2” quedans to the authorized NFA representatives upon receipt of payments for the corresponding volume of “B-2” sugar of the planters’ associations/cooperatives and mill companies.

c) Shall transmit immediately the payments of the “B-2” sugar liquidated by NFA for the week to the concerned planters’ associations/cooperatives and mill companies.

d) Shall provide the SRA management through PCRO, SRA, Quezon City of the summary of the status of the liquidation of the “B-2” sugar on a weekly basis.

3. Liquidation and Distribution of the “B-2” Sugar by the NFA

3.1 Payment of the “B-2” Sugar

a) The NFA authorized representatives shall on a weekly basis at the millsites or Regional Offices, prepare the check payments for each planters’ associations/cooperatives and mill companies corresponding to the volume of “B-2” sugar for liquidation. The liquidation price should be fixed at a gross price of PhP950.00/LKg-Bag per said Sugar Order No. 7.

b) The NFA shall on a weekly basis provide the SRA, Quezon City with a liquidation report of the “B-2“ sugar.

3.2 Distribution of the “B-2” Sugar

a) The NFA shall submit the liquidated quedans to SRA, Quezon City (“B-2” quedans issued by mills in Luzon, Eastern Visayas and Mindanao) and SRA, Bacolod City (“B-2” quedans issued by mills in Negros and Panay) for surcharging/conversion from “B-2” sugar to “B” sugar and for the corresponding authority to be issued by the SRA for withdrawal for refining.

b) The NFA shall distribute/sell to the domestic market the “B-2” sugar in refined form through its Rolling Stores, “Tindahan Natin” and such other authorized retail outlets at a retail price lower than the prevailing market price per said Sugar Order No. 7.

4. Liquidation Period of the “B-2” Sugar

4.1 The NFA shall liquidate the “B-2” sugar within a period of Sixty (60) days from the date of its production (week-ending date of production reflected in its covering quedans) as authorized by Presidential Executive Order (EO) No. 512, dated March 7, 2006.

However, production covered by week-endings March 5, 2006 and prior week-endings shall be liquidated within Sixty (60) days from week-ending March 5, 2006 (basis the effectivity of the aforesaid E.O. No. 512), henceforth, the “B-2” quedans issued by the mills during the aforecited week-endings shall be submitted to the SRA immediately upon the effectivity of this Circular Letter, through the SPROs assigned thereat for liquidation of the NFA.

5. Unliquidated “B-2” Sugar

5.1 The unliquidated “B-2” sugar produced during week-ending March 5, 2005 and prior week-endings shall automatically be classified as “B” or Domestic Sugar after Sixty (60) days from week-ending March 5, 2006 (basis the effectivity of the aforesaid EO No. 512) and after Sixty (60) days from its week-ending date of production thereafter.

5.2 All “B-2” quedans covering the unliquidated “B-2” sugar shall be returned by the SRA to the concerned planters’ associations/cooperatives and mill companies already classified/surcharged as “B” or Domestic sugar.

This Circular Letter shall take effect immediately.

Adopted: 17 March 2006

(SGD.) JAMES C. LEDESMA
Administrator