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(NAR) VOL. 29 NO. 1/ JANUARY - MARCH 18

[ DEPARTMENT ORDER NO. 187, S. 2018, March 02, 2018 ]

SCHEDULE OF PAYMENT TO COVER UNREMITTED SAWP LIEN DUES, INCLUDING PENALTIES ACCRUED, FOR THE PERIOD OF CY 2012 TO DECEMBER 31, 2017



Adopted: 19 February 2018
Date Filed: 02 March 2018


Pursuant to Section 11 (e) and 17 of the Republic Act No. 9367, otherwise known as ‘The Biofuels Act of 2006; the Joint Administrative Order No. 2008-1 Series of2008,  DOLE  Department  Order  No. 123-12,  or the Guidelines  on the Implementation  of  the  Social  Amelioration  And  Welfare  Program  (SAWP)  for Workers in the Biofuels Industry, Utilizing Coconut as Feedstock, and upon the recommendation  of  the  Tripartite  Consultative  Council  (TCC)  in  the  Biodiesel Sector  of  the  Biofuels  Industry,  the  Department  of  Labor  and  Employment (DOLE) hereby issue the following:

I.     Background

Due to the steep competition in the local biofuels market, which according to The Philippine Biodiesel Association (TPBA), led to the difficulty of some Coco Methyl Ester  (CME)  Producers  to sell its excess  CME  products  and consequently  its failure to remit on time and on a regular basis its monthly SAWP lien dues, the TPBA declared a unilateral suspension on the payment of its members' monthly SAWP lien dues.

Acknowledging,  however,  its obligation  to regularly  remit to the Department  of Labor and Employment (DOLE) its monthly SAWP lien dues, in accordance with Republic Act No. 9367, the TPBA requested the DOLE to set amicable terms of payment to cover the unremitted SAWP lien dues, including penalties accrued, of TPBA members, for the period of CY 2012 to December 31, 2017.

II.    Legal Basis

Item VII, number 1 (a) of DOLE Department Order (0.0.) No. 123-12 states that “effective calendar year 2012, a lien of Php0.05 per liter of CME produced and sold shall be initially imposed and implemented,  subject to the review every two (2) years for possible adjustment upon the recommendation by the Tripartite Consultative Council.”

Item VII, number  2 (e) of the same D.O. states  that “a penalty  of ten percent (10%)  per  month  on  unremitted  lien  collection  after  the  lapse  of  prescriptive period of seven (7) days from the end of the reference month shall be imposed upon non-complying producer. Such penalties for non-remittance of lien collected shall accrue to the Fund.”

Further, Item XI on Penalties and Sanctions/ Resolution of Issues, number 3 of the same D.O. states that “the DOLE Secretary  shall recommend  to NBB and DOE to suspend or stop the business operations of concerned biofuel producers for refusal to comply with the provisions of RA 9367 and/or these guidelines as well as to impose appropriate administrative fines and penalties for any violation, thereof” and under Item XI, number 4 of same D.O. indicate that “the DOLE Secretary  or his/her authorized  representative  shall recommend  to the NBB or DOE the filling of appropriate case against any erring company, organization, person/s for any violation of these guidelines in the appropriate court.”

However, Item XI, number 5 of the same D.O. states that “issues arising from the implementation  or  interpretation  of these  guidelines  shall  be  submitted  to  the DOLE Secretary for resolution and appropriate action.”

In view of the above manifestation given by TPBA, the DOLE, upon consultation and with the recommendation of the TCC, hereby issue this Order.

III.   Coverage

This Order shall only cover the unremitted SAWP lien dues including penalties imposed and accrued starting CY 2012, or from the inception of DOLE D.O. 123-
12,  and  until  December  31,2017.  It  shall  also  indicate  the  schedule  on  the
settlement of the unremitted SAWP lien dues, including penalties accrued, by defaulting CME producers.

This Order shall be applicable to CME producers who are members of the TPBA
and duly accredited by the Department of Energy (DOE).

IV.  Schedule of Payment

To effect the expeditious  implementation  of this Order and provide guidance  in the orderly collection of unremitted SAWP lien dues including penalties, below is the schedule of payment to be strictly adhered to by defaulting CME producers:

A.   For defaulting CME producers with accrued penalties totaling to Php550,000.00 and below:

Ac t i v i ty

Schedule (on or before)

Evidence/Proof of Payment

  Responsible Office

  Full Payment of Unremitted SAWP Lien Dues (covering CY 2012 to 31 December 2017)*

1 5 February 2018

Copy of Bank Deposit Slips, furnished to BWSC

Defaulting CME Producers

Staggered Payment of Accrued Penalties (covering CY 2012 to 31 December 2017)

• 10% of Total Accrued Penalties (based on BWSC records)

1 5 February 2018

-do -

-do -

• 20% of Total Accrued Penalties (based on BWSC records)

3 0 March 2018

 

 

• 20% of Total Accrued Penalties (based on BWSC records)

3 0 April 2018

-do -

-do -

• 20% of Total Accrued Penalties (based on BWSC records)

3 1 May 2018

-do -

-do -

• Full settlement of the remaining 30% of the Total Accrued Penalties (based on BWSC records)

3 1 July 2018

-do -

-do -


B.   For  defaulting  CME producers  with  accrued  penalties  that  is  more  than Php550,000.00:

Activity

Schedule

Evidence

Responsible Office

Full Payment of Unremitted SAWP Lien Dues (covering CY 2012 to 31 December 2017)*

1 5 February 2018

Copy of Bank
Deposit Slips, furnished to BWSC

Defaulting  CME Producers

Staggered Payment of Accrued Penalties (covering CY 2012 to 31 December 2017)

• 10% of Total Accrued Penalties (based on BWSC records)

1 5 February 2018

-do -

-do -

• 10% of Total Accrued Penalties (based on BWSC records)

3 0 April 2018

-do -

-do -

• 10% of Total Accrued Penalties (based on BWSC records)

2 9 June 2018

 

 

• 10% of Total Accrued Penalties (based on BWSC records)

3 1 August 2018

-do -

-do -

• 20% of Tot al Accrued Penalti es(based on B W SC records)

3 1 Oct ober 2018

-do -

-do -

  • 20% of Total Accrued Penalties(based on BWSC records)

3 1 December

2018

-do -

-do -

• Full settlement of the remaining 20% of the Total Accrued Penalties (based on BWSC records)

2 8 February 2019

-do -

-do -


* However, the schedule of payment, as shown above, shall in no way Impede the Intention of concerned CME producers to fully settle their incurred arrears including penalties.
The  Bureau  of Workers  with  Special  Concerns  (BWSC)  of the Department  of Labor  and  Employment,  as  program  manager,  shall  prepare  the  schedule  of payment including the amount to be paid by each defaulting CME producers and communicate  the same 10 calendar days prior to the schedule  of payment,  as stated in the table above. Likewise, the BWSC, with the approval of the Tripartite Consultative Council (TCC)-Biodiesel  Sector, shall prepare a mechanism on the usage  of  the  collected  SAWP  lien  penalties  to  benefit  the  workers  of  said defaulting   CME  Producers,   as  priority  beneficiaries.   The  BWSC  shall  also monitor the implementation of this Order and prepare a status report for the TCC and the DOLE Secretary.

The schedule of payment indicated above shall in no way lead to the suspension of the regular scheduled remittance of SAWP lien dues, provided under Item VII on the Management of Lien, Number 2(b) of DOLE D.O. 123-12.

Failure  to fully settle arrears  including  penalties  following  the agreed  schedule shall  lead  to  the  rescission  of  the  terms  and  conditions  set  herein.  As  such, defaulting  CME producers  shall be required  to pay in full the balance  (unpaid amount including penalties) of what was compromised to this Department.

V.   Separability Clause

In   no   manner   does   this   Order   amend   the   existing   provisions   of   DOLE Department Order No. 123-12. When the schedule of payment contained herein lapses, relevant provisions under DOLE D.O. 123-12 shall be fully enforced, including its corresponding penalties and sanctions.

Likewise,  no  other  similar  remedies  shall  be  coursed  through  by  the  CME producers and TPBA with other government entities identified in Republic Act No. 9367.

This  Order  shall  take  effect  upon  the  date  of issuance  and  shall  be  deemed revoked  after  the  lapse  of  the  schedule  of  payment  contained  herein  or  28 February 2019.

(SGD) SILVESTRE H. BELLO III
Secretary
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