WHEREAS, the country’s Sugar Export commitment to the United States for Quota Year 1995-1996 is 229, 393 M.T. Commercial Weight;

WHEREAS, a U.S. Countertrade Sugar Swap Program at a ratio of 1:1.25 (export to import) has been approved by His Excellency, President Fidel V. Ramos, with the issuance of Memorandum Order No. 358, dated 02 April 1996, providing for the export of our domestically produced raw cane sugar to the U.S. market in the total quantity of 229, 393 M.T. Commercial Weight and the importation of 286, 741 M.T. Commercial Weight of raw cane sugar from the World Market through the Philippine International Trading Corporation (PITC).

WHEREAS, The Confederation of Sugar Producers Associations (CONFED), National Federation of Sugarcane Planters (NFSP), Philippine Sugar Millers Association (PSMA) and the Association of Integrated Millers (AIM) have signed a commitment to the PITC, to fill up the U.S. Sugar Quota with their domestically produced raw cane sugar.

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

SECTION 1. Countertrade Sugar SWAP Program. — The 229, 393 M.T. Commercial Weight U.S. Sugar Quota shall be exported by the PITC, which shall in turn import tariff-free from the world market 286, 741 M.T. Commercial Weight of Raw Cane Sugar to meet domestic market requirements.

SECTION 2. Unshipped 1994-1995 and Previous Crop years' "A" or U.S. Quota. — Unshipped "A" Sugar of 1994-1995 crop year and previous crop years’ are hereby granted priority in the filling up of the 1995-1996 U.S. SUGAR QUOTA, pursuant to Section 4 of the SRA Sugar Order No. 1, Series of 1995-1996, dated 01 September 1995.

The deadline for the submission of the outstanding "A" quedan-permits to the SRA for processing for export shall be not later than 30 April 1996, to ensure the filing up of the U.S. Sugar Quota.

However, this unshipped "A" or U.S. Quota Sugar shall have no equivalent counterpart or share in the sugar importation of the PITC under the Countertrade Sugar Swap Program.

SECTION 3. Qualifying the "B" or Domestic Sugar to Fill-Up the U.S. Quota. — All domestically-grown sugar classified as "B" are eligible for export to the extent of our U.S. Sugar Quota for 1995-1996, per Malacañang Order No. 358, dated 02 April 1996.

The "B" or Domestic sugar quedan-permits to cover the withdrawal of sugar for export under the Countertrade Sugar Swap Program when submitted to the SRA for processing, shall be charged a processing fee in the amount of P8.00 per M.T. (P0.45/Lkg-Bag) as clearance fee for export of sugar.

SECTION 4. Rules on U.S. Countertrade Sugar SWAP Program. — A Circular Letter shall be issued to prescribe the guidelines to implement the Countertrade Sugar Swap Program.

SECTION 5. Provisions of Sugar Orders, Circular Letters and/or other regulations contrary to or inconsistent with this Sugar Order are hereby amended, modified, or revoked accordingly.

Adopted: 23 Apr. 1996

By Authority of the Sugar Board:

(SGD.) ROLLEO L. IGNACIO