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WHEREAS, Sugar Order No. 3, Series of 2008-2009 imposes a reinstatement penalty of P10.00 per Lkg-Bag per day on homeless “D” or World Market sugar, and the same policy is still in force and effect.

WHEREAS, many requests have been submitted for the reinstatement of “D/Dx” sugar which become homeless for lack of buyers prior to their established deadlines, or for failure to meet the deadlines due to various other valid reasons;

WHEREAS, the primary intention of SRA in instituting deadlines and imposing a reinstatement penalty for homeless “D” sugar is not to penalize quedan holders who unintentionally miss the deadlines but to enable the faster removal of excess sugar from the domestic market so as not to further depress domestic sugar prices to unprofitable levels;

WHEREAS, there were holders of homeless “D” quedans who already paid reinstatement fees, such that the principle of justice and equity should also be considered along with the granting of a subsequent moratorium on penalties for homeless “D” sugar;

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

SECTION 1. Moratorium. A proportionate moratorium on penalties for reinstatement of “D/Dx” sugar produced up to Week-ending February 1, 2009 shall be allowed, provided quedan holders authorize the sale of the homeless “D/Dx” sugar through block bidding to be facilitated by the SRA and conducted by the producers, representatives by March 12, 2009;

Section 1a. All “Dx” Sugar produced from Week-ending February 8, 2009 shall be covered by a separate Sugar Order establishing a “Dr” (World Export Reserve).

SECTION 2. Reinstatement Fee Table. A one-time reinstatement fee for homeless “D” and “Dx” sugar produced up to Week-ending February 1, 2009 shall be charged as follows:

Production Date/Year	Reinstatement Fee per Lkg- Bag
1. CY 06-07	P50.00
2. CY 07-08	P30.00
3. CY 08-09 (up to Week-ending Feb. 1, 2009)	P10.00

SECTION 3. Reimbursement of penalties paid in excess of the above fees. Any amount paid in excess of the above-stated fees for the reinstatement of homeless "D" and “Dx” quedans shall be reimbursed by the SRA to the payor of the reinstatement penalty which should accrue to the party who shouldered the cost of the penalties.

SECTION 4. Block Bidding. Quedan holders who wish to avail of the moratorium and reinstatement shall forward an application for moratorium attaching their “D/Dx” quedans, arranged according to mill and quedan number, to SRA Bacolod or Quezon City, together with a letter^* authorizing the sale of the said quedans in their behalf through block bidding facilitated by the SRA and conducted by the producers’ representatives no later than March 12, 2009 (format hereto attached).

The “D” quedan holders shall submit their quedans at least ten (10) days before the schedule block bidding (to be held no later than March 12, 2009). The Implementing Rules and Regulations on the conduct of block bidding shall be established by SRA through a Circular Letter after due consultation with the industry.

SECTION 5. Deadline. The deadline for submission of applications for moratorium under this sugar order shall be February 27, 2009.

SECTION 6. Removal of “D to E” conversion deadlines. The “D to E” Conversion Deadlines established by Sugar Order No. 3, Series of 2008-2009, are hereby removed for “De” sugar (D Sugar for Food Exporters) produced from Week-ending December 7, 2008 onwards, but the same shall still be covered by the “commitment for sale or shipping” deadlines under the same Sugar Order.

SECTION 7. Effectivity. This Order shall take effect immediately.

SECTION 8. Sugar Orders not contrary hereto shall remain in full force and effect while sugar orders, circular letters and other such issuances inconsistent or contrary hereto are hereby revoked, modified or amended accordingly.

Adopted: 05 Feb. 2009

BY AUTHORITY OF THE SUGAR BOARD

(SGD.) RAFAEL L. COSCOLLUELA
Administrator

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^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.