MORATORIUM ON THE PAYMENT OF PENALTIES FOR HOMELESS “D” AND “DX” SUGA R, RE- MOVING “D” TO “E” CONVERSION DEADLINES FOR “DE” SUGAR, AND PROVIDING FOR THEIR TIMELY DISPOSITION AN…
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:
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
* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.