ADVANCE SWAPPING OF “A” OR U.S. QUOTA SUGAR PRODUCED DURING CROP YEAR 2001-2002 INTO “B” OR DOMESTIC SUGAR

WHEREAS, the estimated
production of the current crop year 2001-2002 falls short of the
estimated domestic demand, which will result to tightness of supply in
the domestic market starting at the time when most of the sugar mills
have ended its operations, up to the start of another milling operation
on September or October 2002 of the new Crop Year 2002-2003;

WHEREAS, the
allocations for the U.S. Sugar Quota of Quota Year 2001-2002 had already
been filled up by various traders/exporters and there is a very
significant volume of stocks of “A” or U.S. Export sugar available for
domestic consumption, the disposition of which in the domestic market
shall neither favor the early millers nor the late millers in terms of
returns on their investment;

NOW, THEREFORE, under and by virtue of the powers vested in the Sugar Regulatory Administration, it is hereby ordered that;

SECTION 1.   All outstanding “A” quedan-permits, including those covered by surrendered Certificates for Quota Eligibility (CQEs),
(regular or swapped) issued during the Crop Year 2001-2002, are hereby
allowed (eligible for) on a voluntary basis for advance swapping into
“B” or Domestic Sugar.

SECTION 2.   The “A” quedan-permits
(regular or swapped) subject of advance swapping shall be charged with
an Advance Swapping Fee of P2.00/LKg-Bag pursuant to General
Administrative Order No. 1, Series of 2001-2002.

In addition, a bond of Ten Pesos (P10.00) per LKg-Bag
either in cash or company’s check with accompanying bank guarantee
(please see attached form) referring to the check number thereof, shall
be paid to/issued in the name of the Sugar Regulatory Administration
(SRA), dated 01 April 2004, upon submission of the “A” quedan-permits
for processing, and wherein said bond shall be forfeited in favor of
the SRA in the event the applicant fails to replenish the total volume
of “A” sugar approved for advance swapping, with the corresponding “B”
sugar.  A maximum of fifty percent (50%) shall be allowed for replenishment (“B” to “A”) for Crop Year 2002-2003, and this shall be not later than 31 March 2003, while the balance, for total/complete replenishment of the “A” that was advance swapped, shall be not later than 31 March 2004 of Crop Year 2003-2004.

Upon replenishment of
the total volume of “A” sugar with the corresponding “B” sugar, the SRA
shall return to the applicant the said bond in the amount of Ten Pesos (P10.00) per LKg-Bag.

SECTION 3.   Application for Advance Swapping shall be filed in any of the following SRA Offices:

a.         PCRO, SRA Quezon City

b.         SRED, SRA Bacolod City

SECTION 4.   The
deadline for the filing of the application for Advance Swapping under
this Sugar Order shall be not later than 31 August 2002 of the current
Crop Year 2001-2002.  Application for Advance Swapping shall not be accepted thereafter.

SECTION 5.   The
requirements of regular swapping application per Circular Letter No.
31, Series of 1997-1998 shall apply to herein advance swapping.

SECTION 6.   The “A” quedans
subject of advance swapping shall be stamped “SURCHARGED FOR WITHDRAWAL
AS “B” OR DOMESTIC SUGAR PER SUGAR ORDER NO. 6, SERIES OF 2001-2002,
DATED JUNE 18, 2002″.

SECTION 7.   A
Letter Authority addressed to the concerned mills Allowing/authorizing
the withdrawal of the “A” sugar as “B” shall be issued by the SRA.

SECTION 8.   This Order shall take effect immediately.

SECTION 9.   Provisions
of Sugar Orders, Circular letters, rules and regulations contrary to or
inconsistent with this Sugar Order are hereby revised, modified or
revolted accordingly.

Adopted: 18 June 2002

BY AUTHORITY OF THE SUGAR BOARD:

(SGD.) JAMES C. LEDESMA
Administrator