GUIDELINES TO IMPLEMENT SRA SUGAR ORDER NO. 7, SERIES OF 1989-1990 DATED DECEMBER 15, 1989

The following guidelines are hereby promulgated and published for the
compliance of all concerned in the implementation of SRA Sugar Order
No. 7 dated December 15, 1989:

SECTION 1.       Who are Eligible to Apply for Allocation —
Only Philippine-based Manufacturers or Processors of sugar-based food
products for export may apply for allocation of “D” or World Market
Sugar under this scheme.

SECTION 2.       Whom and Where to Apply for Allocation — Those eligible to apply for allocation shall address their Applications to:

Sugar Regulatory Administration
North Avenue, Diliman, Quezon City

The Applications and other support documents are to be submitted in
person or by duly authorized representatives of the Applicants.

SECTION 3.       Application Form to Use — All Applicants
shall use the attached application form SRA FORM 003 Series of 1989-1990
entitled “Application for Allocation of “D” or World Market Sugar for
Use in the Manufacture of Sugar-Based Food Products for Export to
Foreign Countries”.  The application form must be completely and
accurately accomplished and submitted together with the following
support documents:

3.1     Copies of Bill of Lading
3.2     Commercial Invoices
3.3     Letter of Credit
3.4     Application for Export Permit (CB Form)
3.5     NIST or SRA Certification on Quantity of Sugar Used on Export Products
3.6     Summary of Total Exports for the Previous Year.

SECTION 4.       SRA Fees to be Paid — An application fee
of Two Hundred Pesos (P200.00) for each application shall be paid to the
Sugar Regulatory Administration in cash, postal check or manager’s
check.  For each export product submitted for analysis on sugar content,
an analysis certification fee of One Hundred Pesos (P100.00) shall
likewise be paid.

SECTION 5.       Basis of Allocation — The basis for
allocation of “D” or World Market Sugar to Manufacturers or Processors
of sugar-based food products for export shall be the total quantity of
sugar used in the previous year or the export record.  In addition to
the initial allocation, an additional quantity may be granted for an
acceptable export expansion program of the Applicant.

SECTION 6.       Determination and Notice of Allocation — Upon receipt of the application, SRA shall determine the allocation that may be granted.

SECTION 7.       Submission of “D” Quedans for Surcharging —
The “D” or World Market sugar quedans purchased by an Applicant with an
approved allocation shall be submitted to the Office of the Director,
Production Control & Regulation Office for proper annotation, as
follows:

“SURCHARGED FOR WITHDRAWAL FOR DIRECT USE OR REFINING AS AUTHORIZED UNDER SUGAR ORDER NO. 7 DATED DECEMBER 15, 1989”

Thereafter, these surcharged “D” quedans shall be surrendered
or presented to the mill company concerned for the withdrawal of the
physical raw sugar either for direct use or for refining.

SECTION 8.       Cost of Bags and Bagging — The cost of
bags and bagging for the “D” or World Market Sugar which will be used in
the manufacture of sugar-based food products for export shall be for
the account of the one withdrawing the sugar.

SECTION 9.       Verification of Sugar Use — The proper
use of the sugar allocated under the provisions of Sugar Order No. 7
dated December 15, 1989 and of this Circular Letter shall be subject to
verification at all times or whenever necessary for the purpose of
liquidation or to determine the necessity of additional allocation.

SECTION 10.    Quarterly Reporting by Manufacturers or Processors —
All Manufacturers or Processors granted allocations of the “D” or World
Market Sugar shall submit a report within ten (10) days after the end
of every quarter on the consumption or usage of their allocations.  A
copy of SRA Form 003-A is attached to this Circular Letter.

SECTION 11.    Replacement of “B” Sugar with “D” Sugar —
Manufactures or Processors who have purchased “B” sugar for use as a
component in the manufacture of sugar-based products for export during
the period of effectivity of SRA Sugar Order No. 7, Series 1989-1990
dated December 15, 1989 as implemented by this Circular Letter, may
request for an allocation to replace their “B” sugar with an equivalent
quantity of “D” or World Market Sugar upon presentation of supporting
documents.

This Circular Letter shall take effect immediately.

Adopted: 2 Jan. 1990

(SGD.) ARSENIO B. YULO, JR.
Chairman/Administrator

Effective: 2 January 1990