ADVANCE SWAPPING OF “A” OR U.S. QUOTA SUGAR PRODUCED DURING CROP YEAR 1996-1997 TO CROP YEAR 1999-2000 INTO “B” OR DOMESTIC SUGAR

WHEREAS, the Foreign Agricultural Service of the United States
Department of Agriculture will accept the surrender of the Certificates
for Quota Eligibility (CQEs) under the Fiscal Year 2000 Raw Sugar Tariff
Quota (TRQ) in lieu of the actual shipment of raw sugar, on a
first-come, first-served basis;

WHEREAS, the surrender of the pertinent CQEs instead of the actual
shipment of raw sugar shall be considered as compliance by the
Philippines and hence, will not affect our country’s sugar quota in the
United States;

WHEREAS, the sugar production for CY 1999 2000 is estimated to reach
only 1,620,000 MT which volume will not be sufficient to satisfy the
country’s domestic requirement by the end of CY 1999-2000 after
inputting the carry-over sugar from the previous crop year, the imported
sugar, the confiscated smuggled sugar and the estimated production for
domestic consumption;

WHEREAS, it is the mandate of the SRA to ensure that there is
adequate sugar in the domestic market at prices that will be reasonably
profitable to sugar producers and fair to consumers;

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

SECTION 1.       All outstanding “A” quedan-permits (regular or
swapped) issued during the Crop Year 1996-1997 to CY 1999-2000, are
hereby allowed 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 P1.00/LKg-Bag pursuant to General Administrative Order No. 2,
Series of 1999-2000.

In addition, a bond of Ten Pesos (P10.00) per LKg-Bag either in
cash or company’s check with accompanying bank guarantee referring to
the check numbers thereof, shall be paid to/issued in the name of the
Sugar Regulatory Administration (SRA), dated 01 April 2000, 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, not later than 31 March
2001.

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

SECTION 3.       The deadline of submission of application for
Advance Swapping of the subject “A” sugar shall be not later than 31
August 2000.

SECTION 4.       Requirements of Advance Swapping prescribed in
Circular Letter No. 37, Series of 1998 99, in so far as the same are not
contradictory and/or inconsistent with the above, shall serve as
implementing guidelines of this Sugar Order unless another one shall be
subsequently issued specifically for the implementation of this Order.

SECTION 5.       This Sugar Order shall take effect immediately.

SECTION 6.       Provisions of Sugar Orders, Circular Letters,
Memoranda and/or other rules and regulations contrary to or inconsistent
with this Sugar Order are hereby amended, modified or revoked.

Adopted: 9 June 2000

(SGD.) NICOLAS A. ALONSO
Administrator