The Sugar Regulatory Administration (SRA) in the exercise of its Regulatory functions and powers hereby promulgates the following additional rules and regulations for the guidance of all concerned concerning storage and disposition of raw sugar, to wit:

1. In addition to the weekly monitoring of the quality of sugar produced during a particular week-ending, a quarterly monitoring thereof, shall have to be conducted so that all operating mills are hereby required to submit immediately their sugar samples (representative samples for old crop and or one for new crop) to the SRA every three (3) months for analysis, following the prescribed procedures for sugar sampling for analysis of the quality of sugar produced every week.

2. In no case shall all mill companies with refineries, compel the party surrendering the raw sugar quedans for withdrawal therefrom as raw, to withdraw the sugar in refined form.

3. All mill companies are required to furnish the party withdrawing the raw sugar with the scale ticket that reflects therein the total weights of the sugar withdrawn.

4. All mill companies should adopt a system of piling and recording of the sugar stored on a "first-in, first-out" basis.

Co-mingling of old and new crop sugar shall in no case be allowed so that all mills shall have to create separate piles for each crop of sugar.

The raw sugar quedans issued during the previous crop year/s when surrendered for withdrawal shall be served by the mills with the corresponding old crop sugar while that issued during the current crop year with new crop sugar.

A fine of from FIVE THOUSAND PESOS (P 5,000.00) to TEN THOUSAND PESOS (P 10,000.00) or cancellation of license or both, at the discretion of the Sugar Regulatory Administration shall be imposed on any mill company found violating the provisions of this Circular Letter.

This Circular Letter shall take effect immediately.

Adopted: 27 Oct. 1997