Pursuant to Sugar Order Nos. 1 and 5, Series of 1998-1999, and for the information and guidance of eligible food processors/exporters, the following guidelines concerning the allocation of "B-1" sugar for Crop Year 1998-1999 are hereby promulgated: .

I
Submission to SRA of "B-1" Quedan-Permits

1. All sugar mills shall submit weekly to the SRA photocopies of "B-1" quedan-permits issued by them in a consolidated form transmitted directly to the Production Control and Regulation Office (PCRO), SRA, Quezon City [Fax No. 924-40-34] not later than 12 noon of Tuesday after the week end cut-off.

II
Dissemination of the Holders of the "B-1" Quedan-Permits

1. The PCRO shall generate every week the following:
   
   
   1. List of "B-1" quedan-permits with their corresponding quedan numbers and sugar production.
      
      
   2. List of "B-1" sugar production as of a given week-ending.
      
      
   3. List of "B-1" sugar stock-on-hand (sugar balance) as of a given week-ending.
   
   
2. The foregoing information shall be generated by mill company and planters' association/cooperative, or by assignee (e.g. financial institution)
   
   
3. The aforementioned lists s' 'I be made available every Wednesday to PHILFOODEX.

III
Eligible for Allocation of the "B-1" Sugar

1. Only small and medium-sized enterprises principally engaged in the business of processing sugar-based food products for export shall be eligible for this grant.

IV
Criteria for Allocation to be Prepared by PHILFOODEX and Submitted to SRA

1. The PHILFOODEX shall prepare and submit to SRA for approval the allocation criteria of "B-1" sugar for eligible food processors/exporters.
   
   
2. The allocation shall take into consideration all factors deemed by PHILFOODEX to be relevant which shall include the weekly or monthly volume of sugar required by each eligible allocatee including the business location of such allocatee.
   
   
3. No change in the allocation criteria shall take effect until the change is submitted to and approved by SRA.

V
Allocation of Available "B-1" Sugar to Eligible Food Processor/Exporters"

1. The PHILFOODEX shall be responsible for applying and implementing the approved allocation criteria.
   
   
2. The PHILFOODEX shall inform itself from the SRA-PCRO every Wednesday the details of "B-1" sugar production during the preceeding week, the names of the representative owners thereof and the corresponding quantity available for allocation expressed in LKg-Bags.
   
   
3. The weekly allocation of available "B-1" sugar shall be presented by PHILFOODEX to SRA during a meeting every Wednesday at the SRA at which authorized representatives of UNIFED, CONFED, PanayFed and NFSP, and authorized representatives of eligible food processors shall be allowed to attend and participate therein.
   
   
4. Minutes of the meeting shall be prepared by a Secretariat to be appointed by SRA. Copies of such minutes shall be distributed- to participants at a subsequent meeting and approved by them. The minutes as approved in a subsequent meeting shall be treated as confidential but shall be made available to those with legitimate interest to know its contents.

VI
Payment for and Withdrawal of "B-1" Sugar by Allocatees

1. PHILFOODEX shall be responsible for promptly giving notice to each allocatee of his allocation, and such notice shall include the following information: The quantity of "B-1" sugar allocated, the number or numbers of "B-1" quedan- permits from which allocation is made and the mill or refinery from which the allocated "B-1" sugar may be withdrawn, and the deadline date for such withdrawal to be made.
   
   
2. A copy of such notice shall be provided to SRA which in turn shall transmit a copy of it to the mill concerned in order to give time for the mill to take hold of the "B-1" quedan-permits (planters and mill shares), said quedan-permits subject of payment within 45 days by the allocatee from date of production at a liquidation price of P600.00/i_Kg- Bag pursuant to Section 2 of Sugar Order No. 5, Series of 1998-1999.
   
   
3. Payment of "8-1" sugar shall be made in the name of assignee (planters' asso.coop./mill/financial institution) to be distributed by the mill concerned to the assignees in accordance with arrangements made with such mill, or in the alternative, through the SRA, provided always that such payment, if made by check, shall be cleared before withdrawal of the corresponding "B-1" sugar is allowed.

VII
Swapping of the "B-1" Sugar into or Domestic Sugar
In order to facilitate the transport of the "B-1" sugar to where it wilt be used (or be refined), the "B-1" sugar shall be allowed swapping with the "B" or Domestic Sugar pursuant to Section 4 of Sugar Order No. 5, Series of 1998-1999, said swapping shall be subject to the requirements of Circular Letter No. 31, Series of 1997-1998 if said swapping is shown to achieve the objective of making available "B-1" sugar to eligible food processors for export.

VIII
Verification and Surcharging of the B-1" Quedan Permits
The "B-1" quedan-permits eligible for reclassification into "B" or Domestic Sugar (quedans not procured by PHILFOODEX) within 45 days from the date of production of sugar pursuant to Section 2 of Sugar Order No. 5, Quezon City for surcharging, shall be verified against the masterlist of "B-1" quedan-permits to determine whether subject "B-1" quedans have been previously submitted to the SRA in the form of photocopies.

If said "B-1" quedans are found to be in the masterlist of quedans and already have matured, the quedans shall be surcharged into "B" or Domestic Sugar, otherwise, it shall remain as "B-1" sugar pursuant also, to said Sugar Order No. 5.

Likewise, a Letter-Authority addressed to the mill company to allow the withdrawal of the "B-1"- by the allocatees shall be issued by SRA after the surcharging of the "B-1" quedans.

This Circular Letter shall take effect immediately.

Adopted: 20 Jan. 1999

(SGD.) NICOLAS A. ALONSO
Administrator