Pursuant to Sugar Order No. 1-B, Series of 1996-1997, dated 13 February 1997, and Sugar Order No. 1-C, Series of 1996-1997, dated 19 March 1997, the following guidelines are hereby promulgated for the information and guidance of all concerned regarding the allocation for Crop Year 1996-1997 of 'B-1' or Food Processors'/Exporters' sugar for the use of PHILFOODEX, to wit:


1.         Photocopies of the 'B-1' quedan-permits issued by the mills in a consolidated form on a weekly basis, shall be transmitted immediately to the SRA in the following manner to wit:

a.    Photocopies of the 'B-1' quedan-permits issued by the mills in Luzon shall be transmitted weekly by the mill representatives (or through the initiative of the Mill Regulation Officers) to the Production Control and Regulation Office (PCRO), SRA, Quezon City.

b.    Photocopies of the 'B-1' quedan-permits issued by the mills in Negros and Panay, shall be transmitted weekly by the mill representatives (or through the initiative of the Mill Regulation Officers) to the Office of the Manager III, SRA, Bacolod City while those issued by the mills in the East/Central Visayas and Mindanao shall be transmitted weekly by the mill representatives (or through the initiative of the Mill Regulation Officers) to the Office of the Manager I, SRA, Cebu City, said Offices in turn shall transmit weekly the aforementioned photocopies to the Production Control and Regulation Office, SRA, Quezon City.


1.         The PCRO shall, on a weekly basis, generate the following information, to wit:

a.    List of 'B-1' quedan permits with their corresponding quedan numbers and sugar productions, by mill company and by planters' association/cooperative (or by assignee, e.g., financial institution).

b.    List of 'B-1' sugar productions as of given week-ending, by mill company and by planters' association/cooperative (or by assignee, e.g., financial institution).

c.    List of 'B-1' sugar stock-on-hand (sugar balance) as of a given week-ending by sugar mill and by planters' association/cooperative or by assignee, e.g. financial institution).

The aforementioned list of information shall be provided to PHILFOODEX, likewise, on a weekly basis, attached thereto for a given week-ending the weekly average of the prevailing daily World Market prices of sugar as monitored and computed also, by PCRO.


The PHILFOODEX, after having provided with the list of holders of 'B-1' quedan permits and the list of weekly averages of the World Market price of raw sugar by the SRA, shall procure, on their own initiative, the 'B-1' quedan-permits at a price the PHILFOODEX and holders of said 'B-1' quedans shall agree upon, which is the landed cost of imported sugar (tariff free) per Lkg.- Bag, based on the aforementioned average of the prevailing daily World Market prices computed weekly, plus Fifty Pesos (P50.00) per Lkg.- Bag, pursuant to said Sugar Order No. 1-A, Series of 1996-1997, dated 15 November 1996.


'The 'B-1' quedan-permits eligible for reclassification into 'B' or Domestic Sugar, (quedans not procured by PHILFOODEX within 60 days from date of production of sugar) when submitted to the PCRO, SRA, 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-' quedans are found to be in the masterlist of quedans and already have matured, the quedans shall be surcharged into 'B-' or Domestic Sugar.

Also, a Letter Authority addressed to the mill company to allow the withdrawal of the 'B-1' or Food Processors'/Exporters' sugar shall be issued by the SRA after the surcharging of the 'B-1' quedans.

In the event the 'B-1' quedan-permits submitted to the SRA for surcharging are not found in the masterlist of quedans, said 'B-1' quedans shall not be surcharged or reclassified into 'B' or Domestic Sugar.

This Circular Letter shall take effect immediately.

Adopted: 19 March 1997