WHEREAS, it is now the peak of the harvest and milling season of the crop year 1995-1996 and there is more than adequate supply of domestically-produced sugar;

WHEREAS, due to the influx of foreign sugar, it has been confirmed that there is an alarming decline in the farm/millgate prices of domestic sugar;

WHEREAS, it is a traditional practice in the sugar industry to classify "C" or reserve sugar from domestic production during the peak of the harvest and milling season in order to "insure stabilized prices at a level reasonably profitable to the producers and fair to consumers" and "so that those engaged in the sugar industry will be placed on a basis of economic viability as mandated under Section 2 (b) and (c) of Executive Order No. 18;

WHEREAS, it is in the national interest to classify all imported sugar to "C" or reserve sugar to accordance with Sugar Order No. 8, Series of 1994-1995 and in pursuance of Board Resolution No. 96-016 dated February 22, 1996;

NOW. THEREFORE, the following implementing guidelines are hereby promulgated:

SECTION 1. This Circular Letter shall apply to all imported sugar whether raw or refined except those which had already been given clearance by the SRA and those which had been or are imported or consigned to and exclusively for the use of local processors/manufacturers as ingredients of sugar based products for export. The latter shall be subject to separate rules and regulations which the SRA may from time to time promulgate.

SECTION 2. SRA shall issue clearance to importers/ consignees of imported sugar upon compliance with the requirements provided for in Sugar Order # 8. Series of 1994-1995.

SECTION 3. The Bureau of Customs (8OC) shall upon receipt of the clearance release the imported sugar to the importer/consignee in the presence of the SRA representative who will monitor the sugar up to the point of storage.

SECTION 4. Upon storage of the imported sugar in the warehouse, both the importer/consignee and the SRA representative shall certify as to the quantity/volume of the sugar stored therein which volume/quantity must be the same as the volume/quantity imported per importer/ consignee Bill of Lading. As soon as the imported sugar is stored in the warehouse the importer/consignee shall be turned over the constructive custody of the imported sugar to the SRA. In the case of bonded warehouses, the original of the warehouse receipts shall turn over to the SRA and for warehouses which are not bonded the SRA shall install a double padlock system, one for the importer/consignee and the other for the SRA.

SECTION 5. The SRA in the event of depletion of stock inventory of sugar as clearly determined, may allow holders of Class C clearances to apply for conversion and withdrawal.

SECTION 6. SRA or its representative may from time to time conduct spot checking of the warehouses to monitor the stocks therein.

SECTION 7. The Bureau of Customs shall be furnished with copy of this Circular Letter and upon receipt thereof is hereby enjoined not to release the imported sugar without the necessary clearance from the SRA as provided herein.

SECTION 8. Any person found violating this Circular Letter shall be dealt with accordingly under existing laws.

SECTION 9. This Circular Letter shall take effect immediately.

Adopted: 22 Feb. 1996

(SGD.) ROLLEO L. IGNACIO
Acting Administrator