Pursuant to SRA Sugar Order No. 5, Series f 1997-1998 dated 21 January 1998, the following guidelines are hereby promulgated and published for the information and compliance of all concerned.

SECTION 1.       Definition of Terms:

a.         Switching - is the exchange of quedans of the same class of sugar located in different mills:

b.         Swapping - is the exchange of quedans of different classes of sugar located in different mills. Swapping may either be done in the following manner:

- AB - "A" quedan to "B" sugar
- BA - "B" quedan to "A" sugar

SECTION 2.       The trader/exporter shall pay a "switching" fee in the amount of P 0.40/lkg-bag of sugar, upon filing of the application for "switching" with the SRA.

SECTION 3.       The following requirements shall accompany the "switching" application:

a.         Application Letter indicating the kind of "switching"

- by mill district
- by quarter

b.         "A" Quedan-Permits (in batches of 50 pcs. each)

c.         Listing of "A" Quedan-Permits for each Mill District with corresponding total volume per page for every batch.

d.         Adding Machine Tapes showing total volume per page.

e.         Affidavit of applicant sugar trader/exporter as to his ownership of the sugar to be switched as well as to the authenticity of "A" quedan-permits to be used in the switching.

SECTION 4.       This Circular Letter shall take effect immediately.

Adopted: 26 Jan. 1998

(SGD.) MICHAEL K. SUAREZ
Administrator