Whereas, the sugar industry finds it with reason, as it is of national interest, to provide cheaper sugar to our processors/exporters of sugar-based products under the Customs Bonded Warehouse (CBW) system, for them to remain competitive in the world market;

Whereas, Section 9 of Sugar Order No. 2, Series of 2004-2005, provides that portion of the "D" or World Market sugar produced during the CY 2004-2005 may be made available to processors of sugar-based products for export under the CBW;

NOW, THEREFORE, under and by virtue of the authority vested in the Sugar Regulatory Administration (SRA) it is hereby ordered that:

SECTION 1. The "D" or World Market Sugar produced during the current Crop Year 2004-2005, is hereby made available to all processors/exporters of sugar-based products covered by the CBW system.

SECTION 2. Pursuant to Section 9 of Sugar Order No. 2, series of 2004-2005, the following shall hereby serve as Implementing Rules and Regulations (IRR) in the availment of "D" or World Market Sugar by the CBW processors/exporters, to wit:

2.1 Who May Avail of the "D" Sugar

Only CBW processors/exporters of sugar-based products with approved SRA Certificate of Sugar Requirements (duty free import allocation) for the year 2004 and who will qualify to have 2005 allocation are eligible to avail of the "D" sugar.

2.2 How to Avail of the "D" Sugar

The SRA shall furnish the CBW processors/exporters with the list of SRA accredited traders/exporters who are holding "D" sugar quedans with whom the processors/exporters shall negotiate with.

Interested CBW processors/exporters shall write the SRA of their intention to buy the "D" or World Market Sugar.

2.3 Withdrawal of the "D" Sugar for Refining

The concerned traders/exporters/producers' group shall request the SRA to allow them to withdraw for refining their "D" sugar pursuant to Section 10, Sugar Order No. 2, Series 2004-2005, for the account of (FAO) the CBW processors/exporters with the following requirements:

1. Letter request to authorize withdrawal for refining of the "D" sugar stating among others the following:

   1. Name of CBW processor/exporter recipient of the "D" sugar
   2. Volume of the "D" sugar
   3. Name of the mill where the "D" sugar shall be withdrawn for refining
   4. Name of the refinery where the "D" sugar shall be delivered for refining.

2. Contract of Sale/Purchase Order exhibiting the sale/delivery of the "D" sugar to the processor/exporter.
3. "D" Sugar Quedan-Permits for surcharging/notation thereof corresponding to the volume of sugar applied for withdrawal for refining.
4. Monitoring Fee (raw to refine) of Php 2.00/LKg-Bag shall be paid to SRA upon filing of the request for refining.
5. Development Enhancement Fee of Php 30.00/LKg-Bag shall be paid to SRA as trustee for the account of Sugar Master Plan Foundation (SMPF).

2.4 Authority to Withdraw the "D" Sugar for Refining

2.4.1	A Letter of Approval to the request for withdrawal for refining of the "D" sugar FAO of the processor/exporter shall be issued by the SRA to the concerned Trade/Exporter attached thereto the "D" quedan-permits properly surcharged or with notation "Withdrawn for refining FAO CBW processor/exporter per Sugar Order No. 2, Series 2004-2005".
2.4.2	A Letter Authority shall be issued by the SRA to the concerned mill to allow the volume of "D" sugar stated therein for withdrawal for refining.
2.4.3	A Letter Authority shall be issued by the SRA to the concerned refinery to allow the volume of "D" sugar stated therein for refining
2.4.4	A Refined Sugar Quedan (RSQ) shall be issued by the refinery to the concerned trader/exporter corresponding to the volume of the "D" raw sugar brought for refining. The RSQ shall have a classification also, of "D" or World Market Sugar.

2.5 Withdrawal of the "D" Sugar from the Refinery

The concerned traders/exporters/producers' group shall request the SRA to allow them to withdraw their "D" sugar FAO of the CBW processors/exporters with the following requirements:

1. Letter request to authorize withdrawal of the "D" sugar from the refinery stating among others the following:
   

   
   
   1. Name of CBW processor/exporter recipient of the "D" sugar
      
   2. Volume of the "D" sugar
      
   3. Name of the refinery where "D" sugar shall be withdrawn
      
   4. Letter approval of SRA for refining of the "D" sugar

   
   
2. Refined Sugar Quedan (RSQ) for surcharging/notation thereof corresponding to the volume of "D" sugar for withdrawal.
   
   
3. Monitoring Fee of Php 10.00/LKg-Bag shall be paid to SRA upon filing of the request for withdrawal from the refinery.

2.6 Authority to Withdraw the "D" Sugar from the Refinery

2.61	A letter of approval to the request for withdrawal from the refinery of the "D" sugar FAO of the processor/exporter shall be issued by the SRA to the concerned trader/exporter attached thereto the Refined Sugar Quedan properly surcharged or with notation "Authorized for Withdrawal FAO CBW Processor/Exporter per Sugar Order No. 2 Series of 2004-2005".
2.62	A Letter of Authority shall be issued by the SRA to the concerned refinery to allow the volume of refined "D" sugar stated therein for withdrawal.
2.63	A Letter of Advice shall be issued by the SRA to the concerned CBW processor/exporter regarding the withdrawal and delivery of the refined "D" sugar (to be deducted from SRA allocation for the current year) on the basis of the Purchase Agreement between the CBW processor/exporter and the SRA accredited trader/exporter.

2.7 Monitoring and Liquidation of the "D" World Market Sugar

The guidelines in the issuance of Certificate of Sugar Requirements per Circular Letter No. 40, Series of 1998-1999 (as amended) shall apply to the monitoring and liquidation of the "D" or World market sugar made available to CBW processors/exporters.

This Circular Letter shall take effect immediately.

Adopted:18 Oct. 2004


(SGD.) JAMES C. LEDESMA
Administrator