WHEREAS, SRA, through its Administrator, Issued Circular Letter No. 12, Series of 1997-1998 dated 18 December 1 997 providing for guidelines in the reclassification of "B-1" or Food Processors'/Exporters Sugar into "B" or Domestic Sugar.

WHEREAS, said Circular Letter No. 12 provides that all outstanding and matured "B-1" or Food Processors'/Exporters' sugar quedan-permits of the previous Crop Year 1996-1997 in the possession of the sugar producers are hereby reclassified as "B" or Domestic Sugar and that holders of said "B-1" quedan-permits are now authorized to withdraw the corresponding sugar, in which case, all concerned sugar mills and SRA Sugar Production and Control Registration Officers are hereby directed to allow the withdrawal of "B-1" sugar as "B" or domestic sugar upon surrender of the corresponding "B-1 " quedan-permits and stamped at the back thereof as "RECLASSIFIED AS "B" OR DOMESTIC SUGAR PER CIRCULAR LETTER NO. 12, DATED 18 DECEMBER 1997" by the said mills.

WHEREAS, it appears that there are "B-1" quedan-permits in the possession of sugar traders but not stamped at the back thereof as "RECLASSIFIED AS "B" OR DOMESTIC SUGAR PER CIRCULAR LETTER NO. 12, DATED 18 DECEMBER 1997" or duly surcharged.

WHEREAS, there is a need to clarify the scope and coverage of said Circular Letter No. 12 and to issue clarificatory and supplemental guidelines in the implementation thereof.

NOW, THEREFORE, under and by virtue of the powers vested in the Sugar Regulatory Administration (SRA) the following clarificatory and supplemental guidelines in the implementation of Circular Letter No. 12, Series of 1997-1998 dated 18 December 1997 are hereby promulgated, as follows:

1. As expressly provided for in said Circular Letter No. 12, only outstanding and matured "B-1" or Food Processors'/Exporters' sugar quedan-permits of the previous Crop Year 1996-1997 in the possession of sugar producers, are re-classified as "B" or Domestic Sugar. Corollary, said Circular Letter does not apply to B-1 sugar quedan-permits in the possession of the sugar traders as of the date of said circular which are not stamped at the back thereof as "RE-CLASSIFIED AS "B" OR DOMESTIC SUGAR PER CIRCULAR LETTER NO. 12, DATED 18 DECEMBER 1997" or duly surcharged.

2. Sugar producers who still have in their possession "B-1" or Food Processors'/Exporters' sugar quedan-permits are hereby directed to submit the said "B-1" quedan-permits to their respective mills for reclassification as "B" or domestic sugar and surcharging prior to disposal in the domestic market or withdrawal of the corresponding sugar from the mills.

3. The said "B-1" or Food Processors'/Exporters' sugar quedan-permits in the possession of sugar traders but which are not stamped at the back thereof as "RECLASSIFIED AS "B" OR DOMESTIC SUGAR PER CIRCULAR LETTER NO. 12, DATED 18 DECEMBER 1997" or accordingly surcharged as "B" may only be withdrawn from the sugar mill upon submission of proof that such "B-1" sugar quedan-permits came into the possession of the concerned sugar traders after the issuance of the said Circular Letter No. 12, preferably in the form of a Joint Affidavit executed by the concerned sugar traders and sugar producer.

4. Sugar traders who have in their possession "B-1" sugar quedan permits duly surcharged are no longer required to submit the aforesaid proof of Joint Affidavit stating that said quedan-permits came into their possession after the issuance of said Circular Letter No. 12.

5. All concerned sugar mills and SRA Sugar Production and Control Regulation Officers are hereby directed to allow the withdrawal of the "B-1" sugar as "B" or domestic sugar only in accordance with provisions of this Circular Letter.

This Circular Letter shall take effect immediately.

Adopted: 16 June 1998

(SGD.) MICHAEL K. SUAREZ
Administrator