WHEREAS, in order to continue and pursue export initiatives with greater vigor to ensure the viability of the sugar industry, Circular Letter No. 42, dated April 25,1990 was issued authorizing (he imposition and collection of the lien of P0.50 per picul of sugar produced by millers and planters beginning April 1, 1990, originally known as EXPORT MARKET DEVELOPMENT FUND (EMDF);

WHEREAS, through the representations of the Confederation of Sugar Producers Associations, Inc. (CONFED) and the National Federation of Sugarcane Planters (NFSP), the aforesaid Circular Letter was later amended by Circular Letter No. 15, dated October 14,1991, authorizing all mil! companies to continue imposing and collecting a lien of P0.50 per picul (P0.395 per LKg.) of sugar produced by all planters and millers starting crop year 1991-1992 as a SUGAR MARKET DEVELOPMENT FUND (SMDF);

WHEREAS, through the consensus among planters and millers Sugar Order No. 3, Series of 1994-95 was issued on October, 1994, increasing the imposition and collections of said SMDF from P0.50 per picul (0.395 per LKg.) to P0.70 per LKg. beginning October 10, 1994;

WHEREAS, in orderto systematize and expedite the collection and remittance of the P0.70 lien per LKg NFSP-SMDF the NFSP has executed and signed a Memorandum of Agreement with the Philippine National Bank (PNB) and pursuant to such agreement PNB has authorized designated PNB Main Branches in sugar producing areas to accept payment of the P. 070 SMDF lien;

WHEREAS, the NFSP and the PNB have officially requested the Sugar Regulatory Administration to issue a Sugar Order to implement and enforce the Memorandum of Agreement;

NOW, THEREFORE, pursuant to the powers vested in the Sugar Regulatory Administration, it is hereby ordered that;

SECTION 1. The Philippine National Bank thru its authorized main branches is hereby authorized to accept payment of the P0.70 per LKg imposed on all sugar quedans of the 1995-96 crop year of the planter - member of the federation and to credit the same to the "Main Saving's Account" in the name of the National Federation of Sugarcane Planters and to service the withdrawals for such Main Savings Account in accordance with banking rules and regulations.

SECTION 2. Receipt of deposit/payment of the P0.70 per Lkg NFSP-SMDF lien shall be evidenced by NFSP's Official Receipt and the Abstract of Official Sugar Warehouse Receipt (AOSWR) which shall be accomplished in triplicate, copies of the Official Receipt and AOSWR shall be distributed as follows:

Original   -     Planter/members

Duplicate  -   Bacolod Branch
                   (Lacson street)

Triplicate -    Bank Servicing Branch

SECTION 3. The List of Sugarmills and Servicing PNB Branches are those listed in "Annex A"^* attached hereto. "Annex A" is an updated listing of all PNB Branches authorized to accept payments of the SRA liens and the SMDF lien.

SECTION 4. Effective this crop year 1995-1996 no mill company shall allow the withdrawal of planter's share of the planters members of associations affiliated with NFSP unless prior payment of the P0.70 NFSP-SMDF lien has been paid to authorized PNB Servicing Branch.

SECTION 5. This order shall apply to all NFSP planter-members/share quedan of crop year 1995-1996 and shall continue in effect on succeeding crop year until otherwise amended, modified or revoked by subsequent sugar orders.

Adopted: 4 Mar. 1996

(SGD.) ROLLEO L. IGNACIO
Undersecretary, DA and Acting SRA Administrator

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^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.