Pursuant to Section 7 of Republic Act No. 6982, otherwise known as the Sugar Amelioration Act of 1991, and its Implementing Rules and Regulations and having not received opposition from the various sectors of the industry as to its implementation, the automatic additional P1.00 Social Amelioration Program lien is hereby implemented effective crop year 1997-98.

SECTION 1.       Coverage. - The additional lien of P1.00 per picul (or its corresponding amount in LKG) shall be imposed on gross production of raw sugar in all mill districts except in the Binalbagan-Isabela Mill District where implementation for the plantation workers was suspended pursuant to Department Order No. 32-93 and which has not been revoked or lifted.

SECTION 2.       Amount and Allocation of the Increased SAP Lien. - The total amount of the SAP lien shall be increased from P7.00 to P8.00 per picul (or P6.3241106 per LKG) to be allocated as follows:

Eighty percent (80%) of the lien of P6.40 per picul (equivalent to P5.0592 per LKG including any and all incomes and interest derived therefrom as cash bonus to sugar workers.

Twenty percent (20%) or P1.60 per picul (equivalent to P1.2548 per LKG) including any and all incomes and interest derived therefrom as Socio-Economic Project Related Funds (SEPRF) to be utilized in accordance with Section 10 (b) of Republic Act 6982, and Section 1 (b) of Rule VI of its Implementing Rules and Regulations

SECTION 3.       Collection of the Lien. - All covered sugar mills shall collect the additional lien in accordance with the collection procedure provided under Section 2/a of Rule VI of the Implementing Rules and Regulations of RA 6982 which states "All sugar mills shall collect the lien upon withdrawal or release of the sugar from the mill warehouse but in no case beyond one hundred eighty (180) days from date of issuance of the corresponding sugar quedans. Provided that after said one hundred eighty (180) days, the miller shall advance whatever amount is necessary to pay such lien to all concerned within five (5) working days counted from the end of the one hundred eighty (180) days' period and charge holder of said sugar quedan the amount so paid at such reasonable rate of interest as may be prevailing in the local banking community, holder of quedan may advance the lien prior to the withdrawal of sugar from mill warehouse, Provided, the said amount paid shall tally with the quedan issued.

SECTION 4.       Monitoring of the Fund. - All sugar mills shall furnish concerned Regional Offices monthly reports on sugar production and lien (RSLPC) and monthly statement of fund balances with the authorized depository bank.

SECTION 5.       Effectivity. - This Order shall take effect crop year 1997-98 and until revoked or modified pursuant to RA 6982.

Adopted: 11 Sept. 1997