[ SRA SUGAR ORDER NO. 11, S. 2010-2011, June 17, 2011 ]
EXPORT TO THE WORLD MARKET OF B OR DOMESTIC SUGAR AS ADVANCE-SWAPPED TO D OR WORLD MARKET SUGAR
WHEREAS, Section 2 (B) of Executive Order No. 18, Series of 1986 mandates the SRA to establish and maintain such balanced relation between production/supply and requirement/demand of sugar specifically in the domestic market;
WHEREAS, Sugar Order No. 1, Series of 2010-2011 has allocated only A or U.S. Quota Sugar and B or Domestic Sugar;
WHEREAS, at the end of CY 2010-2011 (31 August 2011) or beginning CY 2011-2012 (01 September 2011, it is expected that there will be significant volume of carry-over stocks of B or domestic sugar resulting in excess sugar vis-a-vis domestic demand;
WHEREAS, it is of national interest to place those engaged in the sugar industry in an environment of economic viability by disposing of the excess sugar of CY 2010-2011 as early as possible in order to stabilize the prices of B sugar at levels reasonably profitable to the producers and still fair to consumers;
WHEREAS, there is need to ship out the excess B domestic sugar to the world market so as to ensure that only reasonable volume of domestic sugar remains;
WHEREAS, the projected production for the next crop year 2011-2012 will require the allocation of D or World Market sugar at the start of the crop year;
NOW THEREFORE, under and by virtue of the authority vested in the Sugar Regulatory Administration (SRA), the following is hereby ordered:
Adopted: 17 June 2011
BY AUTHORITY OF THE SUGAR BOARD:
(SGD.) MA. REGINA BAUTISTA-MARTIN
Administrator
WHEREAS, Sugar Order No. 1, Series of 2010-2011 has allocated only A or U.S. Quota Sugar and B or Domestic Sugar;
WHEREAS, at the end of CY 2010-2011 (31 August 2011) or beginning CY 2011-2012 (01 September 2011, it is expected that there will be significant volume of carry-over stocks of B or domestic sugar resulting in excess sugar vis-a-vis domestic demand;
WHEREAS, it is of national interest to place those engaged in the sugar industry in an environment of economic viability by disposing of the excess sugar of CY 2010-2011 as early as possible in order to stabilize the prices of B sugar at levels reasonably profitable to the producers and still fair to consumers;
WHEREAS, there is need to ship out the excess B domestic sugar to the world market so as to ensure that only reasonable volume of domestic sugar remains;
WHEREAS, the projected production for the next crop year 2011-2012 will require the allocation of D or World Market sugar at the start of the crop year;
NOW THEREFORE, under and by virtue of the authority vested in the Sugar Regulatory Administration (SRA), the following is hereby ordered:
Section 1. Procedures in the Export of B or domestic sugar into World Market
1.1 Application Letter
a. The sugar trader/exporter shall submit to the SRA, the Application Letter for export to the world market stating therein the Quantity of sugar to be exported, Name of Shipper, Port of Loading, Expected Date of Departure, Name of Consignee, Address of Consignee, Port & Country of Destination. Deadline for submission of application to export will be July 15, 2011.
b. The application for export shall be subject to the approval of the SRA Administrator. The SRA shall notify the sugar trader/exporter on the status of their export application.
1.2 Advance swapping of B or Domestic sugar into D or World market sugar
a. Only sugar traders/exporters with approved export application from the SRA Administrator shall apply for the Advance swapping of B or domestic sugar into D or world market sugar.
b. All outstanding B sugar quedan-permits issued in Crop Year 2010-2011 are hereby allowed (eligible) for Advance swapping into D or world market sugar quedan-permits.
c. The B quedan-permits subject of Advance swapping shall be charged with an Advance swapping Fee of P 5.00/Lkg-Bag.
d. The reverted B pursuant to Section 2.2 of Sugar Order No. 10 series of 2010-2011 shall be exempted from paying the aforesaid fee.
e. The requirements for regular swapping application per Circular Letter No. 31, Series of 1997-1998 shall apply to the herein advance swapping.
f. The B quedans subject of advance swapping shall be stamped SURCHARGED FOR WITHDRAWAL AS D OR WORLD MARKET SUGAR PER SUGAR ORDER NO. 11 SERIES of 2010-2011 dated June 17, 2011.
g. A Letter of authority addressed to the concerned mills/refineries allowing/authorizing the withdrawal of the (advance-swapped) B sugar as D shall be issued by the SRA.
Section 2. The sugar represented by the advance-swapped B to D must be shipped to the world market no later than September 30, 2011. Any unshipped advance-swapped B to D shall be subject to SRA rules on said matter, including penalties.
Section 3. The advance swapped B to D allowed in herein Section 1 may be replenished by an equivalent amount of D from April 1, 2012 until August 31, 2013. D or World Market Sugar quedan-permits issued in crop year 2011-2012 are eligible for the replenishment.
Section 4. The existing requirements for export shipment application shall apply.
Section 5. Provisions of Sugar Orders, Circular Letters, and rules and regulations contrary or inconsistent with this Sugar Order are hereby revised, modified or revoked accordingly.
Section 6. This Sugar Order takes effects immediately.
Adopted: 17 June 2011
(SGD.) MA. REGINA BAUTISTA-MARTIN
Administrator