WHEREAS, the economic recovery of the country depends to a great extent upon the development of basic agricultural products;

WHEREAS, sugar production in the Philippines had been severely affected by the long dry spell because of the œEl Ni o  resulting to a bad harvest by sugar farmers and hence the scarcity of the commodity in the domestic market;

WHEREAS, there have been several verified reported incidents of sugar smuggling in various parts of the country depriving the government of duties and taxes and adversely affecting the price of sugar;

WHEREAS, the entry to the country of smuggled sugar causes the destabilization of the price of sugar to the disadvantage of the local sugar planters and manufacturers;

WHEREAS, there is an urgent need to organize a task force that will prevent sugar smuggling in the country;

WHEREAS, the Administrative Code of 1987 empowers the President with the continuing authority to reorganize the Office of the President;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Organization. - There is hereby created a Task Force on Sugar Smuggling under the Presidential Anti-Organized Crime Commission (PAOCC).

SECTION 2. Composition. - The Task Force shall be composed of selected members/operatives from law enforcement agencies and representatives from other government agencies. It shall be headed by a Chief, Task Force to be designated by the Chairman of the Presidential Anti-Organized Crime Commission (PAOCC). The PAOCC shall provide technical and administrative support staff to the Task Force.

SECTION 3. Advisory Council. - There is hereby created an Advisory Council on Sugar Smuggling to be composed of the following:

1. Administrator of the Sugar Regulatory Administration (SRA) - Chairman
2. Commissioner, Economic Intelligence and Investigation Bureau (EIIB) - Vice Chairman
3. Four (4) representatives from the Sugar Planters/Federation - Member
4. Two (2) representatives from the PAOCC - Member

The technical and administrative support staff of the Presidential Anti-Organized Crime Commission (PAOCC) and the technical and administrative staff of the Sugar Regulatory Administration (SRA) shall serve as the Secretariat of the Advisory Council.

SECTION 4. Functions of the Advisory Council. - The Advisory Council shall perform the following functions:

1. Provide technical information on local and foreign shipments of sugar;
2. Recommend policies, programs, activities and composition of the Task Force;
3. Provide equipment and logistics of the Secretariat and the Task Force;
4. Recommend to the Chairman of the PAOCC the system of rewards and incentives for informants; and
5. Perform other functions as may be directed by the Chairman of the PAOCC.

SECTION 5. Powers and Functions. - The Task Force on Sugar Smuggling shall have the following powers and functions:

a. Conduct intelligence and counter-intelligence operations to identify persons or groups involved in the smuggling of sugar;

b. Issue warrant and detention orders on the smuggled sugar as well as on the vessel used in the smuggling of sugar;

c. Cause or direct the arrest and investigation of persons involved in sugar smuggling;

d. Refer the case at hand, as the Task Force may deem proper and necessary to the Department of Justice and/or other appropriate law enforcement agencies for investigation or prosecution;

e. Follow-up the progress of cases taken cognizance of by the Task Force on Sugar Smuggling;

f. Select and recruit from the Economic Intelligence and Investigation Bureau (EIIB), Bureau of Customs (BOC), Philippine Ports Authority (PPA), Philippine Coast Guard, PNP, NBI, AFP and other law enforcement agencies for detail to the Task Force subject to the conformity of the agency concerned;

g. Enlist the assistance of any government agency or office including government corporation in the drive against sugar smuggling; and

h. Grant monetary rewards or incentives to informants giving vital information leading to the apprehension of persons involved in sugar smuggling.

The provisions of Memorandum Order No. 225 with respect to the delineation of functions among government agencies shall not apply to the operations of the Task Force on Sugar Smuggling.

SECTION 6. Supervision and Control - The Task Force on Sugar Smuggling shall be under the supervision and control of the Presidential Anti-Organized Crime Commission.

SECTION 7. Operating Guidelines. - The Chairman of Presidential Anti-Organized Crime Commission (PAOCC) may promulgate operating guidelines as may be necessary to implement this Executive Order in consultation with the Advisory Council.

SECTION 8. Disposition of Confiscated Sugar. - The sugar confiscated by the government from sugar smuggling shall be held in trust by the National Food Authority (NFA) to be sold to the public. The proceeds of the sale shall be remitted to the Presidential Anti-Organized Crime Commission (PAOCC) to be used in the payment of rewards or incentives to informants and operatives and for the operations of the Task Force.

SECTION 9. Effectivity. - This Executive Order shall take effect immediately.

Done in the City of Manila, this 26th day of October in the year of Our Lord, Nineteen Hundred and Ninety-Eight.

(SGD.) JOSEPH EJERCITO ESTRADA

By the President:

(SGD.) RONALDO B. ZAMORA
Executive Secretary