Minutes of the 9th Sugar Board Meeting_August 1, 2019

9TH REGULAR SUGAR BOARD MEETING

(CROP YEAR 2018-2019)

SRA BOARD ROOM, SUGAR CENTER BUILDING

NORTH AVENUE, DILIMAN, QUEZON CITY

August 1, 2019

Present:

UndersecretaryRoldanG.Gorgonio

DepartmentofAgriculture

AlternateEx-OfficioChairman

Engr.HermenegildoR.Serafica

Administrator

Atty.RolandB.Beltran

BoardMember(Millers’Representative)

Atty.EmilioBernardinoL.Yulo

BoardMember(Planters’Representative)

Also Present:

Atty.ArvinC.Beñas

BoardSecretary

1. CALL TO ORDER

TherebeingaquorumascertifiedbytheBoardSecretary,themeetingwascalled

toorderatabout9:20A.M.byUsec.RoldanG.GorgoniowhoactedastheChairperson.

2. OPENING PRAYER

Usec.Gorgoniooptedtoskipthe groupprayerandinsteadgavethemembersof

theBoardandtheotherattendeesamomenttosaytheirpersonalprayerssilently.

3. ADOPTION/ APPROVAL OF THE AGENDA

In addition to theproposed agenda emailed tothe membersof theSugar Board

three (3) days prior to the meeting, Administrator Serafica certified five (5) urgent

matters to be added to the agenda. The said urgent matters are as follows – (1) the

endorsement of Ms. Daisy Fabia regarding the proposed recommendation for BOC in

relation to the seizure of 35 container vans of Thailand sugar in Subic, Zambales as

reported by the SRA monitoring team in the Visayan Daily Star, (2) the endorsement

receivedonJuly29ofAtty.Tejida,theOIC-ManageroftheLegalDepartment,proposing

the conduct of consultation meeting with sugar repackers, in line with the mandate of

Republic Act 10659 to include the repackers in the registration, (3) the letter of Coca- 50 ColaBeveragePhilippinesrequestingdirectimportationwithavolumeof55,000metric

tonstoarriveinmonthlyvolumes,insteadofbulkdelivery,(4)letterdatedJuly23from

Engr. James Empeño, Director of DTI, Bureau of Philippine Standards, inviting SRA to

participateinthe12thconferenceongoodregulatorypracticesonAugust19and20in

Calbuco, Chile, and (5) letter dated July 22 of Mr. Antonio Steven Chan, Chairman and

President of CABI and CASA, communicating their intention not to participate in the

annualSRAsugarinventory,andinsteadgobytheirowninventorysystem.

Considering that the Sugar Board was not able to conduct a meeting for the

monthofJuly,BMBeltrannotedthattherearenumerousagendaitemstobediscussed.

Usec. Gorgonio agreed as he stated that the board meetings must be conducted on a

regular basis. He also suggested that the purely administrative matters must be

dispensedwithbythoseauthorizedbytheBoardsoastosavetime.

Thereafter,BoardMemberYuloproposedandmovedthattheSugarBoardhave

an Executive Session after the report of the Regulation Department and of the RDE

regarding crop estimation. He then moved to approve and adopt the proposed agenda

including the Other Matters sought to be included and the conduct of an executive

session and this was duly seconded by Administrator Serafica. There being no

objections, Usec. Gorgonio declared that the proposed agenda as amended is deemed

approved.

4. READING AND APPROVAL OF THE MINUTES OF THE SPECIAL SUGAR BOARD

MEETING HELD LAST JULY 2, 2019.

BMYulomovedtodispensewiththereadingoftheminutesoftheSpecialBoard

meeting conducted last July 2, 2019 to give more time to the numerous matters

submittedforboardconsiderationandapproval.

5. MATTERS ARISING FROM THE MINUTES

The Board Secretary apprised the Board that the following are the matters

arising from the minutes of the previous special Sugar Board Meeting held last July 2,

BOARD DIRECTIVES RESPONSIBLE UNIT/PERSON REMARKS

1. For the Regulation Department to submit the consolidated report of the status and volume of confiscated and abandoned sugar under BOC’s different ports.

2.Forthemanagerstosubmita terminalreportoftheirprojects as requirement for the

RegulationDepartment Complied

Different SRA units under the SRA

Partially complied as only the PPSPD, AFD, Regulation-Visayas, and

declaration of savings and realignment. management

3. For the Administrative and Finance Department to submit the certification that the first semesterofthefiscalyear2019 has ended, in relation to the declaration of corporate budgetarysavings.

4. For the Legal Department to submit a draft sugar order for the regulation of export of mud pressandboilerash.

5.ForMs.RosemarieGumerato submit the DPWH liquidation report of SIDA-Infrastructure projects.

6. For the Administrator to submit a reply to the letter dated June 30 of Mr. Rolando Silang regarding his request to berecalledtohisoriginalpost.

7. For the Legal Department to review the draft sugar order requiring repackers and wholesale traders to register withSRA.

those

General Administrative Division submitted their report.

Administrative and FinanceDepartment Forcompliance

LegalDepartment Forcompliance

Ms. Rosemarie Gumera ofPPSPD Complied

Office of the Administrator Complied

LegalDepartment There is a request from the Legal Department for a consultation meeting with therepackers.

For the submission ofthe terminal reports (Item 2), BM Beltransuggested that

considered the

comply must be given three (3) days to do so. Usec. Gorgonio

of BM Beltran as acorporate directive and thus, ordered the

submissionoftheterminalreportswithinthree(3)daysfromthedateofthemeeting.

6. REPORT OF THE ADMINISTRATOR AND SRA MANAGEMENT 91

A. REPORT OF THE REGULATION DEPARTMENT 92

Engr. Daisy Fabia rendered the report of the Regulation Department which was

basedontheweekendingJuly21,2019.Asofthatdate,thetotalrawsugarproduction

is 2,072,351. Compared to the previous crop year, there is a decrease of .47%. She

addedthatthiswillbethefinalproductioniftheFirstFarmersMillDistrictwillnotmill

thisAugust.

RAW SUGAR PRODUCTION AS OF JULY 21, 2019 (In Metric Tons)

Week To Week Raw Sugar Production Comparative

Fortheraw“B”sugarwithdrawals,thetotalwithdrawalis1,745,943.Compared

tothewithdrawallastyearof1,928,454,thereisadecreaseby9.46%.

RAW “B” SUGAR WITHDRAWALS AS OF JULY 21, 2019

In the domestic arena, there is an increase of 11.54% in the raw sugar balance.

theimportationaspect,thereisanincreaseof28.89%comparedtothe

RAW SUGAR BALANCE AS OF JULY 21, 2019

Fortherefinedsugarproduction,thetotalis15,942,352. Comparedtolastcrop

yearof18,411,429bags,thereisadecreaseof13.41%.

For the refined sugar withdrawals, there is a decrease of 32.17% compared to

sugar

There is an increase of 16.64% in the refined sugar balance. After including the

thereisanincreaseof22.60%.

Regulation Department

WEEKLY SUGAR PRICE AT MILLSITE CROP YEAR 2018 - 2019

Forthetonscanemilled,thereisadecreaseof8.81%.

TONS CANE MILLED COMPARATIVE (In Metric Ton)

From

1 to July 29, 2019, the importation of molasses amounted to

Php 215,783,734.50 (Molasses Fee)

The sugar importation stock balance is 12,500 MT for raw and 12,950 MT for

refinedsugar.

SUGAR IMPORTATION STOCK BALANCE

ThetotalshipmentfortheUnitedStatesofAmericais103,685.23.

According to Ms. Mary Antoinette Tampo, the Regulation Department has

identified the ownership of the stock balances in the sugar mills for both raw and

refined as early as June. Morever, the withdrawals for refined sugar are 420,000 bags

per week. She also stated that, assuming the same rate, there will be at least eight (8)

weeksleftuntiltherefinedsugarstocksareexhausted.

BM Beltran inquired about the ideal buffer for the stock. Administrator Serafica

informedtheBoardthatlastJuly23,CABIresumedrefiningbecauseLaCarlotta,which

isasugarmillinNegros,shipped700,000bagsofrawsugartotheformer. Asaresultof

which,therewillbeanadditional35,000metrictons.

BMYulomovedtoconductanexecutivesessionsothattheBoardcangooverthe

figures. Administrator Serafica interposed that the next report will be the pre-milling

preliminary crop estimate. He suggested that the Board must be apprised of the said

report. As such, BM Yulo amended his earlier motion as he moved to convene an

executivesessionafterhearingthepre-millingreport.

B. PRE-MILLING PRELIMINARY REPORT

Engr. Laverne C. Olalia, Officer-in-charge of the Research and Laboratory

Division (LAREC) reported on the crop estimate for the crop year 2018-2019, the

forecast for 2019-2020, and on how they arrived with such data. Based on their

assessment, extreme events affected the sugar supply. The data from PAG-ASA shows

whereElNiño(red)andLaNiña(blue)wereexperiencedinthecountry.

During the El Niño season, the supply of raw sugar peaked earlier than the La 264 Niñaevent.However,theLaNiñaeventwentfurthertowardstheJune-Julyperiod.

To serve as a point of comparison, the data from 2014-2015 was used wherein

the same El Niño event was detected by PAG-ASA. The white line shows the actual

production while the dashed line is the projected outcome based on the trend during

the2014-2015cropyear.

Here, the mill district officers submitted their final crop estimate. The tables

belowshowsthefinalcropestimateadjustedusingtheSRAcropestimatesystem.

BasedonSRACropEstimateSystem

Theproposedsystemforareavalidationshallbedonebythemilldistrictofficers

during the growing stage, wherein they will classify expansion areas and converted

areastoothercrops.Suchdatashallthenbeusedfortheformulationofthepreliminary

crop estimate. The crop estimate system during the growing stage shall also use the

remote data, LAI, weather data, solar radiation and thefield monitoring of mill district

offices.

AREA VALIDATION

YIELD ESTIMATE MONITORING

The crop estimate provided by the mill district offices was only up to February

15.Engr.LaverneOlaliasuggestedusingthethreadforecastusingthesugarproduction

monitoring of the Regulation Department so that the data may be adjusted beyond

The monthly rainfall of PAG-ASA is currently used for the coming 2019-2020

cropyear-whichisfromAugust2019toJanuary2020. Inthesegraphs,thebluecolor

signifiestheabovenormalrainfall.Inparticular,theareaofNegrosOrientalandNegros

Occidental will have 120% of rainfall more than normal for the months of December

and January, which will have a huge impact on sugar production. Bukidnon shall

experience the sameheavy rainfall. However, given that the area is hilly, the impact of

above normal rainfall will not be as significant as that in the Negros Oriental and

Occidental.Giventhefollowingdata,theLKGTCisanticipatedtodecreasecomparedto

thelastcropyear.Ontheotherhand,themillingcanesandlatemillingcanesshallhave

highertonnagecomparedtolastyear.

MDOs, Agriculturists, Surveyors

NDVI, LAI, RAINFALL, SOLAR RADIATION,SOIL MOISTURE PLUS MDOs FIELD MONITORING

TREND FORECAST, MILL REPORTS, MDO

336 Batangas, the ratoons that failed to survive due to the intense heat were abandoned.

There has been a reduction 8,000 hectares of area in Luzon, with 45 TC/Ha. In

337 The said loss was compensated by the increase of area in Visayas for about 2,000

338 hectares,whichhas60TC. Morever,theplantingwindowwasaffectedwhichhampered

339 theplantersfromplanting.Thus,theyoptedtoharvesttheoldratoons,whilesomeare

340 force-ratooning which will be used as planting material to achieve the proper cycle

341 during the planting season. Verily, the crop cycle has changed which is risky for our

342 farmers. Asasidenote, Engr. Laverne Olaliainformed theBoardthat the procurement

343 ofthedroneaerialmappingforBukidnonisalreadyatitspost-qualificationstage. 344

The red bar signifies the TC per hectare of the current crop year while the blue 352 barisforthepreviouscropyear.TheyareestimatinganincreaseinTCperhectarefor 353 LuzonandVisayas,whileMindanaowillhave,moreorless,thesame.ThedataofSRAis

insyncwiththeforecastofPAG-ASA.Itshowsthattherewillbeadecreasefrom1.78to

1.76thisyear.Thesametrendisseenonthedatafromthedifferentmilldistrictoffices.

As reference for the crop year 2019-2020, the best production is 2,120,574.33,

while the lowest amount of production is 1,992,000.00, which is still lower than last

year since the LKGTC had a significant increase. Thus, the mid-milling canes and late

millingcaneswillbecloselymonitoredasitsgrandgrowthphasearemoreconduciveto

the rainy season. As such, these will be the source of the projected additional

production.Overall,therewillbeadecreaseinLKGTCduetotherainsandsoilmoisture

during the harvest season. Another projected scenario is that the planters will use the

cane points and tops as they change their ratooons, which will then affect the TC per

hectare. To end, Engr. Laverne Olalia noted that due to the termination of El Niño, the

TC per hectare will be favorable to mid- and late-milling canes, but the same are still

subject

oftheagriculturists.

 DecreaseinLUZON (about9,000ha)

 Slightdecreasein MINDANAO(about 1,300ha)

 IncreaseforVISAYAS (about2,000ha)

 OVERALLadecreaseof about8,000ha

 Overallslightincrease intonnageduetothe terminationofElNino.

 Midmillingcanesand latemillingcaneswill havefavorablegrand growthphaseperiodas therains(fromJuly onwards)provide moisturetothegrowing canes.

 OVERALLtherewillbea decreasedueto moistureavailablein thesoilduringthe harvest.

POSSIBLE SCENARIOS

• Duetotheprojectedrainfallon DecemberandJanuary(seemonthlyrainfall forecast),soilmoisturewillaffecttheLKG/TC(lowerthanlastyear)

• DuetotheterminationofELNINOcondition,TC/HAwillbefavorableforthemid andlatemillingcanes.Butstillsubjecttotheassessmentofouragriculturist.

• OveralleventherewillbeaslightincreaseinTC/ha,decreaseinLKG/TCis anticipated. 391

VICTORIAS

SAGAY DANAO

BMYulosuggestedthattheinformationabouttheAgrarianReformBeneficiaries

must be included in the factors to be considered in establishing a crop estimate since

the area distributed by the Department of Agrarian Reform will affect the productivity

rate.

In light of the report of Engr. Olalia, BM Beltran moved to direct the Research,

Development and Extension Department (RD&E) to conduct a study, report and

recommendation on the changes of the sugarcane planting cycle brought about by

climate change and the possibility of adjusting the crop year season so that the Board

can align the same with the new cycle. Usec. Gorgonio announced that there is a

directivetotheRD&E andthatthesamemustbesubmittedtotheBoardtoserveasits

guidance on whether or not the crop year must be changed due to climate change. BM

Yuloalsonotedthatearlymillingisbecomingatrendasthecentralsopenearly,which

are the main drivers in any cropping season. Thus, he urged the Board to advise the

centrals that good quality canes do not come in September. In connection with the

earlier motion of BM Beltran, Administrator Serafica stated that the said data shall be

theirtoolbeforemeetingupwiththestakeholders.Atty.Santillanastatedthattheyhave

commencedwiththestudy, in preparationwiththestrategicdevelopmentplan forthe

FirstFarmersMillDistrict.Oneoftheirrecommendationsistoadjustthemillingseason

oftheFirstFarmersMillDistrictbecauseofthedrasticdifferencesinproductionduring

offmillingseason.Forthepastfiveyears,themillingcalendarismovingontherangeof

35 days late. Administrator Serafica instructed Atty. Santillana to submit the report

In view of the said projection, BM Beltran further moved to request the

Administrator to setup a meeting with the United States Department of Agriculture

(USDA). Administrator Serafica noted that USDA told SRA, under Administrator

Bautista, that they can forego with the export program at that time. Usec. Gorgonio

added that the production before the start of the commitment with USDA is different

from the current production. As such, he stated that it will be ironic if the SRA will

exportsugar,andatthesametimeimportsugar.

Considering the reports of Engr. Daisy Fabia and Engr. Laverne Olalia and, the

SugarBoardproceededtoanexecutivesessionasearliermovedbyBMYulotodiscuss

theseveralrequestsforimportation.

E X E C U T I V E S E S S I O N

REGULATION MATTERS

7.1 Letter dated 27 June 2019 of Michael L. Escaler, President of All Asian

Countertrade requesting to import 50-60,000MT of premium refined sugar in

equal shipments between October to December 2019 to fulfill their industrial

clients’requirementsthrutheendoftheyear;

7.2 a. Letterdated25 June 2019of Engr. SammyDalisay, Jr., VP-SupplyChain andMr.

YoungDukKang,Sr.VP/ChiefStrategyOfficerof Pepsi-Cola Products Philippines, Inc.

(PCPPI) requesting to import either directly or thru appointed accredited

importers, about 50,000MT (1million bags) of premium refined sugar as soon as

possible;

b. Endorsement received on 15 July 2019 of Ms. Daisy Fabia, Manager III of the

RegulationDepartmentregardingthefollow-uprequestofEngr.SammyDalisay,Jr.,VP-

Supply Chain and Mr. Young Duk Kang, Sr. VP/Chief Strategy Officer of Pepsi-Cola 495 Products Philippines, Inc. (PCPPI) on the importation of 50,000MT of premium 496 refined sugar for the manufacture of Pepsi-Cola Products;

7.3 Letter dated 2 July 2019 of Mai Magleo, AVP – Merchandizing and Justiniano S.

Gadia, Managing Director of Robinsons Supermarket requesting for an update and

appealing on their previous letter dated 20 February 2019 regarding their

request for approval to do direct importation of refined sugar of 15,000MT to

meettheirconsumerdemand;

7.4 Endorsement received on 8 July 2019 of Ms. Daisy Fabia, Manager III ofthe

Regulations Department regarding the request of Mr. Irwin C. Lee, President of

Universal Robina for the importation of 40,000MT of Premium Refined Sugar of

Bottler’s Grade Sugar for the manufacture of C2 flavored Ice Tea;

When the Board meeting resumed after the executive session, Usec. Gorgonio

declared that the Board members have already determined the need for importation

based on the data and report presented by Engr. Daisy Fabia of the Regulation

departmentandEngr.LaverneOlaliaoftheCropEstimationSystem.Hewasconvinced

thatthereisindeedaneedtosetupanimportationprogramtoaddresstheimpending

tightness or shortage of sugar supply in the coming months. He emphasized that the

next thing for the Sugar Board to do is to decide on the volume and timing which he

believesareverycrucialtoensuresufficientsupplyaswellasstabilizedprices.

BM Yulo stated that based on his calculations on the data presented by the

Regulation Department, the sugar supply will already be very tight by September and

October 2019. He suggested that as a pre-emptive measure, a sugar importation

programmustbeundertakentoavertanyspikeinthesugarprices Hebelievesthatthe

importprogramshouldcommenceduringthisperiodbutthereleasemustbecalibrated

sothattheimportedsugarmustcomeinwhenitisreallyneededbutbeforethestartof

the peak of the milling season. Thus, BM Beltran proposed an importation program

authorizing the importation of 250,000 MT either standard grade refined sugar or

bottlers’grade refined sugarto be allocatedto industrialusers and consumers and end-

users, and sugar producers The total volume of 250,000 MT imported sugar shall be

categorized and divided as follows:

(a) Industrial users with a volume of One Hundred Thousand Metric Tons (100,000

mt); and

(b) Consumers and End-users, and Sugar Producers, with a volume of One Hundred

Fifty Thousand Metric Tons (150,000 mt).

Moreover, the 250,000 MT of refined sugar shall be allocated to eligible importers on

a FIRST-COME, FIRST SERVE basis According to him, industrial users shall only be

allowed to import bottlers’ grade refined sugar. 70% of the total volume applied for

clearance shall be classified as “B” while the remaining 30% shall be classified as Reserved

“C” sugar; provided that for Industrial Users, 100% of their imported sugar shall be classified

as “B”. He suggested that 50% of the allocated volume to eligible importers should arrive in

the country not later than September 30, 2019 and the remaining volume on or before

October 31, 2019. He presentedadraftSugarOrderforthe Second Sugar Import Program

for Crop Year 2018-19 whichreadsasfollows:

1, 2019

Sugar Order No.______

SUBJECT: Second Sugar Import Program for Crop Year 2018-19

WHEREAS, on October 1, 2018, SRA issued Sugar Order No. 2 for Crop Year 2018-

2019 (SO #2) in line with Sugar Import Program for Crop Year 2018-19 allowing the release

of 150,000 metric tons and an additional 138,600 metric tons of imported sugar in the

domestic market;

WHEREAS, with the projected increase in the demand for raw and refined sugar

coupled with the low production of domestic sugar, it has given rise to a situation where

prices of sugar may spike during the off-season and spilling over into the start of next crop

year;

WHEREAS, there is a need for a timely government intervention by way of

importation in order to maintain a balanced supply and demand of sugar thereby preventing

unreasonable increase in prices that shall address inflation;

WHEREAS, one of the objectives in the creation of SRA is to ensure adequate and

stable supply of sugar for domestic consumption in order to stabilize prices at a level

reasonably profitable to the producers and fair to consumers, and that any sugar import

program must adhere to the regulatory framework under Executive Order No. 18, Series of

1986 and Republic Act 10659 or the Sugar Industry Development Act of 2015;

WHEREAS, the Stakeholders of the Sugarcane industry submitted their respective

letters of endorsement recognizing the need for another importation program for crop year

2018-2019;

NOW, THEREFORE, by authority vested in the Sugar Regulatory Administration,

the following is hereby ordered:

Section 1 This Second Sugar Import Program shall be for Crop Year 2018-2019.

Section 2. Definition of terms. For purposes of this Sugar Order, and unless the

context shall otherwise provide, the following terms shall mean:

(a) Bottlers’ grade refined sugar –shall refer to refined sugar with color less than or

equal to 35 ICUMSA units.

(b) Standard grade refined sugar – shall refer to refined sugar with color greater

than 35 ICUMSA units but less than or equal to 100 ICUMSA units.

(c) Industrial users –Industrial users shall include food, confectionaries, biscuits and

beverage manufacturers that included sugar in their product formulation. Excluded under this

term are the Small Medium and Enterprises (SMEs) and entities under the Custom Bonded

(d) Consumers and End-users – for purposes of this Sugar Order the term Consumer

and End-user shall include retailers, repackers, wholesalers and traders. Retailers and

repackers are those engaged in selling sugar in small quantities to the general public for

consumption. Wholesalers and traders are those engaged in selling sugar in bulk to retailers,

to institutional users or to other industries regardless of quantity of transaction and other

businesses.

(e) Sugar Producers - shall refer to Sugar Mills, Planters’ associations or

cooperatives and Sugar federations.

Section 3. Category, Volume and Type of Sugar: The maximum volume covered

by this Order shall not exceed TWO HUNDRED FIFTY THOUSAND METRIC

TONS(250,000 mt) either standard grade refined sugar or bottlers’ grade refined sugar, at the

option of the trader/importer; provided that industrial users shall only be allowed to import

bottlers’ grade refined sugar; provided, further, that the total volume of imported sugar shall

be categorized and divided as follow:

(c) Industrial users with a volume of One Hundred Thousand Metric Tons (100,000

mt); and

(d) Consumers and End-users, and Sugar Producers, with a volume of One Hundred

Fifty Thousand Metric Tons (150,000 mt).

Section 4. Eligible Importers: This second import program shall be open and

voluntary to natural or juridical persons who are Industrial users, Consumers and End-users,

and Sugar Producers, that are duly registered with SRA as an International Sugar Trader, in

good standing, for Crop Year 2018-2019.

Section 5. Allocation per Eligible Importer: Every Eligible Importer may apply for

SRA Clearance for Release of Imported Sugar and Allocation for a maximum volume of

Twelve Thousand Five Hundred Metric Tons (12,500 mt)per eligible importer for

Consumers, End-users and Sugar Producers; or Fifteen Thousand Metric Tons (15,000 mt)

per eligible importer for Industrial users.

Section 6. Period, Requirements and Procedure for Application of Allocation:

The 250,000 mt of refined sugar shall be allocated to Eligible Importers on a FIRST-COME,

FIRST SERVE basis following the herein rules and procedures:

6.1 APPLICATION PERIOD

Eligible Importers may apply for allocation upon the effectivity of this Sugar Order at

the Sugar Regulatory Administration Office, Sugar Centre Building, North Avenue, Diliman

Quezon City; provided, however, SRA shall stop accepting applications at the close of

business hours of August 15, 2019 or when the maximum volume of 250,000 mt of sugar

have been fully allocated as provided in Section 3 hereof, whichever comes first.

6.2 REQUIREMENTS. The Eligible Importer must submit the following:

(a) A duly notarized application letter with an undertaking to comply with this Order

and all other Sugar Orders, Resolutions or Circulars of SRA. The application letter

shall be signed by the President/Chief Executive or Financial Officer, Partner, or

Owner (in the case of corporations, cooperative, partnerships, or single

proprietorships) indicating the category and volume applied for,

type/specification of sugar, and specific address of the SRA-registered

warehouse with sufficient capacity where the sugar shall be stored and to show

necessary proof if required.

(b) Original or certified true copies of: (i) a valid Certificate of Product Registration

for Consumers and end users; and (ii) a License to Operate for Industrial users,

issued by the Food Drug Administration (FDA) of the Philippines.

(c) Original or certified true copies of Sugar Release Order (SRO) or Refined Sugar

Quedan (RSQ) showing purchases and withdrawals of locally-produced raw or

refined sugar for Crop Year 2018-2019 corresponding to the same volume of

imported sugar applied for allocation.

(d) For prospective purchases and withdrawals of locally-produced raw or refined

sugar for Crop Year 2019-2020, the trader/importer, mentioned in Sections 3(a)

and 3(b) hereof and in lieu of the requirements in Section 6.2(c) hereof, shall pay

a Production Enhancement Bond(PEB) in the form of Manager’s Check payable

to the Sugar Regulatory Administration, on top of the bond mentioned in Section

10, upon submission of the application for allocation in the amount of Three

Hundred Fifty Pesos (P350.00) per 50-kilo bag of sugar. The bond shall be

returned when the trader/importer issues proof of compliance and submit the

Sugar Release Order (SRO) /Raw/Refined Sugar Delivery Order (RSDO)/Refined

Sugar Quedan (RSQ) corresponding to the same volume of imported sugar

applied for allocation not later than April 30, 2020. Otherwise, the bond shall be

forfeited in favor of SRA which shall be allocated to finance SRA programs and

projects under the Regulation Department and the Research Development and

Extension (RDE).

(e) Payment of the Bond as required under Section 10 hereof.

6.3 PROCEDURE:

(a) The SRA Regulation officer tasked to accept the applications of trader/importer

for allocation shall perform the following:

(i) Verify if the applicant is an Eligible Importer as provided under Section 4

hereof. Applications and documents submitted by non-eligible importers will

not be accepted nor processed by SRA.

(ii) Determine if all documentary requirements submitted is complete, and

sufficient in form and substance, as provided in Section 6.2 hereof. Failure of

the President, Partner, or Owner (in case of corporations, cooperative,

partnerships, or single proprietorships) to sign, non-notarization of the

application letter, failure to pay or post the required bond, absence of the

undertaking or incomplete documents shall constitute as grounds for SRA not

to accept or process the application.

(b) Upon qualification as an Eligible Importer and the sufficient submission of

documents required in Section 6.2 hereof, the SRA Regulation Officer shall determine the

total import volume available; and that if the volume applied is within the total volume

covered by this Sugar Order and complies with the volume per Eligible Importer in Section 5

hereof, the SRA Regulation Officer shall mark the application with a stamp “ELIGIBLE”,

duly signed to acknowledge receipt of the application.

(c) The Regulation Officer shall enter in the record a ledger, following the order of

receipt, the name of Eligible Importer, category and volume applied for, type of sugar, date of

application and documents submitted. For this purpose, the Regulation Department shall

maintain a record of the volume allocated per Eligible Importer and the balance of the total

import volume available for allocation. For purposes of transparency, the ledger book shall be

open for examination by the public at a reasonable time of any working day.

6.4 SRA Regulation Manager III shall issue a CERTIFICATE OF ALLOCATION

indicating the category and volume in metric tons allocated to Eligible Importer three (3)

days after the close of applications conformably to Section 6.1 hereof.

Section 7. Issuance of SRA Clearance: The SRA Board shall approve the issuance

of the Clearance for Release of Imported Sugar (SRA Clearance) to Eligible Importers.

Section 7.1 Requirements: The following must be submitted to the Regulation

Department, Quezon City Office, in support of the application for the issuance of SRA

a) Application for issuance of SRA Clearance indicating the category and volume,

and type/specifications of sugar;

b) Bill of Lading;

c) Commercial Invoice of the imported sugar;

d) Packing List;

e) Certificate of Analysis (from country of origin);

f) Proof of payment of bond as provided in Section 6.2(d), if applicable;

g) Proof of payment of bond as provided in Section 10;

h) Proof of payment of applicable SRA fees;

i) Certificate of Allocation as provided for in Section 6.4; and

j) Other requirements that the SRA Board may prescribe.

Section 8. Date of Arrival of Imported Sugar: SRA shall require up to fifty percent

(50%) of the total volume of importation or up to fifty percent (50%) per approved allocation

per Eligible Importer, whichever is practicable, to arrive in the country not later than

September 30, 2019 and the remaining volume on or before October 31, 2019.

Section 9. Clearances and Classification of Imported Sugar: The SRA Clearance

shall classify the imported sugar and mark it as “B” to the extent of seventy percent (70%) of

the total volume applied for clearance; provided that the remaining thirty percent (30%) shall

be classified as RESERVED and marked as “C” sugar; provided that for Industrial Users,

100% of their imported sugar shall be classified as “B”.

Section 9.1 Any application for reclassification of Reserved “C” sugar must be made

in writing and submitted to the SRA Board in accordance with Section 13 hereof.

Section 10. Payment of Performance Bond: Every allocation shall be subject to a

bond of One Hundred Fifty Pesos (P150.00) per 50-kilo bag of sugar, regardless of category,

type or specification. The total amount of the bond shall be in the form of Manager’s Check

payable to the Sugar Regulatory Administration. The bond shall be made to answer for the

violations or non-compliance by the Eligible Importer of the orders, resolutions, or circulars

of SRA particularly this Sugar Order, without prejudice to the other penalties that the SRA

Board may impose and liabilities that may arise under existing laws, rules and regulations.

Section 10.1. Industrial Users - The total amount of the bond shall be returned to the

eligible importer upon its release by the Bureau of Customs.

Section 10.2. Consumers and end-users - The total amount of the bond shall be

returned to the Eligible Importer upon reclassification to “B” sugar of his last remaining

imported “C” sugar; provided that the SRA Board may allow partial return of the bond, for

justifiable reasons, corresponding to the sugar already reclassified as “B”; provided, further,

that there are no findings of violations or non-compliance of SRA orders, resolutions or

circulars on this second import program.

Section 11. SRA Clearance Fees: The SRA shall collect a fee of thirty three pesos

(P33.00) per 50-kilo bag of refined sugar allocated per Eligible Importer.

Section 12. Warehousing and Monitoring of Imported “C” Sugar: The “C” sugar

imported under this Order shall be stored in the SRA-Registered Warehouse indicated by the

Eligible Importer in its application prior to its reclassification and release as “B” Domestic

market sugar.

Section 12.1 The “C” sugar may be stored in the same SRA registered warehouse

where domestically produced sugar are stored; and provided that the imported “C” sugar shall

be segregated as a separate pile for monitoring of SRA.

Section 12.2 All warehouses storing imported “C” sugar shall each maintain a ledger

that shall record, among others, date/s of delivery of and the category, type or specification of

the “C” sugar, updated volume, with specifications, of “C” sugar in the warehouse, date/s of

withdrawal. No transfer of “C” sugar from one SRA registered warehouse to another

SRA registered warehouse shall be allowed without a prior written request and SRA

Section 13. Reclassification of the thirty percent (30%) “C” sugar to “B” sugar.

Eligible Importers shall write the SRA Board requesting for the reclassification of the

remaining thirty percent (30%) “C” sugar to “B” sugar indicating the category and volume to

be reclassified and the address of the warehouse where the “C” sugar is stored. The SRA

Board shall approve any application for reclassification to “B” sugar taking into consideration

the conditions of the domestic market at the time of the request, and for such other justifiable

reasons; provided that the Sugar Board may motu proprio order the calibrated reclassification

at an earlier period depending on the supply and demand situation.

Section 14.1 Violation or non-compliance with any provision of this Order or any

orders, resolutions or circulars of SRA, upon determination of the SRA Board, shall result in

the forfeiture of the entire or partial amount of the bond. This is without prejudice to the other

penalties that the SRA Board may decide to impose such as, but not limited to, suspension or

revocation of registration as International or Domestic Sugar Trader, forfeiture of the bond,

or suit for violation of the Agricultural Anti-Smuggling Act.

Section 14.2 Non-compliance with the Warehousing provisions in Section 12 shall be

subject to fines as determined by the SRA Board.

Section 15. Other provisions. Any natural or juridical person that imports sugar but

not an Eligible Importer under Section 4 or does not have an approved allocation under

Section 5 hereof and its sub-sections, shall not be considered part of this import program and

shall therefore be considered as smuggled sugar. No SRA Clearance shall be issued for

smuggled sugar. The SRA Board shall further pursue other applicable penalties provided by

law in addition to the filing of suit for violation of the Agricultural Anti-Smuggling Act.

Section 16. Provisions of other sugar orders, circular letters, and/or rules and

regulations contrary to or inconsistent with this Order are hereby amended, modified, or

revoked accordingly.

Section 17. A copy of this Order shall be filed with the Office of the National

Registrar, U.P. Law Center, Diliman, Quezon City.

Section 18. This Order shall take effect after three (3) days from filing in the Office

of the National Registrar, U.P. Law Center, Diliman, Quezon City.

Afterfurtherdiscussionanddeliberation,BMBeltranmovedtoapprovethedraft

Sugar Order authorizing a second importation program for crop year 2018-2019. BM

Yulodulysecondedthemotion.

For his part, Administrator Serafica manifested that he has reservations on the

said Sugar Order. Administrator Serafica clarified that he agrees with the total volume

and the timing of that importation but he has reservations on how the allocation of

importedrefinedsugarwillbedistributed. Hebelievesthattheindustrialusersshould

have been given moreallocation since if their demands are not satisfied, the economic

managers might revive the call for sugar liberalization again. Be that as it may, he

declared that he is submitting to the decision of the majority of the members of the

SugarBoard.HethenrequestedtheBoardSecretarytoregisterhisreservationsonthe

recordsoftheboardmeeting.BMBeltranopinedthatthepositionoftheAdministrator

mightviolatetheequalprotectionclauseoftheConstitution.

Accordingly, upon motion of BM Beltran and duly-seconded by BM Yulo, Usec.

Gorgoniodeclaredthattheabove-mentioneddraftSugarOrder re: Second Sugar Import

Program for Crop Year 2018-19 proposed by BM Beltran isapprovedbytheSRABoard.

HeremindedtheBoardSecretarytonoteandrecordthereservationsofAdministrator

Seraficaasrequested.

7.5 a. Letterdated22July2019ofAtty.JesusL.Barrera,ExecutiveDirector, Philippine

Sugar Millers Association requesting SRA to come up with an import program or

guidelines for importation of sugar;

b. Letter dated 16 July 2019 of Mr. Enrique D. Rojas, President, National Federation of

Sugarcane Planters (NFSP), Inc. expressing their agreement to the importation of

bottler’s grade refined sugar for industrial users;

c. Memorandum dated 19 June 2019 of Usec. Roldan G. Gorgonio, OIC of the Office of

theSecretary,DepartmentofAgriculture,regarding the letter of NEDA-X

Regional Director and RDC-X Vice Chairperson Mylah Faye Aurora B. Cariño,

dated April 1, 2019 seeking feedback on the implication of the importation of

sugar on the welfare of about five million workers of the industry;

The agenda item 7.5, subparagraphs A and B both pertain to the requested

importationwhichtheBoardhasalreadyaddressedthroughtheapprovedSugarOrder

re: Second Sugar Import Program for Crop Year 2018-2019.

For subparagraph C, Usec. Gorgonio stated that the query of NEDA region X is

about the welfare of about 5,000,000 workers in the industry. The Board Secretary

statedthattheSRAdoesnothaveastudyontheimplicationoftheimportationofsugar

onthewelfareoftheworkersintheindustry.

Thus, BM Beltran moved to refer the matter to the Planning, Policy, and Special

Projects Department (PPSPD) for their recommendation, which was duly seconded by

Administrator Serafica. BM Beltran further moved to authorize the Administrator to

send an acknowledgment letter to the said request. There being no objections, Usec.

Gorgonio declared that the query of NEDA shall be referred to the PPSPD and that a

reply must be correspondingly sent to NEDA-X Regional Director and RDC-X Vice

ChairpersonMs.MylahFayeAuroraB.Cariño.

7.6 Endorsementdated4June 2019ofMs. DaisyFabia,ManagerIIIoftheRegulation

Department withregardtothe request of Bureau of Customs (BOC) Zamboanga for

an updated sugar classification and floor price of the 6,417 bags MITR Phol

7.7 Endorsement received on 2 April 2019 of Ms. Daisy Fabia, Manager III of the

Regulations Department (RD) with regard to RD’s recommendation on the request of

the Bureau of Customs for the Floor price, Market Classification and if the THAI

UDONTHANI SUGAR FROM THAILAND consigned to RED Tropic Enterprises is still

fitforhumanconsumption.

7.8 Endorsement received on 2 April 2019 of Ms. Daisy Fabia, Manager III ofthe

Regulations Department (RD) with regard to RD’s recommendation on the request

ofthe Bureau of Customs for the floor price, market classification and if the KSL

REFINED SUGAR FROM THAILAND consignedto MMD LOGISTICS isstillfitforhuman

consumption.

7.9 Letter dated 12 April 2019 of Ms. Maritess T. Martin, District Collector of the

Bureau of Customs, Collection District XIII, on their appeal to allow the Bureau of

Customs to dispose through public auction sale the abandoned 12x20 container

van shipment of 6,000 bags of Thailand Refined Cane Sugar purportedlyconsigned

toPhilippineInternationalTradingCorporationunderBillofLadingNo.0353X49158.

7.10 Endorsement received on 24 May 2019 of Ms. Daisy Fabia, Manager III of the

Regulation Department with regard to the request for guidance by Atty. Enrico A.

Turingan III, Chairman, Auction and Cargo Disposal Committee, Bureau of Customs

(BOC) Subic Bay Freeport Zone on the 34 x 40’ container vans shipment (20,400

bags) of imported refined sugar from Thailand which are subject for seizure;

7.11 Letterdated26June2019ofAtty.ElviraCruz,DistrictCollectorofthe Bureau of

Customs, requesting information regarding the Sugar Condition, Market

Classification and possible Floor Price of the abandoned shipment of 2x20’

container vans containing 1,000 bags sugar consigned to Sivi International

Trading, Inc. which arrived at the Port of Cebu last 4 April 2019;

Agendaitems7.6–7.11pertaintotherequestsoftheBureauofCustoms(BOC)

for guidance from SRA regarding the confiscated or abandoned sugar. It has been

established by way of an inquiry that those that are found to be unfit for human

consumption may be utilized for other industrial uses such as the manufacturing of

ethanol.

FortherequestofBOCZamboanga(Item 7.6),theMITRPholRefinedsmuggled

sugar failed the test analysis. The Thai Udonthani Sugar from Thailand (Item 7.7)

passedthelabanalysiswhiletheKSLrefinedsugarfromThailand(Item 7.8)failedthe

lab analysis. For agenda items 7.9 to 7.11, the subject sugar therein all passed the lab

analysis.

Forthefloorprice,Ms.DaisyFabiarecommendedtheamountofPhp 1,500.She

furtherrecommendedthatthemarketclassificationis“B”.

BMBeltranremindedtheBoardthattheintentionshouldbetodiscourageillegal

importation.Assuch,BMBeltranmovedtoconductfurtherstudyontheserequestsand

takeupthesameinthenextboardmeeting.Consideringthattheserequestshavebeen

presented to the Board on three separate occasions, Administrator Serafica suggested

for the Board to put up a floor price and allow it for auction, to which BM Yulo

concurred.Byreasonofsuch,BMBeltranwithdrewhisearliermotion.

Thus,BMYulomovedthattherecommendationofMs.DaisyFabiabecarriedout

inviewofthewithdrawaloftheearliermotiontodefer.BMYulofurthermovedforthe

adoption of the Regulations Department’s recommendation for the floor price of Php

1,500andmarketclassificationof“B”.AdministratorSeraficadulysecondedthemotion.

There being no objections, Usec. Gorgonio declared that agenda items 7.7, and 7.9 to

7.11areapproved,whileagendaitems7.6and7.8aredeferred.

BM Yulo inquired on the container vans used in smuggling. Administrator

Serafica stated that hewas informed by the BOC collector that the said container vans

are shipped back to its port of origin. On a final note, BM Yulo instructed the Legal

Department to research on the matter whether such is an international practice. He

stated that those container vans can be used in the block farms and at the same time

7.12 Endorsement received on 29 May 2019 of Ms. Daisy Fabia, Manager III of the

Regulation Department with regard to the request of FMC Philippines, Inc. for the

update and change of their company registration and the transfer of the granted

full sugar allocation for 2019 of 60MT (1,200 LKg-bags) to DuPont Nutrition

TheBoardSecretaryinformedtheBoardthatthisagendaitemhasbeendeferred

during the last board meeting as the Board required the submission of documents

pertinenttoitschangeofname.Ms.DaisyFabiastatedthattheyhavenotyetcomplied

withthesaidrequirements.

Thus, BM Yulo required the submission of a certification that they have no

pendingcriminaloradministrativecase.Assuch,therequestofFMCPhilippines,Inc.for

the update and change of their company registration was referred back to the Legal

Department.

7.13 Endorsementdated27May2019ofMs.DaisyFabia,ManagerIIIoftheRegulation

Department with regard to the request of Confederation of Barter Trader’s

Associations, Inc. (COBTAI) to reconsider renewal of their License to Operate

(LTO) as International Sugar Trader;

Atty. Guillermo Tejida informed the Board that the Confederation of Barter 982 Trader’s Associations, Inc. (COBTAI)hasnotyet paidthefineforitsmisrepresentation

meted on June 2018. When the request was referred to the Legal Department, they

foundthatitsnatureofbusinesswasfortheretailofpetroleumandotherfuelproducts.

Thus,BMBeltranmovedtodeclinetherequestofCOBTAItorenewtheirlicense

to operate as international sugar trader, which was duly-seconded by Administrator

Serafica.Therebeingnoobjections,Usec.Gorgoniodeclaredthedenialoftherequestof

COBTAI. He further noted that such denial must be considered as a lesson to traders

thatalicenseisaprivilege,andnotaright.

7.14 Endorsement received on 8 July 2019 from Ms. Daisy Fabia, Manager III,

Regulation Department with regard to the request of Lopez Sugar Corp. for

consideration on the refund of their performance bond amounting to

Php30,000,000.00 representing the volume of 10,000 MT (200,000 LKg-Bags) of

imported sugar;

Ms.DaisyFabiaendorsedtheapprovaloftherequestofLopezSugarCorporation

for consideration on the refund of their performance bond amounting to Php

30,000,000.00representingthevolumeof10,000MTofimportedsugar.

As there are no adverse findings, BM Beltran moved to approve agenda item

7.14, which was duly-seconded by Administrator Serafica. There being no objections,

Usec. Gorgonio declared the approval of the refund of the performance bond of Lopez

SugarCorporationamountingtoPhp30,000,000.00.

7.15 Various requests from CBWs/Manufacturers of sugar-based products for 1008 export for the release of their 2019 FULL SUGAR ALLOCATIONS:

a. Endorsementreceivedon11July2019ofMs.DaisyFabia,ManagerIII

of the Regulation Department with regard to the request of FIL-CHOICE FOOD

INDUSTRIES on the release of its 2019 full sugar allocation for the

manufactureofsugar-basedproductsforexportwithatotalvolumeof 100MT;

b. Endorsementreceivedon11July2019ofMs.DaisyFabia,ManagerIII

of the Regulation Department with regard to the request of SUCERE FOODS

CORP. on the release of its 2019 full sugar allocation for the manufacture of

sugar-basedproductsforexportwithatotalvolumeof 1,150MT;

c. Endorsementreceivedon11July2019ofMs.DaisyFabia,ManagerIII

of the Regulation Department with regard to the request of GLOBAL FOOD

SOLUTIONS on the release of its 2019 full sugar allocation for the

manufactureofsugar-basedproductsforexportwithatotalvolumeof 150MT;

d. Endorsementreceivedon24July2019ofMs.DaisyFabia,ManagerIII 1026 of the Regulation Department with regard to the request of MARTSONS FOOD 1027 CORP. on the release of its 2019 full sugar allocation for the manufacture of

sugar-basedproductsforexportwithatotalvolumeof 50MT;

Ms. Daisy Fabia recommended the release of the full sugar allocation of the

followingCBWs/manufacturers–(a)Fil-ChoiceFoodIndustriesfor100MT,(b)Sucere

Foods Corporations for 1,150 MT, (c) Global Food Solutions for 150 MT, and (d)

Martsons

By way of an omnibus motion, BM Beltran moved to approve agendaitem 7.15,

inclusive of subparagraphs A-D subject to compliance with existing laws,

guidelines,rules and regulations. BM Beltran’s motion was duly-seconded by

AdministratorSerafica.Therebeingnoobjections,Usec.Gorgoniodeclaredtheapproval

oftherequestsforfullsugarallocationof(a)Fil-ChoiceFoodIndustriesfor100MT,(b)

SucereFoodsCorporationsfor1,150MT,(c)GlobalFoodSolutionsfor150MT,and(d)

Martsons Food Corporation for 50MT subject to compliance with existing laws,

7.16 Requests from CBWs/Manufacturers of sugar-based products for export for

a. Endorsementreceivedon11July 2019ofMs. DaisyFabia,ManagerIII

of the Regulation Department with regard to the request of LTH FOOD

INDUSTRIES on the release of its 2019 additional sugar allocation for the

manufactureofsugar-basedproductsforexportwithatotalvolumeof 500MT;

b. Endorsementreceivedon15July2019ofMs.DaisyFabia,ManagerIII

of the Regulation Department with regard to the request of MIESTO

INTERNATIONAL FOOD CORP. on the release of its 2019 additional sugar

allocation for the manufacture of sugar-based products for export with a total

volumeof 1,000MT;

c. Endorsementreceivedon 15 July 2019 ofMs. DaisyFabia, ManagerIII

of the Regulation Department with regard to the request of DLA NATURALS

on the release of its 2019 additional sugar allocation forthemanufactureof

sugar-basedproductsforexportwithatotalvolumeof 325MT;

d. Endorsementreceivedon24July2019of Ms.DaisyFabia,ManagerIII

of the Regulation Department with regard to the request of CJ UNIWORLD

CORP. on the release of its 2019 additional sugar allocation for the

manufactureofsugar-basedproductsforexportwithatotalvolumeof 300MT;

e. Endorsementreceivedon24July 2019ofMs. DaisyFabia,ManagerIII

of the Regulation Department with regard to the request of LTA FOODS

MANUFACTURING on the release of its 2019 additional sugar allocation for

the manufacture of sugar-based products for export with a total volume of

f. Endorsement received on 24 July 2019 of Ms. Daisy Fabia, Manager III

of the Regulation Department with regard to the request of PEARL FOODS

INTERNATIONAL on the release of its 2019 additional sugar allocation for

the manufacture of sugar-based products for export with a total volume of

200MT;

g. Endorsementreceivedon24July2019ofMs. DaisyFabia, ManagerIII

of the Regulation Department with regard to the request of FPD FOOD

INTERNATIONAL on the release of its 2019 additional sugar allocation for

the manufacture of sugar-based products for export with a total volume of

h. Endorsementreceivedon24July2019of Ms.DaisyFabia,ManagerIII

of the Regulation Department with regard to the request of PRIME FRUITS

INTERNATIONAL on the release of its 2019 additional sugar allocation for

the manufacture of sugar-based products for export with a total volume of

Ms. DaisyFabia recommendedtheapprovaloftherequestsforadditionalsugar

allocationofthefollowingCBWs/manufacturers–(a)LTHFoodIndustriesfor500MT,

(b) Miesto International Food Corporation for 1,000 MT, (c) DLA Naturals for 325 MT,

(d) CJ Uniworld Corporation for 300 MT, (e) LTA Foods Manufacturing for 400MT, (f)

(g) FPD Food International for 700 MT, and (h)

Thus,afterfurtherdiscussiononthematter,BMYulomovedtoapprove,byway

ofanomnibusmotion,theagendaitem7.16,paragraphsA-Hsubjecttocompliancewith

existing laws, applicable guidelines, circulars, rules and regulations. As the same has

been

Gorgonio

by Administrator Serafica and there being no objections, Usec.

the approval of the requests for additional sugar allocation of (a)

Miesto International Food Corporation for 1,000

(c) DLA Naturals for 325 MT, (d) CJ Uniworld Corporation for 300 MT, (e) LTA

FoodsManufacturingfor400MT,(f)PearlFoodsInternationalfor200MT,(g)FPDFood

International for 700 MT, and (h) Prime Fruits International for 400 MT subject to

compliancewithexistinglaws,applicableguidelines,circulars,rulesandregulations.

7.17 Requests for Fructose Import Allocation for CY 2019:

a. Endorsement received on 8 July 2019 of Ms. Daisy Fabia, Manager III,

RegulationDepartment,regarding the request of BNC INGREDIENTS CORP. for

Import Allocation for CY 2019 with a volume of 300 MT of High

;

b. Endorsement received on 8 July 2019 of Ms. Daisy Fabia, Manager III,

Department, regarding the request of TAIWAN FRUCTOSE for

Allocation for CY 2019 with a volume of 100 MT of High

After the discussion on the matter, BM Beltran moved to approve agenda item

7.17subjecttocompliancewithexistinglaws,applicableguidelines,circulars,rulesand

regulations, which was duly-seconded by Administrator Serafica. There being no

objections, Usec. Gorgonio declared the approval of the requests for fructose import

allocation of BNC Ingredients Corporation and Taiwan Fructose subject to compliance

with existing laws, applicable guidelines, circulars, rules and regulations. He further

notedthatthereisasignificantreductionontherequestsforfructoseimportallocation

which may be brought about by some regulatory measures supplemented by the

government,particularlytheTRAINLaw.

7.18 Requests for Renewal of Certificate of Registration as Bioethanol Producers

for CY 2019-2020:

a. Endorsement dated 10 July 2019 of Ms. Rosemarie S. Gumera, Manager

III, PPSPD, regarding the application of Absolut Distillers, Inc. (ADI) for 1139 renewal of its Registration Certificate as Bioethanol Producer for CY 2019-

2020;

b. Endorsement dated 16 July 2019 of Ms. Rosemarie S. Gumera, Manager

III, PPSPD, regardingthe application of Cavite Biofuel Producers, Inc. (CBPI)

for Renewal of Registration as Bioethanol Producer for CY2019-2020;

c. Endorsement dated 19 July 2019 of Ms. Rosemarie S. Gumera, Manager

III,PPSPD,regardingthe application of Leyte Agri Corp. (LAC) for Renewal of

Registration as Bioethanol Producer for CY2019-2020;

Ms. Rosemarie Gumera recommended the renewal of the certificates of

registrationofthreeBioethanolProducers–(a)AbsolutDistillers,Inc.(ADI),(b)Cavite

BiofuelProducers,Inc.(CBPI),and(c)LeyteAgriCorporation(LAC).

For the application of Absolut Distillers, Ms. Gumera explained that the original

capacity that they are applying for is not yet approved by the Department of Energy

(DOE.)Withregardtotheapplication oftheCaviteBiofuelProducers,Inc.,Ms.Gumera

noted that it is not yet operational but it wanted to religiously renew its registration

everycroppingseason.

Usec. Gorgonio inquired if the certification from the DOE is required for the

renewalofregistration, towhichMs. Gumeraansweredin thenegativeandstatedthat

the application for registration and the regular monthly submission of utilization are

theonlyrequirementsforregistration.

BMBeltranmovedfortheapprovaloftherequestsforrenewalofthecertificate

of registration of Absolut Distillers, Inc. and Leyte Agri Corporation subject to

compliance with existing laws, applicable guidelines, circulars, rules and regulations.

Considering that the Cavite Biofuel Producers, Inc. is not yet operational, he further

moved for the denial of the request of Cavite Biofuel Producers, Inc. As the same was

duly-seconded by the Administrator Serafica and there being no objections, Usec.

GorgoniodeclaredtheapprovaloftherequestsofAbsolutDistillers,Inc.andLeyteAgri

Corporation subject to compliance with existing laws, applicable guidelines, circulars,

rules and regulations, and the denial of the request of Cavite Biofuel Producers Inc.

Usec. Gorgonio further stated that there should be an internal policy where the

applicants will show proof that they have produced bioethanol products for the

approvaloftheirrequestforregistration.

7.19 Endorsementdated10July2019ofMs.RosemarieS.Gumera,ManagerIII,PPSPD,

regardingthe Migration of Application of New/Renewal of Registration Certificates

and Preparation of Billing Statements of Bioethanol Producers from Planning

Policy and Special Projects Department (PPSPD) to Regulation Department;

Ms. Rosemarie Gumera endorsed the transfer of the registration process of

bioethanol producers from the Planning, Policy, and Special Projects Department

(PPSPD) to the Regulation Department. The said transfer will include the issuance of

thebioethanolproducers.

Ms. Gumera also recommended that the Regulations-Visayas Department will

processtherequestsofthebioethanolplantsinVisayas. AdministratorSeraficaagreed

withthesuggestionandstatedthatitisreasonablethatthestakeholdersinVisayaswill

submittheirapplicationinSRAVisayas,whilethoseinLuzonandMindanaowillsubmit

theirapplication

Thus, BM Beltran moved for the approval of agenda item 7.19, which was duly-

secondedbyAdministratorSerafica.Therebeingnoobjections,Usec.Gorgoniodeclared

theapprovalofthemigration ofapplicationofnew/renewalofregistrationcertificates

andpreparationofbillingstatementsofbioethanolproducersfromthePlanning,Policy,

andSpecialProjectsDepartment(PPSPD)totheRegulationsDepartment.

7.20 Endorsement received on 17 July 2019 of Ms. Daisy Fabia, Manager III of the

Regulation Department regarding the request for authority from the SRA Mill

District Officer Region 10 to sign the Memorandum of Agreement on Food Safety

between the different government agencies in Region 10;

Ms. Daisy Fabia endorsed to the Board the request from the SRA Mill District

OfficerofRegion10forauthoritytosignthememorandumofagreementonfoodsafety

withthedifferentgovernmentagenciesinRegion10.

TheBoardSecretaryinformedtheBoardthattheSRAwasinvitedinthecrafting

ofthesaidMemorandumofAgreementbutnobodywasabletoattend.Hefurtherstated

thattherearefinancialobligationsinthesaidagreementanditwillbebestifthesame

willbereviewedbytheAdministrativeandFinanceDepartmentandLegalDepartment

first.

Thus, BM Beltran moved to defer agenda item 7.20 and refer the matter to the

Legal Department and the Administrative and Finance Department. Usec. Gorgonio

noted that any legal document or contractual matters must pass through the legal

scrubbing or scrutiny of the Legal Department. There being no objections, Usec.

Gorgonio declared that the requestof theSRAMill District Officer ofRegion 10 will be

referred to the Legal Department the Administrative and Finance Department for

comments.

SIDA MATTERS

7.21 Endorsementdated2July2019ofMs.RosemarieS.Gumera,ManagerIII,PPSPD,

& TWG-Head, SIDA-IPC, regarding the Approval of 2019 Infrastructure Projects

under SIDA for Endorsement to Department of Budget and Management (DBM);

Ms. Rosemarie Gumera endorsed the approval of the 2019 Infrastructure

Projects which was approved by the Infrastructure Program Committee. She pointed

outthattheapprovaloftheSugarBoardisarequirementoftheDepartmentofBudget

andManagement(DBM)fortheimplementationoftheproject.Thelistoftheapproved

projectsbytheSugarBoardwillthenbesubmittedtoDBMforthereleaseofthefundto

BM Beltran noted the delay in elevating the approved resolution of the

InfrastructureProgramCommitteetotheSugarBoard,asthesamewasapprovedbythe

committeewaybackinMarch2019.Hefurtherstressedtheissueofunderspendingon

the part of the Infrastructure Program Committee as the matter at hand is among the

manyproblemsthatcontributethereto.Ms.Gumeraadmittedthattherewasadelayin

gatheringthedocumentaryrequirementsastheytriedtocirculatetheresolutionforthe

Considering the issue at hand, Administrator Serafica suggested that a board

resolution must be prepared in the next committee meeting so that the same will be

signedbythepresentmembersbeforetheadjournmentofthemeeting. Usec.Gorgonio

cannothelpbutcomparethetreatmentofSRAandDAontheFarmtoMarketProgram.

He suggested that the Infrastructure Committee must be keen enough with the

documentationaspectoftheprogramofworks.

Thus, after further deliberation on the matter, BM Yulo moved for the approval

ofthe2019InfrastructureProjectssubjecttocompliancewithexistinglaws,applicable

guidelines, circulars, rules and regulations, which was seconded by BM Beltran. There

being no objections, Usec. Gorgonio declared the approval of the 2019 Infrastructure

Projectssubjecttocompliancewithexistinglaws,applicableguidelines,circulars,rules

andregulations.Heurgedtheconcernedcommitteetomakethenecessaryfasttracking

ofthenecessarydocumentationtoavoidthedelayedsubmissiontotheDBM.

7.22 Endorsement dated 21 June 2019 of Ms. Rosemarie S. Gumera, Manager III,

PPSPD,&TWG-Head,SIDA-IPC,regardingthe request for approval of the SRA-DPWH

MOA for 2019 FMR and Bridge Projects and Authorizing the SRA Administrator to

enter into MOA with DPWH;

As agenda item 7.22 is for the approval of the memorandum of agreement with

DPWHinconnectionwiththepreviousitem,BMYulomovedtoapprovetheSRA-DPWH

MOAandgranttheauthoritytoAdministratorSeraficatosignthesaidMOAonbehalfof

SRA. BM Beltran seconded the motion and there being no objections, Usec. Gorgonio

declaredtheapprovaloftheSRA-DPWHMOAforthe2019FMRandBridgeProjectsand

thegrantofauthoritytotheSRAAdministratortoenteraMemorandumofAgreement

withDPWH.

7.23 Endorsement dated 23 July 2019 of Mr. Josephino M. Agosto, Manager III of the

Administrative and Finance Department, regarding the Reconstitution of the Human

Resource Development Program (HRDP) Committee-Technical Working Group

(TWG) Members in pursuance to the provisions of Sugar Industry Development Act

(SIDA)/RA10659,anditsImplementingRulesandRegulations(IRR);

Mr. Josephino Agosto requested for the approval of the reconstitution of the

TechnicalWorkingGroupoftheHumanResourceDevelopmentProgram(HRDP),which

is the scholarship program. Out of the original nine (9) members, they reduced the

membersoftheHRDPCommitteeTechnicalWorkingGroupintofive(5)asfollows:

andFinanceDepartment

TechnicalServicesDivision,LuzonandMindanao

Moreover, he pointed out that they have already hired a job order personnel to

focus on the scholarship program for SRA. BM Beltran then moved to approve the

proposed reconstitution of the HRDP Committee-Technical Working Group.

Administrator Serafica seconded the motion of BM Beltran. Thus, upon motion duly

seconded, the Chairperson declared that the reconstitution of the HRDP Committee-

TechnicalWorkingGroupisapprovedbytheBoardasfollows:

HEAD: MR. JOSEPHINO M. AGOSTO

ManagerIII,AdministrativeandFinanceDepartment

Head: MS. EMILIA R. CHU

EngineerIII,TechnicalServicesDivision,LuzonandMindanao

MEMBERS: MS. DIGNA D. GONZALES

MS. MA. BELINA N. PLAZA

MR. ROLANDO P. SILANG

MS. VANESSA R. AGUDA

7.24 Endorsement received on 31 May 2019 of Atty. Ignacio S. Santillana, TWG

Head/NationalFocalPerson,RD&ECommittee,recommendingforBoardapprovalthe

following requests of PNRI for the SIDA RDE Project “Improvement of the

Recommended Sugarcane Varieties Using Nuclear Technology and Biotechnology”: 1.)

Utilize the remaining Php 53,292.00 of the Capital Outlay (CO) budget/or the

savings, and 2.) Realignment of MOOE line item budget to augment the expenses

duringthefieldexperimentsandvariousactivitiesat no additional cost from SRA;

After further discussions on the matter, Usec. Gorgonio is of the opinion that

agendaitem7.24mustbereferredbacktotheAdministrativeandFinanceDepartment

sothatitwillbepresentedwellinthenextboardmeeting.

Thus, BM Beltran moved to defer consideration of 7.24 and refer it back to the

Administrative and Finance Department, which was duly-seconded by Administrator

Serafica. There being no objections, Usec. Gorgonio announced the deferment of the

requests of PNRI for the SIDA RDE Project “Improvement of the Recommended

SugarcaneVarietiesUsingNuclearTechnologyandBiotechnology”.

7.25 Endorsement of Atty. Ignacio S. Santillana, OIC-Research, Development &

Extension – Visayas, TWG Head of the SIDA-RDE Program, recommending for Board

approvalonthe implementation of the SIDA-RDE project “Harmonization of Sugar

Mill Laboratory Analytical Facilities”;

Atty. Santillana requested for the approval of the implementation of the SIDA-

RDEproject“HarmonizationofSugarMillLaboratoryAnalyticalFacilities”.Heinformed

the Board that this matter was presented during the last board meeting and the only

issuethenwastheproprietyofthepaymentofhonorariumtotheSRAmembersofthis

undertaking.

During the discussion, Usec. Gorgonio suggested that the Bureau of Agriculture

and Fisheries Standards (BAFS) can be a key intervener in the said standardization.

Administrator Serafica proposed to include a representative of BAFS in the team, to

which Atty. Santillana vouched that he will direct the research leader to find a way to

involveBAFSinthesaidproject.

Thus,BMBeltranmovedtoapproveagendaitem7.25subjecttocompliancewith

existing laws, applicable guidelines, circulars, rules and regulations, which was duly-

secondedbyAdministratorSerafica.Therebeingnoobjections,Usec.Gorgoniodeclared

that the implementation of SIDA-RDE project “Harmonization of Sugar Mill Laboratory

Analytical Facilities” is approved subject to compliance with existing laws, applicable

guidelines,circulars,rulesandregulations.

7.26 Endorsement dated 18 March 2019 of Ms. Emilia R. Chu, TWG SIDA-RDE,

recommendingforapprovaloftheBoardontherequestof BSWM for Realignment of

Funds in the amount of Php 651,136.00 for SIDA Project “Soil Characterization of

the Sugarcane Mill Districts in the Philippines”;

Ms. Emilia Chu stated that BSWM requested for re-alignment of funds in the

amountofPhp651,136.00forSIDAProject“SoilCharacterizationoftheSugarcaneMill

Districts in the Philippines” as the latter was not able to analyze the samples from the

central office and submit the same to the regional office for analysis. As such, the

incurredcostwasnotincludedintheoriginalplan.Moreover,BSWMalsoencountered

someproblemsintherepairofstructureswhichtheyhadtoredoandtherebyadjustthe

budgetforthesameasitisnotwithinthebudgetallocation.

Giventhecomplexityofthematter,Mr.JosephinoAgostosuggestedthatagenda

item7.26bereferredbacktotheAdministrativeandFinanceDepartmentsothathecan

furtherstudytherequestbeforehecangivehiscomments.

As such, BM Beltran moved to defer 7.26 and refer the matter to the

Administrative and Finance Department, which was duly-seconded by Administrator

Serafica. There being no objections, Usec. Gorgonio declared that agenda item 7.26 is

deferred and the request must be referred back to the Administrative and Finance

Department.

7.27 Endorsement received on 14 June 2019 of Mr. Laverne C. Olalia, OIC,

LAREC, requestingto re-establish thewholeexperiment siteofa research project in

Isabela “Evaluation of SRA High Yielding Varieties for Ethanol Production” that

was damaged and eaten by stray cows in the area;

Inthisboardmatter,Engr.LaverneOlaliainformedtheBoardoftheneedforthe

re-establishment of the experiment area for the research project between the Sugar

RegulatoryAdministrationandtheIsabelaStateUniversity(ISU).Thiswasinitiateddue

to the stray cows that caused the destruction in the site. Mr. Olalia assured the Board

that in this request for a contract extension, alongside the one‐year time needed, ISU

willtakeresponsibilityinsecuringtheplaceagainststraycows.Thematterisembodied

inaSupplementalMemorandumofAgreement(MoA).

Usec. Gorgonio pointed that if this is for a contract extension, by way of a

Supplemental MOA, there is an existing one. Engr. Olalia responded in the affirmative

but stressed that the same has not yet expired. When asked if the supplemental MOA

hasalreadypassedthescrutinyoftheLegalDepartment,Atty.Tejidadisclosedthatthe

proposed supplemental MOA did not pass thru his office for review. Usec. Gorgonio

therefore proposed for its deferment and instead refer the matter to the Legal

Departmentforscrubbing.

BMBeltranmovedtodefertheapprovalofagendaitem7.27andreferthesame

to the Legal Department for its study and recommendation. Administrator Serafica

seconded the motion. There being no objections, Usec. Gorgonio announced that the

agendaitem7.27isdeferredandreferredtoLegalDepartment.

7.28 Endorsement received on 17 June 2019 of Atty. Ignacio S. Santillana,

TWGHead/NationalFocalPerson,RD&ECommittee,recommendingforBoardapproval

for the SIDA-RDE Project – Effects of HFCS and Sucrose on Body Weight, Body Fat and

Triglyceride Levels in Rats on the request of Food and Nutrition Research Institute 1405 (FNRI) on the following: a) Change of project’s implementation date from October 1406 2017-March 2019 to January 2019-June 2020, and b) Realignment of MOOE

budget of SIDA-RDE project in the amount of Php 677,000.00;

Atty. Ignacio Santillana presented to the Board that the study of the Effects of

HFCSandSucroseonBodyWeight,BodyFatandTriglycerideLevelsinRatsissupposed

to be implemented last October 2017 to March 2019 but unfortunately, the research

project was not completed on time. The present requests are as follows: (1) to have a

newimplementationdateofJune2019-June 2020;and(2)therequestforrealignment

ofMOOEbudgetintheamountofPhp677,000.00.

BM Beltran provided as a backgrounder that the aforementioned study was

commissionedduringthecountry’shighutilizationofHFCS.Thisisthelikewisetoshow

that the useof HFCS has negativeeffects tothe human health. However, he added that

studywasrendereduselessbytheimplementationoftheTRAINLaw.

Usec.Gorgoniosuggestedthatifindeedthepolicydirectionofimplementingthe

TRAIN Law affected the outcome and actual use of the research, SRA can make use of

theprovisionofRepublicActNo.9184,particularlySection41asthe basisofrevoking

theaward,ifonehasalreadybeenmade.

BM Yulo proposed that they momentarily refer the matter to the Legal

Department to provide the Board of options in going about this agenda. BM Beltran

therefore moved to defer the approval of agenda item 7.28 and refer the same to the

Legal Department for its study and recommendation. Administrator Serafica seconded

themotion.Therebeingnoobjections,Usec.Gorgoniodeclaredthedefermentofagenda

item7.28.

7.29 Endorsement received on 17 June 2019 of Atty. Ignacio S. Santillana,

Head/NationalFocalPerson,RD&ECommittee,recommendingforBoardapproval

for the SIDA-RDE Projects – a) Modification of the Project Title for Soils

Laboratories and b) Merging of the two projects on Farm Mechanization: (1.)

Design/Fabrication of Sugarcane Farm Mechanization Machineries, Equipment &

Implements and Acquisition of Prototypes for Testing and (2.) Performance Trials

& Evaluation of Various Sugarcane Harvesting Machineries in the Various

Sugarcane Mill Districts;

Atty. Santillana requested for Board approval that the project tittle

“Design/Fabrication of Sugarcane Farm Mechanization Machineries, Equipment

and Implements and Acquisition of Prototypes for Testing” be modified into

“Performance Trials & Evaluation of Various Sugarcane Harvesting Machineries”.

He manifested that the same project title was already used by PITC relative to the

procurementprocessforthisproject.

Ms.GumerainformedtheBoardthatthisprojectisalreadyincludedinthebroad

projectofSRAunderResearch,DevelopmentandExtension(RD&E)program.However,

she pointed out that any modification such as this must be communicated to the

DepartmentofBudgetandManagement(DBM).

BMBeltranmovedtoapproveagendaitem7.29.Themotionwasduly-seconded

by Administrator Serafica and there being no objections, Usec. Gorgonio declared that

themotionisdeemedapproved.

7.30 Letter dated 20 June 2019 of Nicolas P. Ledesma, Jr., Chairman, First

Farmers MDDC Foundation Inc. regarding the HYV Project proposal for the

Calumangan Nursery of 15 hectares;

BMBeltranmovedtodefertheapprovalofagenda7.30andreferthesametothe

Research, Development and Extension (RD&E) Department. BM Yulo seconded the

motion.Therebeingnoobjections, Usec.Gorgonioannouncedthedefermentofagenda

item7.30.

RD&Eisfurtherinstructedtoconductandconsolidateareportinthisparticular

item,inorderfortheBoardtoproperlyactonthematter.

7.31 Endorsementdated12July2019ofAtty.IgnacioS.Santillana,TWGHead,

SIDA-RDE Program regarding the approval of Supplemental MOA and Renewal of

Contract of Lease between SRA and Ms. Mary Gay B. Agustin for SIDA Project

“National Cooperative Tests (NCT);

Ms.EmiliaChuisrequestingfortheapprovaloftheSupplementalMemorandum

ofAgreement(MoA)andtherenewalofContractofLeasebetweenSRAandMs.Agustin

fortheSIDAproject“NationalCooperativeTests”.

Atty. Santillana sharedtotheBoardthat theimplementation ofthisprojectwas

madeuntiltheharvestingoftheplant.However,thecontractingpartiesagreedtohave

an extensionuntilthefirst ratoon,asthesamewasallowedbythetermoftheexisting

MOA.

BM Yulo clarified that the intention of making it until the first ratoon should be

properly indicated on the MOA. Atty. Tejida affirmed that the request is possible

consideringthepartieshaveagreedastotheextensionoftheproject.

BM Beltran moved for the approval of the following: (1) the Supplemental

MemorandumofAgreementandrenewaloftheContractofLeasebetweenSRAandMs.

MaryGayB.AgustinfortheSIDARD&Eproject“NationalCooperativeTests”,subjectto

the review and recommendation as to the form from the Legal Department and

compliancewithexistingguidelines, rulesandregulations;and(2)theauthorityofthe

Administrator to sign for and in behalf of SRA. BM Yulo seconded the and there being

noobjectionsinterposed,Usec.Gorgonioannouncedthatagendaitem7.31isapproved

includingtheauthorityoftheAdministratortosignthesupplementalMOA.

ADMINISTRATIVE MATTERS

7.32 Implementation of the approved MSP and SRA Organizational

a. Endorsementdated11July2019ofMr.JosephinoM.Agosto,Manager

III of the Administrative and Finance Department, endorsing for Board

consideration and approval on the Publication of SRA Vacant Positions;

b. Proposed Special Orders for the Creation of Human Resource Merit 1507 PromotionandSelectionBoard(HRMPSB)for1st and2nd Levelpositionsaswell 1508 as2nd Levelpositions-Executive/Managerialpositions

BM Beltran moved for the approval of the following: (1) the publication of SRA

vacancies, subject to existing guidelines, rules and regulations; and (2) the adoption of

theProposedSpecialOrdersfortheCreationofHuman ResourceMeritPromotionand

SelectionBoardforthe1st and2nd levelpositionsasbeingcompliantwiththeMSP.BM

Yulo seconded the motion. There being no objection, Usec. Gorgonio declared the

approvalofagendaitem7.32“a”and“b”subjecttocompliancewithexistingguidelines,

rulesandregulations.HealsodirectedtheSRAHumanResourceUnittosubmitthesoft

and hard copies of the vacant positions for their posting and publication in the CSC

website.

7.33 Endorsementdated24July2019ofCorporateSocialResponsibility(CSR)

Committee requesting for Board approval the SRA-CSR Statement, CSR Tagline

and Core Program Categories as deliberated by the CSR Committee members

under Special Order No. 151, Series of 2019;

Atty. Beñas presented the Corporate Social Responsibility (CSR) Committee’s

outputs, that is, the CSR Statement, Tagline and Core Program Categories. The

Committee seeks the approval of the following matters as condition precedent for the

allocationoffundsforthecommitteeprojects.Healsomentionedthatthenextstepfor

the CSR committee isto preparethe guidelines for the implementation of the different

projectswiththe allocatedfundsofP 13,000.000. Atty. Beñas alsoapprisedtheBoard

that the Committee will no longer explore programs involving Capital Outlay

expenditures considering that the same should be included in the APP and the PPMP

first.TheywillinsteadexploreprojectsundertheMOOEsuchascampaigns.

Thereafter, Atty. Beñas read for the record the proposed CSR Statement as

follows:

“The Sugar Regulatory Administration is committed and dedicated to provide

responsive and sustainable development programs that will uplift the socio economic

andenvironmentalconditionsofallitsstakeholdersandsocietyasawhole.”

CSRTaglineiswordedas:

“Asweetlifeforall.” 1545

“Matam-isnakinabuhisatanan.”

“Nasam-itngabiag,Matamisnabuhay.”

The CSR Core Program Categories involved the following: (1) community

involvement and development, (2) environment, (3) labor practices, (4) human rights,

and(5)fairoperatingpractices.

BMYulomovedfortheapprovaloftheCSRStatement,CSRTagline,andCSRCore 1553 Program Categories as proposed by the CSR Committee. Administrator Serafica 1554 secondedthemotionandtherebeingnoobjections,Usec.Gorgonioannouncedthatthe 1555

proposedCSRStatement,CSRTagline,andCSRCoreProgramCategoriesunder agenda

item7.33areapprovedbytheBoard

7.34 Endorsementdated24July2019ofMr.JosephinoM.Agosto,ManagerIII

oftheAdministrativeandFinanceDepartment,endorsing for Board recommendation

for submission to the Department of Budget & Management (DBM): 2020

Proposed Corporate Budgetary Requirement (PCBR);

BM Beltran moved to defer action on the proposed Corporate Budgetary

Requirement for 2020 as this needs to be properly reviewed by the different SRA

operating units first before the same is finally approved for submission to DBM.

Administrator Serafica seconded the motion. Thus, Usec. Gorgonio declared that the

proposedSRAPCBRfor2020isdeferred.

7.35 Endorsement received on 20 June 2019 of Mr. Josephino M. Agosto,

Manager III of the Administrative and Finance Department for approval/signature of

the Amended Annual Procurement Plan (APP) CY2019-Capital Outlay (CO) &

Mr. Josephino Agosto requested for the deferment of the agenda item 7.35. He

informedthe Board that theycompletedthe department reports onlylastMondayand

they need additional time to amend the Annual Procurement Plan. He therefore asked

foran extensionoffivedaystomaketheproperconsolidation oftheAPP 2019Capital

OutlayandMOOE.

AstherewerenoobjectionsfromtheBoardmembersregardingthesaidrequest,

Usec.GorgonioapprovedtherequestfordefermentandtheBACwasgivenanextension

of five days to consolidate the amendments to the Annual Procurement Plan (APP) CY

7.36 Endorsementdated2July2019ofAtty.IgnacioS.Santillana,OIC-Manager

III, RDE Visayas & RBAC Chairperson, regarding the vehicles approved for

procurement under the SRA-Visayas Annual Procurement Plan 2019 for Board

Approval prior to endorsement to the DBM;

Atty. Santillana is seeking approval for the procurement of thirty-nine (39)

vehicles for SRA Visayas. These items were included in the SRA Visayas Annual

Procurement Plan 2019. The board approval is necessary for the endorsement to the

Department of Budget Management (DBM) to support the request for the grant of 1594 Authority to Purchase these vehicles. Atty. Beñas disclosed that during the last Board

meeting, a similar board agenda was submitted by SRA Luzon‐Mindanao. It was

approvedandthesamewasalreadyendorsedwithDBM.

BM Yulo moved to approve and authorize the procurement of the thirty-nine 1599 (39) vehicles for SRA Visayas, comprising of: 1 unit of mini truck, 1 unit of service 1600 vehicle, 1 unit of utility vehicle, 1 unit of ten wheeler truck, 1 unit of service vehicle 1601 van,1unitof tractorwithimplement,4unitsofservicevehiclesFWDforMDOs,1unit

oftractorwithcompleteaccessoriesbrandnew,2 unitsofSUVmonitoringvehicles,25

units of 90 HP tractor for the SIDA program, and 1 unit of FWD pick up vehicle.

AdministratorSeraficasecondedthemotion.Therebeingnoobjections,Usec.Gorgonio 1605 announced that the SRA Board has approved and authorized the procurement of 39

vehiclesenumeratedunderagendaitem7.36. Healsodirectedtheendorsementofthis

approvaltoDBMfortheissuanceoftheneededAuthoritytoPurchasefromtheirend.

7.37 Procurement of Goods under BAC/RBAC:

a. Endorsement dated 19 June 2019 of Atty. Ignacio S. Santillana, RBAC

Chairperson, regarding RBAC Resolution No. PB2019-04 recommending

Board approval to award the Supply and Delivery of various Fertilizers 1614

(1747 bags 46-0-0 and 1749 bags 18-46-0) to La Filipina Uy Gongco

Corporation whose bid of Php4,894,920.00 was declared Single Calculated

Responsive Bid;

b. Endorsement dated 12 July 2019 of Atty. Ignacio S. Santillana, RBAC

Chairperson, regarding RBAC Resolution No. PB2019-06 recommending

Board approval to award the Contract for the Supply and Delivery of four

(4) units Drying Oven to Golden Bat (Far East), Inc., whose bid of

Php1,489,055.00 was declared as Lowest Calculated Responsive Bid;

Atty. Beñas informed the Board that these items underwent the clearing house,

particularly the Internal Audit Department which conducted the process audit. The

clearing house observed that the procurement process for each of the items were

substantially compliantto the requirements ofRepublic Act No. 9184. A reminder was

made for the timely submission of the attachments and bidding documents given the

stricttimelinegivenbythelaw.Thisisinrelationtothesituationinvolvingagendaitem

7.37 B, wherein the submission of Certificate of Funding Availability was belatedly

made.

BM Beltran move to adopt the recommendation of the Clearing House, that is,

approving Items 7.37 “A” and “B” subject to strict compliance with existing laws,

applicable guidelines, circulars, rules and regulations, and the same was seconded by

Administrator Serafica. There being no objections, Usec. Gorgonio declared that the

recommendations ofRBACtoaward theSupplyandDeliveryofvariousFertilizersand

the Supply and Delivery of four (4) units Drying Oven under items 7.37 “A” and “B”

respectivelyareapprovedbytheBoardsubjecttostrictcompliancewithexistinglaws,

applicableguidelines,circulars,rulesandregulations.

7.38 Endorsement dated 23 May 2019 from Ms. Dorothy B. Rodrigo, Engineer

III, Transportation/Building Maintenance Unit-Visayas, requesting for the

realignment of Php 3,100,000.00 from the approved Capital Outlay Budget to

finance the renovation of the SRA Bodega and Office Building;

Ms. Chart Motus presented the request of Ms. Dorothy Rodrigo for the 1648 realignment of P 3,100,000 from the approved Capital Outlay budget to finance the

needed renovation of the SRA Bodega and Office Building. She explained that the Php

3.1 Million sought to be realigned was originally allocated for the construction of

Property bodega, repair of comfort room, floor tiles and electrical fixture of the

Accounting and Budget Office, renovation of the Treasury Office and reroofing of the

MainBuilding.

Mr. Josephino Agosto suggested that instead of the using the word “budget 1656 realignment”, they should use “budget modification” since the funding is not sourced

fromsavings. Usec. Gorgoniointerjectedthatwhatevermodalitytheymay suggest;the

samemustbereflectedontherequest.BMYuloremindedthatitmustbeincompliance

totheCommissiononAudit(COA)existing,policies,rulesandregulations.

BM Beltran moved to approve the budget realignment or budget modification

being requested under agenda 7.38, subject to compliance with existing COA policies,

guidelines, rules and regulations The motion was duly-seconded by Administrator

Serafica and there being no objections, Usec. Gorgonio declared that the motion is

carried subject to compliance with existing COA policies, guidelines, rules and

regulations

7.39 Endorsement for Board approval the Memorandum of Understanding

(MOU) between SRA and the Philippine Statistics Authority (PSA) for data and

information sharing;

Ms.MaruGumeraapprisedtheBoardthatthisagendaitempertaintorequestfor

approval of the Memorandum of Understanding (MoU) between the SRA and the

Philippines Statistics Authority (PSA) for the sharing of information and submission of

Sugarcane Industry data. This practice has been made by SRA through the Bureau of

AgriculturalStatistics(BAS)oftheDepartmentofAgriculture(DA)before.However,the

saidBureauisnolongerinthepicture,hence,PSAsuggestedthatSRAcandirectlymake

arrangements with them thru a MoU for the purpose of data sharing. It was likewise

impressed by Ms. Gumera that SRA has been accessing data such as the Philippine

StatisticalYearbook.Hence,thisrequest.

BM Beltran commented that any other concerns must be reflected in the MoU,

includingSRA’srightsgiventhattheproviderofthedataisSRA.Ms.Gumeraresponded

thattheytakenoteoftheBoard’ssuggestionandwillinsertaprovisionforthatmatter.

SheassuredtheBoardthatthedraftMoUwillbegiventotheLegalDepartmentfortheir

reviewandconsideration.

BM Beltran moved to defer consideration of agenda item 7.39 and refer the

matter to the Legal Department. Administrator Serafica duly-seconded the motion.

Thus, the Chairperson declared that the proposed Memorandum of Understanding

betweentheSRAandthePSAfordatasharingisdeferred.

7.40 Endorsement received on 21 June 2019 of Mr. Josephino M. Agosto,

Manager III of the Administrative and Finance Department, regarding the request for

Board approval to authorize Administrator Hermenegildo R. Serafica or any of his

alternate representative as signatory to the Deed of Absolute Sale regarding the

sale of SRA properties to the following individuals, to wit: a.) Roda Ann Y. Marmol; 1698 b.) Rossie G. Ledesma; c.) Adeliada W. Zata; d.) Felipe D. Vargas; and e.) Cristina M.

Fidel;

Mr.JosephinoM.AgostoassuredtheBoardthattheabove-mentionedindividuals

have already fully paid the SRA properties as evidenced by the Certificates of Full

PaymentissuedbytheSRAAccountingDivision.

BMBeltranmovedfortheapprovalofagendaitem7.30and fortheauthorityof

theAdministratortosigntheDeedofAbsoluteSaleinfavorofa.)RodaAnnY.Marmol;

b.)RossieG.Ledesma;c.)AdeliadaW.Zata;d.)FelipeD.Vargas;ande.)CristinaM.Fidel

subjecttocompliancewithexistingguidelines,rulesandregulations.BMYuloseconded

themotion.Therebeingnoobjections,Usec.Gorgonioannouncedthatagendaitem7.30

is approved subject to compliance with existing guidelines, rules and regulations and

that Administrator Serafica has been authorized to sign the Deeds of Absolute Sale for

andonbehalfofSRA.

7.41 Endorsement dated 26 June 2019 of Ms. Mary Antoinette S. Tampo, OIC,

Office of the Manager, AFD-Visayas, regarding the request to designate authority to

sign MOA/Contract between Sugar Regulatory Administration (SRA) and LBC

Ms. Ann Tampo requested the designation of an authorized signatory for the

contractbetweentheSRAandtheLBCExpress,Inc.,wherethelatterwillbetheofficial

courierforVisayas.

WhenaskedbyUsec.GorgonioaboutthereasonforchoosingLBCasthecourier,

Ms.Annansweredthattheconsiderationwasmadeastothemostnumberofcoverage,

destinationsandbranches.

BM Yulo therefore moved to approve the proposed Contract between Sugar

Regulatory Administration (SRA) and LBC Express, Inc. subject to compliance with

existing guidelines, circulars, rules and regulations and to designate the Administrator 1729 to sign the said contract on behalf of SRA. BM Beltran seconded the motion and there

being no objections, Usec. Gorgonio announced that the contract with LBC was

approved subject to compliance with existing guidelines, circulars, rules and

regulations. Healso announced that the Administrator has been authorized to sign the

saidcontractforandonbehalfofSRA.

7.42 a. Endorsement received on 15 July 2019 of Mr. Josephino M. Agosto,

Manager III of the Administrative and Finance Department regarding the

request of National Food Authority (NFA) to reduce the NFA’s canteen stall;

b. Letter dated 13 June 2019 of Mr. Tomas R. Escarez, NFA Officer-In-

Charge,requestingreconsiderationforSRAtoforegothepaymentofNFArental

fortheMonthofMay2019includingtheextensionforJune2019;

c. Letter to National Food Authority (NFA) for the non-renewal of their

Contract of Lease for Two (2) storey building with extension occupied by NFA

Legal Office and one (1) storey building occupied by NFA Clinic and NFA

EmployeesUnion;

Mr. Josephino Agosto explained that the series of requests for board approval

1749 was in general due to their decision to transfer to their new office building in Visayas 1750 Avenue.Foritem7.42A,theNationalFoodAuthority(NFA)intendstowithdrawoneof 1751 their two stalls in the NFA canteen while item 7.42 B refers to their request for 1752 reconsiderationforSRAtoforegotherentalfeesforthemonthsofMayandJune2019. 1753 NFAfinishedvacatingtheSRApremiseslastJunebuthepointedoutthatSRAwillstand

to lose around 6 Million Pesos in rents if the Board decides to grant NFA’s request to

forego payment6. He explained that the last item, 7.42 C pertains to SRA’s letter to

terminatetheContractofLeaseonthetwo-storeybuildingusedasNFALegalOfficeand

onestoreybuildingusedasNFAClinicandEmployees’Office.Heemphasizedthatthisis

broughtaboutbytheneedtoretrofitthesaidstructures.

BMBeltranthereforemovedtoapprovetherequestsofNFAunderitems7.42A

andCsubjecttocompliancewithexistingpolicies,guidelines,rulesandregulations and

todenyNFA’srequestunderitem7.42B. AdministratorSeraficasecondedthemotion

andtherebeingnoobjections, Usec. Gorgoniodeclaredthat therequestsofNFAunder 1764 items7.42AandCareapprovedsubjecttocompliancewithexistingpolicies,guidelines,

rules and regulations while NFA’s request under item 7.42 B is denied by the SRA

Board.

7.43 Letter dated 9 July 2019 of Ms. Mary Antoinette S. Tampo, OIC, Office of

theManager,AFD-Visayas,recommending to designate additional signatories for the

Land Bank accounts for SRA Corporate Fund, Other Projects, Scholarship

Program, ACEF and SRA-SIDA;

Ms.ChartMotusapprisedtheBoardthatitem7.43referstotherequestto

designateadditionalsignatoriesforSRAVisayasLandBankaccountsforSRACorporate

Fund, Other Projects, Scholarship Program, ACEF and SRA-SIDA. For Set A of the

signatories, Ms. Janet Dilag is requested to be included; whereas in Set B, Ms. Dorothy

RodrigoandEngr.RogelioT.Genzolaarerequestedtobeadded.Sheexplainedthatthis

requestforadditionalsignatoriesofthesaidLandbankaccountswill helpfacilitatethe

disbursementoffundsneededtofinancetheSRAoperationsaswellastheprojectsand

programs being undertaken by SRA-Visayas. She added that Ms. Ann Tampo will be

relieved of her duties as a signatory for SRAs Land Bank Accounts in view of her

impending retirement from service. She assured the Board that these additional

signatorieswillbebondedoncethereisanapprovalfromtheBoardandtheSecretary’s

Certificateisissuedforthesaidapproval.

BM Beltran moved for the approval of the designation Ms. Janet Dilag, Ms.

DorothyRodrigoandEngr.RogelioT.GenzolaasadditionalsignatoriesofSRAVisayas’

Land Bank accounts for SRA Corporate Fund, Other Projects, Scholarship Program,

ACEF and SRA-SIDA, subject to compliance with existing laws, rules and regulations.

Administrator Serafica seconded the motion and there being no objections, the

Chairpersondeclared thattheBoardhasapprovedthe designationMs. JanetDilag, Ms.

DorothyRodrigoandEngr.RogelioT.GenzolaasadditionalsignatoriesofSRAVisayas’

Land Bank accounts for SRA Corporate Fund, Other Projects, Scholarship Program,

ACEFandSRA-SIDA,subjecttocompliancewithexistinglaws,rulesandregulations He

alsoannouncedthat Ms. Antoinette Tampoisnow relievedofherdutiesasasignatory

fortheseSRA’sLandBankAccountsinviewofherimpendingretirementfromservice.

7.44 Requests for Hiring and Upgrading of JO/COS Personnel: 1799

a. Endorsementdated17July2019ofMr.JosephinoM.Agosto,Manager

III of the Administrative and Finance Department, endorsing to the Members

of the Sugar Board for consideration and approval for the hiring of Contract

of Service (COS) personnel for SRA Luzon and Mindanao;

b. Endorsement dated 28 May 2019 of Ms. Mary Antoinette S. Tampo,

OIC, Office of the Manager, AFD-Visayas, regarding the request for hiring of

four (4) additional Job Orders for the Regulation Department-Visayas;

c. Request of M. Dina Padilla-Fernandez, OIC of the Office of Manager

III, RDE-Luzon and Mindanao for the hiring and upgrading of JO/COS

Personnel.

Atty.BeñaspresentedtotheBoardforitsconsiderationandapprovalthevarious

requests for renewal, hiring and upgrading of the Job Order/Contract of Service

personnel.HeapprisedtheBoardthattheHRunitoftheVisayasaswellastheFinance

divisionhaveraisedsomeissuesregardingtheavailabilityoffunds particularlyforthe

hiring and renewal of JO/COS personnel for the Research, Development and Extension

(RD&E) Department and Block Farm program. He explained that there was a claim

from the SIDA focal person for Block Farms that they already have available funds for

the hiring and renewal of their JOs/COS personnel because the needed SARO has

already been released but this was not confirmed by the Administrative and Finance

Division. Moreover, the Board Secretary believes that the requests for upgrading

requiresreviewtoensurecompliancetoexistingrulesandregulations.

Mr.JosephinoAgostomanifestedthatuponverification,heisconfirmingthatthe

neededSAROfortheSIDABlockFarmswasalreadytransferredtotheaccountsofSRA-

Visayas. This he said would mean that they already have the funds for the hiring and

renewaloftheirJOandCOSpersonnelfortheBlockFarmProgram.

Usec. Gorgonio suggested that the matter of upgrading may be resolved by

having a Review Committee, similar to that of the Department of Agriculture Central

OfficewhichwillfilterthequalificationsoftheJO/CoSpersonnel.Heexplainedthatthis

isstillwithdueobservanceoftheJointMemorandumCircularofDBM,COAandCSC.He

added that this concern with the JO/CoS personnel is a matter that can be resolved by

internal policies, which the Board has the mandate to look into. Considering that the

review committee being referred to by Usec. Gorgonio has not yet been constituted;

Atty. Beñas recommended that the all requests for upgrading be deferred for the

meantime. AsregardstherequestsforhiringandrenewalofJOsandCOSpersonnel,he

proposed that the Board conditionally approve them subject to availability of funds,

strict compliance with HR requirements and procedures as well as existing policies,

guidelines, rules and regulations. He volunteered to sit down with the HR officers as

well the requesting managers to ensure that only those who complied with the

aforementionedconditionswillbeissuedthecorrespondingSecretary’sCertificate.

BM Beltran therefore moved to conditionally approved all requests for hiring

andrenewalofJOsandCOSpersonnelsubjecttoavailabilityoffunds,strict compliance

withHRrequirementsandproceduresaswellasexistingpolicies,guidelines,rulesand

regulations. He also moved to defer action on all requests for upgrading of salaries of

JOsandCOSpersonnelpendingtheconstitutionofaReviewCommitteebeingproposed

by Usec. Gorgonio. The motions of BM Beltran were seconded by BM Yulo and there

beingnoobjections,Usec.GorgoniodeclaredthattheBoardhasconditionallyapproved

all requests for hiring and renewal of JOs and COS personnel subject to availability of

funds, strict compliance with HR requirements and procedures as well as existing

policies, guidelines, rules and regulations. He also announced that the Board has

decided to defer action on all requests for upgrading of salaries of JOs and COS

personnelpendingtheconstitutionofaReviewCommittee.

8. FOR BOARD RATIFICATION

Authority given to Mr. Josephino M. Agosto and Atty. Ignacio S. Santillana to

sign the Contracts of JO/COS personnel covering the period of July to December

2019 as moved by BM Roland Beltran duly seconded by BM Emilio Bernardino

Yulo in an email on July 15, 2019.

BM Beltran confirmed that he moved to authorize Mr. Josephino M. Agosto and 1865 Atty.IgnacioS.SantillanatosigntheContractsofJO/COSpersonnelcoveringtheperiod

ofJulytoDecember2019inanemailonJuly15,2019. BMYuloalsoconfirmedthathe

secondedthemotionofBMBeltraninthesameemail. BMBeltranthereforemovedfor

the Board to ratify the authority given to Mr. Josephino M. Agosto and Atty. Ignacio S.

Santillana to sign the Contracts of JO/COS personnel covering the period of July to

December2019. BMYulolikewisesecondedthemotiontoratifyofBMBeltran. There

beingnoobjections,Usec.Gorgoniodeclaredthatthemotiontoratifyiscarried.

9. FOR BOARD INFORMATION

9.1 Memo dated 23 July 2019 of Ms. Rosemarie S. Gumera, Manager III, PPSPD,

regarding the Output of the 2019 Strategic Planning Workshop & List of 2019-2025

PriorityProjects,ActivitiesandPrograms;

9.2 Endorsement dated 16 July 2019 of Ms. Rosemarie S. Gumera, Manager III,

PPSPD, regarding the DPWH Liquidation Reports of SIDA Infrastructure Projects in

compliancewiththeBoardinstructionduringtheJuly2,2019meeting;

9.3 Commission on Audit (COA) Statement of Audit Suspensions, Disallowances

andChargesasofJune30,2019;

9.4 CommissiononAudit’sReportontheresultsoftheauditoftheaccountsand

transactions of the Sugar Regulatory Administration (SRA), for the years ended

December31,2018and2017;

9.5 Endorsement received on 24 July 2019 (updated) from Ms. Daisy Fabia, 1891 Manager III, Regulation Department with regard to the BOC seized smuggled sugar

status;

9.6 Civil Service Commission (CSC) Notice of Decision on the case of YASAY, 1895 Edmundo, et al. Re: Illegal Dismissal (Appeal) (N1720046017) promulgated on July 3,

2019DecisionNo.190274;

9.7 DepartmentofAgriculture(DA)Memorandumdated28June2019regarding 1899 theResolutionNo.2019-016ofSangguniangPanlungsodofPassiCity,Iloiloendorsedto

the DA by Director Jaime Llaguno Mabilin of the Office of the President, to “reconsider

itsplantoliberalizetheimportationofthesugarindustry”;

9.8 a. Endorsement received on 16 July 2019 of SRA Administrator

Hermenegildo R. Serafica regarding the Briefer on the Contract of Service

b. Letterdated23July2019ofMs.MaryAntoinetteS.Tampo,ManagerIII,

Regulation Dept.-Visayas, regarding her response to the memorandum

pertainingtotheBrieferontheissuessurroundingtheupgradingofContractof

Service

c. Memo dated 19 July 2019 of Mr. Josephino M. Agosto, Manager III,

Administrative and Finance Department, regarding Comments/Replies on the

Briefer/LegalOpinionoftheOfficeoftheGovernmentCorporateCounsel(OGCC)

and the Administrator on the Renewal of Contracts of Job Order Personnel of

SRA;

9.9 Letter dated 17 July 2019 of Rolando S. Villaflor, former employee of SRA,

regardingRetirementBenefitasRedundant;(with comments/recommendations from Mr.

Josephino Agosto, Manager III, AFD and Atty. Guillermo Tejida of the Legal Dept.)

9.10 Letter dated 22 July 2019 of Atty. Jesus L. Barrera, Executive Director, 1925 Philippine Sugar Millers Association endorsing to the SRA Board the Research/Study

Proposal of Vice-Chancellor Rex B. Demafelis of the University of the Philippines, Los

Baños, on Socio-Economic and Environmental Impacts of Sugar Production in the

Philippines; (with comments/recommendations from Mr. Josephino Agosto, Manager III,

AFD)

9.11 Letter dated 23 July 2019 of Atty. Jesus L. Barrera, Executive Director,

PhilippineSugarMillersAssociationregardingtheunspentbudgetfortheSIDA-Project

Participation in the ICUMSA last June 2016 and follow-up on membership payment of

the Philippines in the ICUMSA; (with Status Report from Ms. Jean Sumagaysay, Chemist

III, Laboratory Services and comments/recommendations from Mr. Josephino Agosto,

Manager III, AFD)

9.12 Memodated24July2019ofMs.RosemarieS.Gumera,ManagerIII,PPSPD, 1939 regardingtheTerminalReportsofPPSPDProjectswithDeclaredSavingsduringthe1st 1940 Halfof2019;

1941

1942

9.13 Letter dated 10 June 2019 from Governance Commission regarding the 1943 Parameters of Contracts Requiring OGCC Review under GCG Memorandum Circular 1944 (MC)No.2018-02; 1945 1946

9.14 Letter dated 16 July 2019 of Governance Commission for Government 1947 Owned or Controlled Corporations (GCG) regarding the Designation of Individuals to 1948 GOCCGoverningBoards; 1949 1950

9.15 Letterdated4July2019ofGovernmentCorporateCounselElpidioJ.Vega, 1951 OGCC,regardingtheSpecialLegalTeamforSRA; 1952 1953

9.16 Letter dated 8 July 2019 of Raul T. Carreras, Chairman, Peñafrancia Mill 1954 District Development Council, Inc. (PMDDCI) requesting for the speedy 1955 implementation of the project “Demonstration Farm on the Use of New Released

1956 Sugarcane Varieties in Different Mill Districts of Luzon and Mindanao” or Demo-

1957 Farm Project, where Pensumil MDDC is one of the cooperator/beneficiary and to 1958 source the planting materials from SRA-LAREC; 1959 1960 1961

10. OTHER MATTERS

10.1 Endorsement dated July 29, 2019 of Ms. Daisy N. Fabia, Manager III, 1964 Regulation Department regarding the proposed Commendation for BOC in relation to 1965 theseizureof35containervansofThailandSugarinSubic,Zambalesasreportedbythe 1966 SRAMonitoringTeamandtheVisayanDailyStar. 1967 1968

BMYulomovedtoapprovetheproposedcommendationforBOCfromMs.Daisy 1969 FabiaandtoauthorizetheAdministratortosignthecommendationletter. BMBeltran

seconded the motion and there being no objections, the Chairperson declared that the

same is approved. He therefore directed the Regulation Department to prepare the

commendationlettertobesignedbytheAdministrator.

10.2 EndorsementreceivedonJuly29,2019ofAtty.GuillermoTejidaIII,OICof

theOfficeoftheManagerIII,LegalDept.,proposingtheconductofapublicconsultation

meeting with sugar repackers in line with the mandate of R.A. 10659 to include

repackersforregistration.

BM Beltran made a clarification that this consultation meeting should be in the

form of a public consultation as it will involve other stakeholders affected by this

proposal. Nevertheless,hemovedtoapprovethe conductofconsultation meetingwith

sugar repackers regarding their proposed registration as mandated by SIDA law.

AdministratorSeraficasecondedthemotion. Usec.Gorgoniothereforeaffirmedthatthe

consultationmeetingwiththestakeholdersisapproved. HesuggestedthatSRAexplore

thepossibilityofconductingthesaidconsultationmeetingthroughPCAF.

1988 directimportation(55,000MT)toarriveinmonthlyvolumesinsteadofbulkdelivery.

10.3 Letter dated 23 July 2019 of Coca Cola Beverages Phils., Inc. requesting

1989

1990

The Board Secretary manifested that this matters has been included in the 1991 earlierdiscussionandapprovaloftheSugarOrderauthorizingtheSecondSugarImport 1992 ProgramforCY2018-2019. 1993 1994

10.4 Letter dated 23 July 2019 from Engr. James E. Empeno, Director, DTI- 1995 Bureau of Philippine Standards inviting SRA to participate in the 12th Conference on

1997

1996 GoodRegulatoryPracticesonAugust19-20,2019inHotelEnjoy,Calbuco,Chile.

1998

1999 traveltoChileandtheattendanceofMs.MaribelT.Labanza,SugarProductionOfficerIII

Administrator Serafica informed the Board that the matter involves a foreign

2000 and Ms. Marichu J. Claver, Sugar Production Officer III in the 12th Conference on Good

2002

2001 RegulatoryPracticesonAugust19-20,2019.

2003

2004 Labanza,SugarProductionOfficerIIIandMs.MarichuJ.Claver,SugarProductionOfficer

BM Beltran moved to approve and authorize the attendance of Ms. Maribel T.

2005 III to the 12th Conference on Good Regulatory Practices to be held in Calbuco, Puerto

2006 Varas,ChileonAugust19-20,2019subjecttocompliancewithexistinglaws,applicable

2007 guidelines,circulars,rulesandregulations.AdministratorSeraficasecondedthemotion.

2008 There being no objection, the Chairperson declared that the SRA Board has approved

2009 and authorized the attendance of Ms. MaribelT. Labanza, and Ms. Marichu J. Claver, to 2010 the 12th Conference on Good Regulatory Practices to be held in Chile on August 19-20,

2019subjecttocompliancewithexistinglaws,applicableguidelines,circulars,rulesand

regulations

10.5Letterdated22July2019ofMr.AntonioStevenChan,Chairman/President,

CABI and CASA, communicating their intention not to participate in the annual SRA

sugarinventoryandinsteadgobytheirowninventorysystem

Board Secretary Atty. Beñas explained that the letter refers to the intention of

Mr.AntonioStevenChannottoparticipateintheAnnualSRAinventoryandinsteadgo

by their own inventory system and just report the results thereof. Atty. Tejida

recommended for the denial of their request of separate inventory for being a bad

precedentasthisisagainsttheSRAmandatetoincludeeveryoneintheinventory.

BMBeltranaskedtheBoardwhatactionsshouldbetakenintheeventMr.Chan

fails or refuses to participate. Administrator Serafica suggested the holding of the

applicationforrenewaloftheirmillinglicenseforfailuretoabidewithhisundertaking.

He manifested that there is already a letter prepared by Atty. Rimando of the Legal

Department reminding Mr. Chan of his undertaking and obligation to subject his mills

withtherequiredinventoryandwarninghimoftheconsequencesofhisactionsincase

ofhisfailuretocomplywiththeregulatorypolicies,rulesandregulationsofSRA.

11. ADJOURNMENT

There being no further business to transact, Administrator Serafica moved to 2036 adjourn the Board Meeting. BM Beltran seconded the motion of the Administrator.

2037 Before adjourning the Board Meeting, Usec. Gorgonio shared this food for thought

2038 whichisaquotefromKhalilGibran: 2039

“Work is love made visible. ” 2040

2041 Gorgonioatabout5:00P.M. 2042

The 9th Regular Sugar Board Meeting was finally adjourned by Usec. Roldan