IMPLEMENTATION OF THE AUTOMATIC ADDITIONAL LIEN OF 1.00 PER PICUL OF RAW SUGAR PRODUCE EFFECTIVE CROP YEAR 2001-2002

Pursuant to Section 7 of Republic Act No. 6982, also known as the Sugar Amelioration Act of 1991 and its implementing rules and regulations and acting on the recommendation of the Sugar Tripartite Council (STC) Quick Action Committee during its meeting on August 7, 2001 at the Office of the Asst. Secretary Benedicto Ernesto R. Bitonio Jr., the following shall be observed by all concern in the implementation of the additional P1.00 Social Amelioration lien effective crop year 2001-2002.

Section 1. Coverage. - Effective crop year 2001-2002 the automatic additional lien of P1.00 per picul (or its corresponding amount in LKG) shall be imposed on gross production of raw sugar in all mill districts, except in the Binalbagan-Isabela mill district where implementation was suspended pursuant to Department Order No. 32 (series of 1993) and which has not been revoked or lifted.

Sec. Sec. 2. Amount and Allocation of the Increase in SAP Lien. - Effective crop year 2001 -2002 the total amount of the SAP lien shall be increased from P9.00 to P10.00 per picul (or 7.9051 per LKG) to be allocated as follows:

a. Eighty percent (80%) of the lien or P8.00 per picul (equivalent to P6.3241 per LKG) including any and all income and interest derived therefrom as cash bonus to sugar workers.
b. Twenty percent (20%) of the lien or P2.00 per picul (equivalent to P1.5810 per LKG) including any and all income and interest derived therefrom as Socio-Economic 1/b of Rule VI of the Implementing Rules and Regulations of R. A. 6982.

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

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

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