Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 579)
The main purpose of Presidential Decree No. 579 is to rationalize and stabilize the export of sugar in the Philippines, protecting the sugar industry and national economy from the adverse effects of speculative price fluctuations in the world market.
The Sugar Quota Administration has the power to re-allocate the total sugar production per crop year for export to the United States and world markets.
In addition to existing powers, the Sugar Quota Administration is authorized to issue export authorizations for sugar in accordance with the re-allocations provided in the decree.
The Philippine Exchange Company, Inc. may be authorized by the President to purchase sugar allocated for export in quantities and at prices fixed by rules established by the Sugar Quota Administration, Philippine National Bank, and Department of Trade.
Purchases are financed by the Philippine National Bank through foreign borrowings, available loanable funds, or proceeds from rediscounting loans or notes with the Central Bank of the Philippines.
Yes. Loans or advances to the Philippine Exchange Company, Inc. are exempt from loan limits of the Philippine National Bank’s charter, and foreign borrowings are exempt from all taxes including withholding tax.
The proceeds are used to pay liabilities to the Philippine National Bank or foreign creditors, cover operational commissions, fund the Sugar Development Program, and set aside profits to a special fund of the National Government for public purposes.
A total commission of 2.5% of gross sales is charged: 1% for overhead expenses and 1.5% for the Sugar Development Program fund.
No. The profits from sugar trading operations authorized under this decree are exempt from all taxes imposed by the National Government and its political subdivisions.
All inconsistent laws, executive orders, administrative orders, rules, and regulations are repealed or amended accordingly to conform with this decree.
The decree took effect immediately upon its signing on November 12, 1974.
It was signed by President Ferdinand E. Marcos and attested by Executive Secretary Alejandro Melchor.