Title
Creating the Sugar Regulatory Administration EO No. 18
Law
Executive Order No. 18
Decision Date
May 28, 1986
Executive Order No. 18 establishes the Sugar Regulatory Administration in the Philippines to promote the growth of the sugar industry, improve working conditions, and regulate sugar production, distribution, and marketing.
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Creation and Objectives of the Sugar Regulatory Administration (SRA)

  • SRA established under the Office of the President.
  • Objectives include:
    • Instituting orderly sugarcane production ensuring stability and sufficiency for local consumption, export, and reserves.
    • Balancing sugar production with market requirements and stabilizing prices.
    • Promoting effective marketing locally and internationally.
    • Conducting studies to inform policy formulation and program implementation.

Powers and Functions of the SRA

  • Recommend sugar production coefficients and quotas tied to land ownership.
  • Regulate, monitor, and control production quotas.
  • Set domestic, export, and reserve sugar allocations.
  • Develop and expand markets for sugar and its by-products.
  • Regulate sugar warehousing, including quedanning (storage) and withdrawals.
  • Evaluate and propose sugar production projects.
  • Issue permits, licenses, and collect related fees.
  • Enter into necessary contracts for accomplishing its mandate.
  • Perform additional functions necessary to fulfill its objectives.

Composition and Role of the Sugar Board

  • корпоративни powers vested in the Sugar Board.
  • Board composed of:
    • Administrator (Chairman) appointed by the President.
    • Two members representing sugar millers and planters, also appointed by the President on industry recommendation.
  • Board meets monthly or as needed.
  • Administrator serves as Chief Executive Officer of the SRA.

Tenure of Board Members

  • Administrator serves at the pleasure of the President.
  • Two private sector members serve three-year terms, removable for cause.
  • No immediate reappointment after term expiration.
  • Vacancies served only for the remainder of the term.

Functions and Authorities of the Sugar Board

  • Prescribe and amend internal rules and regulations with Presidential approval.
  • Establish policies on production control, sugar warehousing, permits, licensing, and related matters.
  • Enter into contracts with domestic and foreign entities.
  • Fix compensation for officers and employees, subject to Presidential approval.
  • Approve annual and supplemental budgets submitted by the Administrator.
  • Perform additional duties assigned by the President.

Appointment and Promotion Principles

  • Based strictly on merit and efficiency.
  • Prohibition of political tests or other qualifications.
  • Violations result in removal by the Office of the President.

Civil Service Law Application and Compensation

  • All SRA officers and employees subject to Civil Service Law except certain policy-determining, confidential, or technical positions.
  • Office of Compensation and Position Classification rules apply to all personnel.

Audit and Financial Oversight

  • Commission on Audit appoints an auditor and necessary staff to audit SRA finances.
  • Auditor’s salaries paid by Commission on Audit.
  • Annual audit reports submitted to SRA, President, and COA Chairman.

Financing of the SRA

  • Continues to receive proceeds from levies, charges, and fees as previously granted to the Philippine Sugar Commission (PHILSUCOM) until further order by the President.

Suspension of Sole Trade Authority of PHILSUMA

  • Exclusive buying and selling agency authority of PHILSUMA for export sugar limited to crop year 1985-1986.
  • Afterward, authority ceases to allow free enterprise in sugar marketing.
  • Exemption from certain laws for PHILSUMA withdrawn.

Abolition of the Philippine Sugar Commission

  • PHILSUCOM abolished.
  • SRA may retain necessary personnel from PHILSUCOM.
  • Separated PHILSUCOM employees entitled to retirement/separation benefits.
  • Ministry of Budget may provide funds for such benefits if necessary.
  • Transfer of assets and records of PHILSUCOM required for SRA operation.
  • PHILSUCOM remains juridical entity for 3 years post-abolition for winding-up purposes under SRA supervision.

Repeal and Modification Clause

  • Laws, decrees, or orders inconsistent with this Executive Order are repealed or modified accordingly.

Severability Clause

  • Declaration that if any part is held unconstitutional, other provisions remain valid.

Effectivity

  • Immediate effectivity upon issuance.

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