Role and Powers of the Sugar Quota Administration
- Re-allocate total sugar production for export to U.S. and world markets from crop year 1973-1974 onward
- Issue export authorizations based on re-allocated quotas
- Act to safeguard the sugar industry and national economy against speculative contingencies
Authorization for Sugar Purchases by Philippine Exchange Company, Inc.
- May be authorized by the President to purchase allocated export sugar quantities
- Purchase prices and quantities fixed per rules by Sugar Quota Administration, Philippine National Bank, Department of Trade, and approved by the President
Financing of Sugar Purchases by Philippine National Bank
- Authorized to finance purchases via:
- Foreign borrowings obtained for Philippine Exchange Company, Inc.
- Available loanable funds lent to Philippine Exchange Company, Inc.
- Rediscounting of loans or notes with Central Bank of the Philippines
Special Provisions on Financing and Tax Exemptions
- Loans by Philippine National Bank to Philippine Exchange Company, Inc. exempt from loan limits in the Bank’s charter
- Central Bank shall rediscount these loans and approve foreign borrowings
- Foreign borrowings exempt from all taxes, including withholding tax
Cooperation Among Government Agencies
- Department of Trade and Sugar Quota Administration to assist and provide necessary data for international sugar marketing
Handling and Disposal of Purchased Sugar
- Disposal of sugar purchased by Philippine Exchange Company, Inc. requires prior Presidential approval
- Philippine Exchange Company, Inc. responsible for export and shipment to U.S. and world markets
Use of Proceeds and Commission Structure
- Proceeds pay liabilities to Philippine National Bank and foreign creditors
- Commission of 2.5% of gross sales charged by Philippine Exchange Company, Inc., broken down as:
- 1% for overhead expenses
- 1.5% for the Sugar Development Program fund of Philippine National Bank
- Remaining profits after commissions directed to a special National Government fund for public purposes, subject to Presidential disposition
Tax Exemption on Profits
- Profits from sugar trading operations by Philippine Exchange Company, Inc. exempt from all national and local taxes
Repeal of Conflicting Provisions
- Existing laws, executive orders, and regulations inconsistent with the Decree are repealed or amended accordingly
Effectivity
- The Decree takes immediate effect from November 12, 1974