CREATING THE PHILIPPINE SUGAR COMMISSION

• Number: Presidential Decree No. 388
• Sections: 12

Preamble

WHEREAS, the economic and social stability of the

Philippines depend in large measure upon the sustained growth and

development of the sugar industry;

WHEREAS, due to chronic imbalance in production, the sugar

industry is barely able to meet the requirements of the domestic and

United States export markets while foregoing entirely new opportunities

in the world market, notwithstanding the large investments made in new

milling facilities in recent years with government support;

WHEREAS, it has become necessary to organize a mechanism to

give sustained support to the sugar industry in all phases of its

operation and potentials, and moreover, to provide conditions needed for

its continued development and growth with the end in view of optimizing

its effectiveness as a factor for social and economic good; and

WHEREAS, our sugar limitation laws when enacted were based

on conditions existing in the years 1933 and 1935 and may no longer be

realistic and adequate to promote the development and stability of the

sugar industry;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution as

Commander-in-Chief of all the Armed Forces of the Philippines, and

pursuant to Proclamation No. 1081, dated September 21, 1972, and General

Order No. 1, dated September 22, 1972, as amended, and upon the

recommendation of the sugar planters, millers and traders of the

Philippines through their associations and cooperatives, do hereby

decree and order the creation of the Philippine Sugar Commission as

follows:

Section 1 Title of the Decree.

SECTION 1. Title of the Decree. — This Decree shall

be known as the Philippine Sugar Commission Decree.

Section 2 Declaration of Policy.

SEC. 2. Declaration of Policy. — It shall be the

policy of the State to promote the integrated development and

stabilization of the sugar industry so that it can properly discharge

its economic and social responsibilities and contribute its share in the

development of the national economy.

Section 3 Philippine Sugar Commission.

SEC. 3. Philippine Sugar Commission. — In order to

carry out the foregoing policy, there is hereby created the Philippine

Sugar Commission hereinafter referred to as the Commission which shall

be organized within thirty (30) days after the issuance of this Decree.

The Commission shall be composed of one (1) Commissioner, who

shall serve as Chairman of the Commission and six (6) Associate

Commissioners.

The Chairman and all the members of the Commission

shall be appointed by the President of the Philippines. The members of

the Commission shall be Filipino citizens, with sufficient experience in

the sugar industry, and of proven honesty, integrity and recognized

competence.

The Chairman and members of the Commission shall hold

office for a term of four (4) years unless sooner removed for cause.

The Commissioner shall receive an annual compensation of fifty thousand

pesos (P50.000) and a commutable representation and transportation

allowance of one thousand pesos (1,000) pesos monthly. The Associate

Commissioners shall receive an annual compensation of forty thousand

pesos (P40,000) and a commutable representation and transportation

allowance of one thousand pesos (P1,000) pesos monthly.

The

Commission shall meet in regular session twice a month. It may be called

by the Chairman to a special session as the need arises.

SEC.

4. Powers and Functions. — The Commission shall have the

following powers and functions:

To establish policies pertaining to all phases of the sugar

industry; and to inquire into other aspects of the sugar industry with a

view to improving existing methods and systems;

To enter into contracts, transactions, or undertakings of

whatever nature which are necessary or incidental to its functions and

objectives with any natural or juridical person and with any foreign

government, private corporations, partnerships, institutions, or private

individuals;

To levy and collect charges, fees and contributions to

finance its operation, for social amelioration of the workers in the

industry, and for such other purposes as the Commission may determine.

The amount of the fees, charges and contributions shall be subject to

approval by the President;

To act as the single buying and selling agency of

sugar on the quedan-permit level, in order to promote the

effective merchandising and distribution of sugar;

To determine the floor-ceiling price of sugar which

will insure the planters, millers, traders, wholesalers and retailers a

fair return on their investments: Provided, That such

floor-ceiling price of sugar for any crop year shall be the total

anticipated cost of production per picul of sugar as determined by the

Commission plus a corresponding reasonable margin of profit set by the

Price Control Council or any other government agency authorized to

regulate prices of commodities and services after taking into

consideration the effects of devaluation and other economic factors

affecting production, processing, marketing, transportation and other

related expenses including the minimum wage for agricultural and

industrial workers: Provided, further, That the floor-ceiling

price established by the Commission shall be adjusted in direct relation

to significant changes in the cost of production as determined by the

Commission and the Consumers Price Index prepared by the Central Bank of

the Philippines;

To promulgate rules and regulations to carry into effect the

provisions of this Decree and impose penalties for the violation

thereof;

To assume control and/or supervision of any sugar mill

or refinery that has failed to meet its financial and other contracted

obligations for two years or has become inefficient in its operation;

To organize cooperatives of sugar planters throughout

the Philippines; and

To perform such other functions as are necessary and

incidental to its purposes and objectives.

The Commission shall submit to the President of the Philippines

periodic reports of its survey, studies and investigations together with

its recommendations, for appropriate action.

Section 5 Chief Executive Officer.

SEC. 5. Chief

Executive Officer. — The Chairman of the Commission shall be its

Chief Executive Officer. The Chairman shall, on behalf of the

Commission, have the direction and control of the business of the

Commission.

Among others, as Executive Officer, the Chairman

shall have the following powers and

To prepare an organizational plan of the office and plantilla

of personnel subject to the approval of the Commission;

To direct and manage the affairs and business of the

Commission subject to its supervision and control;

To appoint necessary personnel and fix their salaries,

which shall be exempt from the provisions of laws, rules and regulations

on wage and position classification, except clerical and janitorial

services, with the approval of the Commission.

In case of absence or temporary incapacity of the Chairman, the

Chairman shall designate from among the Commissioners an acting

Chairman.

Section 6

SEC. 6. There shall be a Social Welfare Office

under the Office of the Chairman.

Section 7 Capitalization, Special Fund of the Commission, Development and Stabilization Fund.

SEC. 7. Capitalization, Special Fund of the

Commission, Development and Stabilization Fund. — There is hereby

established a fund for the Commission for the purpose of financing the

growth and development of the sugar industry and all its components,

stabilization of the domestic market including the foreign market to be

administered in trust by the Commission and deposited in the Philippine

National Bank derived in the manner herein below cited from the

following sources:

Stabilization fund shall be collected as provided for in

the various provisions of this Decree.

Stabilization fees shall be collected from planters

and millers in the amount of two pesos (P2.00) for every picul produced

and milled for a period of five (5) years from the approval of this

Decree and one peso (P1.00) for every picul produced and milled every

year thereafter: Provided, That fifty centavos (0.50) per picul

of the amount levied on planters, millers and traders under Section 4

(c) of this Decree will be used for the payment of salaries and wages of

personnel, fringe benefits and allowances of officers and employees for

the purpose of accomplishing the efficient performance of the duties of

the Commission: Provided, further, That said amount shall

constitute a lien on the sugar quedan and/or warehouse receipts

and shall be paid immediately by the planters and mill companies, sugar

centrals and refineries to the Commission.

Section 8 Audit Personnel.

SEC. 8. Audit Personnel. — The Chairman, Commission

on Audit, shall appoint his representative to the Commission and the

necessary personnel to assist him. The salaries of the auditor and his

personnel shall be determined and paid by the Commission. The affairs of

the Commission shall be audited in accordance with law and pertinent

rules and regulations. A report of audit for each fiscal year shall be

submitted by the auditor to the Chairman, Commission on Audit, to the

Commission and to the President of the Philippines.

Section 9 Financing.

SEC. 9. Financing. — Until otherwise provided,

the Commission shall continue to receive the proceeds of revenues and

other impositions as are now granted by the law to the Philippine Sugar

Institute and the Sugar Quota Administration.

Section 10 Transitory Provisions.

SEC. 10. Transitory Provisions. — The Philippine

Sugar Institute and the Sugar Quota Administration are hereby abolished

and absorbed effective upon the organization of the Commission and all

their assets, liabilities and records shall be transferred to the

Commission. The Commission may retain the personnel of said agencies as

it may deem necessary. Those of the personnel who may not be retained

shall be entitled to retirement benefits, otherwise they shall be

granted gratuity to be determined by the Commission.

Section 11 Miscellaneous Provision.

SEC. 11. Miscellaneous Provision. — All laws or

parts thereof inconsistent with the provisions of this Decree are hereby

repealed or modified accordingly.

Section 12 Effectivity.

SEC. 12. Effectivity. — This Decree shall take

effect immediately.

Done in the City of Manila, this 2nd day of February, in the

year of Our Lord, nineteen hundred and seventy-four.

(Sgd.) FERDINAND E. MARCOS

President

Republic of the Philippines

By Authority of the President:

(Sgd.) ALEJANDRO MELCHOR

Executive Secretary