EXECUTIVE ORDER NO. 18 May 28, 1986
CREATING A SUGAR REGULATORY ADMINISTRATION
WHEREAS, the sugar industry is a major component of the socio-economic and political structure of the country;
WHEREAS, the present laws restricting free enterprise within the sugar industry have not only stifled the industry's growth, development and stability, but more importantly, have placed it in the vicious sphere of monopoly;
WHEREAS, national interest requires that the free market forces should be allowed to prevail in the marketing of sugar although the production of the same should be regulated and supported by an innovative research and development program and a socio-economic program which will primarily be the private sector's responsibility.
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:
Sec. 1. Declaration of Policy. It shall be the policy of the State to promote the growth and development of the sugar industry through greater and significant participation of the private sector, and to improve the working condition of laborers.
Sec. 2. The Sugar Regulatory Administration. In order...
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Executive Orders
Creating A Sugar Regulatory Administration
Executive Order No. 18
Summary of Executive Order No. 18 (May 28, 1986)
Declaration of Policy (Sec. 1):
- Promote growth and development of the sugar industry through greater private sector participation.
- Improve working conditions of laborers.
Creation of Sugar Regulatory Administration (Sec. 2):
- Created under the Office of the President.
- Objectives:
- Institute orderly system for stable and balanced sugar production for local consumption, exports, and reserves. (Sec. 2A)
- Establish balanced relation between sugar production and requirements to ensure stabilized prices profitable for producers and fair to consumers. (Sec. 2B)
- Promote effective merchandising of sugar and by-products in domestic and foreign markets for economic viability. (Sec. 2C)
- Undertake relevant studies for policy formulation and action program implementation. (Sec. 2D)
Powers and Functions of Sugar Regulatory Administration (Sec. 3):
- Recommend sugar production coefficient and production quota for each planter. (Sec. 3A)
- Institute regulations for implementing, controlling, and monitoring production quotas. (Sec. 3B)
- Establish domestic, export, and reserve allocations. (Sec. 3C)
- Explore and expand domestic and foreign markets for sugar and by-products. (Sec. 3D)
- Institute, implement, and regulate orderly system of quedanning, disposition, and withdrawals of sugar from warehouses. (Sec. 3E)
- Evaluate and recommend new projects involving sugar and by-products production. (Sec. 3F)
- Issue permits, licenses, and collect fees and levies on sugar and by-product processing and manufacturing. (Sec. 3G)
- Enter into necessary contracts for attainment of purposes. (Sec. 3H)
- Perform other functions necessary or incidental to attainment of purposes. (Sec. 3I)
Governing Body: Sugar Board (Sec. 4):
- Composed of an Administrator (Chairman) and two members representing millers and planters, all appointed by the President.
- Meets in regular session once a month, can be called for special sessions.
- Administrator is the Chief Executive Officer.
Tenure (Sec. 5):
- Administrator holds office at the pleasure of the President.
- Members from private sector hold office for 3 years, unless removed for cause.
- No immediate reappointment after term ends.
- Vacancy appointments serve unexpired term.
Functions of Sugar Board (Sec. 6):
- Prescribe, amend, modify, or repeal rules and regulations governing business, subject to President's approval. (Sec. 6A)
- Establish policies on sugar and sugarcane production control, quedanning, withdrawals, permits, licenses, and related issues. (Sec. 6B)
- Enter into necessary contracts with natural or juridical persons and foreign institutions. (Sec. 6C)
- Fix compensation of Administrator and other officers and employees, subject to President's approval. (Sec. 6D)
- Approve annual and supplemental budgets. (Sec. 6E)
- Perform other duties assigned by the President, like studies on particular issues. (Sec. 6F)
Appointment and Promotions (Sec. 7):
- Based on merit and efficiency, no political test or other qualifications.
- Violators shall be removed by the President.
Application of Civil Service Law and Compensation Rules (Sec. 8):
- Officers and employees subject to Civil Service Law, rules, and regulations, except policy-determining, confidential, or technical positions.
- Compensation and Position Classification rules apply.
Audit Personnel (Sec. 9):
- Commission on Audit appoints Auditor and necessary personnel.
- Salaries determined and paid by Commission on Audit.
Audit Report (Sec. 10):
- Financial transactions audited according to law, regulations, and commercial principles.
- Audit report submitted annually by Auditor through Commission on Audit Chairman to Sugar Regulatory Administration and President.
Financing (Sec. 11):
- Until otherwise provided, Sugar Regulatory Administration shall continue to receive proceeds of levies, charges, and other impositions granted by law, decree, and/or executive order to Philippine Sugar Commission.
Suspension of Sole Trade Authority (Sec. 12):
- Philippine Sugar Marketing Corporation's (PHILSUMA) authority as sole buying and selling agency for export sugar covers only crop year 1985-1986.
- Thereafter, free enterprise shall be observed in marketing domestic and export sugar.
- PHILSUMA's exemption from R.A. No. 1180 (as amended by PD No. 714) is withdrawn.
Transitory Provisions (Sec. 13):
- Philippine Sugar Commission (PHILSUCOM) is abolished.
- Sugar Regulatory Administration may retain necessary personnel.
- Separated officers and employees entitled to retirement and other benefits under existing laws.
- Special fund for retirement and separation pay if lack of funds.
- Assets and records required by Sugar Regulatory Administration are transferred.
- PHILSUCOM continues as judicial entity for 3 years for prosecuting/defending suits, settling affairs, disposing property, and distributing assets, under Sugar Regulatory Administration's supervision.
Repeal or Modification (Sec. 14):
- Any provision of law, decree, executive order, or other issuance inconsistent with this Executive Order is repealed or modified accordingly.
Severability (Sec. 15):
- If any provision is held unconstitutional, other provisions shall not be affected.
Effectivity (Sec. 16):
- This Executive Order takes effect immediately.
Declaration of Policy (Sec. 1):
- Promote growth and development of the sugar industry through greater private sector participation.
- Improve working conditions of laborers.
Creation of Sugar Regulatory Administration (Sec. 2):
- Created under the Office of the President.
- Objectives:
- Institute orderly system for stable and balanced sugar production for local consumption, exports, and reserves. (Sec. 2A)
- Establish balanced relation between sugar production and requirements to ensure stabilized prices profitable for producers and fair to consumers. (Sec. 2B)
- Promote effective merchandising of sugar and by-products in domestic and foreign markets for economic viability. (Sec. 2C)
- Undertake relevant studies for policy formulation and action program implementation. (Sec. 2D)
Powers and Functions of Sugar Regulatory Administration (Sec. 3):
- Recommend sugar production coefficient and production quota for each planter. (Sec. 3A)
- Institute regulations for implementing, controlling, and monitoring production quotas. (Sec. 3B)
- Establish domestic, export, and reserve allocations. (Sec. 3C)
- Explore and expand domestic and foreign markets for sugar and by-products. (Sec. 3D)
- Institute, implement, and regulate orderly system of quedanning, disposition, and withdrawals of sugar from warehouses. (Sec. 3E)
- Evaluate and recommend new projects involving sugar and by-products production. (Sec. 3F)
- Issue permits, licenses, and collect fees and levies on sugar and by-product processing and manufacturing. (Sec. 3G)
- Enter into necessary contracts for attainment of purposes. (Sec. 3H)
- Perform other functions necessary or incidental to attainment of purposes. (Sec. 3I)
Governing Body: Sugar Board (Sec. 4):
- Composed of an Administrator (Chairman) and two members representing millers and planters, all appointed by the President.
- Meets in regular session once a month, can be called for special sessions.
- Administrator is the Chief Executive Officer.
Tenure (Sec. 5):
- Administrator holds office at the pleasure of the President.
- Members from private sector hold office for 3 years, unless removed for cause.
- No immediate reappointment after term ends.
- Vacancy appointments serve unexpired term.
Functions of Sugar Board (Sec. 6):
- Prescribe, amend, modify, or repeal rules and regulations governing business, subject to President's approval. (Sec. 6A)
- Establish policies on sugar and sugarcane production control, quedanning, withdrawals, permits, licenses, and related issues. (Sec. 6B)
- Enter into necessary contracts with natural or juridical persons and foreign institutions. (Sec. 6C)
- Fix compensation of Administrator and other officers and employees, subject to President's approval. (Sec. 6D)
- Approve annual and supplemental budgets. (Sec. 6E)
- Perform other duties assigned by the President, like studies on particular issues. (Sec. 6F)
Appointment and Promotions (Sec. 7):
- Based on merit and efficiency, no political test or other qualifications.
- Violators shall be removed by the President.
Application of Civil Service Law and Compensation Rules (Sec. 8):
- Officers and employees subject to Civil Service Law, rules, and regulations, except policy-determining, confidential, or technical positions.
- Compensation and Position Classification rules apply.
Audit Personnel (Sec. 9):
- Commission on Audit appoints Auditor and necessary personnel.
- Salaries determined and paid by Commission on Audit.
Audit Report (Sec. 10):
- Financial transactions audited according to law, regulations, and commercial principles.
- Audit report submitted annually by Auditor through Commission on Audit Chairman to Sugar Regulatory Administration and President.
Financing (Sec. 11):
- Until otherwise provided, Sugar Regulatory Administration shall continue to receive proceeds of levies, charges, and other impositions granted by law, decree, and/or executive order to Philippine Sugar Commission.
Suspension of Sole Trade Authority (Sec. 12):
- Philippine Sugar Marketing Corporation's (PHILSUMA) authority as sole buying and selling agency for export sugar covers only crop year 1985-1986.
- Thereafter, free enterprise shall be observed in marketing domestic and export sugar.
- PHILSUMA's exemption from R.A. No. 1180 (as amended by PD No. 714) is withdrawn.
Transitory Provisions (Sec. 13):
- Philippine Sugar Commission (PHILSUCOM) is abolished.
- Sugar Regulatory Administration may retain necessary personnel.
- Separated officers and employees entitled to retirement and other benefits under existing laws.
- Special fund for retirement and separation pay if lack of funds.
- Assets and records required by Sugar Regulatory Administration are transferred.
- PHILSUCOM continues as judicial entity for 3 years for prosecuting/defending suits, settling affairs, disposing property, and distributing assets, under Sugar Regulatory Administration's supervision.
Repeal or Modification (Sec. 14):
- Any provision of law, decree, executive order, or other issuance inconsistent with this Executive Order is repealed or modified accordingly.
Severability (Sec. 15):
- If any provision is held unconstitutional, other provisions shall not be affected.
Effectivity (Sec. 16):
- This Executive Order takes effect immediately.