Further Amending Presidential Decree No. 388, Creating The Philippine Sugar Commission

Case Overview and Summary

This Presidential Decree amends Presidential Decree No. 388 and grants additional powers and incentives to the Philippine Sugar Commission and its affiliated corporations to promote the integrated development and stabilization of the sugar industry.

Key Provisions:

- The Philippine Sugar Commission is placed under the direct general supervision of the President. (Section 1)

- Powers and functions of the Philippine Sugar Commission: (Section 2)
• Establish policies and conduct inquiries related to the sugar industry. (Section 2a)
• Enter into contracts and transactions necessary for its functions, including buying, selling, trading, transportation, and processing of sugar and related products, without public bidding. (Section 2b)
• Levy and collect charges, fees, and contributions to finance its operations, subject to the President's approval. (Section 2c)
• Act as the single buying and selling agency of sugar at the quedan-permit level. (Section 2d)
• Determine the floor-ceiling price of sugar, considering production costs, reasonable profit margins, and economic factors, subject to prevailing world and domestic prices. (Section 2e)
• Borrow money from local and foreign sources. (Section 2f)
• Invest funds in activities related to sugar production and trading. (Section 2g)
• Purchase, hold, and dispose of shares and securities of other corporations. (Section 2h)
• Hold and acquire rights over agricultural lands in excess of statutory limits. (Section 2i)
• Engage in export and import business of sugar and derivatives. (Section 2j)
• Acquire and dispose of assets necessary for its business. (Section 2k)
• Establish and maintain communication systems without a separate franchise. (Section 2l)
• Determine its organizational structure, salaries, and engage consultants. (Section 2m)
• Establish and maintain offices, branches, agencies, subsidiaries, and correspondents. (Section 2n)
• Promulgate rules and regulations and impose penalties for violations. (Section 2o)
• Assume control or supervision of inefficient or defaulting sugar mills or refineries. (Section 2p)
• Organize, register, regulate, and maintain exclusive control over sugar planters and producers marketing cooperatives. (Section 2q)
• Allow sugar cooperatives to enjoy privileges and incentives granted under previous laws. (Section 2r)
• Determine the manner and extent of exercising powers, privileges, and incentives by sugar cooperatives. (Section 2s)
• Suspend or cancel the registration of sugar cooperatives for violations. (Section 2t)
• Finance activities of the sugar industry or its components. (Section 2u)
• Organize affiliate corporations to carry out its functions. (Section 2v)
• Perform other necessary and incidental functions. (Section 2w)

- The Philippine Sugar Commission and its affiliate corporations are authorized to contract loans, credits, and indebtedness from local and foreign sources, including foreign governments and international financial institutions, subject to terms and conditions deemed appropriate. (Section 6)

- The Republic of the Philippines, through the President, may guarantee the payment of loans, credits, and indebtedness contracted by the Commission or its affiliate corporations, as well as their performance of obligations under loan agreements with foreign entities. (Section 6)

- Loans, credits, indebtedness, and related imports by the Commission or its affiliate corporations are exempt from all direct and indirect taxes, duties, fees, imposts, charges, and restrictions imposed by the Republic of the Philippines or its agencies and political subdivisions. (Section 6)

- The Philippine Sugar Commission is exempted from the coverage of Presidential Decrees 711 and 985. (Section 13)

- All laws, including Presidential Decrees 579 and 788, and Letter of Implementation No. 36, inconsistent with this Decree are repealed or modified accordingly. (Section 12)