~ . 
lOr 
SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. B. No. 233 
Introduced by Senator Maria Lourdes Nancy S. Biuay 
EXPLANATORY NOTE 
The government's efforts in advancing the country's interest in the sugar industry cannot be 
overstated especially with its significant role in the export sector and its contribution to the 
growth ofthe economy. 
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Historicrlly, numerous legislations and executive issuances governed the sugar industry, from the 
creation of the Philippines Sugar Administration to Sugar Quota Administration, in 1937 and 
1957, respectively, to the present Sugar Regulatory Administration established under Executive 
Order No. 18, series of 1986. With the fluctuating price of sugar in the world market, the 
advancement in technology, the competition posed by international players, the Philippine sugar 
industry needs all the support from government. 
As the Philippine sugar industry faces a challenge in 2015, where sugar tariffs for imported sugar 
will be zero rated and the continuing quota from the U.S. becomes uncertain, it is imperative that 
Congress legislates the appropriate applicable policy and support programs for the sugar industry, 
including creating alternative markets and uses for sugar. 
In joining the policy direction originally proposed by House Bill No. 6113 under the 15
th 
Congress, I now file the same bill with the end in view of enacting a measure that seeks to address 
the current and forthcoming issues in the Philippine sugar industry, It is submitted that the sugar 
industry's contribution to economic development cannot be overemphasized. 
In view of the foregoing, the timely passage of this bill is earnestly recommended. 
M~~S.BlNAY 
Senator 


SIXTE(.;NTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First R~gular Sessiou 
) 
SENATE 
S.B.No.£33 
Iutroduced by Senator Maria Lourdes Nancy S. Binay 
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AN ACT STRENGTHENING THE DEVELOPMENT OF THE SUGAR CANE INDUSTRY, 
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AND FOR OTHER PURPOSES 
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Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
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assembled: 
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SECTION 1. Short Title - This Act shall be known as the "Sugar Cane Industry Development 
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Act of 20\3". 
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SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to provide 
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support programs for the sustained development the sugarcane industry inasmuch as the industry 
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provides employment and livelihood to a sizeable number of Filipinos in the agricultural sector, 
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contributes significantly to the national economy as well as the local economies of host provinces, 
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earns for the country foreign reserves from exports to other countries, and ensures food 
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sufficiency and energy security of the country. 
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SECTION 3. Development of the Sugar Cane Industry - The main focus of the development of 
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the sugar industry shall be on the following measures, programs and projects: 
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A. 
Industry-Wide development 
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1. 
3. 
In general, the transformation of sugarcane industry from the limited "raw and refined 
sugar production" into a diversified industry and producing not mainly raw and 
refined sugar, but also power, waste disposition and other possible biochemical 
products primarily through integration of by-products production with sugar 
processing; 
The establishment of Special Economic Zones for Sugarcane Industry pursuant to RA 
No. 7916 (Special Economic Zone Act of 1995), andlor the designation and 
establishment of nuclear farms lAgro-Industrial Districts fot Sugarcane Industry to be 
entitled to the existing fiscal incentives under Book VI of Executive Order No. 226 
otherwise known as the Omnibus Investments Code of 1987 as well as Sections 4, 5, 6 
and 7 of RA 10000 (The Agri-Agra Reform Credit Act of 2009), promoting, among 
others, block/corporate fanning to achieve economies of scale; 
The development of programs that are environment friendly and will attract 
investment in the development, production, or manufacture of products derived from 


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B. 
sugarcane, sugar, molasses, cane juice, crop waste, bagasses, filter mud and otber by-
products and co-products of sugarcane milling; 
4. 
The institution of marketing programs that will lead to expansion of markets for 
sugarcane and by-products; 
5. 
The building or improvement of existing trans-loading ports for export or coast-wide 
transport of sugar and its by-products in key sugar producing areas through various 
programs or projects of other government agencies such as NEDA, DOTC and PPA; 
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The development of a sugarcane industry that shall benefit sugar farmers, planters and 
mill workers; 
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The encouragement and intensification of farm productivity improvement, including 
but not limited to farm mechanization, organic farming, fertilization, irrigation, 
il)tensified inter-cropping, and dispersal of planting materials and improve highly 
yielding varieties; and 
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The sustained support/conduct/sponsorship of research and development on the 
sugarcane industry including, among others, high yielding varieties, farlp implements, 
farm methodologies, by-products profitability and marketing! promotion techniques, 
new manufacturing chemical and biotechnologies for bagasse, molasses and other by-
products, weather monitoring and soil fertility mapping; 
Rerulation of sugar industry 
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The effective monitoring of the withdrawal, transfer, transport and movement of sugar 
and premixes; provided, that, all sugar warehouses and storage facilities are required 
to register with SRA; 
2. 
The classification of imported sugar and premixes as either "C", "D", or "E" when 
impEJrted at a time when there is a sufficiency sugar stocks; provided, that, the Bureau 
of Customs (BOC) shall not release imported sugar and premixes without requisite 
SRA clearances and classification; 
3. 
The export of refined sugar to the world market shall be subjected to V AT zero 
percent rate from the time it is withdrawn or release from the sugar mill/refinery 
including refined sugar withdrawn for constructive export to CBW warehouse of food 
processors that are duly licensed and registered with SRA; 
4. 
The wastewater discharge of mills that meet the standard of the Department of 
Agriculture on safe re-use of wastewater for irrigation and other agricultural purposes 
shall not be imposed any discharge fee. 
C. 
Fund management 
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The management and proper utilization and disposition of the Sugarcane Industry 
Development Fund established under Section 4 of this Act, with special emphasis on 
the industry's contribution to the food security program of the national government. 


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SECTION 4. Establishment a/Sugar Cane Industry Development Fund 
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There is hereby established a Sugar Cane Industry Development Fund ("Sugar Fund") to 
support the implementation of the development strategy identified in Section 3 of this Act. 
The Sugar Fund shall be held in trust by the Philippine Sugar Corporation created under 
Prepidential Decree J 890. 
Ini~ially, the Sugar Fund shall be utilized for the following specific purposes: 
a. 
b. 
c. 
d. 
e. 
f. 
g. 
Finance the establishment of Special Economic Zones, nuclear farms/agro-industrial 
districts as provided for in Section 4 (2.a.) of this Act; 
Provide financial assistance to the sugar farmers, planters and mills covering purchase 
of seedlings, cane varieties, pesticides and fertilizers; acquisition of farm machinery 
and equipment; construction of farm to market roads; and construction or building of 
irrigation or water impounding facilities and water distribution networks; 
Provide financial conduiting / resources for industries harnessing the efficient use of 
the energy potential of the sugar cane (e.g. the Ethanol program) and utilization of 
farm wastes (e.g. bagasse as raw material for pulp and paper, boards and furfural and 
animal feeds) and other by-products using chemical and biotechnologies; 
Conduct researches or feasibility studies to improve efficiency and productivity of 
farms and mills, identify areas of diversification, identify and develop other markets 
for sugar and its by-products and co-products particularly in the area of renewable 
energy and biochemical industry; 
Training of mill personnel on current technologies on efficiency, productivity and 
diversification; 
Finance socio-economic programs for sugar farmers and mill workers'including but 
not limited to livelihood programs and trainings in addition [0 the program under 
Republic Act 6982 (Strengthening the Social Amelioration program in the sugar 
industry); 
Provide scholarships for deserving university/college students taking relevant degrees 
in the sugar cane industry; and 
The Sugar Fund shall be constituted and collected from the proceeds of fifteen percent 
(15%) of: 
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The Value Added Tax (VAT) on the sale and importation of refined sugar, and sugar 
cane by-products; and 
b. 
The total tariff collected on the importation of raw sugar (AHTN 1701.11.00), refined 
sugar (AHTN 1701.99 and its subheadingsO, and premix sugar (AHTN 1701.91.00 
and 2106.90.52). 
All proceeds collected from the above sources shall be remitted in full by the Department of 
Finance to a separate trust fund maintained by the Philippine Sugar Corporation 
(PhiiSuCor), created under Presidential Decree 1890, on or before August 1 of every year; 
provided, that the PhiiSuCor shall utilize and disburse such trust fund in accordance with 
the purposes enumerated in Section 3 of this Act and its Implementing Rules and 
Regulations; provided further, that only interest earnings ofthe trust fund shall be available 
fot the operational expenses of implementing the purposes of the trust fund; provided 
mpreover, that the year-end cumulative financial balance of the trust fund shall constitute as 
the minimum matching amount of credit available to the sugarcane industry under Section 6 


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of RA 10000; and provided finally, that this trust fund shall be audited by the Commission 
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on Audit separately from the other funds or accounts ofPhilSuCor. 
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SECTION 5. Members ~[the Board o[the Philippine Sugar Corporation -- Section 8 ofPD 1890 
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is hereby amended as follows: 
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"(a) THE Administrator ofthe Sugar Regulatory Commission shall be the Chairman ofthe 
Board; 
(b) XXX 
(c) All the eleven members of the Board shall be nominated by SRA of which five (5) 
shall corne from the sugar farmers sector, five (5) from the sugar millers sector and one (1) 
from the international traders sector;" 
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SECTION 6. Transitory Provisions. - Upon the effectivity of this Act, the positions in the Board 
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of Directors of PHILSUCOR shall be deemed vacant, and the President shall appoint new 
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members based on the provision of this Act; provided, however, the members of the Board shall 
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hold over until the new members are appointed. 
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SECTION 7. Implementing Agency. - The SRA shall be the primary implementing agency of 
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this Act. The SRA, together with PHILSUCOR and representatives of sugar farmers, planters and 
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mills, shall formulate the implementing rules and regulations that shall, among others, identify 
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and establish the requirements and restrictions governing the execution of the above purposes no 
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later than three (3) months from the effectivity ofthis Act. 
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SECTION 8. Repealing Clause. - All laws, decrees, executive orders and rules and regulations 
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or part or parts thereof inconsistent with any provision of this Act are hereby repealed, modified 
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or amended accordingly. 
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SECTION 9. Separability Clause. -If any provision of this Act is declared unconstitutional, the 
validity hf the remaining provisions hereof shall remain in full force and effect. 
SECTIbN 10. Effectivity. - This Act shall take effect fifteen days after its complete publication 
in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved,