Decreto Ejecutivo 28665 — Executive Regulation of the Organic Law of Agriculture and Sugar Cane Industry

Sugar year or harvest (Zafra): Period between October 1 of each year and September 30 of the following year.

Assembly: General Assembly of the Agricultural Industrial League of the Sugar Cane (Liga Agrícola Industrial de la Caña de Azúcar).

Sugar of 96º polarization: Sugar containing ninety-six percent (96%) of its weight in sucrose.

Sugar: Sugar, in its recognized commercial forms, derived from sugar cane, including edible and fine molasses, syrups, and any other form of liquid sugar. Final molasses and types or classes of non-centrifugal sugar of inferior quality are excluded, such as "dulce de tapa" or "panela".

Harvest Commission (Comisión de Zafra): The commission established in article 87 of the Law.

Advisory Commission (Comisión Asesora): The commission established in article 280 of this Regulation.

Commercialization Council or Council: Commercialization Council (Consejo de Comercialización) of the Agricultural Industrial League of the Sugar Cane.

National sugar consumption: It is the consumption of sugar, for any purpose, that takes place within the territory of the republic and that has been produced therein.

Reference Quota (Cuota de Referencia) of the Mill (Ingenio): The quota defined by articles 125 and 131 of the Law.

Reference Quota (Cuota de Referencia) of the independent producer (productor independiente): The quota defined by article 67 of the Law.

Reference Quota (Cuota de Referencia) of the new independent producer (productor independiente nuevo): The quota defined by

of the Law.

National Sugar Production Quota (Cuota Nacional de Producción de Azúcar): The quota defined by article 114 of the Law.

Technical Department: The Technical Department of the Sugar Cane League (Liga de la Caña).

DIECA: Directorate of Research and Extension of Sugar Cane (Dirección de Investigación y Extensión de la Caña de Azúcar).

Sugar surpluses, surpluses, or out-of-quota (extracuota): Those defined in article 120 of the Law.

Sugar Advance Factor (%AA) (Factor de Adelanto de Azúcar): It is the minimum yield in sugar of 96º Pol, that the mill (ingenio) must recognize to the producer for the cane received, in accordance with the Direct System of Cane Purchase by its Quality.

Final Molasses Advance Factor (%AM) (Factor de Adelanto de Miel Final): It is the minimum yield in final molasses (miel final) at the Brix value approved by the Board of Directors of LAICA, that the mill (ingenio) must recognize to the producer for the cane received, in accordance with the Direct System of Cane Purchase by its Quality.

Technical polarization conversion factor (100/96): It is the arithmetic relationship to convert sugar from a given degree of polarization to another, applying the rule of three.

Mill (Ingenio): Entity dedicated to the receipt and processing of cane for the production of sugar and its derivatives, and that by itself constitutes an economic and administrative unit. When this regulation establishes rights, obligations, or limitations, for the mills (ingenios) they shall be understood as assigned to the natural or legal person owning, leasing, or possessing the mill (ingenio) by any legitimate title.

Board of Directors or Board: Board of Directors of the Agricultural Industrial League of the Sugar Cane.

Law: The Organic Law of Agriculture and the Sugar Cane Industry No. 7818 of September 2, 1998.

Agricultural Industrial League of the Sugar Cane, Sugar Cane League, League, or LAICA: Corporation indicated in article 4 of the Law.

Final molasses (miel final) in-quota: It is the final molasses (miel final) resulting from the processing of the sugar cane delivered to produce sugar under the quota regime, in accordance with the law.

Final molasses (miel final) out-of-quota or surplus: It is the final molasses (miel final) resulting from the processing of the sugar cane delivered to produce sugar under the out-of-quota (extracuota) regime, in accordance with the law.

Final molasses (miel final) or molasses (melaza): It is the liquid residue resulting from separating, by centrifugal means, the sugar crystals from the mother liquor, from which it is not economical to extract more sugar.

Grinding (Molienda): Period from the beginning to the conclusion of the industrialization of sugar cane by a mill (ingenio) in a harvest (zafra).

Organization of the cane sector: Federation or Union referred to in article 42 of the Law.

Independent cane producer, small and medium independent cane producer, and new independent producer: Producers defined in articles 54 and 56 of the Law.

Estimated provisional yield: It is the product of the yield calculated in sugar of 96º Pol and final molasses (miel final), through the Direct System of Cane Purchase by its Quality, multiplied by the Sugar Advance Factor (%AA) and Final Molasses Advance Factor (%AM).

Produced yield: It is the yield in terms of sugar of 96º Pol, produced by the mill (ingenio).

(Thus expanded by article 1 of Executive Decree No. 29972 of November 2, 2001)

Multi-Person Bodies of the Sugar Cane League

General Assembly

Appointment of the members

The alternates (suplentes), in that order, shall substitute for the holders (titulares) in case of absence of any of them.

a)The President of the Assembly shall call the mills (ingenios) included in the three ranges of sugar production indicated by the law, with at least eight days' notice, to a meeting to be held in the first half of December of each year, at the offices of the League, so that each range may adopt a decision on the provisions of article 4 of this Regulation.

The call shall be sent in writing to the address registered by each mill (ingenio) at the Sugar Cane League, indicating time and date.

b)The meeting shall be held regardless of the number of representatives from each range of mills (ingenios) that attend, and the agreements shall be adopted by the absolute majority of those present. The Internal Audit and the Legal Advisory Office of the League shall draft the minutes of the meeting, which shall be signed by those present who wish to do so.
c)The foregoing meeting may be substituted by a document addressed to said President, before the date of the meeting indicated in subsection a), communicating the agreements adopted by the mills (ingenios) of the respective range. For the validity of this document, the signature of all the authorized representatives of the mills (ingenios) included in the corresponding range is required.
d)In the event that the decision of the mills (ingenios) of a range is to designate delegates for each session of the General Assembly to which they are convened, the following shall be observed: The mills (ingenios) shall be convened by the President of the Assembly, at least one business day before the session of that Body, for the purpose of making the corresponding appointments for that session. In that case, the provisions of subsections b) and c) shall apply.
e)The mills (ingenios) of each range may substitute the persons appointed or extend the period of their appointment, provided it does not exceed the limit indicated in

Said meeting may be substituted in the manner indicated in subsection c). The corresponding document shall be delivered to the President of the Assembly, as soon as possible.

f)The representatives of the mills (ingenios) shall prove, by any means, this status.

a)They shall be appointed in accordance with the provisions of article 160 subsection b).
b)The competent Body for said appointment, in the first half of December of each year, must adopt a decision on the provisions of

c)In the event that the decision of the aforementioned Body is to designate delegates for each session of the General Assembly, it shall proceed thus and the corresponding agreements shall be transcribed, as pertinent, to the President of the General Assembly.
d)The referred Body may substitute the appointments made or extend the period of the appointment, provided it does not exceed the limit indicated in

Accreditation of the members

In the event that the appointments are for more than one session or a determined period of sessions of the General Assembly, it shall suffice that the document indicated in articles 4 and 5 be presented once to the President of the referred Body, and the accreditation shall be valid for the sessions or the period that it expressly indicates.

Call

The call shall be sent at least five calendar days before the date set for the Assembly session. If the address has not been registered, the League is exempt from sending the call.

President and vice-president

a)To preside, with all necessary powers for this purpose, over the meetings of the General Assembly.
b)To ensure that the Assembly complies with the laws and regulations relating to its function.
c)To call the General Assembly to ordinary and extraordinary sessions, by their own decision or at the request of the Board of Directors or three of the directors of this latter Body. The Commercialization Council may request the President to call an extraordinary session to address matters within its scope of authority.
d)To prepare, jointly with the Executive Director and, when appropriate, with the Commercialization Director, the order of the day. In the event that the request for a call comes from the Board of Directors or three of its directors, the matters indicated by said Body or the cited directors must necessarily be included in the respective agenda.
e)To ensure the execution of the agreements and resolutions of the General Assembly.
f)To sign the minutes of the General Assembly.
g)To verify the accreditations of the delegates who attend the Assembly sessions.
h)Any others assigned to them by the law and its regulations.

Minutes

The delegates may have their vote against the agreement or resolution adopted and the reasons justifying it recorded in the minutes, thereby being exempt from the responsibilities that could, where applicable, derive from the agreements and resolutions.

In this latter case, the referred acts shall become final once they are read and approved at the next session held by the Assembly.

Sessions

In the previous case, in accordance with the provisions of article 22 of the law, the session shall be held forty-eight hours later, with the number of members present, without the need for a prior call. If the time falls on a non-business day, the session shall be held at the same time on the following business day. For this session, the same persons who were appointed as delegates for the failed Assembly session shall have that status.

In the event that the President does not accept the request, the delegate who made it may request review of the decision. Said review must be discussed and voted on immediately, altering the order of the day, and if it is approved by the absolute majority of the delegates present, compliance shall be mandatory.

Agreements and resolutions

If the Assembly approves the review, the matter shall return to the state it was in before the question that gave rise to it was voted on.

Simple observations of form, relating to the drafting of the agreements, shall not be considered, for the purposes of the preceding paragraph, as motions for review.

The agreements and resolutions subject to review shall become final with the decision rejecting the motion.

Said publication shall be delivered to the cited Gazette, no later than eight calendar days from the date on which the respective act became final.

The agreements and resolutions of a specific nature, which particularly affect a determined person, shall be communicated to them in writing, at the place designated for notifications or at the known address, by means of an authorized copy of what was resolved.

It shall be the responsibility of the Executive Director to order that said publication and communication be carried out.

In this matter, the provisions of articles 45, 46, and 47 of this Regulation shall apply, where applicable.

Challenge of the acts of the general assembly

The express or presumed act that resolves the motion shall exhaust the administrative avenue. Within the seven calendar days following the date on which the motion is filed, the Legal Advisory Office of the League must issue an opinion to the General Assembly.

However, the General Assembly, in a reasoned act, may suspend said execution, when it could cause serious, impossible, or difficult-to-repair harm.

a)Standing (legitimación) of the plaintiff.
b)Observation of the minimum formal requirements. If the motion contains correctable errors or lacks the necessary documents, the Legal Advisory Office shall warn the appellant to correct them or provide the missing documents within a period of eight business days.
c)Expiration of the action. The Legal Advisory Office shall issue the corresponding opinion, duly reasoned, for the General Assembly.

a)The President or, failing that, the Vice-President of the Assembly, shall grant a hearing to the interested parties, setting a day and time, for them to formulate their factual and legal arguments and offer the pertinent evidence.
b)The President or, failing that, the Vice-President of the Assembly, may delegate the hearing process to the Executive Director or any other official of the Corporate Division.

The summons to the oral hearing must be made with at least five business days' notice before its holding.

Said persons are prohibited from exercising such acts regarding draft resolutions, reports for consultative bodies, and the opinions of the latter, before they have been known by the addressee.

The respective minutes may be drawn up later, with the sole signature of the person who presided over the hearing. The recording shall be kept in the case file (expediente) for up to six months after the corresponding act has been issued.

The hearing shall be directed by the President or Vice-President of the Assembly, the Executive Director, or the Legal Advisor, as appropriate.

In any case, whoever directs the hearing shall process the evidence previously offered by the absent party, if this is possible

Board of Directors

Appointment of the directors

a)The President of the Board of Directors or, failing that, the Executive Director, shall call the mills (ingenios) included in each of the three ranges of sugar production, with at least eight calendar days' notice, to a meeting that must be held in the first half of December prior to the start of the functions of the Board of Directors, so that they appoint the regular (propietario) and alternate (suplente) director corresponding to each range. The meeting shall be held at the central offices of the League.
b)The call shall be sent in writing, personally or via facsimile, indicating place, time, and date, to the address that each mill (ingenio) must obligatorily register with the Sugar Cane League.
c)The meeting shall be held regardless of the number of mill (ingenio) representatives that attend, and agreements shall be adopted by the absolute majority of those present. The Internal Audit and the Legal Advisory Office of the League shall draft the minutes of the meeting, which shall be signed by those present who wish to do so.
d)The foregoing meeting may be substituted by a document addressed to said President, communicating the agreements adopted by the mills (ingenios) of the respective range. For the validity of this document, the signature of all the authorized representatives of the mills (ingenios) is required.
e)In cases where it is appropriate to substitute any regular (propietario) or alternate (suplente) member, for the causes indicated in article 27 of the Law, with the exception of that stipulated in subsection g), the corresponding appointment shall be made, applying the provisions of the previous subsections, with the following exception: the meeting must be held within the eight calendar days following the date on which the loss of credential of the regular (propietario) or alternate (suplente) director was declared.
f)In the event that the intention is to substitute a regular (propietario) or alternate (suplente) director, for reasons of convenience or necessity, any of the mills (ingenios) included in a determined range shall request the President of the Board of Directors or, failing that, the Executive Director, to convene the mills (ingenios) included in its range of sugar production to a meeting to address the referred intention. Said official shall proceed without delay to issue the call, with at least eight calendar days' notice, to the date indicated for said act, which shall be held at the central offices of the League. In all other respects, the provisions of subsections b), c), and d) shall apply.

In the same manner, it shall be proceeded when any regular (propietario) or alternate (suplente) member must be substituted, for the causes indicated in article 27 of the Law or for reasons of convenience or necessity, death, or resignation. In the foregoing cases, the provisions of article 25 of the Law must be respected.

President, vice-president, and secretary

a)To preside over the meetings of the Body, which they may suspend at any time for justified cause.
b)To ensure that the Collegiate Body complies with the laws and regulations relating to its function.
c)To set general guidelines and give instructions regarding the formal aspects of the Body's work.
d)To approve the agenda of the sessions prepared by the Executive Director. Requests from the members of the Board of Directors, formulated at least three days in advance, must be included therein.
e)To ensure the execution of the Board of Directors' agreements.
f)To sign the minutes of the Board of Directors.
g)Any others assigned to them by the law and its regulations.

a)To verify that the minutes of the sessions are timely prepared, transcribed in the corresponding legalized book, and signed by the persons who are required to do so.
b)To sign, jointly with the President, the minutes of the Board of Directors.
c)Any others assigned to them by the law and its regulations

Minutes

The members may record in the minutes their vote against the agreement adopted and the reasons justifying it, thereby being exempt from the responsibilities that could, where applicable, derive from the agreements.

They must also be signed by those members who have recorded their dissenting vote.

Corrections of form and substance to the minutes must be incorporated in the article of the session in which they are approved.

Agreements and resolutions

If the tie persists, the matter shall be sent to the General Assembly for its resolution. The call to an extraordinary session of said Body for the indicated purpose must necessarily be agreed upon at the session in which the second tie occurred.

They may become final in the same session in which they are adopted, with the vote of two-thirds of the entirety of the members of the Board.

If the Board approves the review, the matter shall return to the state it was in before the question that gave rise to it was voted on. Final agreements shall lack the cited motion.

Those who have a direct interest in the matter at hand may file the cited motion.

Simple observations of form relating to the drafting of the agreements shall not be considered, for the purposes of the first paragraph, as motions for review.

Said publication must be delivered to the corresponding newspaper, no later than eight calendar days from the date on which the respective act became final.

The agreements and resolutions of a specific nature that particularly affect a determined person shall be communicated to them in writing at the place designated for notifications, by means of an authorized copy of what was resolved.

It shall be the responsibility of the Executive Director to order that said publication and communication be carried out.

In the record (acta) of the proceeding, the delivery of the notification and the name of the person who receives it, who shall sign with the notifier, shall be recorded. If the latter does not know how, does not wish to, or is unable to sign, the notifier shall record the fact under their responsibility.

Likewise, upon delivering the notification, the notifier shall record on it the date and time of delivery.

If the home or the designated place is vacant, remains closed, is imprecise, uncertain, or non-existent, the notifier shall also record this fact under their responsibility.

In the case of legal entities, if no address has been designated for notifications, the notification shall be made through the resident agent or at the corporate domicile registered in the Public Registry. In these cases, the provisions of the first and second paragraphs of this article shall also apply.

In cases where notification cannot be carried out, the notifier shall draw up a record specifying the reasons why it was not made and shall forward it to the Legal Advisory Office (Asesoría Legal) of the League, which may dismiss said reasons and order that the notification be carried out again. If it accepts them, it shall proceed to make the notification three consecutive times in the Official Gazette (Diario Oficial) and once in a nationally circulated newspaper, recording the necessary data to identify the matter in question.

The notification shall be deemed to have been made eight business days after the last publication in the Official Gazette (Diario Oficial).

The person who, in their first brief or when cautioned to that effect by the League, does not indicate a place to receive future notifications, shall be deemed notified of subsequent resolutions merely upon the lapse of twenty-four hours after they are issued. The same consequence shall occur if the notification cannot be made for reasons beyond the League's control.

The record of the official or employee who made the transmission shall serve as proof, indicating in the respective case file the time and date on which it was made.

A cover sheet or title page shall be transmitted with the notification, indicating the nature of the agreement or resolution, the full name or corporate name of the interested party, and the full name of the official or employee transmitting the fax.

In cases of notification by fax, if the confirmation of receipt of the transmission is not received, the person who made it shall attempt to corroborate its complete reception by telephone, provided that the corresponding telephone number has been indicated in writing by the interested party.

Challenge of acts of the board of directors

Such acts may also be subject to the extraordinary remedy of review (revisión).

This Section shall regulate matters concerning the time limits for filing said remedies and the corresponding procedure.

The provisions of numeral 127 of the General Public Administration Law (Ley General de la Administración Pública) shall also apply.

To issue the express act, it shall be essential for the Board of Directors (Junta Directiva) to consult, beforehand, the Legal Advisor (Asesor Legal) of the League. The provisions of subsections 2 and 3 of Article 356 of the General Public Administration Law (Ley General de Administración Pública) shall apply.

However, the Board of Directors (Junta Directiva) may suspend said execution when it may cause serious harm or harm that is impossible or difficult to repair.

The party's interest must be current, personal, and legitimate, and its basis may be moral, scientific, religious, economic, or of any other nature.

The coadjuvant (coadyuvante) may not request anything for themselves, nor change the claim to which they lend assistance, but shall be empowered to make all factual and legal allegations in order to assert their interest, except where it harms the assisted party.

The withdrawal or waiver shall only affect the interested parties who formulate them.

a)The full name and qualifications of the appellant, and if the appellant is a legal entity, its corporate name, domicile, and corresponding identification number.
b)The claim being made.
c)The grounds and factual basis.
d)The place for notifications.
e)The date and signature. If the appellant does not know how to sign, someone else shall sign at their request, and a record of this shall be made by a Notary or two witnesses, who must sign.

The resolution that summarily rejects a petition shall exhaust the administrative channel (vía administrativa).

a)Standing (Legitimación) of the moving party.
b)Observation of minimum requirements. If the remedy contains correctable errors or lacks necessary documents, the Board of Directors (Junta Directiva) shall caution the appellant so that, within a period of eight business days, they correct them or provide the missing documents.
c)Expiry (Caducidad) of the action. The Legal Advisory Office (Asesoría Legal) shall issue the corresponding report, duly substantiated, for the Board of Directors (Junta Directiva).

The summons to the oral hearing must be made five business days prior to its holding.

Only the Legal Advisors and the President may intervene on behalf of the Board of Directors (Junta Directiva), and in the absence of the latter, the Vice President or an ad-hoc President.

The recording shall be kept in the case file until six months after the corresponding act is issued.

The respective minutes, which must be succinct, may be drawn up subsequently, with only the signature of the President of the Board of Directors (Junta Directiva) or whoever substituted them at said proceeding.

The hearing shall be directed by the President, and in the absence of the latter, by the Vice President or an ad-hoc President.

In any case, the evidence previously offered by the absent party shall be taken, if possible.

The indicated persons are prohibited from exercising such acts with respect to draft resolutions, reports for advisory bodies, and the opinions of these bodies before they have been reviewed by the recipient.

APPEAL REMEDY (RECURSO DE APELACION)

(Annuled by resolution of the Constitutional Chamber (Sala Constitucional) No. 13335-06, at seventeen thirty-eight hours.)

(The Constitutional Chamber (Sala Constitucional), by resolution No. 13335-06, at seventeen thirty-eight hours on September 6, 2006, interpreted this article to mean that the thirty-calendar-day period for filing the appeal (apelación) begins to run from the moment the challenged agreement was notified to all interested parties.)

It must be accompanied by a report from the Legal Advisory Office (Asesoría Legal), expressing its opinion on the remedy.

a)The written appeal (apelación).
b)The verbatim text of the challenged act.
c)The background information for said act.
d)The report from the Legal Advisory Office (Asesoría Legal) indicated in the previous article.

a)The full name and qualifications of the appellants.
b)Place for notifications.
c)The claim they formulate and the grounds on which it is based.
d)The date and signature.

However, the Board may suspend such execution when it may cause serious harm, or harm that is impossible or difficult to repair.

At those times, they may make the arguments they consider pertinent, and their Attorneys and advisors may intervene to support them.

The provisions of Article 356 of the General Public Administration Law (Ley General de la Administración Pública) must be complied with.

In the opposite case, they shall be processed according to the order of their filing.

The provisions of numeral 127 of the General Public Administration Law (Ley General de la Administración Pública) shall also apply.

However, in the case of the second paragraph of Article 23 of the law, the indicated period shall be counted from when the respective case file was received by the corresponding Court.

REVIEW REMEDY (RECURSO DE REVISION)

Final and firm acts shall be understood as definitive administrative acts that have acquired firmness.

The Assembly shall designate the Directing Body (Órgano Director) of the procedure.

Marketing Council (Consejo de Comercialización)

Appointment of directors

a)The President of the Council or, failing that, the Marketing Director, shall convene the sugar mills included in the three ranges of sugar production, at least eight calendar days in advance, to a meeting to be held in the first half of December prior to the start of the Council's term, so that they may appoint the full and alternate directors corresponding to each range. The meeting shall be held at the central offices of the League.
b)The convocation shall be sent in writing, personally or by facsimile to the address that each mill must register obligatorily with the Marketing Division of the League, indicating the time and date.
c)The meeting shall be held regardless of the number of mill representatives who attend, and agreements shall be adopted by the absolute majority of those present. The Internal Audit Office (Auditoría Interna) and the Legal Advisory Office (Asesoría Legal) of the League shall draw up the minutes of the meeting, which shall be signed by those present who wish to do so.
d)The previous meeting may be substituted by a document addressed to said President, communicating the agreements adopted by the mills in the respective range. For the validity of this document, the signature of all the authorized representatives of the mills is required.
e)In cases where it is necessary to substitute any full or alternate member, for the reasons set forth in Article 33 of the Law, with the exception of that stipulated in subsection d), the corresponding appointment shall be made by applying the provisions of the preceding subsections with the following caveat: the meeting must be held within the eight calendar days following the date on which the loss of the credential of the full or alternate director was declared.
f)In the event that it is sought to substitute a full or alternate director for reasons of convenience or necessity, any of the mills included in a specific range shall request the President of the Council—or failing that, the Marketing Director—to convene the mills included in its sugar production range to a meeting to hear the aforementioned claim. Said official shall proceed without delay to issue the convocation, at least eight calendar days before the date set for said proceeding, which shall be held at the central offices of the League. In all other respects, the provisions of subsections b), c), and d) shall apply.

When proceeding with the cited appointments, it must be indicated which will be the two full and two alternate directors who, together with the other designated directors, will make up the Extended Marketing Council (Consejo de Comercialización Ampliado).

The same shall also apply when a full director or an alternate director must be substituted for reasons of convenience or necessity, death, or resignation.

President, vice president, and secretary

a)To preside over the Council's meetings, with all the powers necessary for this purpose.
b)To ensure that the Council complies with the laws and regulations relating to its function.
c)To establish general guidelines regarding the formal aspects of the Body's work.
d)To convene the Council to extraordinary sessions.
e)To approve the agenda for the sessions, which must be prepared by the Marketing Director. Requests from Council members, formulated at least three calendar days in advance, shall be included in the agenda.
f)To sign the Council's minutes.
g)Any other duties assigned to them by the law and its regulations.

a)Verifying that the minutes of the sessions are drawn up in a timely manner, transcribed in the corresponding certified register book, and signed by the persons responsible for doing so.
b)Signing the Council's minutes jointly with the President.
c)Any other duties assigned to them by the law and its regulations.

Extended Marketing Council (Consejo de Comercialización ampliado)

Minutes

The members may state in the minutes their vote against the adopted agreement and the reasons justifying it, in which case they shall be exempt from any responsibilities that might derive from the agreements.

When dealing with a session of the Extended Marketing Council (Consejo de Comercialización Ampliado), when the corresponding minutes are reviewed, the directors indicated in Article 97 who attended said session must be present to exercise the following rights: request modifications to the minutes, vote for or against their approval, file the review remedy (revisión) indicated in Article 106, and participate in its discussion and voting. Said directors must be duly convened.

The members who have recorded their dissenting vote must also sign them.

The corrections of form and substance to the minutes must be incorporated into the article corresponding to the session in which they are approved.

Agreements and resolutions

If the tie persists, the President shall resolve it through a casting vote (voto de calidad), unless a qualified vote higher than the resulting votes is required.

They may acquire firmness in the same session in which they are adopted, with the vote of the absolute majority of all the members of the Council.

If the Council approves the review, the matter shall revert to the state it was in before the question that gave rise to it was voted on. Firm agreements shall not be subject to the cited remedy.

Those who have a direct interest in the matter in question may file the cited remedy.

Simple observations of form relating to the drafting of the agreements shall not be considered, for the purposes of the first paragraph, as review remedies (revisión).

It shall be the responsibility of the Marketing Director to order that these communications be made.

The provisions of Article 45 shall apply to the notification.

Challenge of the acts of the Marketing Council (Consejo de Comercialización)

This Section shall regulate matters concerning the time limits for filing said remedies, the corresponding procedure, and the manner of notification.

To issue said act, it shall be essential for the Marketing Council (Consejo de Comercialización) to consult, beforehand, the Legal Advisor (Asesor Legal) of the League.

For these purposes, the provisions of Articles 45, 46, and 47 of this Regulation shall apply.

However, the Marketing Council (Consejo de Comercialización) may suspend said execution when it may cause serious harm or harm that is impossible or difficult to repair.

The party's interest must be current, personal, and legitimate, and may be moral, scientific, religious, economic, or of any other nature.

The coadjuvant (coadyuvante) may not request anything for themselves, nor may they change the claim to which they lend assistance, but may formulate all factual and legal allegations to assert their interest, except where it harms the assisted party.

The withdrawal or waiver shall only affect the interested parties who formulate them.

a)The full name and qualifications of the appellant. If the appellant is a legal entity, its corporate name, domicile, and corresponding identification number.
b)The claim being made.
c)The grounds and factual basis.
d)The place for notifications.
e)The date and signature. If the appellant does not know how to sign, someone else shall sign at their request, and a record of this shall be made by a Notary or two witnesses, who must sign.

The resolution that summarily rejects a petition shall exhaust the administrative channel (vía administrativa).

a)Standing (Legitimación) of the moving party.
b)Observation of minimum requirements. If the remedy contains correctable errors or lacks necessary documents, the Marketing Council (Consejo de Comercialización) shall caution the appellant so that, within a period of five business days, they correct them or provide the missing documents.
c)Expiry (Caducidad) of the action. The Legal Advisory Office (Asesoría Legal) shall issue the corresponding report, duly substantiated, for the Marketing Council (Consejo de Comercialización).

The summons to the oral hearing must be made five business days prior to its holding.

Succinct minutes shall be drawn up of the hearing, which shall be signed by the Legal Advisor (Asesor Legal).

The hearing shall be directed by the President or the Vice President of the Marketing Council (Consejo de Comercialización) or the Legal Advisor (Asesor Legal).

In any case, the evidence previously offered by the absent party shall be taken, if possible.

The indicated persons are prohibited from exercising such acts with respect to draft resolutions, reports for advisory bodies, and the opinions of these bodies before they have been reviewed by the recipient.

APPEAL REMEDY (RECURSO DE APELACION)

It must be accompanied by a legal opinion from the Legal Advisory Office, expressing its criterion on the recourse.

Also governing, insofar as they are applicable, shall be numerals 77, 78, 79, 80, 81, and 82 of the referred Section.

Otherwise, they shall be processed in the order of their filing.

Representation of the Sugarcane Sector

Representative Entity of the Sugarcane Sector

Said certification shall be signed by the President of the association, and delivered within eight calendar days following the date of receipt of the written communication in which the referred list was requested.

For said purposes, the following shall apply:

a)The number and names of the persons listed as sugarcane deliverers shall be determined for the mills located in each zone, in the harvest immediately preceding the year in which the five-year period indicated in the preceding provision begins.
b)The number of said deliverers listed as affiliates of each of the sugarcane growers' associations shall be established, with headquarters in the corresponding zone, constituted and registered under the law of associations and whose registration of their Governing Bodies is up to date.
c)The proportion of the referred deliverers who are affiliated with each of the said associations shall be established.

The Technical Department and the Internal Audit of the Liga, after a prior legal opinion from the Legal Advisory Office, shall pronounce on the referred verification and shall communicate it to the Board of Directors, which, in the ordinary session following receipt of the cited pronouncements and legal opinion, shall issue the corresponding act.

a)To appoint or replace the proprietary and alternate members of the sugarcane sector in the multi-person Bodies of the Liga de la Caña.
b)To appoint and replace, according to its bylaws, the members that the sugarcane sector is responsible for designating on directories of deconcentrated services and permanent advisory commissions established by this Regulation or the competent Bodies of the Liga.
c)The other powers assigned to it by this Law, its Regulation, and its bylaws.

7818 and in this Regulation, the cited entity shall be governed by its Bylaws, the Law of Associations, and other ordinary legislation.

National Sugarcane Electoral Assembly

Nature, Integration, and Dignitaries

It shall be composed of the members appointed by the sugarcane agro-industrial zones, in accordance with the provisions of Section Two. They shall serve in their position for a period of two years, which shall begin on December 1 of the even-numbered year and shall conclude on November 30 of the corresponding even-numbered year.

(Thus amended by article 1 of Decreto Ejecutivo N° 30842 of October 22, 2002)

The following corresponds to the President:

a)To preside over the sessions of the Assembly and to channel the debates.
b)To execute the agreements of the Assembly.
c)To sign the corresponding minutes.

The Vice President shall substitute the President, with equal powers and duties, in their temporary and permanent absences. In the latter case, the substitution shall last until the designation of the new President takes place.

The Secretary is responsible for signing, with the President, the minutes of the sessions.

In the event that the President and the Vice President are absent, the Assembly shall designate an ad-hoc President.

The same procedure shall be followed in the event of the Secretary's absence.

Designation of the Members of the National Sugarcane Electoral Assembly

a)The Liga de la Caña shall determine the number and names of the persons listed as sugarcane deliverers in the mills located in each zone, in the harvest prior to the date on which the cited designations are made.
b)The Liga de la Caña shall establish the number of said deliverers who are listed as affiliates of each of the sugarcane growers' associations, with headquarters in the corresponding zone, constituted and registered under the Law of Associations. Likewise, it shall establish the proportion of the referred deliverers who are affiliated with each of the associations.
c)The Liga de la Caña shall define the number and names of the deliverers who are not listed as affiliates of the indicated associations, to establish the proportion they represent of the total sugarcane deliverers.
d)The Liga de la Caña, through its Executive Director, shall make the determinations, establishments, and proportionalities indicated in subsections a), b), and c), no later than September thirtieth of even-numbered years.

If, upon applying the proportions indicated in subsections b) and c), fractions greater than one-half result, they shall be adjusted to the next whole number upward; and if fractions equal to or less than one-half result, they shall be discarded.

e)If, after carrying out the above, one member remains to be designated, this shall be awarded to the arithmetic result that has the largest fraction among those that were discarded.
f)The members from each zone shall be designated, in the corresponding proportions, by said associations, in the third week of the month of October of even-numbered years; and by those who are not affiliated with them, in the fourth week of said month.
g)The Liga shall convene the persons who are not affiliated with the indicated associations to hold a meeting for the purpose of making the designations that correspond to them. If at least ten percent of said persons do not gather, after thirty minutes have elapsed from the designated time, or if, having gathered, they do not make the corresponding appointments within the two hours following said time, these shall be made, in the first week of the month of November, by the sugarcane producers' association that counts among its affiliates the largest number of sugarcane deliverers in the respective zone.

The call shall be made in a single publication in a newspaper of national circulation and through other means of communication that the Executive Director of the Liga deems appropriate.

Likewise, they may order that, during the cited period, printed notices with the same text as the publication be placed in a visible location at the sugarcane receipt facilities of the mills.

The original of said minutes must be delivered to the federation or union of the sugarcane sector within five calendar days following the date of the call, and a copy shall be filed in the Internal Audit of the Liga.

The meeting shall be chaired by the representative of the Legal Advisory Office, who shall have the broadest powers to direct and channel the debates and to count the votes, which shall be written.

The respective document shall be sent to the federation or union of the sugarcane sector within five calendar days following the date of the session in which the corresponding agreement was adopted. In the event that the foregoing is not fulfilled, the designation shall be made by the National Sugarcane Electoral Assembly. The Notary shall attest that the agreement is final, that the minutes in which it is recorded are duly signed, that the appointments were made with the sufficient number of votes in each case, that the designated persons accepted the positions, and that in the session in which the referred agreement was adopted, the legal quorum was present in accordance with the respective bylaws.

Removal or Substitution of Members of the National Sugarcane Electoral Assembly

a)One who, for unjustified cause in the judgment of the cited Assembly, has failed to attend two ordinary or extraordinary sessions thereof.
b)One who is responsible for a willful crime. The impediment shall cease after ten years have elapsed from the completion of the respective sentence.
c)One who becomes mentally incapacitated.
d)One who was designated in an improper manner.
e)One who is replaced by those who designated them.

a)If appointed by an association, it shall gather the corresponding information, communicating in writing, to the address registered for them in that entity, to the interested party or their representatives, as appropriate, the reason for which removal is intended, and a period of fifteen calendar days shall be granted to formulate objections. Once this period concludes, it shall resolve whether or not the dismissal proceeds. In the first scenario, it shall make the designation of the replacement, and the formalization indicated in article 147 must be carried out.
b)If appointed by persons who are not affiliated with a sugarcane growers' association, the aforementioned procedure shall be carried out by the Liga de la Caña, through the official that the Executive Directorate designates. The notification must be made and the period indicated in the preceding paragraph granted. The notification shall be made at the address that the person in question registered when they were appointed. When removal is appropriate, the provisions of subsection g) of article 144 and numerals 145 and 146 shall apply.

a)If it concerns a member designated by a sugarcane producers' association, it shall make the substitution within fifteen calendar days following the date of the removal or the date on which it became aware of the death or resignation.
b)If it concerns a member designated by persons who are not affiliated with a sugarcane producers' association, the meeting to address the substitution must be held within thirty calendar days following the date on which the death or resignation occurred. In the case of removal, that period shall be counted from the date on which it was requested by at least ten percent of them from the Liga de la Caña.

The provisions of article 144, subsection g), 145, and 146 shall govern.

Consequently, the harvest to be used shall be the same one on which the referred operations were based when the original appointments were made.

Powers

a)In the first session it holds, in the period indicated in

b)To make the appointments of the proprietary and alternate members for each zone on the Governing Body of the federation or union that represents the sugarcane sector, in the first two weeks of the month prior to the date on which said Governing Body must begin its term, in accordance with the bylaws of said entity.
c)To designate the five proprietary and alternate members that correspond to each zone in the General Assembly of the cited federation or union. Said members shall be proposed by the delegates of each zone.
d)To carry out the appointments that are appropriate when any person in the positions indicated in subsections b) and c) above must be replaced, for any reason provided for in the bylaws of the federation or union of the sugarcane sector or in this Regulation. In those cases, the Governing Body of said entity shall proceed to convene the National Sugarcane Electoral Assembly within fifteen calendar days after the date on which it became aware of the event that motivates the substitution.

Appointments shall necessarily be made in writing.

a)In the case of members of the Governing Body of the federation or union of the sugarcane sector, the substitution shall be made by the National Sugarcane Electoral Assembly, from among the two candidates for the position that the delegates of the respective zone must present at the session of the cited Assembly convened for that purpose. In the case of members of the General Assembly of said federation or union, the substitution shall be made by the National Sugarcane Electoral Assembly at the opportunity indicated above. The candidate for the position shall be proposed by the delegates of each zone at the opportunity indicated above.

If the delegates of the zone do not present candidates, the National Sugarcane Electoral Assembly shall proceed to make the corresponding appointment. In the event that said Body does not carry out the substitution on the date for which it was convened, the General Assembly of said entity shall do so within fifteen calendar days following that day.

b)While the substitution is being carried out, the alternates shall substitute for the respective proprietary members.
c)The person appointed shall serve for the remainder of the legal term.

Sessions

If the matter intended to be addressed through the referred call is not included in the powers of the National Sugarcane Electoral Assembly, the President, or in their absence the Vice President, after consulting with the legal advisor of the federation or union, shall reject the request outright.

The Governing Body of said federation or union shall make the call, by means of publication in a daily newspaper and by written note that shall be sent only to the members who have registered their address therein. Both the publication and the sending mentioned must be done at least ten calendar days in advance of the date of the session.

If this quorum is not met, the session shall be validly held one hour later, provided that a number no less than twenty percent of the members composing it is present.

The vote shall be repeated if a tie occurs, and if the tie persists, the matter shall be considered rejected. Notwithstanding, regarding appointments, if the tie is maintained, the person favored by lottery shall be elected.

Against the agreements and resolutions of the National Sugarcane Electoral Assembly, no recourse whatsoever shall be admissible, except that of annulment before the competent jurisdictional court. While the recourse is not resolved, the appointments shall have full validity.

The minutes shall be signed by the President and the Secretary, or in their absence, by whomever the Assembly designates.

The minutes and the agreements shall be considered final, unless the Assembly provides otherwise. The Minutes Book shall be legalized by the Registry or the public office responsible for legalizing the minutes books of associations.

Of the General Assembly and Other Bodies of the Federation

a)The General Assembly must be formed by the members appointed according to subsection c) of

b)It shall correspond to said General Assembly to appoint or replace, by an absolute majority of the members present, the proprietary and alternate members of the sugarcane sector in the multi-person bodies of the Liga de la Caña. Notwithstanding, it may delegate to the Governing Body of said federation or union the appointment of the members of this sector in the General Assembly of the Liga.

The proprietary and alternate directors of the Board of Directors of the Liga, whom the federation or union of the sugarcane sector is responsible for appointing, must meet the conditions established in the fourth paragraph of article 25 of the Law.

Representation of the Sugar Sector in the Liga de la Caña

Representation in the Multi-Person Bodies

162-1. The three sugar production ranges established by the Law shall be based on the general average of sugar production achieved by the four mills with the highest production in the two harvests prior to the harvest for which they shall apply, and shall be the following:

a)Lower production range: shall comprise sugar production lower than 25% of the aforementioned general average.
b)Intermediate production range: shall comprise sugar production between 25% and 75% of the aforementioned general average.
c)Upper production range: shall comprise sugar production higher than 75% of the general average.

162-2. The average sugar production of each mill in the period indicated in subsection 162-1 shall be established for the purpose of classifying them in the referred production ranges.

162-3. For the determination of the individual production average indicated in the preceding subsection, sugar productions that have been affected by a fortuitous event or force majeure, in the judgment of the Board of Directors of the Liga de la Caña, shall not be taken into account. In the event that the last two harvests were affected, they shall be replaced by the production of the two harvests immediately prior to them, and if only one was affected, by the production of the one that preceded it.

162-4. The sugar production referred to in this Chapter includes every type or class of processed sugar. It also comprises the amount corresponding to the theoretical substitution of sugar for alcohol, when the raw material used is mixed juice, clarified juice, sucrose-rich syrups, or a mixture of any of them. Excluded from the foregoing are final molasses.

162-5. The calculations indicated in the preceding subsections shall be made based on the official statistical data of the Liga de la Caña.

162-6. Based on the preceding subsections, the indicated Board of Directors shall classify, within the first fifteen business days of each harvest, all the mills in the respective sugar production ranges, for the purposes of the Law.

162-7. In none of the cases of the three ranges of mills established in this article may a range be composed of fewer than four mills. If, upon applying the percentages indicated in paragraphs a), b), and c) of subsection 162-1 above, a mill must change range, and any range ends up composed of fewer than four mills, the affected range shall draw the mill with the immediately closest lower or higher production, as appropriate, to complete the minimum number of four mills that must compose it.

(Thus amended by article 1 of Decreto Ejecutivo N° 33066 of April 24, 2006)

They shall be appointed by the association constituted by mills, duly registered in the corresponding Registry, that gathers among its affiliates at least 75% of the mills in operation and that together produce more than 50% of the national sugar production.

In cases where the cited association does not meet the requirement mentioned, the following shall be observed:

a)If the number of members to be appointed is three, the provisions of article 31 shall be followed, insofar as applicable.
b)If the number of members to be appointed is less than or greater than three, they shall be designated by the mills included in the three sugar production ranges, in a joint meeting convened for this purpose, with at least eight calendar days' notice, by the President of the Board of Directors or the Marketing Council, as appropriate, according to the subject matter. In all other respects, the provisions of subsections b), c), and d) of said article 31 shall govern.
c)In cases where it is appropriate to replace any proprietary or alternate member, the corresponding appointment shall be made, applying the provisions of the preceding norms.

Registry of Independent Sugarcane Producers and the Mills

Registry of Independent Producers

In it, independent producers who meet the conditions to be such, according to the Law, shall be registered.

The documentation shall be foliated by the Registry, with consecutive numbering. Each folio shall bear the stamp of the Registry, and the first page of each document, in addition, the notation of the time and date of presentation, signed by the person who receives it.

Said forms shall contain the following data:

a)Natural persons: first name, both surnames, marital status, identity card or residency card number, place of residence, exact address of their domicile, and the name of the mills to which they have delivered sugarcane in any of the last three harvests prior to the submission of the application.
b)Legal persons: the corporate name or denomination, the legal entity identification number, the domicile of the company, indicating the current and definite address within Costa Rican territory where notifications may be validly delivered; citations of the registration in the corresponding Registry, the corporate term, and the name of the mills to which it has delivered sugarcane in any of the last three harvests prior to the submission of the application.
c)De facto companies: Must comply with the requirements of subsection a), referring to the partners of the respective de facto company. The name of the person authorized to register the sugarcane for future harvests. The bank account number and the name of the natural or legal person to whom payments for the sugar and molasses contained in the sugarcane delivered by the de facto company should be made. The Public Registry of Independent Producers shall inform the above to the respective mill. For all purposes, the payment made to the person indicated above shall be considered a payment made to the de facto company by the respective mill. The name of the natural person authorized to collect checks or payment vouchers. The name of the natural person authorized to sign sugar cane supply contracts, if the mill requests it. Must present the original and a copy, to be compared, of the partners' agreement, with the signatures of the partners duly authenticated, in which the following information must be recorded: . Trade name by which the de facto company shall be identified.

. Domicile of the company.

. Specification of the type of contribution, value, and proportion made by each of the partners.

. Purpose to which the company is dedicated.

. Term of validity of the agreement.

(Thus amended the preceding subsection c) by article 1 of Decreto Ejecutivo N° 39101 of March 3, 2015) d) Estates: the first name and both surnames of the deceased, the Court in which it is processed and the number of the corresponding file, the first name and both surnames, the identity card number, and the exact address of the executor, if appointed, and the denomination of the mills to which the estate or the deceased has delivered sugarcane in any of the last three harvests prior to the submission of the application.

e)Trusts: the first name, both surnames, and other qualifications, or the corporate name of the trustee, and must meet the requirements indicated above for natural persons and legal persons, as the case may be.
f)Indicate that the applicant is not in the circumstances indicated in article 55 of the Law.

In the case of lease agreements, the signatures must be duly authenticated by an attorney.

(Thus amended by article 1 of executive decree No. 37156 of March 22, 2012)

Registry of Sugar Mills

a)Name or denomination of the sugar mill.
b)Name and qualifications of the owner. In the case of legal entities, registration citations in the corresponding Registry, domicile, legal representation, legal entity identification number, and the exact address for receiving notifications.
c)In the case of a sugar mill that is leased or in possession by any other legitimate title, names or corporate names of the lessor and the lessee or of the person who granted possession. All the information mentioned in subsection b) shall be provided, as applicable to individuals or legal entities.
d)Exact address where the sugar mill is located.
e)Any other complementary information determined by the Board of Directors.

If the transfer of a sugar mill or its exploitation is challenged due to the breach of obligations contracted by the owner or possessor thereof with the League or with sugarcane producers in execution of the legal system, the provisions of article 10 of the Law shall apply.

As long as the transfer has not been registered, the Board shall suspend the qualification of the sugar produced by the respective sugar mill.

Common Provisions

If the application does not meet the corresponding legal requirements, the interested party shall be notified at the address registered in the application. Until this latter action occurs, the application shall be suspended.

However, it shall be the responsibility of the Head of that Registry to determine the manner in which the documentation may be consulted without risk of alteration, loss, or deterioration.

The period for filing such appeals shall be thirty calendar days, immediately following the notification of the respective decision. The Registry shall limit itself to forwarding the file, without admitting or rejecting the appeal, to the Board of Directors of the League. The latter shall resolve the matter in any of the three ordinary sessions immediately following receipt of the respective file.

The Board may delegate this procedure to the Executive Director or to the official it designates.

The summons must succinctly list all the documentation contained in the administrative file or indicate the office where it may be consulted.

The interested parties must present their arguments and evidence at the hearing, in accordance with article 309 of the General Law of Public Administration.

The appearance may or may not be recorded. Minutes shall be drawn up thereof, which must be signed by those present. In the event that anyone refuses, this shall be recorded.

The unjustified absence of the interested party shall not be deemed, under the terms of article 350 subsection 1) of the General Law of Public Administration, as acceptance of the facts, nor shall it impede the course of the proceedings.

The appearance may be postponed due to defects in its convocation and due to act of God or force majeure.

However, this may be suspended by the Board of Directors of the League ex officio or at the request of a party, by reasoned resolution, if its execution could cause serious or difficult-to-repair damages to the interested party.

No appeal shall be admissible against the resolution that suspends the effects of the appealed act nor against related ones that are merely procedural.

The resolutions of the Board of Directors shall be notified in accordance with articles 45, 46, and 47 of this Regulation.

The Independent Sugarcane Producer

Producers Who Are Not Independent

a)Those who have a participation exceeding 10% in the capital stock of the companies that own or lease the sugar mill where they deliver their cane, and which are constituted as de jure or de facto partnerships.
b)Those who have an equal participation in the equity of the trust (fideicomiso) that owns or leases the sugar mill where they deliver their cane.
c)The companies or trusts that have such participation in the capital stock of companies that are sugarcane producers.
d)The companies or trusts that own or lease sugar mills.
e)The corporation (sociedad anónima) whose shares are not nominative or that lack the Shareholders' Registry, in accordance with the law.

De jure partnerships that own or lease a sugar mill must inform the League of the names or denominations of their shareholders or quota holders, as applicable, who have a participation exceeding 10% in the capital of the partnership. The report shall be provided with sight of the corresponding updated Shareholders' Registry or Quota Holders' Registry.

De facto partnerships that own or lease a sugar mill must inform the League of the names or denominations of the owners of the sugar mill who have a participation exceeding 10% in its capital. The report shall be provided in accordance with the notes to the company's financial statements at the close of the last fiscal period.

Trusts (fideicomisos) that own or lease a sugar mill must inform the League of the names or denominations of the persons referred to in subsection a) of

In the case of literal c) of numeral 2 of article 184, the sugarcane-producing companies must inform the League of the names or denominations of the trusts or companies that have a participation exceeding 10% in their capital. Said report shall be made, in the case of de jure partnerships, with sight of the corresponding updated Shareholders' Registry or Quota Holders' Registry; and in the case of de facto partnerships, in accordance with the company's financial statements at the close of the last fiscal period. Said reports shall be considered sworn statements for all purposes.

The information indicated in numerals 185.1., 185.2., and 185.3., must be submitted to the League no later than July 31 of each year. Said reports shall have the legal value and significance indicated in article 138 of the Law.

Quantification of Sugarcane Production Ranges

To establish the quantities of cane indicated in article 54 of the Law, the following procedure shall be followed:

a)The total amount of kilograms of 96º Pol sugar, corresponding to the producer's reference quota (cuota de referencia), shall be divided by the average 96º Pol sugar yield obtained by said producer, per metric ton of cane, in the harvests on which the determination of the indicated reference quota was based. The result shall be the amount of metric tons of cane corresponding to that producer.
b)In the case of new independent producers, the amount of kilograms of 96º Pol sugar they are entitled to, as their reference quota, in accordance with

of the Law, shall be divided by the average yield in kilograms of 96º Pol sugar per metric ton of cane, which corresponded to small and medium-sized producers, in the immediately preceding harvest, at the sugar mill in question. The result shall be the amount of metric tons of cane corresponding to that producer.

c)Once the foregoing is completed, the delivery range of the producer in question shall be established.

Transfer of the Reference Quota

The following cases are excepted from the foregoing:

a)When the reference quota constitutes community property (bien ganancial) and must be distributed under the scenarios established in the Family Code. If, in accordance with the foregoing, it proceeds, and unless otherwise agreed, the reference quota shall be divided between the ex-spouses, in the corresponding proportions, provided the same has been done with the property from which the cane originates. The resulting reference quotas shall be exercised in accordance with the provisions of the Law and this Regulation.
b)In the event of the death of the holder of the reference quota, the provisions of article 69 of the Law shall apply, once the provisions of the preceding subsection have been applied, if applicable.

person who remains as its holder.

The Technical Department shall make the corresponding rectifications, both in the respective reference quotas and in the relevant participations in the production quota of the sugar mill in question.

Consequently, cane that does not have that origin may not be applied to the percentage of sugar that must be acquired from independent producers, within the sugar production quota assigned to it.

Neither may sugar mills include as their own cane that which does not come from plantations that, by any legitimate title, belong to them or that they exploit, except as prescribed in numeral 388. However, the provisions of article 215 must be taken into consideration.

(Thus amended by article 1 of executive decree No. 33066 of April 24, 2006)

The Reference Quota of the Independent Sugarcane Producer

For the purposes of the provisions of the second paragraph of

of the Law, if an independent producer has only delivered cane in the harvest immediately preceding the one in question, the said quota shall be established based on the amount of 96º polarization sugar that they obtained for the cane delivered to the corresponding sugar mill.

If in any of the first three harvests established in the cited norm, the producer does not deliver any amount of the sugar to which they are entitled, said harvest shall not be taken into account for the purposes of that norm.

Said Committee shall communicate the foregoing, within the eight business days following receipt of the request, to the Technical Department, which, within the two business days following its receipt, shall convene a Committee composed of said Department, DIECA, and the Legal Advisory Office, which shall proceed, within the fifteen business days following the date of convocation, to carry out all necessary investigations to ascertain the real truth of the facts and shall grant a hearing to the interested party, setting place, day, and time.

Within the eight calendar days following the hearing, or the date set for that proceeding if it is not held due to the non-attendance of the interested party, the referred Committee, through the Executive Director, shall submit to the Board of Directors of the League the respective file with its recommendations, so that it may resolve. Said resolution must be issued in any of the three ordinary sessions immediately following receipt of the referred file.

The resolution shall be notified to the interested party, as established in articles 44, 45, 46, and 47 of this Regulation.

Delivery and Receipt of Cane

Registration of Cane

They shall indicate their given name and both surnames and their identity card number, in the case of individuals, and the corporate name and the number of the respective identification card in the case of legal entities. In both cases, the exact address where they will attend notifications shall be provided.

The League may remind producers, through the means it deems convenient, of the periods indicated in the following article for the referred registration.

For the registration of cane delivery by an independent producer who is not new to proceed with the Harvest Committee, they must be previously registered in the corresponding Registry that the Sugarcane League must maintain. Said Registry must send, with sufficient notice, the list of registered producers to the mentioned Committee.

a)In sugar mills that ordinarily begin their milling in the month of December, between September 1 and October 15 of the preceding year.
b)In sugar mills that ordinarily begin their milling in the month of January, between October 1 and November 15 of the preceding year.

The Board of Directors, for highly qualified reasons, may extend these periods, provided the extension does not exceed fifteen calendar days. In such cases, it must communicate this to the producers through the means it deems convenient.

Harvest Committee

In the event that there is more than one association, the right to make the said appointment shall correspond to the one that brings together, among its members, the largest number of producers who delivered cane to the sugar mill in question.

It shall be the responsibility of the Sugarcane League, in the month of July each year, to indicate which association meets the stated requirement.

The term of appointment for the members of the Harvest Committee shall be between September 1 and August 31 of the following year, and they may be reelected.

In the same manner and for the same period, an equal number of alternates shall be designated, who shall act during the absences or temporary leave of the principals they substitute. They may always attend the Committee sessions with voice but no vote.

The Technical Department shall request, in the first week of August, from the sugar mills and the sugarcane producers' associations, the appointment of the principal and alternate members of the Harvest Committee.

Committee members may be freely replaced by whoever designated them.

However, the election indicated in subsection a) of article 202 must be carried out.

a)Carrying out the registration referred to in

b)Defining, monitoring, and, when appropriate, modifying the cane delivery schedule for the corresponding harvest. All producers referred to in article 196 must adhere to said schedule.
c)Receiving, attending to, and resolving all inquiries, complaints, and grievances made by independent sugarcane producers regarding their deliveries or the receipt of their cane by the sugar mill in question, as well as on any other matter within its purview.
d)Attempting to reconcile the different interests and seeking to resolve the problems that arise concerning the cane delivery scheduling.
e)Other functions assigned by the Law and this Regulation.

(Thus amended by article 1 of executive decree No. 37387 of October 17, 2012)

In said session, the Committee shall proceed as follows:

a)Elect from among its principal members a President and a Vice President. The Secretary of the Committee shall be the member designated by the Sugarcane League to join said Committee.
b)Select the place where it will ordinarily meet and where it will attend to sugarcane producers, the sugar mill, or any other interested party.
c)Set the day and time of the ordinary sessions, which it shall communicate to the Executive Director of the League, so they may order its publication in the Official Gazette. The Committee shall also inform through a notice posted at the premises of the sugarcane producers' associations and at the cane receiving facilities of the respective sugar mill.

Extraordinarily, it shall meet when convened by any of its members.

The convocation shall be made by the President or the Vice President, in writing to the address registered by the Committee members therein, at least twenty-four hours in advance of the time the session is to be held.

When all the principal members are present, the requirement for prior convocation may be waived, if so agreed by unanimity.

If it cannot be held, due to the absence of any of the indicated representatives, and this situation persists at the time the new session must be held, the Committee shall validly meet with the presence of one of said representatives and the member designated by the League.

Its agreements shall be adopted by a majority of its members and shall be recorded in a book of minutes, legalized by the Legal Advisory Office of the League. In the event of a tie, the vote shall be repeated at the next session, and if it persists, the League's representative shall decide with a casting vote.

The minutes must be approved at the next ordinary session and, at that time, signed by the President and the Secretary, or by those who substitute them.

The minutes shall be drawn up by the Secretary and must conform to the provisions of article 11 of this Regulation.

When a member is absent from a session, it shall be recorded in the respective minutes, and the amount of the per diem shall be proportional to the time they remained in the session.

The member who arrives more than fifteen minutes late, after the time set for the session, shall be substituted by the respective alternate, for all purposes.

The General Assembly of the League shall approve the amount of the indicated per diem.

a)150 sheets numbered consecutively.
b)The sheets shall bear the printed name of the harvest committee (comisión de zafra) of the sugar mill in question.
c)The sheets shall be of bond paper, legal size, and must be typed, 1.5 or double spaced. If the sheets are used on both sides, the numbering shall be done on the front and back, consecutively.

The opinions issued by the cited dependencies, in their respective subject matter, shall be binding for the cited Committee.

A copy of said opinions shall be sent to the Board of Directors of the Sugarcane League.

Said appeal shall be filed with the Committee.

The period for filing the indicated appeal shall be five business days immediately following the communication of the challenged decision.

The Secretary, at the following session, shall inform the Harvest Committee of the foregoing.

The Board of Directors shall resolve the matter in any of the two ordinary sessions immediately following the conclusion of the procedures indicated in articles 210 and 211.

Notification shall be made at the place indicated by said interested parties. The Board of Directors may delegate this procedure to the Executive Director or to another official of the Corporation. When granting the hearing, place, day, and time for the appearance shall be set.

The interested parties must present their defenses and evidence at the hearing, in accordance with article 309 of the General Law of Public Administration.

Brief minutes shall be drawn up of the appearance, which must be signed by all those present. If anyone refuses to sign, this shall be recorded therein.

The unjustified absence of the interested party shall not be deemed as acceptance of the facts, nor shall it impede the course of the proceedings. In that case, minutes must also be drawn up.

The appearance may be postponed due to defects in its convocation, act of God, or force majeure.

No appeal shall be admissible against the resolution that suspends the effects of the appealed act nor against related ones that are merely procedural.

The resolutions of the Board of Directors shall be notified as established in

Delivery of the Sugar Corresponding to Each Producer's Cane

The determinations shall be made no later than November 16 and shall be effective for the harvest that began on October 1.

Said Department shall distribute the amount of sugar that the sugar mills must acquire from each independent producer, within the sugar production quota assigned to them.

For the foregoing purposes, the provisions of articles 74 and following of the Law shall be observed.

The estimate referred to in the second paragraph of article 75 of the Law shall be made, provisionally, in accordance with the provisions of numeral 72 and related articles of said legal system and shall be reviewed within the following eight calendar days after the conclusion of the period for registering cane, as applicable. The final amount shall be set according to the provisions of the second paragraph of the cited

Also, the cited Department shall establish the amount of sugar corresponding to each independent producer in the surpluses produced by the sugar mill, all subject to article 81 of the Law.

The foregoing shall be communicated to the Harvest Committee.

For this purpose, the average 96º polarization sugar yield obtained by the producer in the last three harvests shall be used. If they only delivered cane in one or two harvests of the cited period, the average shall be that obtained in the corresponding period.

The metric tonnage of cane shall be adjusted during the milling or upon its conclusion, as applicable, according to the sugar yields determined for each producer in the respective harvest.

In the case of new independent producers, the cited conversion shall be made using the average yield of 96º Pol sugar obtained, within quota, by small and medium-sized producers in the last harvest (zafra), at the respective mill (ingenio).

The adjustments or calculations referred to in this article shall be carried out by the Technical Department (Departamento Técnico) and communicated in writing to the respective Harvest Commission (Comisión de Zafra).

a)At mills that ordinarily begin milling in the month of December, before November 15.
b)At mills that ordinarily begin milling in the month of January, before December 15.

Said Commission, when carrying out the cane delivery scheduling (programación de entregas de caña), shall take into account the estimated milling capacity of the mill, per hour and per day, expressed in writing by its representative on the Commission; as well as changes in the cane maturation periods that occurred as a consequence of force majeure (fuerza mayor) or fortuitous event (caso fortuito) situations, which have affected the crops of a significant group of producers.

When the Commission considers that the referred to force majeure or fortuitous event situations have occurred, it shall notify the Technical Department (Departamento Técnico), which, within the two working days following receipt, shall convene a committee composed of the Technical Department (Departamento Técnico), DIECA, and the Legal Advisory Office (Asesoría Legal) of the Liga, so that they may determine, within the eight working days following receipt of the convocation, whether or not the cited situations existed. The recommendation of the aforementioned Committee shall be communicated to the Harvest Commission (Comisión de Zafra) through the Technical Department (Departamento Técnico).

The foregoing shall be the obligation of the Secretary of the respective Harvest Commission (Comisión de Zafra).

The producer who fails to comply with the scheduled cane delivery shall lose their right to the portion they were obligated to deliver. The foregoing must be notified to said producer in the manner indicated in articles 45 and following of this Regulation (Reglamento).

The corresponding readjustments shall be made by the Technical Department (Departamento Técnico) of the Liga at the end of the milling of the respective mill, and must be approved by the Harvest Commission (Comisión de Zafra).

Said readjustments shall be communicated to all producers by written notices that the Harvest Commission (Comisión de Zafra) shall place in a visible place in the cane receiving facilities of the mill.

If the Commission considers that the deficit was due to a fortuitous event (caso fortuito) or force majeure (fuerza mayor), the provisions in the third paragraph of article 218 shall apply. In the event that it is determined that the indicated causes did occur, the Harvest Commission (Comisión de Zafra) shall modify the respective delivery schedule and no penalty shall be applied.

a)The producer shall immediately notify the mill and the inspector of the Liga.
b)Said inspector shall provisionally qualify the emergency, which shall remain subject to the approval or rejection of the Harvest Commission (Comisión de Zafra). The inspector shall indicate in writing to the cited Commission and the mill the facts that, in their judgment, justify the emergency and the quantity of cane affected.
c)The mill shall receive the cane without adhering to the delivery schedule, giving it preference in receiving, at a minimum, ten percent of the average of its daily milling achieved up to that date.
d)If more than one of these cases occurs simultaneously, the indicated percentage shall be distributed among the affected producers according to their reference quotas.
e)If the presentation of the mentioned cases is not simultaneous, the allocation of the indicated percentage shall be made according to the order in which the mentioned emergencies were presented.

Such agreements must be submitted for the approval of the Harvest Commission (Comisión de Zafra) and must conform to the following:

a)The full name, surnames, identity card number, and address of the parties shall be recorded, if they are natural persons, and in the case of legal persons, the corporate name or denomination, the legal person identification number, the exact address, and the full name, surnames, and other qualifications of the representative.
b)The periods of the scheduled cane delivery being exchanged and the quantities of cane included in those periods must be indicated.
c)They must be signed by the contracting parties and by two witnesses, whose names, surnames, and identity card numbers shall be recorded. The witnesses may be substituted by the authentication of the parties' signatures by an Attorney (Abogado).
d)Signed copies of the agreement shall be delivered to the mill and to the Harvest Commission (Comisión de Zafra).

The foregoing must be recorded in writing and conform to subsections a), b), and c) of the previous article. A copy of the respective document shall be sent to the corresponding Harvest Commissions (Comisión de Zafra) for the appropriate purposes.

Cane Supply Contracts

a)Full name, surnames, identity card number, and address of the parties, if they are natural persons, and, in the case of legal persons, the corporate name or denomination, the legal person identification number, the exact address, and the full name, surnames, and other qualifications of the person representing it, with sufficient powers for this act.
b)They must indicate the quantities of cane that the producer commits to deliver in the corresponding milling and the periods in which they will do so, in accordance with the scheduling carried out by the Harvest Commission (Comisión de Zafra), for the following purposes:

i. Within the mill's production quota.

ii. Within the surpluses that the mill produces and that it is obligated to purchase from independent producers, in accordance with the provisions of numeral 81 of the Law.

iii. For the surpluses that the mill is not obligated to purchase from independent producers in accordance with article 82 of the Law.

All the foregoing shall be done in accordance with the harvest (zafra) scheduling and subject to the provisions of Chapters One and Three of this Title, to the extent rationally applicable.

It is understood that there shall be a tolerance margin of 15%, in favor of the producer, in the quantities of cane they have committed to deliver, whether or not stated in the corresponding contracts.

c)A clear and express statement that the agreement shall respect the provisions of the law and its regulations.
d)They must be signed by the contracting parties and by two witnesses, whose names, surnames, and identity card numbers shall be recorded. The witnesses may be substituted by the authentication of the parties' signatures by an Attorney (Abogado).

In the event that they contravene what is stipulated in said regulations, it shall be understood, for all purposes, that what is stipulated therein prevails.

Receipt of Cane, its Conditions, and the Voucher that Supports It

Receipt of Cane and its Conditions

The delivery may comprise one or more lots, provided they come from the same producer and their reception at the mill is carried out consecutively.

When the vehicle transporting the cane does not allow it to be unloaded at the mill's receiving site without affecting its milling pace and without risks to the mill's unloading system, its unloading shall be the responsibility of the person transporting it, at the site designated for that purpose, or by the mill's personnel, in which case the corresponding cost shall be borne by the owner of the cane.

The previous scenarios must be verified by the inspector of the Liga. The Board of Directors (Junta Directiva) of the Liga shall authorize the amount that the mill may charge for said unloading.

At least ninety calendar days before the start of milling, mills must notify producers of any change that significantly modifies the cane unloading system at their receiving sites. The communication shall be made by means of printed notices, which shall be placed in a visible place in the cane receiving facilities of the mill.

Said Department shall take complementary measures to ensure that this identification is maintained until the quality of that cane is evaluated.

a)Said inspector shall order the corresponding delivery to be rejected.
b)The cited inspector shall prepare a brief record of what occurred and the criteria that formed the basis for the rejection of the cane. A copy of said document shall be given to the interested producer, to the mill, and to the Technical Department (Departamento Técnico) of the Liga.

a)The inspector shall proceed to weigh the sample taken by the mechanical probe (cala mecánica), or the alternative method as indicated in articles 248 and following.
b)Once the above is done, all material considered to be foreign matter shall be separated.
c)Said foreign matter shall be weighed, and its corresponding proportion in the total sample analyzed shall be determined.
d)From said percentage proportion, the tolerated margin for foreign matter established by the Board of Directors (Junta Directiva) of LAICA, upon prior recommendation of the Technical Department (Departamento Técnico) and the Advisory Commission (Comisión Asesora), shall be subtracted. The resulting percentage shall be deducted from the weight of the respective cane delivery.
e)The separated foreign matter shall be reincorporated into the sample indicated in subsection a), for the purposes of the analysis of the Direct Cane Purchase System for Quality (Sistema Directo de Compra de Caña por su Calidad).

In the event that the procedure established in subsections a) and b) above is not accepted by the producer or the mill, the following procedure shall be applied:

In the case of mechanically loaded cane, a representative sample of the delivery shall be taken and weighed. Once the above is done, all material considered to be foreign matter shall be separated. Said matter shall be weighed, and its corresponding proportion in the total sample analyzed shall be determined. Then, the provisions of subsections d) and e) above shall be applied.

For cane loaded by hand, it must be unloaded in its entirety, and from there a representative sample shall be taken, and subsequently, the provisions of subsections c), d), and e) of this article shall be applied.

Whoever requests the application of the described alternative procedure must provide the necessary labor for taking the corresponding sample.

Vouchers and Receipts Supporting Cane Delivery

For each delivery of own or purchased cane that the mill receives at the weighbridge (romana), it shall issue a provisional voucher.

Said voucher must specify the following:

a)The corporate name of the mill.
b)The name and both surnames of the producer. In the case of legal persons, its corporate name.
c)The receipt number.
d)The date and time of receipt of the cane.
e)The Canton from which the cane originates, as stated by the person making the delivery.
f)The gross weight, tare, and net weight of the cane.
g)The number or code that identifies the cane delivery.

The mill must issue a voucher that supports the cane lots delivered by the producer within a single day, based on the provisional vouchers issued for those deliveries. This voucher shall be issued within the two working days following the cane delivery.

For lots corresponding to quota and extra-quota, separate daily summary vouchers shall be issued.

The originals of said vouchers shall be given to the producer or to the person authorized by them, in writing, to collect them, and the copies shall be kept by the mill.

The mills shall weekly send copies of said receipts to the Technical Department (Departamento Técnico) of the Liga, recorded on suitable media for computer use.

a)What is indicated in subsections a), b), and g) of

b)The net weight of the cane and any reduction made to it for foreign matter (materia extraña).
c)The numbers of the provisional receipts.
d)The average of the following analyses: Brix, Pol, Juice Purity (Pureza del Jugo), and, if applicable, the percentage of total foreign matter and mud (lodos).
e)The weight of the residual cake (torta residual) corrected for mud.
f)Provisional estimated yield in 96º Pol sugar, calculated according to the Sugar Advance Factor (%AA) (Factor de Adelanto de Azúcar (%AA)).
g)Provisional estimated yield of the final molasses (miel final), calculated according to the Final Molasses Advance Factor (%AM) (Factor de Adelanto de Miel Final (%AM)).
h)Total estimated kilograms in 96º Pol sugar, according to the provisional estimated yield.
i)Total estimated kilograms of the final molasses, according to the provisional estimated yield.

a)The data from subsections a) and b) of

b)The data from subsections b), f), g), h), and i) of

In the cases of subsections f) and g), they shall be the weighted average of the referred yields of each of the deliveries made by the producer.

a)Determine the remnants of 96º Pol sugar and final molasses (miel final) over the corresponding provisional yields.
b)Determine the quantities of 96º Pol sugar and final molasses resulting from the redistributions made to the individual production quotas of the producers or for any other cause established in the Law or in this Regulation (Reglamento).
c)Make the adjustments to the quantity of 96º Pol sugar and final molasses that corresponds to each producer, within quota and extra-quota.
d)Communicate the result of the foregoing to the respective mill.

Within the eight calendar days following receipt of the adjustments and determinations referred to in article 239, the mill must issue to each producer a receipt that shall summarize and include the total 96º polarization sugar that corresponds to them for the cane delivered, both within quota and extra-quota. It shall also summarize and include the total final molasses that corresponds to them for the cited concept.

Said receipts, which shall replace all previous ones, must specify:

a)What is indicated in subsections a), b), and g) of

b)The net weight of the total cane delivered, with the correction for foreign matter, if applicable.
c)The average of the yields cited in subsections f) and g) of

d)The adjustments referred to in subsection c) of

e)The total sugar and total final molasses corresponding to the producer after the adjustments indicated in the previous subsection have been made.
f)Provisional price of the sugar and final molasses as of the date this receipt is issued.

The originals of said vouchers shall be given to the producer or to the person authorized by them, in writing, to collect them. Their copies shall be kept by the mill.

The mills, once the period indicated in the first paragraph of this article has elapsed, shall send copies of said receipts to the Technical Department (Departamento Técnico) of the Liga, preferably recorded on suitable media for computer use.

Within the 8 calendar days following receipt of the above adjustments, the mill must issue to each producer a receipt in which the adjustment of 96º Pol sugar within quota that corresponds to them shall be recorded, in excess of the amount indicated in the receipt referred to in

In the event that any of these documents must be amended, they must be voided and a new one must be issued, in which it shall be indicated which document it replaces, stating the corresponding number and date, upon prior authorization from the inspector of the Liga.

For this purpose, the Liga must certify, ex officio or at the request of a party, the quantity of the product and the corresponding net amount.

Direct Cane Purchase System for Quality

General Provisions

Such determinations shall be reported to the Board of Directors (Junta Directiva) and must be published in the Official Gazette (Diario Oficial).

The quality evaluation of the samples shall be carried out by the mill, strictly following the order in which they were taken, and as quickly as possible. All the foregoing is excepted if the inspector of the Liga, for justified reasons, orders the established order to be altered for the taking of the samples or for their evaluation. In these latter cases, the inspector must justify in writing to the Technical Department (Departamento Técnico) what occurred.

The cited cause and cases shall be jointly determined by the Technical Department (Departamento Técnico) and the Legal Advisory Office (Asesoría Legal) of the Liga.

If the scenarios referred to in the preceding paragraph are attributable to the mill, the cane deliveries received shall be qualified with the highest yield of sugar and final molasses (miel final) obtained by the respective producer up to the day of the corresponding delivery.

If the required history does not exist in the latter scenario, the average of the sugar and final molasses yields of the other producers, with cane from the same geographical origin, up to the date of said delivery, shall be applied.

Taking the Cane Sample

In the event that the mechanical probe or the technically superior system is damaged, the sample taken from the mill's conveyor, after having passed through the knives and shredders and before falling into the first mill, shall be used while it is repaired or replaced.

The Technical Department (Departamento Técnico), in coordination with the mill, shall establish the reasonable period required for the repair or replacement in each case. Said period may be extended by the Technical Department (Departamento Técnico) when justified causes exist.

The probe must be inserted as deeply as possible into the load and emptied completely after each drilling.

The taking of samples using the inclined mechanical probe shall be done in the manner determined by the mentioned Department.

Evaluating Cane Quality

An adequate quantity of it shall be prepared in the disintegrator devices. These must achieve a minimum preparation index (índice de preparación) of eighty-five percent to guarantee adequate work in the hydraulic press.

The methodology for determining the preparation index shall be established by the Technical Department (Departamento Técnico), as well as the equipment necessary for this purpose.

In the scenario referred to in the second paragraph of article 248, the samples previously indicated are substituted by the sample taken from the mill's conveyor, after having passed through the knives and shredders and before falling into the first mill. A representative quantity of said sample shall be prepared in the manner indicated in the first paragraph.

It must be preserved in this manner until the moment of analysis, at which time the container shall be opened and five random portions shall be taken from its contents until 500 grams are obtained. The remaining material must be discarded once the Brix and Pol analysis has been performed.

The indicated quantity of 500 grams shall be subjected in a hydraulic press to a pressure of 250 kg/cm² for 1 minute. That press shall meet the specifications given by the Technical Department (Departamento Técnico) of the Liga.

As a result of the preceding operation, the residual cake (torta residual) and the extracted juice shall be obtained.

In the case of % Brix, it must be determined by refractometer. For this analysis, other equipment may be used with prior authorization from the Technical Department (Departamento Técnico).

For the above purposes, the following shall be observed:

a)The juice extracted from the cane sample referred to in article 252 shall be agitated until it is ensured that all material in suspension is homogeneously mixed. Then the Brix shall be determined.
b)A 15 ml sample of the indicated juice shall be deposited in a graduated centrifuge tube. Said tube shall be placed in a laboratory centrifuge, ensuring load balance symmetrically with another tube. The centrifuge shall be operated for 6 minutes at a speed of 3600 rpm.
c)When the centrifuge stops, the tube shall be removed without agitating its contents, and the volume of sediment in ml shall be read, noting the result.
d)The weight of the sediment in grams shall be calculated by multiplying its volume in ml by the factor of 1.19.
e)The density of the juice shall be determined based on the following equation:

Density = 0.9947 + 0.004323 * Brix f) The weight of the cake shall be calculated using the following formula:

Corrected cake weight [= mud weight * (500 gr. – cake weight) + cake weight ] d * 15 Where:

The factor 1.19 is the experimental ratio between the wet volume of the mud sediment in ml and the dry weight of that sediment in grams.

d is the density of the juice calculated by the equation indicated in subsection e).

0.9947 and 0.004323 are the result of the line of best fit equation for specific gravity data as a function of juice Brix.

500 grams is the weight of the composite sample according to

g)For the application of the referred Direct Cane Purchase System for Quality (Sistema Directo de Compra de Caña por su Calidad), the corrected cake weight shall be used.

Kg.J.E./T.M.C. = (500 - Weight Residual Cake) x 2 Where: 500 is the weight of the cane sample to be analyzed

Kg. B.J.E/T.M.C. = Kg. Extracted Juice/T.M.C. x Brix % Extracted Juice 100

Kg. P.J.E./T.M.C. = Kg. Extracted Juice/T.M.C. x Pol % Extracted Juice 100

Purity (P) = Pol % Extracted Juice x 100 Brix % Extracted Juice Once the referred purity is determined, the Winter & Carp Theoretical Recovery (R.T.) formula shall be applied, as follows:

RT = 1.4 – ( 40 / P ) Once the Theoretical Sugar Recovery at the factory (R.T.) is obtained, the result must be multiplied by the Adjustment Factor (F.A.) established by the Board of Directors of LAICA to obtain the Adjusted Winter & Carp Theoretical Recovery (W.C.A.). The foregoing is expressed by the following formula:

W.C.A. = Winter & Carp x Adjustment Factor (F.A.)

The Winter & Carp adjustment factor shall be approved by the Board of Directors of LAICA, upon the proposal of the Advisory Commission, with the prior recommendation of the Technical Department.

a)Recoverable Sugar (A.R.) in kilograms 100° Pol per metric ton of cane:

A.R./T.M.C. = Kilograms of Extracted Pol/T.M.C. x Adjusted Winter & Carp b) Recoverable Sugar (A.R.) in kilograms of 96° Pol per metric ton of cane:

A.R. 96° Pol/T.M.C. = Recoverable Sugar 100° Pol /T.M.C. x Polarization Conversion Factor (100) 96

a)Kilograms of Brix of the Final Molasses (B.M.F.) per metric ton of cane:

B.M.F./T.M.C. = Kg. Brix Extracted Juice/T.M.C. – Kg. Recoverable Sugar of 96° Pol/T.M.C.

b)Kilograms of estimated final molasses (M.F.)/T.M.C.:

MF/T.M.C. = Kilograms Brix in Final Molasses/T.M.C. x 100 Brix % of the Final Molasses The aforementioned Brix % in Final Molasses shall be approved by the Board of Directors of LAICA, upon the proposal of the Advisory Commission, with the prior recommendation of the Technical Department.

From the amount of 96° Pol sugar obtained, as established in Article 254, the initial percentage established for that purpose shall be advanced to the producer, for each harvest (zafra), which may be adjusted during the course of the milling and at its conclusion, according to the actual recovery in finished product achieved by the mill (ingenio). The aforementioned initial %AA shall be set by the Board of Directors, with the prior recommendation of the Advisory Commission, and its adjustments, during the course of the milling, shall be determined by the Technical Department, in observance of what is prescribed in the following article.

Upon concluding the milling, any remainder that exists, after the previous adjustments have been made, shall be recognized for all delivered cane in its equivalent of 96° Pol sugar.

The mentioned adjustments shall be communicated in writing by the Technical Department to the Executive Directorate, so that it may proceed in accordance with subsection c) of Article 312 of this Regulation. For this purpose, the cited Directorate shall notify each mill (ingenio) of the adjustment it must make, to the telefax number or email address that they have registered with it. Additionally, the Executive Directorate must send copies of each of the notifications made to the Cane Growers' Chamber of the respective Zone.

The mentioned adjustments shall be made known to the growers by means of a notice that the mill (ingenio) must place in a visible location at its facilities related to the receipt of cane, and through the Cane Growers' Chambers of the respective Zone. For this purpose, the Technical Department shall send the pertinent communications.

Notwithstanding the foregoing, at the end of the milling, the Liga de la Caña shall make known to the cane growers, by means of a notice that it shall publish in two of the newspapers with the largest national circulation, all the adjustments made to the advance percentage of 96 degree Pol sugar (%AA) of each mill (ingenio), indicating the amount of the variation for which they were authorized.

(Thus amended by Article 2 of Decreto Ejecutivo N° 29972 of November 2, 2001)

From the amount of final molasses obtained as provided in Article 254, the initial percentage established for that purpose shall be advanced to the producer, for each harvest (zafra), which may be adjusted during the course of the milling and at its conclusion, according to the actual production obtained by the mill (ingenio) in the harvest (zafra) in question. The aforementioned initial % AM shall be set by the Board of Directors, with the prior recommendation of the Advisory Commission, and its adjustments, during the course of the milling, shall be determined by the Technical Department, in observance of what is prescribed in the following article.

(Thus amended by Article 1 of Decreto Ejecutivo N° 30270 of March 19, 2002)

Final Molasses

Functions of the Technical Department of the Liga de la Caña and its Inspectors in Relation to the Direct System for Purchase of Cane by Quality

The Director of the Department shall exercise their powers with absolute functional and criterion independence.

They shall have the following functions:

a)Supervise that cane deliveries comply with the provisions of the Law and this Regulation.
b)Supervise the taking of cane samples.
c)Verify the data obtained from the measuring instruments, the calculations, and final results.
d)Any others assigned by law and its regulations.

Said inspectors shall be accredited by the Liga with the corresponding identification.

The inspectors of the Technical Department shall have full authority to control and verify the results obtained from these deliveries.

Inspection of Weighbridges (romanas)

Said inspectors shall report to the Technical Department.

a)Reviewing, before the start of the milling and at least once a month during it, the weighbridges (romanas) and facilities intended for weighing and receiving cane, to ensure compliance with the conditions required by the Law and this Regulation.
b)If defects are found in the weighbridges (romanas) or said facilities, immediately communicating this to the mill (ingenio), by means of a written note with a copy to the Technical Department.
c)Being responsible, to the extent possible, for the repair of electronic defects in the equipment responsible for indicating the weight on the weighbridges (romanas).

In the event that the defect can be repaired by said inspector, they shall communicate this in writing to the mill (ingenio) with a copy to the Technical Department.

d)Keeping a logbook where they will record their inspection visits to the mills (ingenios), noting the date, time, name of the mill (ingenio), and the result of the inspection.
e)Placing a printed notice in a visible location at the facilities where the weighbridges (romanas) are located, on which each inspection visit carried out must be recorded.
f)During the period when there is no milling at the mills (ingenios), the weighbridge (romana) inspectors of the Liga shall visit said facilities for the purpose of maintaining the weighbridges (romanas).

In these cases, another weighbridge (romana) available to the mill (ingenio) may be used, or any other that meets the conditions required by the Law and the Regulation.

Said equipment shall be loaned to the mill (ingenio) while the failed one is being repaired.

Obligations of the Mills (ingenios)

They shall provide the cane grower associations based in the zone where the mill (ingenio) is located, the necessary facilities to verify said results.

The Department shall indicate the fundamental data that the cited report must contain.

It is also the obligation of the mills (ingenios) to make available to the Technical Department any additional information it deems necessary.

Said Department shall immediately inform the Board of Directors of the Liga de la Caña of any non-compliance on the part of the mills (ingenios) in issuing the aforementioned sugar accounting report, or of their refusal to provide the other information required, so that pertinent measures may be taken.

They shall have free access to the facilities related to the receipt and quality evaluation of cane, at any hour and day.

Appointments and Powers of the Representatives of the Cane Grower Associations

The Board of Directors of the Liga, before beginning the selection process, shall give a hearing to the mill (ingenio) in question, so it may express its observations on the slate presented. If it objects to one or more names on the slate, it must clearly state the reasons for the objection, for which it shall have a period of eight business days. In this case, the Board of Directors of the Liga shall immediately inform the nominating entity of the arguments expressed by the mill (ingenio), so that it may express its opinion within a period of eight business days.

Once all of the foregoing is concluded, the Board of Directors of the Liga, in its next two ordinary sessions, shall definitively resolve the matter, appointing two representatives (propietarios) and two alternates (suplentes). The latter shall only act in the absences or temporary unavailabilities of the representatives (propietarios) they replace.

The appointed persons, in order to exercise their functions, must pass a training course taught by the Technical Department of the Liga.

The appointment shall be for a minimum of one year and a maximum of

Advisory Commission

It shall be composed of the Director of the Technical Department, two members appointed by the Federation or union representing the cane grower sector, and two members appointed by the sugar sector.

For each principal member (propietario), their alternate (suplente) shall be appointed in the same manner, who shall only act in the absence or temporary unavailability of the former. The alternate for the Director of the Technical Department shall be the deputy director of that unit, and in their absence, the Executive Director of the Liga shall appoint one.

The Commission shall elect, from among its principal members, at its first annual session, a President, a Vice President, a Secretary, and a Member-at-Large (Vocal).

Its agreements shall be adopted by an absolute majority of the members present, and must be recorded in a minute book legalized by the Legal Advisory Office of the Liga. In the event of a tie, the vote shall be repeated at the next session, and if it is reiterated, the President shall decide by casting vote.

Extraordinarily when convened by the President, the Vice President, or the Director of the Technical Department.

The call to meeting shall be made in writing to the address registered by the members with the Liga de la Caña, at least forty-eight hours in advance.

a)Propose modifications it deems necessary to the Direct System for Purchase of Cane by its Quality.
b)Propose any initiatives that it judges, directly or indirectly, convenient for improving the application of the referred System.
c)Any others established by the Law and this Regulation.

It shall present its recommendations to the Board of Directors of the Liga de la Caña.

Disputes, Appeals (recursos), and Notifications

The period to file said appeal (recurso) shall be five business days immediately following the notification of the act or resolution.

The appeal (recurso) shall indicate the full name, particulars (calidades), and identity card number if it concerns individuals, and in the case of legal entities, the corporate name and the respective identity card number; in both cases, the exact address for notifications shall be recorded.

The appeal (recurso) shall contain a brief indication of the facts and complaints motivating it, and the citation of legal norms or authentication of the signature shall not be necessary.

In all other matters, the ordinary or summary administrative procedure, as appropriate, established by the Ley General de la Administración Pública shall be followed.

On the Quality of Sugar

On the Quality of Sugar Destined for National Consumption

The sale of sugar that does not meet said conditions shall have as a sanction the one established in subsection c) of Article 167 of the Law, without prejudice to any others that may correspond in accordance with the legal system.

For all purposes, sugar that has left the facilities of the mill (ingenio) without the authorization of the Liga shall be considered sold.

a)In the case of mills (ingenios) that sell the sugar they produce to the Liga, it shall be done in the places where it is stored or before it is received by said Corporation.

In the case of mills (ingenios) that do not sell the sugar they produce to the Liga, it shall be done in the places where it is stored or in others indicated by the Board of Directors.

In the case of imported sugar, the qualification shall be done in the places indicated by the Board of Directors.

b)Sugar for national consumption may not be sold without having completed the prior qualification by the Liga.
c)The quality inspectors of the Liga shall take representative samples of the sugar, and a part of them shall be subjected to an analysis, in accordance with the regulations issued by the Technical Department of the Liga. If their results indicate that the sugar meets the quality standards, the inspectors shall authorize its sale.

Otherwise, said sugar may only be destined for purposes other than national consumption, such as export, reprocessing, or any other authorized by the Board of Directors, within the purposes of this norm. The oversight of the destination of that sugar shall be carried out by the quality inspectors of the Liga, subject to the regulations issued by the Board of Directors. The Internal Audit Office of the Liga shall also have the function of exercising this oversight, selectively.

If the mill (ingenio) from which the cited sugar originates fails to comply with the assigned destination, it shall be sanctioned as established in subsection c) of Article 167 of the Law.

If the importer of the indicated sugar fails to comply with the assigned destination, they shall be sanctioned in accordance with the legal system.

In the event that the corresponding mill (ingenio) appeals the qualification made by the Liga inspectors, as provided in Article 143 of the Law, the cited samples shall be analyzed at the Central Laboratory of the Technical Department, and the result must be communicated to the Board of Directors within forty-eight business hours following the receipt of the sample.

It may be done in the places where it is stored pending delivery to buyers, in the vehicles in which it is transported, or in the storage places of the buyers. The provisions of subsection c) of Article 290 shall apply.

However, in the event that the sugar is found in the cited vehicles or in the buyers' storage places, it shall be returned to the mill (ingenio) from which it originates or to the importer, and the corresponding costs shall be borne by them. There, it shall be stored separately or identified to be destined for other purposes, as prescribed in subsection c) of Article 290, with prior authorization and subsequent oversight by the Technical Department of the Liga.

In the second scenario, the sugar shall be separated or identified by the Liga inspectors, and the seller shall replace it, within twenty-four business hours, with sugar that meets the quality standards. All costs shall be borne by the cited seller.

The quality inspectors of the Liga, directly or through the Director of the Technical Department, shall communicate to the Board of Directors the quantity of sugar objected to, for the corresponding legal purposes.

However, while the sanctioning procedure is not resolved, sugar qualifications may be carried out if satisfactory guarantee, in the judgment of the Board of Directors, is provided for the payment of the fine.

It shall be the responsibility of the Executive Director to communicate in writing to the Technical Department the specific cases in which it is not appropriate to carry out new sugar qualifications for a mill (ingenio) or an importer, and when they may be done again.

The foregoing shall constitute a quality standard, as its non-compliance will affect the color.

Sugar packaged in violation of the indicated standard may not be marketed. The sale of sugar by a mill (ingenio), in violation of the indicated standard, shall make it liable for the sanction of subsection c) of Article 167 of the Law.

On the Quality of Sugar Destined for Export

These shall include the moisture degree, polarization, dextran content, and any other conditions that determine the quality and final price of the sugar, or that influence them.

The cited inspection shall be carried out by the quality inspectors of the Liga, who shall report exclusively to the Technical Department.

Sugar for export that does not conform to the quality standards shall be reprocessed at the expense of the mill (ingenio) that manufactured it.

a)In the case of mills (ingenios) that sell the sugar they produce to the Liga, the inspection shall be carried out in the places it indicates. In the case of other mills (ingenios), it shall be carried out by said inspectors, or by independent inspectors designated by it, at the ports of embarkation, on the means of transport, or at the customs post at the corresponding border.
b)The quality inspectors of the Technical Department shall take representative samples of the sugar at the cited places. A part of them shall be subjected to a preliminary analysis, in accordance with the regulations issued by the Technical Department of the Liga. If the results are satisfactory, the receipt or embarkation of said sugar shall be permitted.
c)Otherwise, a part of the cited sample shall be analyzed quantitatively, in relation to the parameters of the standard that were objected to in the preliminary analysis. If it is confirmed that the sugar does not comply with the mentioned standard, its return shall be ordered to be reprocessed at the expense of the mill (ingenio) that manufactured it, as established in Article 142 of the Law.

The oversight of the destination of that sugar shall be carried out by the quality inspectors of the Liga, subject to the regulations issued by the Board of Directors. The Internal Audit Office of the Liga may also exercise this function, selectively.

d)The cited analyses shall be carried out in the Laboratory of the Technical Department closest or any other authorized by the Liga. The quality control laboratory installed at the Punta Morales port complex shall be an exclusive unit of the Technical Department of the Liga.
e)The quality inspectors of the Liga, through the Director of the Technical Department, shall communicate to the Board of Directors the quantity of sugar objected to, the reasons on which said objection was based, and the name of the mill (ingenio) from which the sugar originated.

If the corresponding mill (ingenio) appeals the qualification made by the Liga inspectors, in accordance with the provisions of Article 143 of the Law, the cited samples shall be analyzed at the Central Laboratory of the Technical Department, and the result shall be communicated to the Board of Directors within forty-eight business hours following the receipt of the sample.

On the Laboratories of the Mills (ingenios) and the Personnel to Operate Them

On the Laboratories of the Mills (ingenios)

a)The chemical control of the factory.
b)The quality evaluation of the cane.
c)The quality control of sugar and molasses.

It shall also periodically provide training courses to the personnel in charge of the laboratories of the mills (ingenios), in the area related to physical-chemical analysis.

With the exception of said place, the laboratory must have an air conditioning system that guarantees an adequate ambient temperature for the correct operation of the laboratory equipment.

a)Automatic digital electronic saccharimeter, preferably with a continuous flow tube and, preferably, with computer output.
b)Precision electronic balance with digital readout and a capacity of 2,000 to 4,000 grams and sensitivity of 0.1 gram, with automatic tare devices and, preferably, with computer output.
c)Electronic refractometer with digital readout, automatic temperature control, and, preferably, with computer output.
d)Special disintegrator for the disintegration of the cane sample, with a working rotation of 3,000 revolutions per minute and a disintegration with a minimum of 85% open cells.
e)Hydraulic press.

On the Personnel of the Laboratory of the Mills (ingenios)

They shall first pass the training course taught by the Technical Department of the Liga.

Regulation of the Advance to the Producer

Regulation of the Advance to the Producer for Sugar Sold to the Liga, within quota. Also for Final Molasses

a)The estimate it has made of the sales of sugar and final molasses in the corresponding harvest (zafra).
b)The estimation of the prices that could be obtained from the aforementioned sales, during the indicated period.
c)The estimation of the deductions that must be made according to

of the Law.

d)Any other elements of judgment deemed appropriate.

Once the value of the sugar and final molasses has been estimated, the Board of Directors shall set the advance or provisional price that the sugar mills (ingenios) must pay to the producers, per kilogram of 96º Pol sugar and per kilogram of final molasses contained in the cane, in accordance with the Direct Sugarcane Purchase System by Quality (Sistema Directo de Compra de Caña por su Calidad).

In the case of sugar mills that sell sugar to the Liga, said advance or provisional price shall represent a prudential proportion of the advance or provisional price established for sugar and final molasses.

The publication of said provisional price or advance shall be made in the manner set forth in the previously mentioned article.

Each time the provisional price or advance assigned for sugar and final molasses is modified, the advance or provisional price established for the sugar and molasses contained in the cane acquired or to be acquired shall likewise be varied.

The modification in reference shall be published, in the manner established in article 97 of the Law, at least eight calendar days prior to the date on which it takes effect.

a)It shall be counted from the date of each cane delivery, as provided in article 98 of the Law.
b)In the case of modifications made to the aforementioned advances, the referred term shall be counted from the date on which said modifications take effect.
c)In the case of adjustments made, during the course of the milling (molienda), to the advance percentages of 96º Pol sugar and final molasses contained in the delivered cane, in accordance with the first paragraph of article 255, the referred term shall be counted from the date on which the sugar mill receives written communication from the Liga, which the Executive Director must verify.
d)For the corresponding adjustments, once milling has concluded, in application of the provisions of articles 239 and 241, the referred term shall be counted from the date on which the sugar mill receives written communication from the Technical Department, which the Head of said Department must verify.

Regulation of the advance to the producer for sugar not sold to the Liga, within quota. Also of final molasses

Regulation of the advance to the producer for sugar included in surpluses (excedentes). Also of final molasses

Settlement of the Harvest

General provisions

They shall present the settlement to the Board of Directors within the following terms:

a)Sugar mills that sell the sugar they produce to the Liga, within eight calendar days after the date on which the Liga communicates the net values of plantation white sugar of 99.5º Pol and raw sugar of 96º Pol. Said values shall be determined in accordance with the provisions of the Law. The Liga must provide each sugar mill, once its milling has concluded, with the detail of those expenditures made by the Liga or those charges that refer individually to it and that are not included in the general ones that must be applied to all sugar mills. When a sugar mill does not object to that detail within the fifteen calendar days following its receipt, it shall be deemed to have accepted it.
b)Sugar mills that do not sell the sugar they produce to the Liga, no later than October 15 following the conclusion of the harvest.

Settlement of the Harvest for sugar mills that sell sugar to the Liga de la Caña -Within quota-

a)The value obtained by the Liga from sales of sugar for domestic consumption shall be determined.
b)The value obtained by the Liga from sales of sugar for export, in terms of 96º Pol sugar, shall be determined.
c)The value obtained by the Liga from premiums corresponding to polarization greater than 96º Pol, in export sugar, shall be determined.
d)The value of sugar stocks as of September 30 shall be estimated, deducting the initial inventory. In the case of sugars that do not have a defined price, the Commercialization Council shall prudentially make the estimation of the corresponding value.
e)Other net income that must be incorporated into the sugar settlement shall be determined.
f)Excluded from this income are the differentials for special sugars, which should have been recognized to the sugar mills that produced them (article 102.5. of the Law). Said differentials shall be established by the Commercialization Council.

a)Taxes and contributions established by law.
b)The sum necessary to cover the costs of sugar commercialization, such as financing, storage, transportation, administration, salaries, levies that must be paid abroad for sugar exports, and any others related to the marketing of said product.
c)Any other deduction authorized by law.

The economic amount resulting from the application of article 319, less the deductions indicated in article 320, shall constitute the net value of the total produced within the National Sugar Production Quota.

Conversion of sugar produced within the Quota, for purposes of settling the harvest.

a)Raw sugar of any Pol graduation shall be converted to plantation white sugar in terms of 99.5º Pol, applying the single conversion factor that the Board of Directors establishes for each harvest. (bags of raw * conversion factor = bags of white 99.5º Pol).
b)The polarizations greater than 96º Pol obtained by each sugar mill in export sugar shall be converted to bags of raw sugar of 96° *63, according to what is established in standard 322.5.
c)Special quality white sugar of any Pol graduation shall be registered as plantation white sugar of 99.5º Pol.
d)Special quality raw sugar of any Pol graduation shall be considered as raw sugar of 96º Pol, and its conversion to white of 99.5º Pol shall be made as specified in subsection a), registering the resulting amount.

Determination of the amount of sugar produced. To the sum of the amounts registered according to subsections a), b), c), and d) of the preceding standard, the produced plantation white sugar of 99.5º Pol shall be added, and the result shall be the total amount of sugar in terms of plantation white of 99.5º Pol, produced within the National Quota, exclusively for the purposes of its economic settlement.

Value of a bag of plantation white sugar of 99.5º Pol and a bag of raw sugar of 96º Pol.

a)The net value of the National Sugar Production Quota shall be divided among the total bags of sugar indicated in standard 322.2. and the result shall be the unit value of the bag of plantation white sugar of 99.5º Pol.
b)The net value of raw sugar of 96º Pol shall be obtained by multiplying the net value of plantation white sugar of 99.5º Pol by the single conversion factor set by the Board of Directors for the corresponding harvest.

Settlement of the produced bags. The sugar mills shall be settled for the bags produced in terms of plantation white 99.5º Pol at the value corresponding to that sugar, the bags produced of raw sugar of any graduation greater than 96º Pol at the value of raw sugar of 96º Pol, and the corresponding polarization premiums translated into bags of 96º Pol at the price of the latter.

Conversion of polarizations to bags. For the purposes of provision 322.1. subsection b), the procedure shall be as follows:

a)The polarizations greater than 96 Pol obtained in export sugar by each sugar mill shall be determined.
b)The referred excess polarization of each sugar mill shall be multiplied by the number of bags of raw sugar produced by it, and the number of polarization bags in terms of 96° Pol that correspond to that sugar mill shall be obtained. For the conversion of said excess polarization to 96° Pol sugar, the corresponding proportion of the single factor shall be used.

Settlement of the Harvest to the independent producer for sugar sold to the Liga -Within quota-

To the net value received by each sugar mill for the sugar sold to the Liga de la Caña and settled in accordance with the first section, the following shall be added:

Sugar sold for domestic consumption.

a)In the case of superior quality raw sugars with polarizations greater than 96º Pol, the difference in Pol shall be multiplied by the settlement value of plantation white sugar of 99.5º Pol.
b)In the case of white sugars of qualities superior to plantation white, the difference in Pol shall be multiplied by the settlement value of plantation white sugar of 99.5º Pol.

Export sugar. In the case of raw sugars or white sugars of qualities superior, respectively, to raw of 96º Pol and plantation white of 99.5º Pol, the difference in Pol shall be multiplied by the settlement value of raw sugar of 96º Pol.

From the resulting amount, the independent producer shall receive 62.5%.

Settlement of the Harvest for sugar mills that do not sell sugar to the Liga de la Caña -Within quota-

a)The value obtained by the sugar mill from sales of sugar for domestic consumption shall be determined.
b)The value obtained by the sugar mill from sales of sugar for export, in terms of 96º Pol sugar, shall be determined.
c)The value obtained by the sugar mill from premiums corresponding to polarization greater than 96º Pol in export sugar shall be determined.
d)The value of sugar stocks as of September 30 shall be estimated, deducting the initial inventory.
e)Other net income that must be incorporated into the sugar settlement shall be determined.
f)Excluded from this income are the differentials for special sugars, which should have been recognized to the sugar mill (article 102.5. of the Law).

From the sum of the values indicated in the preceding article, what is indicated in subsections a) and b) of article 320 shall be deducted.

The economic amount resulting from the application of article 326, less the deductions indicated in article 327, shall constitute the net value of the total produced within the National Sugar Production Quota.

Settlement of the Harvest to the independent producer for sugar not sold to the Liga -Within quota-

To the net value of the sugar settled in accordance with article 328, the following shall be added:

a)The value of the premiums corresponding to the polarization of raw export sugar, if they were not considered when making the determination indicated in

b)The value corresponding to polarizations greater than 96º Pol and 99.5º Pol, in the case of special quality sugars sold to the domestic market and for export.

Sugar sold for domestic consumption.

a)In the case of superior quality raw sugars with polarizations greater than 96º, the difference in Pol shall be multiplied by the settlement value of plantation white sugar of 99.5º Pol.
b)In the case of white sugars of qualities superior to plantation white, the difference in Pol shall be multiplied by the settlement value of plantation white sugar of 99.5º Pol.

Export sugar. In the case of raw sugars or white sugars of qualities superior, respectively, to raw of 96º Pol and plantation white of 99.5º Pol, the difference in Pol shall be multiplied by the settlement value of raw sugar of 96º Pol.

From the resulting amount, the independent producer shall receive 62.5%.

Net value of sugar included in surpluses

Settlement to the independent producer for surplus sugar

Direct sales for export

General provisions

Otherwise, the provisions of articles 113 and 157, second paragraph of the Law shall apply.

For this purpose, it shall take into consideration the existing regulations in the preferential markets and in the referred agreements.

The Board of Directors shall regulate the requirements and general conditions of said contracts, compliance with which shall be indispensable for their entry in the registry to be kept by the Liga.

The contracts must be presented at the times indicated in this Regulation or in the regulations dictated by the Board of Directors.

The registration of sugar export contracts with the Liga de la Caña does not validate those that are null or voidable, in accordance with the law and this Regulation. Compliance with the conditions of the agreement is the exclusive responsibility of the contracting parties.

The sugar in question must be from the same sugar mill and identical to that agreed upon. Said transfer may not affect the assigned production quotas.

To verify the foregoing, the Liga shall take into consideration, among other elements of judgment, the conditions and values prevailing on the main exchanges where sugar is traded internationally and the reports from entities or firms of recognized prestige in the international sugar sphere.

In any case, for the purposes of the producers' share in the value of the sugar, the provisions contained in articles 111 and 112 of the Law shall apply.

In the event that what is resolved by the said Board is challenged, the provisions of Section Five of Chapter Two of Title Two of this Regulation shall apply.

For the purposes of the cane producer's share in the sugar included in the respective contract, it shall be assumed that it was executed exactly as agreed, without prejudice to applying other provisions of the Law and the Regulation that are more favorable to the producer.

The partial or total lack of payment for any sugar export may not directly or indirectly prejudice the cane producers of the respective sugar mill. Consequently, the latter shall assume the responsibility of paying the producers the amount due to them, without being able to invoke the referred lack of payment as grounds for not doing so.

Delay for any cause in determining the referred adjustments shall not prevent the timely settlement to the producers for the cane delivered to the sugar mill from which the sugar in question originates. Settlement shall be made in accordance with the data on the cane held by the Liga and any other elements of judgment it deems necessary.

The Liga shall require that the bonuses or deductions that, for any reason, arise in the price of the sugar be duly verified to its satisfaction.

In the event that a higher value is determined than that adopted as the basis for making the referred settlement, the Liga shall adjust what is appropriate in the final price of the cane, and the payment of the difference must be made to the producers within the term established in article 101 of the Law.

What is prescribed in article 159 of the Law shall also apply in this matter.

Said classification at the ports or places of unloading must be carried out by widely recognized international quality supervision firms, and the corresponding cost shall be borne by the exporter, unless otherwise agreed. The report from said firms must be presented to the Liga de la Caña within thirty calendar days following the date of unloading. If there are no inspectors from said international firms at the stated places, or if, even if existing, contracting them were refused, the classification indicated in the first paragraph shall apply for all purposes.

It shall be understood, for the purposes of challenging said act, that it has been issued by the Board of Directors.

The Registry of Exporters

Any natural or legal person who carries out or intends to carry out that activity must register in said registry.

a)In the case of legal persons, corporate name or denomination, registration details in the corresponding registry, domicile, legal representation, legal person identification number, and the exact address for receiving notifications. In the case of natural persons, the name, both surnames, marital status, identity or residency card number, place of residence, and the exact address for receiving notifications.
b)Any other data determined by the Board of Directors.

The documentation shall be foliated by the Registry with consecutive numbering. Each folio shall bear the Registry's seal, and the initial page of each document, in addition, shall bear a notation of the time and date of presentation, signed by the person who receives it.

Within the eight calendar days following its presentation, the documents received shall be qualified.

If the application does not meet the corresponding legal requirements, the interested party shall be notified, at the address registered in the application, in order to remedy the defects. Until this occurs, the application shall remain suspended.

Final provisions

Transfer of the production quota of the sugar mills

a)The Board of Directors shall determine the approximate amount of cane that could not be processed within quota, and its possible yield in 96º Pol sugar, taking into consideration the harvest schedule and any other elements of judgment it deems pertinent.
b)The Board shall transfer, partially or totally, as appropriate, the corresponding amount of sugar to the sugar mills located in the same zone, chosen by the duly registered producers who were delivering to the sugar mill that incurred the respective shortfall, in the amounts necessary to acquire the sugar contained in the cane pending delivery by said producers. The determination of the mentioned amounts shall be made by the Technical Department of the Liga, subject to the provisions of the Law and the Regulation.

The sugar mills to which said transfers are made must expressly communicate whether or not they accept receipt of the respective cane.

c)The portion of the sugar shortfall corresponding to the uncollected cane that cannot be processed by the sugar mills in the same zone, or that they do not wish to do so, shall be redistributed among the other sugar mills in the country, following the procedure established in the preceding subsection.

Any quota shortfall that does not correspond to said cane shall be distributed by applying what is prescribed in article 124 of the Law.

The term for doing the foregoing shall be fifteen business days from the publication of the mentioned notice. Once said period has elapsed, the producer who has not completed the referred procedure may not transfer their cane.

During the term indicated above, the Liga de la Caña shall assign personnel to the sugar mill to carry out the procedures prescribed in this provision.

Transfer of the reference quota of the sugar mills

The determination of the aforementioned amounts shall be made by the League's Technical Department, subject to the provisions of the legal system.

The Board of Directors, within eight calendar days following the date on which it determines that the sugar mill has definitively ceased operations, shall convene, through a notice published in the newspaper of greatest national circulation and which it shall order to be posted at the facilities of the sugar mill in question, the previously mentioned producers, so that they may appear during business hours at said sugar mill to record which sugar mill or mills they choose for the transfer of the reference quota of the sugar mill that ceased operations and of the individual reference quotas. The period to complete the foregoing shall be fifteen business days from the publication of the aforementioned notice. Once this period has elapsed, any producer who has not completed the referred procedure may not transfer their reference quota.

During the period indicated above, the Liga de la Caña shall assign personnel to the sugar mill to carry out the procedures prescribed in this provision.

Sugar Cane Agro-industrial Zones

a)Zone A: Comprises the Provinces of Cartago and Limón.
b)Zone B: Comprises the Provinces of Heredia and Alajuela, with the exception of Orotina, San Mateo, San Carlos, Upala, Los Chiles, and Guatuso.
c)Zone C: Comprises the Cantons of San Carlos, Los Chiles, Guatuso, and Upala in the Province of Alajuela.
d)Zone D: Comprises the Cantons of Puntarenas, Esparza, Montes de Oro, and Aguirre in the Province of Puntarenas; and the Cantons of Orotina and San Mateo in the Province of Alajuela.
e)Zone E: Comprises the Province of Guanacaste.
f)Zone F: Comprises the Canton of Pérez Zeledón in the Province of San José; and the Canton of Buenos Aires in the Province of Puntarenas.

Regulation and Disposition of Final Molasses

a)Meeting the needs for final molasses required during that period for domestic consumption for direct use or as an input in the manufacture of products, regardless of whether they are sold in the internal or external market. The referred requirements shall be calculated by the League based on existing statistics, surveys it conducts, and other evidence it deems appropriate.
b)Meeting any existing preferential international markets.
c)The remaining quota final molasses, once the markets indicated in items a) and b) above have been met, shall be destined for export.

Said setting may be varied during the harvest (zafra), when the Board of Directors deems it convenient.