Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

House Bill Number 877

Introduced by Representatives GLORIA MACAPAGAL ARROYO
and DATO MACAPAGAL ARROYO

AN ACT
ESTABLISHING A FARM MACHINERY MANUFACTURING PROGRAM
AND APPROPRIATING FUNDS THEREFOR

EXPLANATORY NOTE

Industrialization is vital to a nation's progress but without a
solid foundation in agriculture, it will not be as sustainable as possible and can
even result to more harm than good for a country’s economy especially
like the Philippines. But our road to industrialization will remain far-fetched
given our country’s lag in terms of production due to lack of modem farm
equipment that other agricultural countries have already been using

Experiences of countries like Taiwan, Korea and Japan provides us with
enough incentive that a carefully planned industrial development program along
with firm agriculture-based economic fundamentals, the Philippines can become
part of the roster of advanced nations belonging to the First World

A comprehensive program that can introduce mechanized farming
to boost agricultural production is therefore imperative. Through the
Farm Machinery Manufacturing Program, which this bill seeks to
institutionalize, this idea could be achieved by encouraging local manufacturers
to enter into a joint venture with foreign companies that will assist and train
them with the view of enabling them to maximize the utilization of local
materials in their products.

In view of the foregoing, the immediate passage of this bill is earnestly
recommended

GLORIA MACAPAGAL ARROYO DATO MACAPAGAL ARROYO
Second District, Pampanga Second District, Camarines Sur


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

House Bill Number 877

Introduced by Representatives GLORIA MACAPAGAL ARROYO.
and DATO MACAPAGAL ARROYO

AN ACT
ESTABLISHING A FARM MACHINERY MANUFACTURING PROGRAM AND
APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION 1. This Act shall be known as the "Farm Machinery
Manufacturing Program (FMMP) Act of 2013."

SECTION 2. The following are the objectives of the FMMP.

a) Development of a viable farm machineries manufacturing industry

b) Technology transfer and development

c) Employment generation

d) Provide reasonable consumer price of farm machineries

e) Foreign exchange savings and earnings

SECTION 3. The Department of Trade and Industry (DT!) through the

Board of Investment (BOI) shall be responsible for the effective implementation
of this program.


SECTION 4. After the approval of this Act, applications for the Registration
as participant in the FMMP, together with the commitment of the applicants, shall
be submitted to the BOI within thirty (30) days. The BOI shall decide on the
acceptance or rejection of the applications within thirty (30) days from
submission. based on commitments which shall form part of the terms and
conditions for their continued participation

Approved participants shall be issued a Certificate of Registration by the
BOI and shall not comply with the terms and conditions provided with the
Contract

The Certificate of Registration shall contain the commitments made by the
proponents in their proposals

SECTION 5. Farm machinery models and variants shall be registered and
approved by the BO! prior to its manufacture

The following criteria shall be considered in defining a model:
a) body configuration
b) engine family / size
©) drive line configuration

A change in any two of the criteria from the basic models shall constitute a
new basic mode. A variant is delivered from the basic model but the
change in anyone of the criteria

The number of basic models and variants that a participant may have shall
be a maximum of three (3) basic models and two (2) variants for each
model unless otherwise decided by the BOI.

The basic models and variants shall be retained by the participants for
over a maximum period of five (5) years in the Philippines, unless
otherwise authorized by the BOI, taking into account the capability of the
local components and parts manufacturing industry.

SECTION 6. Increase use of local components over and above the
prescribed local content percentages shall be encouraged by an incentive
scheme

SECTION 7. The BO! shall promulgate the rules and regulations
necessary for the effective implementation of this Act.


SECTION 8. All privileges and exemptions mentioned in Republic Act
6135, otherwise known as the Export Incentives Act of 1970, shall be extended
to all Program participants.

SECTION 9. The amount necessary for the effective implementation of
this Act shall be charged to the appropriations for the Department of Trade and
industry under the current General Appropriations Act (GAA). Thereafter, such
sum as may be necessary for the continued implementation of this Act shall be
included in the annual GAA.

SECTION 10. This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation

Approved,