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Republic of the Philippines

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HOUSE OF REPRESENTATIVES a

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Quezon City fs RECEIVED
ie 2013
SIXTEENTH CONGRESS ont 9 SEP2013

First Regular Session \

INS
House Bill No, 2934 Nain

Introduced by Hon. Delphine Gan Lee

EXPLANATORY NOT

‘The Constitution, Article 13, Section 5, provides:

Section 5. The State shall recognize the right of farmers,
farmworkers, and landowners, as well as cooperatives, and other
independent farmers’ organizations to participate in the planning,
organization, and management of the program, and shall provide support
to agriculture through appropriate technology and research, and adequate
financial, production, marketing, and other support services.

It is a truism to say that we need to modemize the agricultural and fishery sectors
transforming these sectors source-based to a technology-based industry. The state
needs to enhanee the profits and incomes in the agricultural and fishery sectors, particularly
of the small farmers and fisherfolk by ensuring equitable ace: Xl
services, and promot
and agro-industrialization,

om a

to assets, resources
ing, agribusiness activities,

ing higher-value crops, value-added proce:

Section 109 of Republic Act 8435 mandates that all enterprises engaged in agriculture

and fishery duly certified by the Department of Agriculture in consultation with the

Department of Finance and the Board of Investments (BOI) shall, for five (5) years, be

exempted from the payment of tariff duties on all types of imported agricultural and fishery
inputs, equipment and machinery including, among others, fertilizers, insecticides, tractors,
hybrid seed, farm implements and machinery, packaging machinery and materials, and
fishing equipment and parts thereof, so long as the imported agriculture and fishery input,
and/or equipment shall be used solely by the importing enterprise. Through Republic Act No.

9281, enacted on 30 March 2004, the duty-free privilege was extended until 31 December


2015. At present, there is still a need to extend this help to our farmers so this bill seeks to

lengthen this benefit up to the year 2025 and to increase its budget allocation.

E GAN LEE
SRI Party-List


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SIXTEENTH CONGRESS

First Regular Session

House BillNo._ 2981

Introduced by Hon, Delphine Gan Lee

AN ACT TO STRENGTHEN AGRICULTURE AND FISHERIES MODERNIZATION
IN THE PHILIPPINES BY EXTENDING THE EFFECTIVITY OF TAX
INCENTIVES AND ITS MANDATED FUNDING SUPPORT, AMENDING FOR THIS.
PURPOSE SECTIONS 109 AND 112 OF REPUBLIC ACT NO, 8435 AS AMENDED
BY REPUBLIC ACT NO, 9281

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

ECTION 1. Section 109 of Republic Act No, 8435, as amended by Republic Act
No, 9281, otherwise known as "The Agriculture and Fisheries Modernization Act of 1997" is
hereby further amended to read as follows:

"SEC. 109, All enterprises engaged in agriculture and fisheries as
duly certified by the Department in consultation with the Department of
Finance and the Board of Investment, shall, up to the year [2015] 2025, be
exempted from the payment of tariff and duties for importation of all types
of agriculture and fisheries inputs, equipment and machinery such as, but
not limited to, fertilizer, insecticide, pesticide, tractor, trailers, trucks, farm
implements and machinery, harvesters, threshers, hybrid seeds, genetic
materials, sprayers, packaging machinery and materials, bulk-handling
ies such as conveyors and mini loaders, weighing scales, harvesting,
equipment, spare parts of all agricultural equipment, fishing equipment
and parts thereof, refrigeration equipment, and renewable energy systems
such as solar panels: Provided, however, That the imported agricultural
and fishery inputs, equipment and machinery shall be for the exclusive use
of the importing enterprise.

The Department, in consultation with the Department of Finance
and the Board of Investment, shall, within ninety (90) days from the
effectivity of this Act, formulate the Implementing Rules and Regulations


1 governing the importation of agriculture and fishery inputs, equipment and

2; machinery.”

3 SECTION 2. Section 112 of Republic Act No, 8435, as amended by Republic Act
4 No. 9281, otherwise known as "The Agriculture and Fisheries Modernization Act of 1997" is
5 hereby further amended to read as follows:

6 "SEC. 112. Continuing Appropriation. - The Department of Budget

7 and Management (DBM) is hereby mandated to include annually up to the

8 year [2015] 2025, in the President's program of expenditures. for

9 submission to Congress, and release, an amount not less than [Seventeen

10 billion pesos (P17,000,000,000.00)) TWENTY FIVE BILLION

NW (P25,000,000,000.00), for the implementation of this Act. Such amount

12 shall be in addition to the annual budget of the Department of Agriculture

13 and shall not be subjected to any mandatory reserves that shall be imposed

M4 by the executive department.

15 With the continuous implementation of the funding support for

16 agriculture and fisheries modernization, the Department of Agriculture

7 shall formulate, develop and implement programs and services towards the

18 improvement of the quality of fife of the farmers, fisherfolks and their

19 families and the people who are directly or indirectly dependent on
20 agriculture for their livelihood.

21 Additional funds over and above congressional appropriations of
22 the Department shall be sourced from twenty percent (20%) of the
2B ization of government assets, including the Subic,

proceeds of the sec

24 Clark and other special economic zones
25 Other sources of funds shall be from the following:

26 Fifly percent (50%) of the net earnings of the Public Estates
27 Authority or its successor agency;

28 Loans, grants, bequest, or donations, whether from local or foreign
29 sources;

30 Forty percent (40%) of the TESDA Skills Development Fund:

31 Net proceed from the privatization of the Food Terminal Inc. (FTI),
32 the Bureau of Animal Industry (BA1), the Bureau of Plant Industry (BPD),
33 and other assets of the Department that will be identified by the DA
34 Secretary and recommended to the President for privatization

35 Proceeds from the Minimum Access Volume (MAV) in accordance
36 with the provisions of Republic Act No. 8178:


aoa Go

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A portion of the proceeds from the countervailing, anti-dumping
and special safeguards duties collected from agricultural imports pursuant
to Republic Act Nos, 8751 and 8752, both series of 1999 and Republic Act
No, 8800, series of 2000; and

Fifty percent (50%) of the Support Facilities and Services Fund
under Republic Act No. 6657."

SECTION 3. This Act shall take effect fifteen (15) days from the date of its
publication in the Official Gazette or in at least two (2) newspapers of general circulation,
whichever comes earlier,

Approved.