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FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
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Third Regular Session 
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SENATE 
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1 
INTRODUCED BY SENATOR LOREN LEGARDA 
EXPLANATORY NOTE 
Mechanization is essential to the modernization of Philippine agriculture and 
fisheries as envisioned by the Agriculture and Fisheries Modernization Act (AFMA). 
Thus, Sec. 59. of the AFMA states that "The Department shall give priority fo the 
development and promotion of appropriate agricultural machinery and other agricultural 
mechanization technologies to enhance agricultural mechanization. in the countryside". 
Mechanization can significantly increase land and labor efficiency to sustain increased 
food production and increase farm incomes. Just as important is that mechanization 
creates new jobs in the countryside since it requires non-farm economic activities such 
as machinery manufacturing, repair and maintenance and opens up more opportunities 
for processing of agricultural and fishery products with the design and supply of 
equipment and machineries suited to various locales at more affordable prices. 
The competitiveness of Philippine agriculture is compromised by its dismal level 
of mechanization. When benchmarked with its Asian neighbors, the Philippines has one 
of the lowest levels in Asia at 1.68 horsepower/ha. This country's low level of 
mechanization is attributed to the following problems and constraints: 1) inadequate 
support services, extension and promotion program wherein there is inadequate and 
fragmented Agri-Fisheries Mechanization research and development (R&D), Extension 
and Program Implementation within the Department of Agriculture (DA), Local 
Government Units (LGUs) and other government agencies; 2) proliferation of 
substandard machinery and equipment as there is limited Agri-fishery Mechanization 
Testing and Evaluation Activities by DA and the Agricultural Machinery Testing and 
Evaluation Center (AMTEC), weak enforcement of standards, participation of fly by 
night manufacturers and distributors in government procurement, and absence of a 
monitoring system of Agri-fishery machinery distributed; and 3) limited access to 
appropriate and affordable machinery and equipment as the cost of investment of Agi- 
fishery machinery is becoming high, capital to own and operate agricultural machinery 
is inadequate and the Philippine farm size is too small to ensure economies of scale for 
farm machinery operations. In addition, the recovery of stolen equipment and 
machinery is difficult due to the absence of a registration system. 
The above issues and constraints are addressed by this Bill. There is a need to 
immediately pass this Bill to enable our fishery and agriculture sector to modernize and 
increase productivity and incomes as envisioned by the AFMA. 
Thus, I urge my colleagues to support the apRroval of the bill. 
LOREN LEGARDA 


FOURTEENTH CONGRESS OF THE ) 
p G r  :I ,; 
REPUBLIC OF THE PHILIPPINES 
) 
Third Regular Session 
SENATE 
Senate Bill No. 
13 
INTRODUCED BY SENATOR LOREN LEGARDA 
AN ACT 
PROMOTING THE AGRICULTURAL AND FKHERIES MECHANIZATION 
DEVELOPMENT IN THE COUNTRY 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title. This Act shall be known as the Agricultural and Fisheries 
Mechanization (AFMech) Law. 
ARTICLE I 
DECLARATION OF POLICY, 
DEFINITION OF TERMS AND COVERAGE 
SECTION 2. Declaration ofpolicy. It shall be the policy of the State to: 
a) Promote the development and adoption of modern, appropriate and cost- 
effective and environmentally safe agricultural and fisheries machinery 
and equipment to enhance farm productivity and efficiency in order to 
achieve food security and safety; 
b) Provide a conducive environment to the local assembling and 
manufacturing of engines, machinery and equipment for agricultural and 
fisheries production, processing and marketing; 
c) Ensure the quality and safety of machineries and equipment locally 
manufactured or imported by strengthening regulation through the 
development and enforcement of machinery and machine performance 
standards, regular testing a17d evaluation, registration and the 
accreditation 
and 
classification 
of 
suppliers, 
assemblers 
and 
manufacturers to ensure compliance to prescribed quality standards ; 
d) Unify, rationalize and strengthen the implementation, coordination 
activities and mechanisms on agricultural and fisheries mechanization 
programs and projects; and 
e) Deliver integrated support services to farmers, fisherfolk and other 
stakeholders, and assist them to be able to viably operate and manage 
their agricultural and fisheries mechanization projects. 
1 


SECTION 3. Definition of Terms: 
a) Agricultural and Fisheries Machinery - refers to machinery and 
equipment 
for 
the production, 
' harvesting, 
processing, storage, 
manufacture, preserving, transporting and distribution of agricultural and 
fisheries products. It includes but is not limited to tractors and their 
attachments, power tillers, seeders, transplanters, windmills, harvesting 
machines, crop protection and maintenance equipment, irrigation 
equipment and accessories, greenhouses and other thermal conditioning 
equipment, livestock equipment, fishery equipment, slaughtering 
equipment, meat/fishery and crop processing equipment, post harvest 
machines such as milling machines,' dryer, threshers, grain and other 
strippers, agricultural transport machinery and storage facilities including 
cold storage, reefer vans, slaughter houses and fishing boats of three (3) 
gross tons or less. New agricultural and fishery machinery includes newly 
imported as well as one that has not been used since its manufacturing. 
b) Agricultural and Fisheries Mechanization - is the development, 
adoption, assembly, manufacture and application of appropriate, location- 
specific and cost-effective agricultural and fisheries machinery using 
human, animal, mechanical, electrical, renewable and other non- 
conventional sources of 
energy for agricultural production and 
postharvest/postproduction 
operations consistent with agronomic 
conditions and for efficient and economic farm and fishery management 
towards modernization of agriculture and fisheries. 
c) Ago-Industrial Processing - shall include local activity or series of 
activities to maintain or raise the. quality or change the form or 
characteristics of agricultural, fisheries and forestry products. It also 
includes cleaning, sorting, grading, mixing, milling, canning, dressing, 
slaughtering, freezing, pasteurizing, conditioning, packaging, repacking 
and transporting of said products. 
d) Fishing Boat - any boat, ship or other watercraft of three (3) gross tons or 
less, equipped to be used for taking of fishery species or aiding or 
assisting one (1) or more vessels in the performance of any activity 
relating to fishing, including but not limited to, preservation, supply, 
storage, refrigeration, transportation and/ or processing. 
e) Small farmers - refers to farmers with not more than five (5) hectares of 
land and fisherfolks with not more than one fishing boat. 
f) Program - refers to the National Agri-fishery Mechanization Program. 
g) Department - refers to the Department of Agriculture. 
h) Secretary - refers to the Secretary of Agriculture. 
i) DOLE -refers to the Department of Labor and Employment. 
j) DOST - refers to the Department of Science and Technology. 
k) DTI- Department of Trade and Industry 
2 


1) AT1 - refers to the Agriculture Training Institute. 
m) AMTEC- refers to the Agricultural Machinery Testing and Evaluation 
Center in the University of the Philippines, Los Banos. 
n) BAFPS - refers to the Bureau of Agriculture and Fisheries Products 
Standards. 
0) BAR - refers to the Bureau of Agricultural Research, Department of 
Agriculture. 
p) BPRE- refers to the Bureau of Post Harvest Research and Extension. 
q) NAFC- refers to the National Agricultural and Fishery Council. 
r) TESDA- refers to the Technical Education and Skills Development 
Authority. 
s) CHED- refers to the Commission on Higher Education. 
t) BoAE- refers to the Board of Agricultural Engineering of the Professional 
Regulation Commission. 
u) UPLB- refers to the University of the Philippines at Los Banos. 
SECTION 4. Scope and Application. The provisions of this Act shall apply to the 
research, development and extension, promotion, distribution, supply, assembling, 
manufacturing, regulation, use, operation and maintenance of agricultural and fisheries 
machinery and equipment. 
ARTICLE I1 
THE NATIONAL AGRI-FISHERY MECHANIZATION PROGRAM 
SECTION.5. The National Agri-fishe y Mechanization Program. There shall be 
formulated a National Agri-fishery Mechanization Program by the Department with the 
following objectives: 
a) Promote and support through the provision of research grants, credit, 
transparent and predictable regulation the local development and 
manufacture of agricultural and fisheries machinery by the private sector; 
b) Unify, lead and support the efforts of various institutions in the research, 
design and development of agricultural and fisheries machinery; 
c) Establish quality, safety and performance standards for agricultural and 
fisheries machinery; 
d) Support the establishment of quality, safety and performance testing 
centers for the certification of agricultural and fisheries machinery in 
strategic localities in the country; 
3 


e) Establish guidelines for the registration of ownership of agricultural and 
fisheries machinery; and 
Promote the adoption of certified agricultural and fisheries machinery for 
improving agriculture and fishery productivity. 
f) 
SECTION 6. Pvogvam implementation. The over-all implementation of the 
National Agri-fishery Mechanization Program shall be coordinated by the Department 
through the Undersecretary for Policy and Planning which shall: 
1) Conduct the formulation and review of 5-year National Agri-fishery 
Mechanization Programs for the Department; 
2) Provide leadership in the formulation of guidelines for the registration of 
ownership of agricultural and fisheries machinery; 
3) Ensure the formulation of quality, safety and performance standards for 
agricultural and fisheries machinery; 
4) Ensure the formulation of accreditation guidelines for testing centers for 
agricultural and fisheries machinery; 
5) Formulate and enforce guidelines for the credit program to include but 
not limited to access, disbursement and repayment; 
6) Oversee the implementation of the National Agri-fishery Mechanization 
Program by the various units of the Department; and 
7) Coordinate with other government agencies and LGUs in the 
implementation of measures provided for in this Act. 
ARTICLE I11 
RESEARCH, EXTENSION AND HUMAN RESOURCE DEVELOPMENT 
SECTION 7. Unified National R&D and Extension Agenda. A unified National 
Agricultural and Fisheries Mechanization R&D and Extension (RDE) Agenda shall be 
formulated and implemented by the Department; Pvmided that the Department through 
the BAR as focal agency, shall integrate and .unify all agricultural and fisheries 
mechanization R&D and extension programs and projects of all concerned national 
government agencies, local government units, state colleges and universities which 
shall be geared towards development of machineries and equipment, job generation, 
address market and industry demands and help accelerate agricultural and fisheries 
modernization in the countryside. 
The National Agricultural and Fisheries Mechanization RDE Agenda shall 
include but not be limited to the following: 
1) Development, pilot-testing and commercialization of 
appropriate, 
location-specific and cost-effective agricultural and fisheries machinery 
and equipment in support to contiguous farming and machinery pooling; 
4 


2) Design and testing of new machineries and equipment for agriculture and 
fisheries; 
3) Local assembly and manufacture of agricultural engines and equipment; 
4) Development and utilization of renewable and non-conventional energy 
resources such as wind, biomass, hydro, solar and bio-fuels for 
agricultural and fisheries equipment and machineries; 
5) Development of efficient production and postproduction mechanization 
systems; 
6) Continuous development of technical standards and testing procedures 
for quality agricultural machinery and components; 
7) Training of farmers, fisherfolk, manufacturers, extension workers, 
agricultural engineers, technicians , and operators engaged in the 
agricultural and fisheries mechanization; 
8) Promotion of technologies through agricultural and industrial extension 
activities and techno-demo centers; 
9) Development of prototype and fabrication of agricultural machinery and 
equipment; and 
10) Development and conduct of commercialization strategies involving all 
sectors representing the demand and supply sides of agricultural and 
fisheries mechanization technologies. 
SECTION 8. Agri-Fisheries Mechanization RDE Network. An Agricultural and 
Fisheries Mechanization Research, Development and Extension (RDE) network is 
hereby organized, composed of 
research and educational institutions, Local 
Government Units, non-government organizations and the recognized and well 
established associations of 
agricultural and fisheries machinery 
assemblers, 
manufacturers and distributors, agricultural engineers, farmers and fisherfolk. The 
Agricultural and Fisheries Mechanization Research, Development and Extension (RDE) 
network is responsible for the formulation and implementation of the National 
Agricultural and Fisheries Mechanization RDE Agenda. The BAR shall be responsible 
for organizing the Network and shall serve as Secretariat to the Network. The Network 
shall be chaired by the Director of BPRE. 
SECTION 9. Agricultural and Fisheries Machine y Information Network. The 
Agricultural Machinery Information Network (AgMachIN) of the Department and the 
DOST shall be strengthened to serve as a network of information system and data bank 
on agricultural and fisheries machinery and equipment, and a facility for the on-line 
registration of agricultural and fisheries machinery. 
SECTION 10. Research Grants. To enhance research and technological 
development on agricultural and fisheries mechanization, the government through the 
BAR, DOST and CHED shall provide competitive research grants to members of the 
Network to undertake needs oriented research as well as institutional development and 
upgrading of laboratory facilities and equipment. 
5 


SECTION 11. Agri-Fisheries Machine y and Equipment Service Centers. 
Equipment and machineries suppliers/dealers/distributors shall be required to 
establish and operate Agricultural and Fishery Machinery and Equipment Service 
Centers in the Strategic Agricultural and Fishery Development Zones (SAFDZs) 
individually or as part of a legal entity. The Agri-Fisheries Machinery and Equipment 
Service Centers shall provide any or all of the following services: 
a) Provide after-sales service and warranty to their respective clients; 
b) Custom plowing, harrowing, harvesting, drying, milling and other farm 
mechanization services; 
c) Repair and troubleshooting services of agricultural and fishery machinery 
and equipment; and 
d) Training of maintenance and proper use of agricultural machineries and 
equipment. 
However, ownership and operation of Agricultural and Fishery Machinery and 
Equipment Service Centers, shall not be the exclusive domain of equipment and 
machineries suppliers. These may be owned and operated by registered cooperatives or 
SEC/ DTI registered businesses. 
SECTION 12. Manpower Complement. All agricultural and fisheries machinery 
pools and service centers including sales and distribution outlets and manufacturing 
establishments either public or private shall have the required manpower complement 
of licensed agricultural engineers and certified technicians and operators in accordance 
with the guidelines and standards to be promulgated by the BoAE and DOLE to ensure 
efficient operation and maintenance and good management practices. 
SECTION 13. Skills Certiyication of Agricultural Machiney Technicians and 
Operators. The TESDA in collaboration with the Department, BoAE, NAMDAC and the 
national associations of agricultural engineers and agricultural machinery assemblers, 
manufacturers and distributors shall undertake skills certification and accreditation 
systems for agricultural and fishery machinery operators and technicians. 
SECTION 14. Training and Scholarship Proham. The Department in partnership 
with the State Colleges and Universities and the private sector shall train the 
agricultural extension workers of the Local Government Units who in turn shall train 
the farmers and fisherfolks on agricultural and fisheries mechanization technologies 
and practices. The DOLE and TESDA shall be responsible in the training of agricultural 
and fisheries machinery technicians and operators. Furthermore, scholarships for 
graduate and undergraduate degree on agricultur.al engineering and trade/vocational 
courses on agricultural and fisheries mechanization shall be given priority by the 
Department, CHED and DOST. 
ARTICLE IV 
LOCAL ASSEMBLY, MANUFACTURE, SUPPLY AND 
AFTER SALES SERVICE 
6 


SECTION 15. Incentives for local manufacturers and assemblers of agri-fisheries 
machine y, Ventures in local manufacture, fabrication and assembly of agri-fisheries 
equipment and machineries shall be eligible for loans under the ACEF. These 
businesses shall be classified as non-VAT business and shall be granted automatically 
tax holiday in the first few years of operation commensurate to the number of jobs 
created by the business. They shall be eligible to apply for research grants from the BAR 
to support testing and certification. Patents shall be' accepted as equity or collateral for 
loans. The BAR shall within six months from the enactment of this Act support the 
conduct a study on how patents shall be valuated. 
SECTION 16. Exemption from Import Duties. To support the local agricultural 
and fisheries assembling and manufacturing industries, they are hereby exempted from 
the payment of import duties and VAT arising from importation of raw materials and 
components, engine and mechanical parts required'for the assembly, manufacture and 
fabrication of agricultural and fisheries machinery and equipment. Whole goods which 
are not commercially available as certified by the BAFPMS may be imported. The 
AFMeC shall within six months after the enactment of this Act formulate and publish 
the guidelines for this certification function. From time to time the AFMeC shall make a 
list of machinery certified for importation and endorsed to the BAFPMS which shall 
publish this list in the Internet. 
SECTION 17. Supply of Agricultural and Fisheries Machine y in Government 
Procuvement Program. Only assemblers, manufacturers, importers, suppliers, 
distributors and dealers accredited by the National Agricultural and Fisheries 
Machinery Manufacturers, Importers, Distributors, and Dealers Accreditation and 
Classification Board (NAMDAC) shall be eligible to supply government procurement 
requirements on agricultural and fisheries machinery and equipment based on their 
classification rating. Only agricultural and fishery machinery certified by an accredited 
certifying body as having passed safety, quality and performance standards shall be 
procured. 
SECTION 18.After-Sales Service. All agricultural and fisheries machinery 
assemblers, manufacturers, importers, suppliers, distributors and dealers are required 
to provide after-sales service and warranty to their respective clients during the 
warranty period. 
ARTICLE V 
REGISTRATION, LICENSING AND STANDARDIZATION 
SECTION 19. Testing and Evaluation. Agricultural and fisheries machinery to be 
sold in the market must obtain certification from the accredited certifying bodies such 
as the AMTEC in accordance with the national poiicies and guidelines as promulgated 
by the Secretary. Specifically, before it can be manufactured and/or commercially sold 
in the market, the model of the machine and any modification thereof should be tested 
by an accredited certifying body and certified that it has passed the prescribed safety, 
quality and performance standards. The regular testing and evaluation of machinery 
sold shall be undertaken by AMTEC or an accredited certifying body on new models 
and designs. Field tests shall likewise be undertaken by AMTEC or an accredited 
certifying body to ensure consistent quality of test units as well as on the commercial 
units. The Department Office of Policy and Planning, BAFPS and NAFC within one 
year upon the enactment of this Act into law shall formulate the policies, standards and 
guidelines for safety, quality and performance testing and evaluation for certification 
7 


purposes for consideration and approval by the Secretary. These standards should be in 
conformity with the International Standards Organization (ISO) and shall be part of the 
existing Philippine Agricultural Engineering Standards. The BAFPS shall maintain a 
certification registry of equipment and machinery as well as a registry of those denied 
certification and shall make these registries available through the Internet. 
SECTION 20. Registration of Ownership of Agricultural and Fishery Machinery 
and Equipment. All owners of agricultural and fishery machinery and equipment must 
register their property with the Agricultural Engineering Office of Municipal and City 
Government Units. 
For registration purposes the owners must provide the following information: 
1) name and address of the owner 
2) the engine serial number 
3) certification number for machinery/equipment registered 3 years after the 
enactment of this Act 
4) technical specifications of the engine 
5) original receipt for purchases six months after the enactment of this Act 
but for those purchased prior to this period the information of how the 
property was acquired should be provided including the address of the 
source 
The Agricultural Engineering Office of the Local Government Units shall 
establish and maintain a registry of agricultural and fishery machinery at the municipal 
or provincial level. The DA Regional Agricultural Engineering Division shall maintain a 
registry of agricultural and fishery machinery at the regional office whereas the 
BAFPMS shall maintain a national database of all registered agricultural and fishery 
machinery Each office shall ensure that these registries and databases are available 
through the Internet. 
The Secretary shall promulgate national guidelines and procedures for the 
registration of agricultural and fisheries machinery by the LGUs including the collection 
of registration fees in accordance with the Local Government Code. 
SECTION 21. Registration of manufacturers, fabricators, assemblers and 
importers. Within six months upon the enactment of this Act, all manufacturers, 
fabricators, assemblers and importers must register with the BAFPMS by providing the 
following information: 
1) name and address of the registrant 
2) list of equipment/machinery manufactured/ fabricated/assembled/ 
imported 
3) technical specifications of each product 
4) if product is imported name and address of source of product 
5) area of distribution 
8 


6) list of distributors 
7) names and address of service centers 
Three years upon the enactment of this Act, registrants must provide certification 
by an accredited certifying body of all products that they have in the market or intend 
to market and withdraw all products that have no certification. One year after the 
enactment of this Act, the registrants must submit to the BAFPMS the list of 
equipment/machinery manufactured/ fabricated/assembled/ imported with their 
serial numbers. 
SECTION 22. Standards Development 
and Enforcement. The Department 
through the BAFPS in coordination with the DTI, DOST, BoAE and AMTEC and in 
consultation with the accredited associations of farmers and fisherfolk, agricultural 
machinery assemblers, manufacturers and distributors and agricultural engineers shall 
develop standards specifications and test procedures of agricultural and fishery 
machinery. These standards should be in conformity with the International Standards 
Organization (EO) and shall be part of the existing Philippine Agricultural Engineering 
Standards. 
Thereafter, the Department and LGUs and in collaboration with the BoAE shall 
enforce the above standards on the manufacture, sale and distribution on agriculture 
and fisheries machinery and equipment, and its accreditation system for agricultural 
and fisheries facilities and establishments. 
Also, the Department of Public Works and Highways and the Local Building 
Officials, consistent with the provisions of R.A. No. 8559, shall enforce the Philippine 
Agricultural Engineering Standards as part of the implementation of the National 
Building Code of the Philippines particularly in the design, construction, operation and 
maintenance of agricultural and fisheries buildings and structures. 
ARTICLE VI 
INSTITUTIONS 
SECTION 23. Agricultural and Fisheries Mechanization Committee. The existing 
Agricultural and Fisheries Mechanization Committee (AFMeC) under the NAFC is 
hereby strengthened and reorganized into Agricultural and Fishery Mechanization and 
Infrastructure Committee (AFMIC) to act as an advisory body to ensure the success of 
the programs and activities of the Department concerning agricultural and fisheries 
mechanization and infrastructure. It is also tasked to serve as the consultative and 
feedback mechanism from the lowest possible level to the top decision makers and to 
assist in defining and formulating the goals and scope of the country's agriculture and 
fisheries mechanization and infrastructure policies, plans, and programs. 
SECTION 24. Strengthening the DA Agricultural Engineering Groups. Pursuant 
to Section 46 of R.A. No. 8435, a Central Agricultural and Fishery Engineering Office 
(CAFEO) is hereby created under the Departmeht to be headed by a Department 
Undersecretary. The CAFEO shall plan, coordinate, oversee, integrate and monitor all 
agricultural and fishery infrastructure, mechanization and engineering programs and 
projects of the Department. Likewise, the Regional Agricultural Engineering Divisions 
(RAEDs) of the Regional Field Units are hereby strengthened and institutionalized to 
9 


carry out the field implementation of the agricultural and fishery mechanization and 
infrastructure programs and projects of the Department. 
SECTION 25. Expanding the functions and powers of the BAFPS. Sec 62 of the 
AFMA is hereby revised to read as follows: The BAFPS shall set and implement 
standards for fresh, primary-and -secondary-processed agricultural and fishery 
products and agricultural and fishery machinery. The name of the Bureau of 
Agriculture and Fisheries Product Standards (BAFPS) is hereby modified to Bureau of 
Agriculture and Fisheries Products and Macluneries Standards (BAFPMS). 
Consequently, in addition to the functions stated in Sec 63 of the AFMA the following 
new functions are hereby assigned to the BAFPMS 
1) formulate and enforce quality, safety and performance standards for 
agricultural and fisheries machinery 
2) formulate and enforce of accreditation guidelines for testing centers for 
agricultural and fisheries machinery 
3) formulate guidelines for the registration of ownership of agricultural and 
fishery machinery 
4) Maintain a national registry of agricultural and fisheries machinery 
certified by accredited testing centers 
5) Maintain a national registry of testing centers for agricultural and fisheries 
machinery 
6) Maintain a national registry of owners of agricultural and fishery 
machinery and corresponding serial numbers 
The BAFPMS is hereby authorized to create a new division on agricultural and 
fisheries machinery regulations with a minimum complement of 5 technical personnel 
and one administrative personnel. It may call upon experts, professional groups and 
other government agencies to assist in the performance of its functions. 
SECTION 26. The Agriculture Training Institute. The Agriculture Training 
Institute shall formulate and implement a agriculture and fisheries mechanization 
promotion program as part of National Agri-fishery Mechanization Program by the 
Department to include but not limited to an information campaign on the AFMP, the 
standards, procedures and guidelines on regulation on sales, manufacture, import of 
agricultural and fishery machinery, and access to credit by small farmers and 
manufacturers, the conduct of training courses for agricultural and fishery machinery 
operators and demonstrations and trade fairs for agricultural and fishery machinery. 
With this added function, the AT1 is hereby authorized to hire at least 3 licensed 
engineers in the central office and one in each regional training center. 
SECTION 27. Organization of the NAMDAC Board. The National Agricultural 
and Fisheries Machinery Assemblers, Manufacturers, Importers, Distributors and 
Dealers Accreditation and Classification (NAMDAC) Board is hereby organized as a 
private sector-led national accreditation and classifying body on agricultural and 
fisheries machinery and shall perform the following functions: 
10 


a) Establishment of an updated and accurate data base on their sector; 
b) Formulate policies, guidelines and criteria for accreditation and classification 
on manufacturers of agricultural and fisheries machinery; 
c) Encourage self regulation in the sector by delegating the task of accrediting 
and classifying manufacturers/dealers/ distributors and approval of the 
quality and safety of their products to their respective associations; 
d) Advocate policies to regulate the importation and exportation of agricultural 
and fisheries machinery consistent with the GATT-WTO provision; and 
e) Make certain that the manufacturers’/dealers’ associations conduct regular 
inspection of agricultural and fisheries machinery fabrication plants to ensure 
compliance with accepted processes and products. 
SECTION 28. Composition of NAMDAC. The NAMDAC shall be composed of 
representatives from the recognized and well established national association of 
assemblers, manufacturer, importers, suppliers and distributors of agricultural and 
fisheries machinery and equipment. The Undersecretary for Policy and Planning as 
Coordinator of the Program shall serve as ex-officio adviser to the NAMDAC 
The Agricultural Mechanization and Infrastructure Section of the NAFC that 
serves as Secretariat to the Agricultural and Fisheries Mechanization Committee 
(AFMeC) shall also provide the necessary technical and administrative support to the 
NAMDAC and hereby strengthened into a regular division of NAFC. 
SECTION 29. Role of Bureau of Postharvest Research and Extension. The Bureau 
of Postharvest Research and Extension (BPRE) is hereby strengthened and restructured 
into Philippine Institute for Postharvest Development and Mechanization (PhMech). Its 
existing research, extension and postharvest development services functions on 
postproduction is hereby expanded to include mechanization concerns. Likewise, its 
manpower complement shall be augmented to constitute at least one division on 
Mechanization Research Division with at least 15 technical personnel and two 
administrative staff. The BPRE shall coordinate, plan and execute agricultural and 
fishery mechanization and post harvest R&D and extension programs and projects of 
the Department. 
SECTION 30. Apicultural Machinery Testing and Evaluation Centers. The 
existing Agricultural Machinery Testing and Evaluation Center (AMTEC) of the College 
of Engineering and Agro-Industrial Technology (CEAT) of UPLB is hereby designated 
as the premier and reference Testing Center, and for purposes of functional 
coordination and integration, shall closely coordinate its activities with the BAFPMS. As 
the premier Testing Center, it shall assist the BAFPMS in the formulation of quality, 
safety and performance standards of agricultural and fisheries machineries and of 
accreditation guidelines for testing centers. It shall also provide technical assistance in 
the establishment of testing centers in other parts of the country. 
ARTICLE VI1 
RESPONSIBILITIES OF THE LOCAL GOVERNMENT UNITS 
11 


SECTION 31. Implementation by the Local Government Units. The Local 
Government Units, pursuant to the provisions oi Republic Act No. 7160, otherwise 
known as the Local Government Code, shall undertake applied research, extension, 
dispersal, management and regulation of agricultural and fisheries machinery and 
equipment including the collection of fees. 
SECTION 32. Institutionalization of the Agricultural Engineering Groups of the 
Local Government Units. The Provincial, City and Municipal Agricultural Engineering 
Group/Offices of the LGUs organized under Section 46 of R.A. 8435 and Executive 
Order No. 86, Series of 1999 are hereby strengthened and shall serve as the 
coordinating, planning, regulating and implementing bodies at the Provincial, City and 
Municipal levels on agricultural and fisheries infrastructure, engineering and 
mechanization projects. Specifically, it shall: 
1) Provide agricultural engineering services which include engineering 
survey, preparation and evaluation of 
plans, designs, technical 
specifications and feasibility studies of 
irrigation, small water 
impounding, farm machinery, slaugtherhouses, poultry dressing plants, 
post harvest facilities, auction markets, farm-to-market roads, and other 
agricultural and fisheries infrastructure projects of the lgus; 
2) Administer, supervise and coordinate the construction, operation, 
maintenance, improvement and management of irrigation, small water 
impounding, farm machinery, post harvest facilities, auction markets, 
farm-to-market roads and other agricultural and fisheries infrastructure 
projects of the lgus; 
3) Undertake the registration and enforcement of the Philippine Agricultural 
Engineering Standards and other regulatory activities on Agri-fishery 
machinery and facilities in coordination and collaboration with the Local 
Building Officials and concerned national government agencies; 
4) Coordinate with concerned national government agencies with regards to 
the implementation of national government programs and projects on 
irrigation, farm mechanization, post harvest facilities, farm-to-market 
roads and agricultural and fisheries infrastructure; 
5) Be in the frontline of the delivery of basic agricultural engineering 
services; 
6) Provide training and extension activities to farmers and fisherfolks 
particularly in the installation, operation and maintenance of their 
irrigation, post harvest facilities, agricultural and fishery machinery 
projects in coordination with the agriculture and fisheries extension 
workers 
7) Undertake and or coordinate the pilot testing and commercialization of 
matured agricultural and fisheries engineering technologies ; and 
8) Exercise such other powers and perform such other duties and functions 
as maybe prescribed by law or ordinance. 


In cases of provincial, city and municipal LGUs belonging to low income class 
which are not capable to establish its Agricultural Engineering Group due to financial 
constraints and limitations, the Department though its Regional Agricultural 
Engineering Divisions shall augment and perform such responsibilities, and as deemed 
necessary establish its provincial, city and municipal operation units, and shall be 
allocated and provided with necessary funding and manpower requirements for their 
operation. 
ARTICLE VI11 
MISCELLANEOUS PROVISIONS 
SECTION 33. Agricultural and Fisheries Mechanization Programs at the local 
levels. The Local Government Units through an. ordinance shall also formulate in 
consultation with the Department and implement their respective Provincial, City and 
Municipal Agricultural and Fishery Mechanization Plans as a vital component of their 
respective local development plans. 
SECTION 34. Contiguous Farming. The Department together with the 
Department of Agrarian Reform shall carry out contiguous farming projects in order to 
effect suitable field shapes and sizes conducive to efficient operation of agricultural 
machinery and equipment and likewise to ensure its economies of scale. 
The Contiguous Farming Projects shall: 
1) Promote farm land clustering with a minimum of 50-hectares cluster for 
synchronized farming operations from land preparation to harvesting in 
cooperation or contract with agricultural mechanized operation service 
providers; 
2) Undertake farm development planning; and 
3) Strengthening of farmers cooperatives and associations. 
SECTION 35. Use of Renewable Energy. The use of renewable and non- 
conventionaI energy such as wind, solar, hydro, bio-mass and other farm-based energy 
sources shall be promoted as power sources for the operation and maintenance of 
agricultural and fisheries machinery. The Department in coordination with the 
Department of Energy, DOST and State Colleges and Universities, and the private 
sector shall undertake research and extension activities to enhance the use renewable 
and non-conventional energy in agricultural and fisheries operations. 
ARTICLE 1X 
ENFORCEMENT 
SECTION 36. Penal Provisions. The following acts or omissions affecting the 
regulatory provisions of this Act are hereby prohibited: 
1) Selling, Mortgaging or leasing of .agricultural and fishery machinery 
without being registered with the BAFPMS; 
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2) Selling of new agricultural and fishery machinery without a serial 
number, without having been certified by an accredited certifying body, 
without warranty or without after sales service . 
3) Claiming ownership by any individual to an agricultural and fishery 
machinery that has not been properly registered in his/her name 
4) Operating a testing center without proper accreditation 
5) Violating the rules of safety operation by drivers and operators of 
agricultural and fishery machinery 
Penalty for the above prohibited Acts shall be punishable by a fine of not more 
than the value of the agricultural and fishery machinery involved. 
The purchase of non-certified or substandard agricultural and fishery machinery 
for the government shall be considered a corruption practice and shall be dealt with in 
accordance with the provisions of the Corrupt Practices Act. 
SECTION 37. Enforcement. This provision shall take effect four years upon the 
enactment of this Act when all regulatory provisions have already been in place. The 
Secretary has the power: 
a) To confiscate new agricultural and fishery machinery that is not duly 
certified, without serial number, without warranty or substandard; 
b) To close or bring to court any business entity that is not registered as 
manufacturers, assemblers, dealers or importers of agricultural and 
fishery machinery or that sells new agricultural and fishery machinery 
that has not been duly certified, without a serial number, or without 
warranty, without after sales service or substandard; and 
c) To close or bring to court any testing center that has not been duly 
accredited. 
The Secretary shall deputize the engineering offices of the LGUs to monitor the 
implementation of regulation concerning certification, registration of manufacturers, 
assemblers, dealers or importers and accreditation of 
agricultural and fishery 
machinery testing centers. 
Any business that sold a new agricultural and fishery machinery that has not 
been duly certified, without a serial number, withdut warranty, or without after sales 
service shall be given one month to refund or replace the sold machinery duly corrected 
for any deficiency as indicated. Failure to do so shall subject the business to closure or 
litigation initiated by the Secretary. 
SECTION 38. Implementing Rules and Regulations. The Department within six 
months upon the enactment of this Act and in consultation with the stakeholders and 
other government agencies shall promulgate the necessary rules and regulations to 
implement this Act. 
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SECTION 39. Funding. The amount necessary to carry out the program shall be 
incorporated in the General Appropriations Act. 
All funds currently allocated for agricultural and fisheries mechanization under 
the Agricultural and Fisheries Modernization Program, in particular, the Ginintuang 
Masaganang Ani (GMA) Programs for rice, corn, livestock, high value commercial 
crops and fisheries, and other locally or foreign assisted projects of the Department of 
Agriculture, and that of the Agrarian Reform Fuhds of the Department of Agrarian 
Reform (DAR) and the Department of Science and Technology (DOST), shall be 
integrated to constitute the initial Agricultural and Fisheries Mechanization Program 
Fund, and thereafter, shall be incorporated as part of the funding appropriation of the 
Annual General Appropriations Act; 
All Local Government Units shall likewise include in their investment plans, as 
part of the priority appropriations of their 10% Economic Development Fund, the 
funding support for the implementation of their respective provincial, city, municipal 
and barangay agricultural and fisheries mechanization programs; 
The Department shall set aside at least a total of PhP700 Million of the 
Agriculture Competitiveness Enhancement Funds (ACEF) to support this Act as 
follows: PhP300 Million for loans to local manufacturers, fabricators and assemblers of 
agricultural and fisheries machinery to establish manufacturing and service center 
facilities, PhP200 Million for loans to small farmers for the purchase of agricultural and 
fisheries machinery and PhP200 for grants to upgrade AMTEC and establishing one 
testing center in the Visayas and one testing center in Mindanao. The Secretary shall 
formulate guidelines for access, disbursement and repayment for these funds. 
The BAR shall set aside PW 5 million annually from its regular R&D funds to 
support patent applications and a research competitive grants program for the testing 
and certification of locally designed agri-fisheries equipment and machineries. 
The AT1 shall set aside at least PhPlO million annually of its AFMA budget to 
fund its mechanization promotion program. 
The Agricultural and Fisheries Mechanization Program Fund shall be managed 
by the Coordinator of the Program and shall be used for the following activities: 
1) Training of farmers, fisherfolk, farm workers, agricultural and fisheries 
machinery operators and technicians and program implementers; 
2) 
Upgrading of agricultural and fishery mechanization facilities and 
equipment of the Department of Agriculture and Local Government Units; 
3) 
Information campaign; 
4) 
Grants for the young entrepreneurs and agricultural engineers who intend 
to pursue agricultural and fishery machinery enterprises projects; and 
Strengthening the DA and LGU's Agricultural Engineering Groups. 
5) 
6) 
Formulation of regulations 
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SECTION 40. Congressional Oversight Committee. The Congressional Oversight 
Committee on Agricultural and Fisheries Modernization (COCAFM) shall be the 
congressional oversight committee for purposes of this Act. The COCAFM shall review 
and approve the implementing rules and regulations of this Act and also perform the 
following functions: 
a) Monitor and ensure the proper implementation of this Act; 
b) Review the proper implementation of the National Agri-fishery 
Mechanization Program and the use of its funds; and 
c) Such other functions it deems necessafy. 
In this regard, the President shall submit to the COCAFM, an annual report of 
Program implementation and corresponding budget request for the subsequent year. 
SECTION 41. Separability Clause. The provisions of this Act are hereby declared 
separable, and if any clause, sentence, provision or section hereof, should be declared 
invalid, such invalidity shall not affect the other provisions of this Act which can be 
given force and effect without the provisions which have been declared invalid. 
SECTION 42.RepeaZing Clause. All laws, decrees, executive orders and other 
administrative issuances and parts thereof which are inconsistent with the provisions of 
this Act are hereby repealed or modified accordingly. 
SECTION 43.Effectivity. This Act shall take effect fifteen (15) days after its 
publication in two (2) newspapers of general circulation. 
Approved. 
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