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Republic of the Philippines
House of Representatives
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

5701

House Bill No.

Introduced by Representative Mark Llandro L, Mendoza

AN ACT
FURTHER EXTENDING THE PERIOD OF IMPLEMENTATION OF THE

ON AGRICULT!
ING THE AG RICULT! URAL
NT PU JND, AND FOR OTHER PURPOSES

ENHANCE

On March 28, 1996, Republic Act No. 8178 was signed into law which aimed, among
others, to maximize the country’s gain from the policy of trade liberalization and minimize
adjustment cost in the shift toward a liberalized trade regime, in order to increase agri
productivity and enable the agri sector top achieve higher levels of competitiveness. It had @
life span of nine (9) years which expired on December 2007. Republic Act 9496, enacted on
28 February 2008, extended the law up to 2015.

This bill seeks to further extend the law up to 2022 wherein the available funds shall
be used primarily to provide grant assistance to qualified beneficiaries while earmarking ten
percent (10%) for the finding of a comprehensive scholarship program for agriculture,

forestry, fisheries, and veterinary medicine education

The extension of the law will further boost the improvements we have gained, thus,

enactment is earnestly sought.


Republic of the Philippines
House of Representatives
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

5781

House Bill No.

Introduced by Representative Mark Llandro L, Mendoza

AN ACT

FURTHER EXTENDING THE PERIOD OF IMPLEMENTATION OF THE.
AGRICULTURAL COMPETITIVENESS ENHANCEMEN? FUND (ACEF), AMENDING
FOR THE PURPOSE REPUBLIC ACT NO. 8178, AS AMENDED BY REPUBLIC ACT
NO. 9496. ENTITLED; AN ACT REPLACING QUANTITATIVE IMPORT
RESTRICTIONS ON AGRICULTURAL PRODUCTS, EXCEPT RICE, WITH TARIFFS.
CREATING THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND.
AND FOR OTHER PURPOSES

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

SECTION 1. Section 8 of Republic Act No. 8178, entitled “An Act Replacing
Quantitative Import Restrictions on Agricultural Products, Except Rice. With Tariffs,
Creating the Agricultural Competitiveness Enhancement Fund, and for other Purposes
hereby amended, to read as follows:

C. 8. Agricultural Competitiveness Enhancement Fund. ~ To implement
the policy enunciated in this Act, there is hereby created the Agricu!tural
Competitiveness Enhancement Fund, hereinafter referred to as the Fund. “he
Fund shall consist of all duties collected from the importation of agricultural
products under the minimum access volume (MAV) mechanism, including
unused balances and collections from repayments from loan beneficiaries
including interests, if any. The Fund shall be automatically credited to Special
Account 183 in the General Fund of the National ‘Treasury: Provided. ‘That
fund releases shall not be subject to any ceiling by the Department of Budget
and Management (DBM).

“The fund shall continue to be set aside up to the year 2022, after
which the setting aside of the amount collected for the purpose shall


terminate. However, any remaining balance(s) at the date of expiration of the
Fund shall not revert to the General Fund but shall continue to be used for the
purpose for which it was collected and set aside.

“The Fund shall be set aside and earmarked Ly Congress: (a) for the
protection of farmers/fisherfolk against unfair trade practices such as
smuggling, dumping of agricultural products or other similar acts of unfair
trade practices; and (b) for the increased productivity of farmers/fisherfo'k by
providing the necessary support services such as, but not limited to, irrigas on.
farm-to-market roads, post-harvest equipment and facilities, credit, research
and development. other marketing infrastructure. provision of market
information, retraining. extension services. micro. small and medium scale
enterprises (MSMSE) in agriculture, aquaculture and fisheries sectors; young
entrepreneurs. out-of-school youth. graduates of agriculture, fisheries and
related courses; agriculture and fishery cooperatives. corporations and other
entrepreneurs engaged in economic enterprises related to agriculture and
fisheries and assistance and support to agricultural activities including, but not
limited to, the reduction of input cost. quality improvement, supply chain
efficiency and other infrastructure including access a3 well as an established
transportation mechanism towards speedy delivery of products: Provided.
That:

(1) preferential attention should be continuously given to products or
people adversely affected by the repeal or removal of quantitative import
restrictions to agricultural products as provided for in Section 4 of this Act;

(2) be consistent with the policies and priority thrusts under Republic
Act No. 8435, as amended, otherwise known as the Agriculture and Fisheries
Modernization Act and the revised Agriculture and Fisheries Modernization
Plan.

(3) be complementary and supportive of tle various and current
funding assistance windows or programs of the Department of Agriculture and
other government institutio

(4) enhance the competitiveness of target project beneficiarie. or
sectors, especially the small farmers and fisherfolk:

(5) provide product or service competitiveness in the local and foreign
markets in terms of product or service prices or fees and quality:

(6) promote upstream and downstream linkages with related and
complementary agricultural acti



(7) provide clear and verifiable proof of sustainability of operations;
and

(8) be beneficial to most, and not only selected, firms or groups within
a sector.

“For purposes of this Act, local government units, state
universities and colleges, other government institutions and accredited
non-government organizations, people’s organization, cooperatives,
farmer/fisherfolk organizations and other accredited similar organized
groups involved in agricultural development and promotion may avail of
the ACEF.

The Fund shall be set aside and used primarily to provide grant
assistance to qualified beneficiaries while earmarking ten percent (10%)
for the funding of a comprehensive scholarship program for agriculture,
forestry, fisheries and veterinary medicine education.

The provision of grant assistance shall be guided by a Strategic
Investment Plan to be formulated by the Department of Agriculture, in
consultation with the Congressional Oversight Committee on
Agricultural and Fisheries. Modernization (COCAFM) which shall
periodically evaluate the Plan and review the utilizs tion of the Fund.

The Plan shall take into consideration the urgency of supporting
priority interventions including, but not limited to, the following:

1) establishment of common service facilities (public investments)
for agri-based production and post-production and processing support
including agri-related infrastructures and equipment to promote modern
agricultural practices and create new markets;

2) funding of research and development and commercialization of
matured research technologies, including the upgrading of research
facilities;

3) conduct of market promotion activities; and

4) conduct of related feasibility studies and technical assistance.

A portion of the Fund, equivalent to 2% of the Fund running
balance or P20 million annually, whichever is lower, shall be set aside to
support the administrative and operating expenses of the ACEF Natis1a"
Technical Committee/Secretariat.

SECTION 2. The Department of Agriculture, in consultation with the
COCAFM, shall forthwith revise and promulgate such rules and guidelines as are


necessary to implement and ensure the widest possible information dissemination of the
provisions this Act.

SECTION 3. Repealing Clause. - Republic Act No. 8178 is hereby amended. All
laws, decrees, executive issuances, rules and regulations inconsistent with this Act are hereby
repealed or modified accordingly

SECTION 4.Separability Clause. ~ The provisions of this Act are hereby declared to
be separable and, in the event one (1) or more of such provisions are held unconstitutional,
the validity of the other provisions shall not be affected thereby

ION 5
Approved,

ffectivity. ~ This Act shall take effect immediately upon its approval