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oate: AUG, 4,3 2019

REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 3842

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

EXPLANATORY NOTE

Industrialization is a key to a nation’s progress. However, it is not only limited to business
enterprises and factories, but also to agriculture. Our country, though primarily an
agricultural-based economy, is still left behind in terms of production due to lack of modem
farm equipment that other agricultural countries have been already using.

The experience of countries that have agriculturally-based economies flourished through
planning on a concurrent industrial development program. The strategy has paid-off and
catapulted countries like Taiwan, South Korea and Japan into the First World.

A comprehensive program that can introduce mechanized farming to boost production is
imperative. This idea could be achieved through the Farm Machinery Manufacturing
Program. With this, local manufacturers will be encouraged 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 the products.

In view of the foregoing, this bill is earnestly recommended.

MANU! HAN Il
Representati
Magdalo Para sa Pilipino Party-List



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. _3842

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

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".

SEC. 2. The following are the objectives of the FMMP:

a)

Development of a viable farm machineries manufacturing industry;
b

Technology transfer and development;

°)

Employment generation;
d) Provide reasonable consumer price of farm machineries; and

@)

Foreign exchange savings and earnings.

SEC. 3. The Department of Trade and Industry (DTI), through the Board of
Investment (BOD), shall be responsible for the effective implementation of this program.

SEC. 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 with 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.


SEC 5. Farm machinery models and variants shall be registered and approved by the
BOI prior to its manufacture.

The following criteria shall be considered in defining a model:
a) body configuration;
b) engine family / size; and
©) 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 any one of the criteria:

The number of basic models and variants that a participant may have shall be
maximum of three (3) basic models and two (2) variants for each models 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.

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

SEC. 7. The BOI shall promulgate the rules and regulations necessary for the
effective implementation of this Act.

SEC. 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.

SEC. 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.

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

Approved,