ws

15" Congress
First Regular Session

House Bil Ro. 1432

INTRODUCED BY REPRESENTATIVE PRYDE HENRY A. TEVES

‘PLANATORY NOTE.

The country is now faced

two crucial issues and problems that need to be
addressed immediately and that 1s food security and poverty. With our growing
population, now close to 90 million our nze production at 8.99 million metric tons
is not enough to meet our rice consumption at 9.13 million metric tons (2007 BAS
data). As reported by PhilRice. the annual deficit of staple food particularly rice is
widening, hence production increase is only at 3.58% over rice consumption at
4.59 % increase.

Also, about 51% of our population resides in rural areas where 73% of this are
poor and mostly depends on a: Evelihood (www.icarrd.org), and
35% of the 34 million persons in the fabor force are employed in the agriculture
sector (www.bas.gov.ph, 2007 data)

Mechanizing the Philippine agriculture and ficheries will improve our land and
labor efficiency, thus there will be an increase in farm production and income due
to: 1} Increase :n cropping intensity: 2) better : growth due to better cultivation
thus increase in yield per unit area: 3) reduce ocet harvest losses now at 10-37%
for rice and 30% for com : 4) competitive pricing with product value adding
through agro-processing, anc 5} diversify farms and farm products, particularly to
intercrop the 21 million hectares coconut lands which remained idle and
underutilized for many years,

But how can these potentials for increased farm production and income will
happen, Mr. President when our country 1s now at the forefront of the lowest
mechanization level in Asia orly at 0.5? ho:sepower per hectare? While Japan is
now enjoying a rice production of 6.7 tons per hectare brought in by high
mechanization level of 2, China at 536 tons/ha, with 3.88 hp/ha
mechanization level , vet the Philippines is only at 2.64 tons per hectare with 0.56
hp/ha.

As reported in the findin AFMA Exp:
13th Congress by the Department of Ag
Committee on Agticulturai and
jarm_ mechani
fragmenied support services
machinery and limited fay
machinery and equipment

Review commissioned during the
2 and the Congressional Oversight
ishery Madernizatien (COCAFM), this dismal
the couniry 18 caused by inadequate yet
ad promotion prosram, proliferation of substandard
aczess ie appropriate and affordable farm



‘The proposed Agriculture and Fishery Mecnanization (AFMech) Law shall
address these issues and problems and seeks to

a) fix the implementing structure within the DA and LGUs and its inter-agency
collaboration so that farm mechanization support services shall be
effectively and efficiently delivered ever up to the barangays;

b) strengthen machinery testing and evaluation, standards development and
enforcement and monitoring through accreditation and registration system
to ensure the provision of quality machinery and equipment; and

) strengthen local manufacturing to lower down the investment costs and the
establishment agri-fishery machinery service centers in key production
areas for custom plowing, harrowing, harvesting, drying, milling and other
services which may be owned and operated by registered farmers
cooperatives and associations.

The proposed AFMech Law will also effect a new period in the agriculture sector
marked by agro-industrialization in the countryside and urban migration to rural
areas. With the increase of farm production and income and emergence of
agro-processing and machinery manufacturing, repair and maintenance
enterprises, more livelinood and employment opportunities shall be created

Moreover, it is also a strategic measure to prepare the agriculture sector for the
adverse effect of climate change.

Thus, | earnestly urge and request my colleagues for the support and approval of
this bill

PRYDE HPAIRY A. TEVES
ntative
3° pisyfét, Negros Oriental


of the Phil

HGUSE GP REPRES:

Repubii

ENTATIVES

fie 1434

Flouse

VDE HEWRY A. EVE

AN ACT
PROWOTING THE AC RAL AND FISHERIES MECHAN!
DEVELOPMENT iN THE COUNTRY

CATION

Be it enacted by the Senate and the Hor
in Congress assembled

2 of the Philippa:

SECTION 1. Tide. This Aci shall be Known as the Agneuiluial and
Fishenes Mechanization (AfMech) Law

ARTICLE:
DECLARATION CF POLICY,
DEFINITION OF TERMS AND COVERAGE

SECTION 2. Declaration of Policy. It shail be the policy of Ine Siate w

a) promote the development and adoption of miodern, appropiate and «
effecuve and environmentally safe agricultural and fisnenes macninery and
equipment to enhance faim productivity and efficiency in order to achieve foou
security and safety and farmers income:

b) provide a conducive environment to the local assembling and manutactuniny ot
engines, machinery and equipment for agricultural and fishenes produckon,
processing and marketing,

c. ensure the quality and safety of machineries and equipment ically
manufactured of imported by strengthening regulation through We
development and enforcement of mach and machine perionmance
standards, regular testing and evaluation, registration and the accreditation
and classification of suppliers, assemblers and manufactuers to
compliance to prescribed quality standards:

ensure

d strengthen support series like creat
extension programs, rural intra:
services;

cilies, fesearch waining and
(ures, post Harvest facilities and markeung

©. unify, rationalize and stengihen ine unpte:
Mechanisms on agficuitural ana fishe
projects: and

_ Coordination activities ana
mechanization programms and



f. 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.

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, meatfishery 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 date of manufacture;

». 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 nonconventional 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;

¢. 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 but not limited to
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. Program - refers to the National Agri-fishery Mechanization Program;

f. Department - refers to the Department of Agriculture;

g. Secretary - refers to the Secretary of Agriculture;

h. DOLE -refers to the Department of Labor and Employment;

i, DOST- refers to the Department of Science and Technology;


j. DTi-refers to Department of Trade and Industry;

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) PhilMech- refers to the Philippine Center for Post Harvest Development and
Mechanization ;
q) NAFC- refers to the National Agricultural and Fishery Council;

1) TESDA- refers to the Technical Education and Skills Development Authority;
8) 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 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, maintenance and project
implementation of agricultural and fisheries machinery and equipment.

ARTICLE I
THE NATIONAL AGRI-FISHERY MECHANIZATION PROGRAM

SECTION 5. The National Agri-fishery 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;

¢) establish quality, safety and performance standards for agricultural and
fisheries machinery;

4) support the establishment of quality, safety and performance testing centers
for the certification of agricultural and fisheries machinery in strategic localities
in the country;


e) establish guidelines for the registration of ownership of agricultural and
fisheries machinery; and

f) promote the adoption of certified agricultural and fisheries machinery for
improving agriculture and fishery productivity.

SECTION 6. Program implementation. The over-all implementation of the
National Agri-fishery Mechanization Program shall be coordinated by the
Department through the Undersecretary to be designated by the Secretary who
shall :

1) conduct the formulation and review of 5-year National Agri-fishery
Mechanization Program 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 Ill
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; Provided that
the Department through the PhilMech 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 modemization 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;

2) design and testing of new machineries and equipment for agriculture and
fisheries;

3) local manufacture and assembly of agricultural engines and equipment;

4) development and utilization of renewable and non-conventional energy
Tesources 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 PhilMech
shall_be responsible for organizing the Network and shall serve as Secretariat to
the Network. The Network shalt be chaired by the Director of PhilMech. Moreover,
the Agricultural Mechanization Development Program of the University of the
Philippines Los Banos, which is part of the Network shall be strengthened and
institutionalized to lead and coordinate the agricultural and fishery mechanization
research, development and extension program of all academic institutions in the
country


Section 9. Agri-Fisheries Machinery and Equipment Service
Centers- The Department and the LGUs shall encourage and support the private
sector and other rural entrepreneurs to establish and operate Agricultural and
Fishery Machinery and Equipment Service Centers in the Strategic Agricultural
and Fishery Development Zones (SAFDZs) and Agrarian Reform Communities
The Agri-Fisheries Machinery and Equipment Service Centers shall be operated
as business enterprises that will provide the following services

a) _ after-sales service and warranty to their respective clients;

b) custom plowing, harrowing, harvesting, drying, milling and other farm
mechanization services;

¢) 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 10. Agri-Fisheries Mechanization and Engineering Resource
Network. The existing agricultural machinery information and data base of BPRE
shall be strengthened into Agri-Fishery Mechanization and Engineering Resource
Network. It shall serve as_a network of information system and data bank on agri-
fisheries mechanization and engineering activities. It will also be used or tapped
as a facility for the on-line registration of agri-fisheries machinery and equipment.
and monitoring of agri-fisheries mechanization and infrastructure projects. This
network shall be linked to other existing information and data base networks of the
Department, Agricultural Machinery Information Network of DOST, Agricultural
Mechanization Development Program of UPLB and of other government
agencies

SECTION 11. 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

SECTION 12. Training and Scholarship Program. 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 fisherfoiks 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 agricultural


engineering and trade/vocational courses on agricultural and _ fisheries
mechanization shall be given priority by the Department, CHED and DOST.

SECTION 13. 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 14. Skills Certification 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,

ARTICLE IV
LOCAL ASSEMBLY, MANUFACTURE, SUPPLY
AND AFTER SALES SERVICE

Section 15. Local Assembling and Manufacturing - Production of
locally made engines and other machinery for agricultural and fisheries purposes
shall be promoted and encouraged by the Department in partnership with the
private sector, and through joint venture agreement. For this purpose, the
Department in partnership with the recognized national organization of agricultural
machinery assemblers, manufacturers and distributors, agricultural engineers and
the DOST shall undertake the feasibility study and R & D for the local assembly
and manufacture of agricultural engines/prime mover, and other agricultural
machinery and equipment

SECTION 16. Incentives for local manufacturers and assemblers of
agri-fisheries machinery. Ventures in local manufacture, fabrication and
assembly of agri-fisheries machinery and equipment shall be eligible for loans
under the ACEF, otherwise known as the Agricultural Competitiveness
Enhancement Fund under the Program of the Department of Agriculture. These
businesses shall be granted incentives as long as they are considered as
registered enterprises engaged in a preferred area of investment pursuant to
Article 39 of Executive Order 226 as amended. They shall be eligible to apply for
research grants from the Bureau of Agricultural Research (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 valued.

SECTION 17. Supply of Agricultural and Fisheries Machinery in
Government Procurement 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 tested by AMTEC 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
which shall be monitored by CAFEO.

ARTICLE V
TESTING AND EVALUATION, REGISTRATION,
STANDARDIZATION AND ACCREDITATION

Section 19. Testing and Evaluation - Agricultural and fisheries
machinery and equipment to be sold in the market shall pass through testing and
evaluation by AMTEC in accordance with the national policies and guidelines to
be promulgated by the Secretary. Specifically, before it can be assembled,
manufactured and commercially sold in the market, the model of the machine and
any modification thereof should be tested by AMTEC and should pass the
prescribed quality and performance standards. The regular testing and evaluation
of machinery sold shall be undertaken by AMTEC on new models and design.
Field tests shall likewise be undertaken by AMTEC to ensure consistent quality of
test units as well as on the commercial units. The BAFPS shall maintain a
certification registry of equipment and machinery as well as a registry of those
denied certification

SECTION 20. Registration of Ownership of Agricultural and Fishery
Machinery and Equipment. Ali owners of agricultural and fishery machinery and
equipment must register their property with the Agricultural Engineering Office of
Municipal and City Government Units.

The Agricultural Engineering Office of the Local Government Units shall
establish and maintain a registry of agricultural and fishery machinery at the
municipal, city and provincia! tevels. The DA Regional Agricultural Engineering
Division shall maintain a registry of agricultural and fishery machinery at the
Tegional office whereas the BAFPS 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
BAFPS


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
BAFPS the list of equipment/machinery manufactured fabricated/assembled/
imported.

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.

The Secretary shall deputize the agricultural 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.

Also, the Department of Public Works and Highways and the Local Building
Officials, consistent with the provisions of R.A No. 8559 and in coordination with
CAFEO 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

Section 23. Classification and Accreditation of Assemblers,
Manufacturers, Importers, Suppliers, Distributors and Dealers- Agricultural
and fisheries assemblers, manufacturers, importers and suppliers, distributors and
dealers shall be classified into small, medium and large, and shall be encouraged
to have their manufacturing/service facility build-up; Provided that agricultural and
fisheries machinery assemblers, manufacturers, importers, suppliers, distributors
and dealers shall be classified and accredited based on their organizational
strengths and track records, area of operation, marketing and distribution network,
after sales service and manufacturing capabilities.

SECTION 24. 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 end fisheries machinery and shall perform the following
functions


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;

©) 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,

SECTION 25. Composition of NAMDAC- The NAMDAC shall be
composed of the heads of CAFEO, PhiiMech, AFMeC, AMTEC and
representatives from the recognized and well established national association of
assemblers, manufacturer, importers, suppliers and distributors of agricultural and
fisheries machinery and equipment, and agricultural engineers.

The Infrastructure Support and Coordination Section of 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.

ARTICLE VI
INSTITUTIONS

SECTION 26. Agricultural and Fisheries Mechanization Committee.
The Agricultural and Fisheries Mechanization Committee (AFMeC) under the
NAFC shall act as an advisory body to ensure the success of the programs and
activities of the Department concerning agricultural and fisheries mechanization. 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.

The Agricultural and Fishery Mechanization Committees are likewise
organized and strengthened at the Regional, Provincial, City, Municipal and
Barangay Agricultural and Fishery Councils to integrate, coordinate, unify and
monitor the field implementation of agri-fisheries mechanization and infrastructure
projects of various national government agencies, local government units, banking
and financial institutions and the private sector.

SECTION 27. Strengthening the DA Agricultural and Fishery
Engineering Groups. Pursuant to Section 46 of RA. No. 8435, a Central
Agricultural and Fishery Engineering Office (CAFEO) is hereby created as one of
the regular service of the Department which shall be under the supervision of the
Department Undersecretary in-charge of National Agricultural and Fishery
Mechanization Program.


The CAFEO shall have the following functions and responsibilities:

1) Coordinate, oversee and monitor the national planning and implementation
of agri-fisheries engineering, farm-io-market roads and other agri-
fisheries infrastructure projects

2) Assist in the national planning, coordination and implementation of the
national agri-fisheries mecharization program;

3) Prepare, evaluate, validate and recommend engineering plans, designs
and technical specifications on agri-fisheries mechanization and
infrastructure projects ;

4) Oversee and provide technical assistance to the operations of Agricultural
Engineering Divisions of the DA Regional Field Units;

5) Coordinate and integrate all agricultural and fisheries engineering activities
of DA bureaus, attached agencies and corporations; and

6) Enforce standards and other regulatory policies on agricultural and fishery
engineering

Likewise, the Regional Agricultural Engineering Divisions (RAEDs) are
hereby strengthened, institutionalized or created in the Regional Field Units of the
Department to carry out the field implementation of the agricultural and fishery
engineering, mechanization and infrastructure programs and projects of the
Department.

All concerned DA bureaus and attached agencies implementing agri-fishery
mechanization and infrastructure projects such as but not limited to National Meat
Inspection Service, Bureau of Animal Industry, Bureau of Plant Industry,
Agricultural Training Institute, Bureau of Agricultural Research, Bureau of Soils
and Water Management, Bureau of Fisheries and Aquatic Resources, Philippine
Coconut Authority, Fiber Industry Development Authority, National Food Authority
and Sugar Regulatory Administration shall also establish or strengthen their
agricultural engineering services/division as part of the over-all network of
CAFEO.

Section 28. Philippine Center for Post Harvest Development and
Mechanization — The Philippine Center for Post Harvest Development and
Mechanization shall coordinate, plan and execute agricultural and fishery
mechanization and post harvest R and D and extension programs and projects of
the Department and its manpower complement shall be augmented to assume
these responsibilities.

SECTION 29. Bureau of Agriculture and Fisheries Products
Standards- The Bureau of Agriculture and Fisheries Products Standards
(BAFPS), in addition to its functions under Sections 62 and 63 of R.A. No. 8435
shall


1) set and implement standards for agricultural and fishery machinery and
equipment ;

2) formulate and enforce quality, safety and performance standards for
agricultural and fisheries machinery

3) formulate and enforce of accreditation procedures for testing centers for
agricultural and fisheries machinery

5) formulate guidelines for the registration of ownership of agricultural and
fishery machinery

6) __ maintain a national registry of agricultural and fisheries machinery certified
by accredited testing centers

7) maintain a national registry of testing centers for agricultural and fisheries
machinery

8) maintain a national registry of owners, manufacturers, fabricators,
assemblers and importers of agricultural and fishery machinery and
corresponding serial numbers

The BAFPS is hereby renamed into Bureau of Agriculture and Fisheries
‘Standards (BAFS) and authorized to create a new division on agricultural and
fisheries machinery regulations. !t may call upon experts, professional groups and
other government agencies to assist in the performance of its functions.

SECTION 30. Agricuitural 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 institutionalized and shall compose of a Director and technical and
administrative personnel. The AMTEC is hereby designated as the premier and
Feference Testing Center in the country, and for purposes of functional
coordination and integration, shall ciosely coordinate its activities with the BAFPS
As the premier Testing Center, it shall assist the BAFPS in the formulation of
quality, safety and performance standards of agricultural and fisheries machinery
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.

SECTION 31. Department of Agrarian Reform- The DAR in coordination
with the Department shall provide assistance to Agrarian Reform Beneficiaries in
securing their appropriate and needed agri-fisheries machinery and equipment
and/or the establishment of Agri-Fishery Machinery Service Centers as part of the
support services in the Agrarian Reform Communities. The DAR shall
complement the technical support services of the Department and the LGUs by
Pooling and mobilizing its agricultural engineers. in carrying out these tasks, the
DAR shall establish or strengthen its agricultural engineering services in its
central, regional and provincial offices.


ARTICLE VII
RESPONSIBILITIES OF THE LOCAL GOVERNMENT UNITS

SECTION 32. Implementation by the Local Government Units. The
Local Government Units, pursuant to the provisions of 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 33. Agricultural Engineering Offices of the Local
Government Units. The Provincial, City and Municipal Agricultural Engineering
Groups/Offices of the Local Government Units (LGUs) organized under Executive
Order No. 86, Series of 1999 and Section 46 of R.A 8435 shall serve as the
planning, coordinating, regulating and implementing bodies at the Provincial, City
and Municipal levels on agricultural and fisheries engineering, mechanization and
infrastructure programs and projects. Specifically, these Agricultural Engineering
Offices shall have the following functions and responsibilities.

1) provide agricultural engineering services which include engineering survey,
preparation and evaluation of plans, designs, technical specifications,
feasibility studies and cost estimates/program of work of irrigation, small water
impounding, soil conservation and management, 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, soil and
water conservation structures and facilities, 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 of agri-fishery machinery and facilities, enforcement
of the Philippine Agricultural Engineering Standards and other agricultural and
fishery engineering regulatory activities in coordination and collaboration with
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;

6) 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.

To effectively carry out the above functions and responsibilities, the
Provincial, City and Municipal Agricultural Engineering Offices are hereby
strengthened and institutionalized into the organizational structure of the LGUs,
and if not yet existing, shall be created in the particular LGUs. The LGUs
belonging to first up to third income class which are providing or implementing
agricultural and fishery infrastructure, mechanization and engineering projects
shall hire at least one agricultural engineer at the provincial, city and municipal
levels

In cases of provincial, city and municipal LGUs belonging to 4" to 6"
income class which are not capable to establish its Agricultural Engineering Office
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 Vill
PROHIBITED ACTS, PENALTIES AND SANCTIONS

SECTION 34. Prohibited Acts. It is unlawful for any person to

1) sell, mortgage or lease agricultural and fishery machinery without being
registered with the BAFPS;

2) __sell_new agricultural and fishery machinery with out warranty or after
sales service.

3) claim ownership to an agricultural and fishery machinery that has not been
properly registered in his/her name.

4) Operate a testing center without proper accreditation.

SECTION 35. Penalties- Any person who shall violate any provision of
Section 35 of this Act shall upon conviction, be subject to a fine of not less than
One thousand pesos (P1,000.00) but not more than Ten thousand pesos
(P 10,000.00) or imprisonment of not less than two (2) months but not more than
one (1) year, or both upon the discretion of the court, and/or other applicable
Penalties imposed under the Consumer Act of the Philippines.

The purchase of non- certified or substandard agricultural and fishery
machinery for the government shail be deait with the Corrupt Practices Act


SECTION 36. Sanctions. This provision shall take effect four years upon the
enactment of this law wher jory provisions have already been in place
The Secretary or his duly eq representative has the power to file before
the proper court the:

1. forfeiture proceedings for agricuitural and
certified, without serial number and without war

ery machinery that is not duly
anty, and is substandard;

2. closure proceedings against business entities not duly registered as
manufacturers, assemblers, dealers or imperters of agricultural and fishery
machinery, or sells new agricuitural and fishery machinery not duly certified,
without a serial number, or without warranty. without after sales service and
substandard; and

3. closure proceedings against testing centers that has not been duly accredited.

Any business that seil new agriculturat and fishery machinery which was not
duly certified, without a serial number, without 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 result to
corresporiding legal action against the offending party.

ARTICLE IX
MISCELLANEOUS PROVISIONS

SECTION 37. 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 Fisnery Mechanization Plans as a
vital component of their respective local development plans.

SECTION 38. Contiguous Farming. he Department together with the
Department of Agrarian Reform shall cary oui contiguous farming projects in
order to effect suitable field shapes and sizes conducive to efficient operation of
agricultural riachinery and equipment and Jikewise to ensure its economies of
scale

The Contiguous Farming Projects shail

1) promote farm land clustering with a minimum of 50-hectares cluster for
synchronized farming operations irom land preparation to harvesting in
cooperation or contract with agricultural mechanized operation service
providers;

2) undertake farm development planning: anc

3) promote the strengthes

ig of farmers operatives and associations.


SECTION 39. Use of Renewable Energy. The use of renewable and non-
conventional 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 Erergy. DOST and State Colleges and
Universities, and the private sector shali undertake research and extension
activities to enhance the use renewable and non-conventional energy in
agricultural and fisheries operations.

Section 40- Infrastructure Support- The government shall provide
priority investment for the infrastructure needs in clustered farm land identified as
key agricultural and fishery production areas to accelerate agricultural and
fisheries mechanization in the countryside and this include irrigation, farm-to-
market roads, post harvest, power and communications facilities.

SECTION 41. 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.

SECTION 42. Funding. 1) The amount necessary to carry out the program
and in the implementation of the following activities shall be incorporated in the
General Appropriations Act:

a) Training of farmers, fisherfolk, farm workers, agricultural and
fisheries machinery operators and technicians, agricultural
engineering extension workers and program implementers;

b) Upgrading of agricultural and fishery mechanization facilities and
equipment of the Department of Agriculture and Local Government
Units;

¢) _ Information campaign;

d) Grants for the young entrepreneurs and agricultural engineers who
intend to pursue agricultural and fishery machinery enterprises
projects:

€) Strengthening the DA and LGU's Agricultural Engineering Groups
f) Formulation of regulations.

2) All Local Government Units shall likewise include in their investment plans, as
part of the priority appropriations of their 20% Local Development Fund,
the funding support for the implementation of their respective provincial,
city, municipal and barangay agricultural and fisheries mechanization
programs;


4)

5)

6)

7)

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 P 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 CHED shall allocate funds from the Higher Education Development
Fund necessary for the upgrading of agri-fishery mechanization laboratory
facilities, of concerned State Colleges and Universities, faculty training
program and scholarships;

The DAR shall allocate funds from the Agrarian Reform Fund necessary for
the provision of appropriate and needed agri-fisheries machinery and
equipment to Agrarian Reform Beneficiaries and/or the establishment of
Agri-Fishery Machinery Service Centers in the Agrarian Reform
Communities;

The TESDA shall allocate funds from its annual appropriations necessary
for the skills certification and training program for agri-fishery machinery
technicians and operators.

SECTION 43. Congressiona! 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 perform the following functions

a)

a)

°)

Monitor and ensure the proper implementation of this Act;

Review the proper implementation of the National Agri-fishery
Mechanization Program and the use of its funds; and

Such other functions it deems necessary.

In this regard, the President shall submit to the COCAFM, an annual report of
Program implementation.

SECTION 44. 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 45.Repealing 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 46.Effectivity. This Act shall take effect fifteen (15) days after its
publication in two (2) newspapers of general circulation

Approved.