Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH Congress
First Regular Session

House Bill No. 822

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
PROMOTING AND DEVELOPING AGRICULTURAL AND
FISHERIES MECHANIZATION IN THE PHILIPPINES

EXPLANATORY NOTE

The Philippine agriculture and fisheries sectors have huge labor and
livelihood generating potentials, particularly in the areas of agricultural and
fisheries products and by-products processing, intensification and
diversification of agricultural and fishery production systems. To fully harness
these, appropriate and efficient agricultural and fisheries machinery for the on-
farm and off-farm operations covering all types of crops, livestock and
fisheries are needed.

Unfortunately, the present level of agricultural and fisheries
mechanization in the Philippines is quite dismal when benchmarked with its
Asian neighbors such as Korea. The country's low level of mechanization is
highly attributed to the various technical and socio-economic constraints such
as lack of investment in research and development, inadequate training and
extension, poor manufacturing technology, lack of credit and low farming
income. Other problems include the inadequacy of after sales service, supply
of substandard agricultural and fishery machinery particularly in the
government procurement program and the sporadic, fragmented and
disorganized implementation of agricultural and fishery mechanization. To
rectify this, the Bill seeks to establish a system of accreditation and
classification of agricultural and fishery machinery suppliers and
manufacturers, state of the art testing and evaluation, continued standards
development and enforcement and responsive and adequate support
services.

Moreover, to ensure rational planning, distribution of and investment on
agricultural and fishery machinery, there is also a need for an updated and


reliable database and information system. The development and
implementation of a nationwide registration system on agricultural and fishery
machinery is thus seen as a viable solution to this concern.

In view of the foregoing, a law must be passed to consolidate, integrate
and strengthen all existing policies and programs in order to realize the
country's efforts towards agriculture and fisheries mechanization, Because of
the paramount significance of this Bill, we urge our colleagues to support its
approval

DIOSDADO MAGAPABAL ARROYO —_ GLORIA MACAPAGAI/ ARROYO
Second District, Camarines Sur cond District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

- 822

House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
PROMOTING AND DEVELOPING AGRICULTURAL AND
FISHERIES MECHANIZATION IN THE PHILIPPINES

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 Act of 2010."

CHAPTER I

DECLARATION OF POLICY,
DEFINITION OF TERMS AND COVERAGE

SECTION 2. Declaration of Policy.--- It is hereby declared to be the policy of
the State to:

a. Promote the development and adoption of modern,
appropriate, cost-effective and environmentally safe agricultural
and fisheries machinery and equipment in support of land
consolidation and machinery pooling;

b. Encourage local manufacturing of engines, machinery
and equipment for agricultural and fisheries production, processing
and marketing;


c. Develop and enforce machinery and machine
performance standards, regular testing and evaluation, registration
and the accreditation and classification of suppliers and
manufacturers to ensure compliance to prescribed quality
standards of locally manufactured and imported agricultural and
fisheries machinery and equipment;

d Make available support services like credit facilities,
research, training and extension programs, rural infrastructures and
marketing services to agricultural and fish workers;

e. Unify, rationalize and strengthen the implementation,
coordination activities and mechanisms on agricultural and fishery
mechanization programs and projects; and

f. Deliver integrated support services to farmers,
fishermen and other stakeholders, and assist them in  viably
operating and managing their agricultural and fisheries machinery
projects.

SECTION 3. Definition of Terms.--- As used in this Act, the following terms
shall be construed to mean as follows:

a. Agricultural and Fisheries Machinery and Equipment-
refers to machinery and equipment for producing, harvesting,
processing, storing, manufacturing, preserving, transporting and
distributing agricultural and fishery products. It includes but is not
limited to tractors and their attachments, power tillers, seeders,
transplanters, windmill, slaughtering equipment, _ 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, strippers, agricultural transport machinery and storage
facilities including cold storage, reefer vans, slaughter houses and
fishing vessels;

b. Agricultural and Fisheries Mechanization- refers to
the development, adoption, manufacture and application of
appropriate, location-specific and cost-effective agricultural and
fishery technology using human, animal, mechanical, electrical and
other non-conventional sources of energy for agricultural production
and postharvest/post production operations consistent with


agronomic conditions and efficient and economic farm and fishery
management towards the modernization of agriculture and fisheries
sectors;

¢. _Agro-Industrial Processing- includes local activity or
series of activities intended to maintain or raise the quality or
change the form or characteristics of agricultural, fishery and
forestry products. The same includes cleaning, sorting, grading,
mixing, milling, canning, dressing, slaughtering, _ freezing,
pasteurizing, conditioning, packaging, repacking and transporting;

d. Fishing Vessel- any boat, ship or other watercraft
equipped for taking fishery species or aiding or assisting one (1) or
more vessels in the performance of any activity relating to fishing,
such as preservation, supply, storage, refrigeration, transportation
and/or processing of fisheries products;

e. Department — refers to the Department of Agriculture;
and

f. Secretary- refers to the Secretary of Agriculture.

SECTION 4. Scope and Application. The provisions of this Act shall apply
to the research, development and extension, promotion, distribution, supply and
manufacture, regulation, use, operation and maintenance of agricultural and
fisheries machinery and equipment.

CHAPTER II

RESEARCH, DEVELOPMENT AND EXTENSION

SECTION 5. Unified National Research and Development and Extension
Agenda.--- The Department, through the Central Agricultural and Fishery
Engineering Office (CAFEO), Bureau of Agricultural Research (BAR), Agricultural
Training Institute (ATI), Bureau of Fisheries and Aquatic Resources (BFAR), and
National Fisheries Research and Development Institute (NFRDI), shall formulate
and implement a unified National Agricultural and Fisheries Mechanization
Research and Development and Extension (RDE) Agenda and integrate all
agricultural and fisheries mechanization RDE programs and projects of all
concerned national government agencies, local government units, state colleges
and universities with the view of generating jobs, addressing market and industry

demands and accelerating agricultural and fisheries modernization in the
countryside.


The National Agricultural and Fisheries Mechanization RDE Agenda shall
embody but will not be limited to the following:

a. Developing, pilot testing and commercializing
appropriate, location specific and cost-effective agricultural and
fisheries machinery and equipment;

b. Local manufacture of agricultural engines and
equipment;
c. Development and utilization of renewable sources of

energy such as bio-fuels;

d. Development of efficient production and post-
production mechanization systems; and

e. Development of technical standards and testing
procedures for quality agricultural machinery and components;

fi Training of farmers, fisherfolk, manufacturers,
extension workers, agricultural engineers, technicians and
operators engaged in agricultural and fisheries machinery;

Promotion of technologies through agricultural and
industrial extension activities and techno-demo centers;

he Development of prototype and fabrication of
agricultural machinery and equipment; and

i Development and conduct of commercialization
strategies involving all sectors representing the demand and supply
sides of agricultural and fisheries mechanization technologies.

SECTION 6. Agri-Fisheries Mechanization RDE Network.--- An
Agricultural and Fisheries Mechanization RDE network is hereby organized,
composed of research and education institutions, local government units, non-
government agencies and recognized associations of agricultural and fishery
machinery manufacturers and distributors, agricultural engineers and farmers
and fisherfolk organizations.

SECTION 7. Agri-Fisheries Machinery and Equipment Service Centers.---
The Department, in coordination with the various local government units shall
establish an Agricultural and Fishery Machinery Service Center in the Strategic
Agricultural and Fishery Development Zones (SAFDZs), and at least one (1) in
each municipality and/or barangay, if applicable and feasible, in order to


accelerate agricultural and fishery modernization in the countryside; provided,
that the foregoing shall form part of the major basic services of local government
units in the barangays, municipal/city and provincial levels.

SECTION 8. Agricultural and Fisheries Machinery Information Network.
An Agricultural Machinery Information Network (AgMachiN) shall be organized to
function 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 fishery machinery

SECTION 9. Skills Certification of Agricultural Machinery Technicians and
Operators.-- The Technical Education and Skills Development Authority
(TESDA) in collaboration with the Department, the Philippine Society of
Agricultural Engineers (PSAE) and the Board of Agricultural Engineering of the
Professional Regulation Commission (BOAE-PRC) shall provide skills
certification and accreditation systems for agricultural and fishery machinery
operators and technicians.

CHAPTER Ill

SUPPLY, LOCAL MANUFACTURE AND
AFTER SALES SERVICE

SECTION 10. Local Manufacturing. Production of locally made engines
and other machinery for agricultural and fisheries purposes shall be promoted
and encouraged. For this purpose, the Department, in partnership with the Metal
Working Industry Association of the Philippines (MIAP), Society of Aquaculture
Engineers of the Philippines (SAEP), Philippine Society of Agricultural Engineers
(PSAE) and the DOST-PCARRD, among others, shall undertake the feasibility
study and R & D for the local manufacture of agricultural engines/prime mover,
and other agricultural machinery and equipment.

SECTION 11. Exemption from Import Duties.-- To support the local
agricultural manufacturing industry, the latter is hereby exempted from the
payment of import duties arising from the importation of raw materials required
for their manufacture and fabrication of agricultural and fisheries machinery and
equipment

SECTION 12.. Classification and Accreditation of Manufacturers, Importers,
Suppliers, Distributors and Dealers. Agricultural and fisheries 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
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 13. Supply of Agricultural and Fisheries Machinery in
Government Procurement Program.-— Only manufacturers, importers, suppliers,
distributors and dealers duly accredited pursuant to Section 9 hereof shall be
eligible to supply government procurement requirements on agricultural and
fisheries machinery and equipment on the basis of their classification rating.

SECTION 14. After-Sales Service.--- All agricultural and fisheries machinery
manufacturers, importers, suppliers, distributors and dealers are required to
provide after-sales service and warranty to their respective clients including
insurance coverage for “wear and tear” during the warranty period

CHAPTER IV

REGISTRATION, LICENSING AND STANDARDIZATION

SeEcTION 15. Testing and Evaluation.--- Agricultural and fisheries
machinery and equipment to be sold in the market shall pass through testing,
and evaluation by the Agricultural Machinery Testing and Evaluation Center
(AMTEC) in accordance with the national policies and guidelines to be
promulgated by the Secretary. Specifically, before agricultural and fisheries
machinery can be manufactured and commercially sold, a model of the machine
and any modification thereof will be tested by the AMTEC and should pass
prescribed quality and performance standards specified under Section 17 of this
Act. The regular testing and evaluation of machinery sold shall be undertaken
every five (5) years by AMTEC.

SECTION 16. Registration of Agricultural and Fishery Machinery.---

a All agricultural and fisheries machinery shall be
registered in all municipal and city local government units through
the Office of the City/Municipal Agricultural Engineer.

b. The registration information shall include the engine
serial number, name and address of the owner, technical
specifications, date of acquisition and acquisition value of the
agricultural and fishery machinery being registered;

¢. The Provincial Agricultural Engineering Groups of the
local government units shall establish and maintain a provincial
data on alll agricultural and fishery machinery being registered, with


the DA Regional Agricultural Engineering Division being
responsible for the regional data and the DA Central Agricultural
Engineering Group, for the national data using the facilities of the
AgMachiN

d. The Secretary in consultation with the private sector
and local government units shall promulgate national guidelines
and procedures in the registration of agricultural and fishery
machinery by the local government units including the collection of
registration fees. The amount collected should be utilized to fund
the operation of the service centers established by this Act.

SECTION 17. Standards Development and Enforcement--- The
Department, in coordination with the Departments of Trade and Industry (DTI)
and Science and Technology (DOST), Board of Agricultural Engineering of the
Professional Regulation Commission (BOAE-PRC), Agricultural Machinery
Testing and Evaluation Center (AMTEC) and in consultation with the accredited
associations of farmers and fisherfolk, agricultural machinery 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 (ISO).

Thereafter, the Department shall enforce the said standards on the
manufacture, sale and distribution on agriculture and fisheries machinery and
equipment.

ARTICLE V
INSTITUTIONS,

SECTION 18. Agricultural and Fisheries Mechanization Committee.--- The
existing Agricultural and Fisheries Mechanization Committee (AFMeC) under the
National Agricultural and Fishery Council (NAFC) is hereby reorganized to act as
an advisory body to ensure the success of the programs and activities of the
Department concerning agricultural mechanization

SECTION 19. Strengthening the DA Agricultural Engineering Groups.-—~- An
Agricultural and Fisheries Mechanization and Infrastructure Service is hereby
cfeated under the Department which shall be headed by an Executive Director to
coordinate, oversee, plan, implement and monitor agricultural and fishery
mechanization and other infrastructure programs and projects which the
Department is mandated to implement under Sections 46-59 of the Agriculture
and Fisheries Modernization Act; provided, that the Regional Agricultural
Engineering Divisions of the Department Regional Field Units are hereby


institutionalized to carry out the field implementation of the agricultural and
fishery mechanization and infrastructure programs; provided further, that all
activities and services of the Department involving agricultural and fishery
mechanization and infrastructure are transferred and integrated into the CAFEO.

SECTION 20. Institutionalization of the NAMDAC Board.--- The National
Agricultural and Fisheries Machinery Manufacturers, Importers, Distributors and
Dealers Accreditation and Classification (NAMDAC) Board is hereby
institutionalized to serve as the sole national accreditation and classifying body
on agricultural and fisheries machinery and shall perform the following functions:

a Establish an updated and accurate data base on their
sector;

b. Formulate policies, guidelines and criteria for
acereditation and classification on manufacturers of agricultural and
fishery 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 manufactuirers’/dealers’
associations conduct regular inspection of agricultural and fisheries.
machinery fabrication plants to ensure compliance with accepted
processes and products.

SECTION 21. Composition of NAMDAC.--- The NAMDAC shall be
organized by the private sector and shall include representatives from the
manufacturers, importers, suppliers and distributors of agricultural machinery and

equipment. The heads of CAFEO and AMTEC shall also be members of
NAMDAC.

SECTION 22. Agricultural Machinery Testing and Evaluation Center.--- The
existing Agricultural Machinery Testing and Evaluation Center (AMTEC) is
hereby institutionalized as a Center under the College of Engineering and Agro-
Industrial Technology (CEAT) of UPLB, and for purposes of functional
coordination and integration, shall closely coordinate its activities with the
CAFEO.


ARTICLE VI

RESPONSIBILITIES OF THE LOCAL GOVERNMENT UNITS

SECTION 23. Implementation by the Local Govemment Units. The
various 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 in accordance
with the national policies, procedures, guidelines and rules and regulations as
promulgated by the Secretary.

SECTION 24. Role of the Agricultural and Fishery Engineering Offices of
the Local Government Units.—-The Provincial, City and Municipal Agricultural
Engineering Offices of the local government units organized under Section 46 of
R.A. 8435, Executive Order No. 86, Series of 1999 are hereby strengthened and
shall serve as the coordinating, planning, regulating and implementing body at
the provincial, city and municipal levels on agricultural and fishery machinery.

ARTICLE Vil

MISCELLANEOUS PROVISIONS,

SECTION 25. Agricultural and Fisheries Mechanization Plan. The
Department shall formulate a National Agricultural and Fisheries Mechanization
and Infrastructure Plan upon approval of this Act.

The local government units through an ordinance shall also formulate and
implement their respective Provincial, City and Municipal Agricultural and Fishery
Mechanization Plans as a vital component of their respective Agricultural and
Fishery Modernization Plans.

SECTION 26. Implementing Rules and Regulations.- The Department in
consultation with stakeholders shall promulgate the necessary rules and
regulations necessary for the effective implementation of this Act.

SECTION 27. Appropriation The amount necessary to carry out the
program shall be incorporated in the General Appropriations Act.

All funds currently allocated for agricultural and fisheries machinery and
infrastructure projects under the Agricultural and Fisheries Modernization
Program, in particular, the Ginintuang Masaganang Ani (GMA) Programs for


tice, cor, livestock, HVCC and fisheries, and other locally or foreign assisted
projects of the Department of Agriculture, and that of the Agrarian Reform Funds
of the Department of Agrarian Reform (DAR) and that of the Department of
Science and Technology (DOST) shall be integrated to constitute the initial
Agricultural and Fisheries Machinery and Infrastructure Program Fund, and
thereafter, shall be incorporated as part of the funding appropriation of the
Agricultural and Fisheries Modernization Program.

All local government units shall likewise include in their investment plans,
as part of the priority appropriations of their 20% Economic Development Fund,
the funding support for the implementation of their respective provincial, city,
municipal and barangay agricultural and fisheries mechanization and
infrastructure programs.

The Agricultural and Fisheries Machinery and Infrastructure Program Fund
shall be used for the following activities:

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

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

©. Investment and Feasibility studies on agricultural and
fisheries machinery and infrastructure projects;

d. Information campaign;

e. Testing and evaluation of AMTEC;

f. Registration of agricultural and fisheries machinery
and equipment and other regulatory activities;

g. Agricultural and Fisheries Machinery Demonstration
Centers;

h. Research and development on the manufacturing of
local engines;

i. Provide grants for young entrepreneurs and
agricultural engineers who intend to pursue agricultural and fishery
machinery enterprises projects; and


Strengthening the Department and local government
units’ Agricultural Engineering Groups

SECTION 28. 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 29. Repealing Clause All laws, or parts thereof, inconsistent
herewith are hereby repealed or modified accordingly.

SECTION 30. Effectivity-- This Act shall take effect fifteen (15) days after
its publication in two (2) newspapers of general circulation.

Approved,