SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
) 
SENATE 
S.NO. 1121 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
'13 
JUL 29 
1\ 8 :56 
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 
cOWltries 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 cOWltries like 
Taiwan, Korea and Japan into the First World. 
A comprehensive program that can introduce mechanized farming to boast production is imperative. 
Through the Farm Machinery Manufacturing Program, this idea could be achieved. 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. 
"SONNY F. 
LLANES IV 
Senator 
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SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
) 
SENATE 
1121 
S.NO. __ 
_ 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
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'13 
JUL 29 118:56 
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: 
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SECTION 1. This Act shall be known as the "Farm Machinery Manufacturing Program 
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(FMMP) Act of2013." 
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SEC. 2. The following are the objectives of the FMMP: 
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a) Development of a viable farm machineries manufacturing industry 
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b) Technology transfer and development 
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c) Employment generation 
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d) Provide reasonable consumer price of farm machineries 
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e) Foreign exchange savings and earnings 
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SEC. 3. The Department of Trade and Industry (DT!) through the Board of Investment 
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(BOl), shall be responsible for the effective implementation of this program. 
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SEC. 4. After the approval of this Act, applications for the Registration as participant in 
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the FMMP together with the commitment of the applicants shall be submitted to the BOr within 
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thirty (30) days. The BOI shall decide on the acceptance or rejection of the applications with 
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, 
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thirty (30) days from submission, based on commitments which shall fonn part of the tenns and 
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conditions for their continued participation. 
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Approved participants shall be issued a Certificate of Registration by the BOI and shall 
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not comply with the tenns and conditions provided with the Contract. 
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The Certificate of Registration shall contain the commitments made by the proponents in 
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their proposals. 
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SEC 5. Fann machinery models and variants shall be registered and approved by the BOI 
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prior to its manufacture. 
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The following criteria shall be considered in defining a model: 
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a) body configuration 
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b) engine family / size 
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c) drive line configuration 
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A change in any two of the criteria from the basic models shall constitute a new basic 
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mode. A variant is delivered from the basic model but the change in any one of the 
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criteria: 
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The number of basic models and variants that a participant may have shall be maximum 
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of three (3) basic models and two (2) variants for each models unless otherwise decided 
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by the BOI. 
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The basic models and variants shall be retained by the participants for over a maximum 
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period of five (5) years in the Philippines, unless otherwise authorized by the BOI, taking 
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into accouut the capability of the local components and parts manufacturing industry. 
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SEC. 6. Increase use of local components over and above the prescribed local content 
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percentages shall be encouraged by an incentive scheme. 
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SEC. 7. The BOI shall promulgate the rules and regulations necessary for the effective 
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implementation of this Act. 
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SEC. 8. All privileges and exemptions mentioned in Republic Act 6135 otherwise known 
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as the Export Incentives Act of 1970 shall be extended to all Program participants. 
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SEC. 9. The amount necessary for the effective implementation of this Act shall be 
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charged to the appropriations for the Department of Trade and industry under the current General 
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Appropriations Act (GAA). :£'hereafter, such sum as may be necessary for the continued 
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implementation of this Act shall be included in the annual GAA. 
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SEC. 10. This Act shall take effect fifteen (15) days after its complete publication in at 
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least two (2) national newspapers of general circulation. 
Approved, 
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