FOURTEENTH CONGRESS OF THE REPUBLIC 
Second Regular Session 
8 BUG 20 
'j? 
OF THE PHILIPPINES 
Countries 
A
m
 
Japan 
2,028,000 
India 
1,525,000 
Cluna 
975,000 
Thailand 
220,000 
South Korea 
192,000 
- 
S. B 
HarvesterdThreshers (No.) 
1,042,000 
4,000 
263,000 
70,000 
87,000 
INTRODUCED BY SENATOR VILLAR 


Vietnam 
Indonesia 
Taiwan 
Philippines 
Mvanmar 
Source : (PhilSCAT Study and PCARRD report, 2003). 
163,000 
163,000 
70,000 
330,000 
14,000 
10,000 
12,000 
1,000 
1 1 .000 
12.000 
This mechanization level is far below with other Asian countries like the Republic of 
Korea with about 4.1 1 hpha and the People’s Republic of China with 3.88 hpha. Only about 
2% of the agricultural areas are mechanized, and there are about 102 tractors and 6 
harvesters/ threshers per 1,000 hectares (Ang Krisis sa Pagkain, Ibon Facts and Figures, 
April-May 2008). 
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. Towards this end, there must be in place 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. 
To ensure rational planning, distribution and investment of agricultural and fishefjr 
machinery, there is also a need for an updated and reliable database and information sy’st&in. 
The development and implementation of a nationwide registration system on agricultural add 
fishery machinery is a possible solution to this concern. 
Parallel to the above requisites, it is important to guarantee that the various 
mechanization development activities of the key players in the agriculture sector are put into 
a comprehensive and integrated national effort to effectively address urgent as well as 
emerging agriculture and food needs. 
In view of the foregoing, a law should be passed to consolidate, integrate and 
strengthen all existing policies and programs in so far as agricultural and fishery 
mechanization, known as “Agricultural and Fisheries Mechanization Law”. 
MANNY VIV 
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FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
SENATE 
INTRODUCED BY SENATOR VILLAR 
AN ACT 
PROMOTING THE AGRICULTURAL AND FISHERIES MECHANIZATION 
DEVELOPMENT IN THE COUNTRY 
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 (AFMech) Law of 2008. 
ARTICLE I 
DECLARATION OF POLICY, 
DEFINITION OF TERMS AND COVERAGE 
Section 2. 
Declaration of Policy - It shall be the policy of the State to : 
promote the development and adoption of modern, appropriate and cost-effective and 
environmentally safe agricultural and fisheries machinery and equipment to enhance farm 
productivity and efficiency in order to achieve food security and safety; 
provide a conducive environment to the local manufacturing of engines, machinery and 
equipment for agricultural and fisheries production, processing and marketing 
strengthen the regulatory activities through the development and enforcement of 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; 
strengthen support services like credit facilities, research, training and extension programs, 
rural infrastructures and marketing services; 
unify, rationalize and strengthen the implementation, coordination activities and mechanisms 
on agricultural and fishery mechanization programs and projects ; and 
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deliver integrated support services to farmers, fishermen and other stakeholders, and assist 
them to be able to viably operate and manage their agricultural and fisheries machinery 
projects. 
Section 3. 
Definition of Terms : 
Agricultural and Fisheries Machinery and Equipment - refers to machinery and equipment 
for the production, harvesting, processing, storage, manufacture, preserving, transporting and 
distribution of agricultural and fishery products. It includes but is not limited to tractor 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, meavfishery 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. 
Agricultural and Fisheries Mechanization - is 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 for efficient and economic farm and fishery management 
towards modernization of agriculture and fisheries. 
Agro-Industrial Processing - shall include local activity or series of activities to maintain or 
raise the quality or change the form or characteristics of agricultural, fishery and forestry 
products. It also includes cleaning, sorting, grading, mixing, milling, canning, dressing, 
slaughtering, freezing, pasteurizing, conditioning, packaging, repacking and transporting. 
5) 
Secretary- refers to the Secretary of Agriculture 
BOAE- Board of Agricultural Engineering of the Professional Regulation Commission 
DOLE- Department of Labor and Employment 
DOST-Department of Science and Technology 
DTI- Department of Trade and Industry 
TESDA- Technical Education and Skills Development Authority 
CHED- Commission on Higher Education 
AMTEC- Agricultural Machinery Testing and Evaluation Center, University of the 
Philippines, Los Banos 
Section4. 
Scope and Application - The provisions of this Act shall apply to the 
research, development and extension, promotion, distribution, supply and manufacturing, 
Department - refers to the Department of Agriculture; 
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regulation, use, operation and maintenance of agricultural and fisheries machinery and 
equipment. 
ARTICLE I1 
RESEARCH, EXTENSION AND HUMAN RESOURCE DEVELOPMENT 
Section 5. Unified National R & D and Extension Agenda 
a) A unified National Agricultural and Fisheries Mechanization R & D and Extension (RDE) 
Agenda shall be formulated and implemented by the Department and shall integrate 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, shall be geared towards job generation, address market and industry demands 
and help accelerate agricultural and fisheries modernization in the countryside. 
b) The National Agricultural and Fisheries Mechanization RDE Agenda shall include but 
shall not be limited to the following: 
development, pilot testing and commercialization of appropriate, location specific and cost- 
effective agricultural and fisheries machinery and equipment in support to land consolidation 
and machinery pooling; 
Local manufacture of agricultural engines and equipment; 
Development and utilization of renewable energy resources such as bio-fuels; 
Development of efficient production and postproduction mechanization systems; and 
Development of technical standards and testing procedures for quality agricultural machinery 
and components; 
Training of farmers, fishemen, manufacturers, extension workers, agricultural engineers, 
technicians and operators engaged in the agricultural and fisheries machinery; 
Promotion of technologies through agricultural and industrial extension 
techno-demo centers: 
activities and 
Development of prototype and fabrication of agricultural machinery and equipment; and 
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 Research, Development and Extension @DE) network is hereby 
organized, composed of research and education institutions, Local Government Units, non- 
government agencies and the recognized associations of agricultural and fishery machinery 
manufacturers and distributors, agricultural engineers and farmers and fishermen 
organizations. 
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Section 7. 
Agri-Fisheries Machinery and Equipment Pools and Service Centers - The 
Department of Agriculture and the Local Government Units in partnership with the private 
sector shall establish Agricultural and Fishery Machinery 
Pools and Service Centers 
Strategic Agricultural and Fishery Development Zones (SAFDZs), at least one in each 
municipality and/or barangay if applicable and feasible so as to accelerate agricultural and 
fishery modernization in the countryside; Provided fiurther that these shall form part of the 
major basic services of the Local Government Units in the barangays, municipal/city and 
provincial levels, in addition to the basic services mandated under the Local Government 
Code. 
Section 8. Agricultural and Fisheries Machinery Information Network - The 
Agricultural Machinery Information Network (AgMachIN) of the Department and the DOST 
shall be strengthened to serve 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 
TESDA in collaboration with the Department, BO&, 
NAMDAC and the national 
associations of agricultural engineers and agricultural machinery manufacturers and 
distributors shall undertake skills certification and accreditation systems for agricultural and 
fishery machinery operators and technicians. 
Section 10. Research Grants- To enhance research and technological development on 
agricultural and fishery mechanization, the government through the Department, DOST and 
CHED shall provide research grants to strategic research institutions including concerned 
State Colleges and Universities to undertake needs oriented research as well as institutional 
development and upgrading of laboratory facilities and equipment. 
Section 11. 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 fishermen on 
agricultural and fishery mechanization technologies and practices. The DOLE and TESDA 
shall be responsible in the training of agricultural and fishery machinery technicians and 
operators. Scholarships for graduate and undergraduate degree on agricultural engineering 
and trade/vocational courses on agricultural and fishery mechanization shall be given priority 
by the Department, CHED and DOST. 
Section 12. Manpower Complement. - All agricultural and fishery machinery pools, 
and service centers including sales and distribution outlets and manufacturing establishments 
either public or private shall have the required manpower complement of agricultural 
engineers and skilled technicians and operators in accordance with the guidelines and 
standards to be adopted and promulgated by the BOAE and DOLE to ensure efficient 
operation and maintenance and good management practices. 
ARTICLE I11 
LOCAL MANUFACTURE, SUPPLY AND 
AFTER SALES SERVICE 
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Section 13. 
Local 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 Metal Working Industry Association of the Philippines 
(MIAP) and through joint venture agreement. For this purpose, the Department 
in 
partnership with the recognized national organization of agricultural machinery 
manufacturers and distributors, agricultural engineers and the Department of Science and 
Technology shall undertake the feasibility study and R & D 
for the local manufacture of 
agricultural enginedprime mover, and other agricultural machinery and equipment. 
Section 14. Exemption from Import Duties- To support the local agricultural 
manufacturing industry, the latter is hereby exempted from the payment of import duties 
arising from importation of raw materials and components, engine and mechanical parts 
required for their manufacture and fabrication of agricultural and fisheries machinery and 
equipment. 
Section 15. 
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 16. Supply of Agricultural and Fisheries Machinery in Government Procurement 
Program - Only manufacturers, importers, suppliers, distributors and dealers accredited by 
NAMDAC shall be eligible to supply government procurement requirements on agricultural 
and fisheries machinery and equipment based on their classification rating; 
Section 17. 
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 which shall be monitored by the DA and NAMDAC. 
ARTICLE IV 
REGISTRATION, LICENSING AND STANDARDIZATION 
Section 18. 
Testing and Evaluation - Agricultural and fisheries machinery and 
equipment to be sold in the market shall pass through testing, and evaluation by the AMTEC 
in accordance with the national policies and guidelines to be promulgated by the Secretary of 
Agriculture. Specifically, before it can be commercially sold, a model of the machine and any 
modification thereof should be tested by AMTEC and should pass prescribed quality and 
performance standards before it is manufactured and sold in the market. The regular testing 
and evaluation of machinery sold shall be undertaken every five years by AMTEC. 
Section 19. 
Registration of Agricultural and Fishery Machinery - 
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a) All agricultural and fisheries machinery shall be registered in all Municipal and City Local 
Government Units through the Agricultural Engineering Unit of the 
CityMunicipal 
Agriculture Offices. 
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 shalk 
establish and maintain a provincial data on all agricultural and fishery machinery being 
registered, with the DA Regional Agricultural Engineering Division being responsible for the 
regional data and the PhMech for the national data using the facilities of the AgMachIN. 
The Department in consultation with the private sector and LGUs shall promulgate &ional 
guidelines and procedures in the registration of agricultural and fishery machinery bb &? 
LGUs including the collection of registration fees. The amount collected should be utilized td 
fund the operation of the agricultural and fishery mechanization service centers. 
Section 20. 
Standards Development and Enforcement - The Department in 
coordination with the 
and in consultation with the 
accredited associations of farmers and fishermen, 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) and be part of the existing Philippine 
Agricultural Engineering Standards. 
Thereafter, the Department and LGUs shall enforce the Philippine Agricultural Engineering 
Standards on the manufacture, sale, distribution and procurement of agriculture and fisheries 
machinery and equipment, and in its accreditation system and registration for agricultural and 
fishery facilities and establishments. For this purpose, the Department through CAFE0 shall 
promulgate guidelines and procedures to effectively enforce the standards. 
Likewise, the Department of Public Works and Highways shall enforce the Philippine 
Agricultural Engineering Standards in the design, construction, operation and maintenance of 
agricultural and fishery buildings and structures as part of the implementation of the National 
Building Code ofthe Philippines. 
DTI, DOST, BOAE and AMTEC 
ARTICLE V 
INSTITUTIONS 
Section 21. Agricultural and Fisheries Mechanization Committee - The existing 
Agricultural aid Fisheries Mechanization Committee (AFMeC) under the National 
Agricultural and Fishery Council (NAFC) is hereby strengthened and reorganized into 
Agricultural and Fishery Mechanization and Infrastructure Committee (AFMIC) to act as an 
advisory body to ensure the success of the programs and activities of the DA concerning 
agricultural mechanization and infrastructure. 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 fishery 


mechanization policies, plans, and programs. To support its activities, the Agricultural and 
Fishery Mechanization Staff of NAFC is also hereby strengthened. 
Section 22. Strengthening the DA Agricultural Engineering Groups - Pursuant to Section 46 
of R.A. No. 8435, a Central Agricultural and Fishery Engineering Office (CAFEO) is hereby 
created under the Department of Agriculture to be headed by a Department Undersecretary. 
The CAFEO shall coordinate, oversee, integrate and monitor all agricultural and fishery 
infrastructure, mechanization and engineering programs and projects of the Department. 
Likewise, the Regional Agricultural Engineering Divisions of the Regional Field Units are 
hereby strengthened and institutionalized to carry out the field implementation of the 
agricultural and fishery mechanization and infrastructure programs; 
Section 23. 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) Establishment of an updated and accurate data base on their sector; 
b) 
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 manufacturers’/dealers’ associations conduct regular inspection of 
agricultural and fisheries machinery fabrication plants to ensure compliance with accepted 
processes and products. 
Section 24. Composition of NAMDAC - NAMDAC shall be organized by the private sector 
which shall include representatives from the manufacturers, importers, suppliers and 
distributors of agricultural machinery and equipment. The heads of CAFEO, PhMech, 
AFMIC and AMTEC shall also be members of NAMDAC. The CAFEO shall serve as the 
secretariat of NAMDAC. 
Formulate policies, guidelines and criteria for accreditation and classification on 
Section 25. Role of BPRE- - The Bureau of Postharvest Research and Extension 
(BPRE) is hereby restructured into Philippine Institute for Postharvest Developmeat and 
Mechanization (PhMech) to strengthen its existing research, extension and postharvest 
development services functions on postproduction and mechanization concerns. The BPRE 
shall coordinate, plan, 
execute agricultural and fishery mechanization and post hdi-vest 
programs and projects of the Department. 
Section 26. 
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 Ago-Industrial Technology (CEAT) of 
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UPLB, and for purposes of functional coordination and integration, shall closely coordinate 
its activities with CAFE0 and PhMech. 
ARTICLE VI 
RESPONSIBILITIES OF THE LOCAL GOVERNMENT UNITS 
Section 27. 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 in accordance with the national policies, procedures, guidelines and rules and regulations 
as promulgated by the Secretary of Agriculture. 
Section28. 
Role of the Agricultural and Fishery Engineering Offices of the Local 
Government Units. 
- 
The Provincial, City and Municipal Agricultural Engineering 
Groups/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 infrastructure, engineering and mechanization 
projects. The Provincial, City and Municipal Agricultural Engineering Groups shall be 
headed by a Provincial, City and Municipal Agricultural Engineeds to be appointed by the 
concerned Local Chief Executive. 
In cases of provincial, city and municipal LGUs which do not have Agricultural Engineering 
Offices, the Department through the Regional Agricultural Engineering Division shall 
assume such responsibility, and as deemed necessary establish it provincial, city and 
municipal operation units. 
ARTICLE VI1 
MISCELLANEOUS PROVISIONS 
Section 29- Agricultural and Fisheries Mechanization Plan- The Department shall formulate 
and implement a National Agricultural and Fisheries Mechanization 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 30. Land Consolidation- The Department together with the Department of Agrarian 
Reform shall carry out land consolidation program in order to effect suitable field shapes and 
sizes conducive to efficient operation of agricultural machinery and equipment and likewise 
to ensure its economies of scale. 
The land consolidation projects shall: 
promote farm land clustering with a minimum of 50-hectares cluster for synchronized 
farming operations from land preparation to harvesting in cooperation or contract with 
agricultural mechanized operation service providers; 
10 


undertake farm development planning; and 
strengthening of farmers cooperatives and associations. 
Section 3 1. Use of Renewal Energy- The use of renewal energy such as windmills, solar 
energy, bio-mass and other farm-based energy sources shall be promoted as power sources 
for the operation and maintenapce of agricultural and fishery machinery and equipmept for 
agriculture and fisheries. The Deprtment in collaboration with the Department of Eqergy, 
DOST and State Colleges and Universities, and the private sgctor shall undertake research 
and extension activities to enhance the use renewable energy in the Philippine fm operptipn. 
Section 32- 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 fishery mechanization in the countryside and 
this include irrigation facilities, farm-to-market roads, power and communications facilities. 
Section 33. 
stakeholders shall promulgate the necessary rules and regulations. 
Section 34. Funding 
The amount necessary to carry out the program shall be incorporated in the 
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 rice, corn, 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 : 
Training of farmers, fisherfolk, farm workers, agricultural and fisheries machinery operators 
and technicians and program implementers; 
Upgrading of agricultural and fishery mechanization facilities and equipment of the 
Department of Agriculture and Local Goverhment Units; 
Investment and Feasibility studies on agricultural and fisheries machinery and infrastructure 
projects; 
Information campaign; 
Implementing Rules and Regulations - The Department in consultation with 
General 
11 


Testing and evaluation of AMTEC ; 
Registration of agricultural and fisheries machinery and equipment and other regulatory 
activities 
Agricultural and Fisheries Machinery Demonstration Centers 
R & D on the manufacturing of local engines 
Grant for the young entrepreneurs and agricultural engineers who intend to pursue 
agricultural and fishery machinery enterprises projects; and 
Strengthening the DA and LGU's Agricultural Engineering Groups. 
Section35. 
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 36 
Repealing Clause - All laws, or parts thereof, inconsistent herewith are 
hereby repealed or modified accordingly. 
Section 37. 
two (2) newspapers of general circulation. 
Approved. 
Effectivity - This Act shall take effect fifteen (15) days after its publication in 
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