Republic of the Philippines
HOUSE OF REPRESENTATIVI

Quezon City

THIRTEENTH CONGRESS
1* Regular Session

House Bill No. 259

Introduced by RODRIGUEZ D. DADIVAS

Explanatory Note

This bill seeks to amend Republic Act No. 8435, otherwise known as the “Agriculture
and Fisheries Modemization Act (AFMA) of 1997 by providing exemption from
Peyment of tarifis and duties to individuals, cooperatives, and other enterprises
‘engaged in the importation of ail types of agriculture and fisheries inputs, equipment
and machineries

At present, the said law only allows the exemption on the condition that the imported
agriculture supplies shall be used exclusively by the importing enterprise. Meaning,
importers cannot sell these products to small famers, fishers, cooperatives and
other members of the agriculture and fisheries sector, neither can the latter import
directly because the law only allows business enterprises, not individuals.

Although the AFMA has created hundreds of thousands of direct and indirect jobs
since its implementation, we can double or triple its effect if we remove the tax
burden considering that the agriculture and fisheries sector hold the national
multiplier effect on the national economy. After all, the AFMA is geared towards
raising the productivity and income of farmers and fishers, generate additional
employment in the countryside, and produce sufficient supply of basic food
commodities, which are affordable and accessible to the majority of Filipinos

This bill se-filed in both Houses of Congress during the 12" Congress but the
eqted its approval.

‘hil aframamendmert


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

THIRTEENTH CONGRESS
1 Regular Session

259

Introduced by RODRIGUEZ D. DADIVAS

House Bill No.

AN ACT

EXEMPTING INDIVIDUALS, COOPERATIVES AND OTHER ENTERPRISES
ENGAGED IN THE IMPORTATION OF ALL TYPES OF AGRICULTURE AND
FISHERIES INPUTS, EQUIPMENT AND MACHINERY FROM PAYMENT OF
TARIFFS AND DUTIES, AMENDING FOR THE PURPOSE REPUBLIC ACT
NUMBERED EIGHT THOUSAND FOUR HUNDRED THIRTY-FIVE (RA 8435)
OTHERWISE KNOWN AS THE “AGRICULTURE AND FISHERIES
MODERNIZATION ACT OF 1997.”

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 109 of Republic Act No. 8435, otherwise known as the
“Agriculture and Fisheries Modemization Act of 1997" is hereby amended to read as
follows:

"Sec. 109. All INDIVIDUALS, COOPERATIVES AND OTHER enterprises
{engaged in agriculture and fisheries as duly certified by the Department in
consultation with the Department of Finance and the Board of investment} shall, for
TEN (10) five (5)] years after the effectivity of this Act, be exempted from the
payment of tariff and duties for the importation of all types of agricutture and fisheries
inputs, equipment and machinery such as, but not limited to, fertilizer, insecticide,
pesticide, tractor, trailers, trucks, farm implements and machinery, harvesters,
threshers, hybrid seeds, genetic materials, sprayers, packaging machinery and
materials, bulk-handling facilities such as conveyors and mini loaders, weighing
scales, harvesting equipment, spare parts of all agricultural equipment, fishing
equipment and parts thereof, refrigeration equipment, and renewable energy
systems such as solar panels{: Provided, however, that the imported agricultural and
fishery inputs, equipment and machinery shall be for the exclusive use of the
importing enterprise}.”

XXX XXX xxx
Sec. 2. The Department of Agriculture, in consultation with the Department of
Finance and Board of Investment, shall promulgate the necessary rules and
regulations for the effective implementation of the provisions of this Act
Sec. 3. This Act shall take effect upon its approval

Approved,