SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.No. 2131 
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) 
'14 
FEB 19 P6':29 , 
Introduced by Senator Ralph G. Recto 
AN ACT 
TO 
EXTEND 
THE 
UTILIZATION 
PERIOD 
OF 
THE 
AGRICULTURAL 
COMPETITIVENESS ENHANCEMENT FUND, AMENDING EOR THE PURPOSE 
REPUBLIC ACT NO. 8178, AS AMENDED ENTITLED "AN ACT REPLACING 
QUANTITATIVE IMPORT RESTRICTIONS ON AGRICULTURAL PRODUCTS, 
EXCEPT 
RICE, 
WITH 
TARIFFS, 
CREATING 
THE 
AGRICULTURAL 
COMPETITIVENESS ENHANCEMENT FUND AND FOR OTHER PURPOSES" 
Explanatory Note 
In 1996, Republic Act No. 8178 or "The Agricultural Tariffication Act" was enacted for 
the purpose of preparing the Philippines' agriculture sector for global competition in the face of 
trade liberalization; protecting Filipino farmers, fisherfolk and other producers of agricultural 
products; protecting Filipino firms against unfair trade; and raising.farm productivity levels. The 
law also created the Agricultural Competitiveness Enhancement Fund (ACEF) to exist as a 
Special Fund for nine (9) years after which the balance shall be transferred to the General Fund 
after December 21,2007. 
Congress granted an extension up to 2015 through R. A. No. 9496 entitled "An Act to 
Extend The Utilization Period of the Agricultural Competitiveness Enhancement Fund, 
Amending Republic Act No. 8178, Entitled' An Act Replacing Quantitative Import Restrictions 
on Agricultural Products, Except Rice, With Tariffs, Creatiilg the Agricuitural Competitivenesi 
Enhancement Fund, And For Other Purposes' ". 
The Fund is earmarked for irrigation, farm-to-market roads, post-harvest equipment and 
facilities, credit, research and development, other marketing infrastructure, provision of 
marketing information, retaining, extensibn services, and other forms of assistance and support 
to the agricultural sector. 
The Congressional Oversight Committee on Agriculture and Fisheries Modernization 
(COCAFM) reports that the Department of Budget and Management had already released • 
P8,463,579,802.00 for 318 projects out of the Total Actual Collection of PI 1,843,852,948.00, as 
of May 15, 2013. There remains P2,992,451,173.08 as Total Amount Available whose idle status 
is unconscionable in light of the immense needs of the agricultural sector facing stiff competition 
with the lifting of trade barriers in a free trade era. 
The programs and projects to be funded through the ACEF are vital to the 
accomplishment of the targets under the Pathways to Philippine Agriculture 2020, as follows: 
Gross Value Added of 7% annually until 2020; employment of 22.6 Million; and a 9.4 % share 
in Philippine exports, to name a few. 
With the end of the utilization period of the Fund next year, the passage of this Bill 
seeking an extension of the Fund utilization period for five (5) years until 2020, is urgently 
sought. 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
'14 
FEB 19 P6 :29 
SENATE 
2131 
S.No. __ _ 
Introduced by Senator Ralph G. Recto 
AN ACT 
TO 
EXTEND 
THE 
UTILIZATION 
PERIOD 
OF 
THE 
AGRICULTURAL 
COMPETITIVENESS ENHANCEMENT FUND, AMENDING FOR THE PURPOSE 
REPUBLIC ACT NO. 8178, AS AMENDED ENTITLED "AN ACT REPLACING 
QUANTITATIVE IMPORT RESTRICTIONS ON AGRICULTURAL PRODUCTS, 
EXCEPT 
RICE, 
WITH 
TARIFFS, 
CREATING 
THE 
AGRICULTURAL 
COMPETITIVENESS ENHANCEMENT FUND AND FOR OTHER PURPOSES" 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Section 8 of Republic Act No. 8178, as amended IS hereby further 
2 
amended to read as follows: 
3 
"Sec. 8. Agricultural Competitiveness Enhancement Fund.- XXX. 
, 
4 
"The Fund shall continue to be set aside up to the year [2015] 2020, after which 
5 
the collection of duties from the MA V mechanism and the setting aside of the amount 
6 
collected for the purpose shall terminate. However, any remaining balance(s) at the date 
7 
of expiration of the Fund shall not revert to the General Fund but shall continue to be 
8 
used for the purpose for which it was collected and set aside. 
9 
"XXX. 
10 
"XXX. 
11 
"XXX. 
12 
"XXX. 
13 
"XXX." 
14 
SEC. 2. A new Sub-Section 8-A is hereby inserted after Section 8, to read as follows: 
15 
"Sec. 8-A. Fund Administration and Management. -- The Land Bank of the 
16 
Philippines (LBP) shall administer and manage the Fund. The LBP and the Executive 
17 
Committee of the ACEF shall organize an ACEF Project Management Office in the LBP 
18 
for this purpose consisting of organic staff of the LBP. 
19 
"All applications for Fund utilization by target project beneficiaries shall be 
20 
submitted to the ACEF Project Management Office in the LBP." 
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1 
SEC. 3. Transitory Provision. - The ACEF Executive Committee (Execom) including its 
2 
members shall hold office at the Land Bank of the. Philippines Head Office in Manila, for the 
3 
purpose of implementing the provisions of this Act. 
4 
The Secretariat of the ACEF Project Executive Committee shall be composed of organic 
5 
staff from the LBP. 
6 
SEC 4. Implementing Rules andRegulations. - The LBP and the D,epartment of Budget 
7 
and Management in consultation with the Congressional Oversight Committee on Agricultural 
8 
and Fisheries Modernization (COCAFM), shall revise and reform the implementing guidelines of 
9 
R. A. No. 8178, as amended, including the approval procedures in order to speed up the 
10 
processing and disbursement process. 
11 
Such rules and regulations shall take effect after they have been made and shall be 
12 
published in at least two (2) newspapers of general circulation. 
13 
SEC. 5. Repealing Clause. - All laws, acts, decrees, executive orders, issuances, and 
14 
rules and regulations or parts thereof which are contrary to and inconsistent with this Act are 
15 
hereby repealed, amended or modified accordingly. 
16 
SEC. 6. Effectivity. - This Act shall take effect fifteen (I5) days following its publication 
17 
in at least two (2) newspapers of general circulation or the Official Gazette. 
18 
Approved, 
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