I. 
THIRTEENTH CONGRESS OF THE REPUBLIC 
FIRST REGULAR SESSION 
OF THE PHILIPPINES 
Introdt.ced by Senator ~ ~ g s a y s a y ,  
Jr. 
E 
A 
N 
Republic Act 8178, othenvlrse known as the Agricultural Tariffication Act, was 
signed into law on March 28, 1996. To cushion the effect of the lifting of quantitative 
restrictions on affected sub-sectors of agriculture, Section 8 of RA 8178 created the 
Agricultural Competitiveness Enhancement Fund (ACEF), with a lifespan of nine years, 
from the proceeds of the importation of the minimum access volumes. The nine years 
period will soon expire in March 2005 without the ACEF being utilized for the intended 
purpose as collections from 1996 to 1998 were used instead for budgetary support. 
There is a need to extend the utilization period of the ACEF to enable the 
government to provide the farming, fisheries and the agriculture sector the opportunity to 
strengthen their developmental actieties and enhance their competitiveness, through the 
use of the ACEF. The availability orthe ACEF will relieve farmers, fisherfolks and the 
entire agricultural workers of the need of liaving to secure other sources of hnds for their 
competitive enhancement activities. 
Government needs to continue to provide the farming sector the opportunity to 
prepare for liberalized trade through the judicious use of the ACEF. 
It is therefore earnestly requested that this measure be approved. 
n 


THIRTEENTH CONGRESS OF THE REPUl3LIC 
"04 
~~~~ 
3Q 
36 
OF THE PHlLIPPINES 
FIRST REGULAR SESSION 
5 
s. 
6 
Introduced by Senator ~ a g s a y s ~ y ~  
AN ACT 
EXTENDING TEtE UTILIZATION PERIOD OF THE AGRICULTURAL 
COMPETITIVENESS ENHANCEMENT FUND, AMENDING FOR THIS 
PURPOSE PERTINENT PROVISION OF REPUBLIC ACT 
ENTITLED 
"AN 
ACT 
REPLACING 
QUANTITATIVE 
IMPORT 
RESTRICTIONS ON AGRICULTURAL PRODUCTS, EX 
PT RICE, WITH 
TARIFFS, CREATING 
THE AGRICULTURAL 
TITIVENESS 
ENHANCEMENT FUND" AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives fo the Philippines 
in Congress assembled: 
SECTION 1. 
Section 8 of Republic Act Number 8178, entitled "An Act 
Replacing Quantitative Import Restrictions on Agricultural Products, Except Rice, with 
Tariffs, Creating the Agricultural Competitiveness Enhancement Fund, and for Other 
Purposes" is hereby amended to read as follows: 
"SEC. 8. Agricultural Competitiveness Enhancement Fund - To implement the 
policy enunciated in this Act, there is hereby created the Agricultural Competitiveness 
Enhancement Fund, hereinafter referred to as the Fund. I The proceeds of the importation 
of minimum access volume shall accrue to the General Fund and shall be deposited with 
the National Treasury. 
The entire proceeds shall be set aside and earmarked by Congress for irrigation, 
f m  to market roads, post-harvest equipment and facilities, credit, research and 
development, other marketing inflastructure, provision of market information, retraining, 
extension services, and other forms of assistance and support to the agricultural sector. 
The Committees on Agriculture and Food, Appropriations and Finance of both the 
Senate and the House of Representatives shall conduct a periodic review of the use of the 
Fund. 
years , after which the 
remaining balance shall revert to the General Fund. 
The Fund shall have a life of [nine (911 FIFTEE 
FOR PURPOSES OF THE EXTENSION OF THE 
OF THE FUND, THE PRIORITY F 
TO SMALL FILIPINO FARMERS 
YOUNG FARMERS, AGRICULTURAL AND FISHE 
ENTERPRISES WHICH ARE ENGAGE 
FARMING, FISHERIES, AGROBUSINE 
YOUNG 
ENTREPRENEURS AND SMALL- 


SECTION 2. 
Implementing Rules and Regulations. 
The Department of 
Agriculture @A), in consultation with all the concerned stakeholder groups in the 
agricultural and fisheries sectors shall promulgate within a period of thirty (30) days from 
the effectivity of this Act, the implementing rules and regulations on the DA-ACEF 
Revolving Fund. 
Taking into consideration the principle of transparency, 
simplified 
approval of projects submitted for assistance and the adoption of the policy of less 
discretion taking into consideration the analytical review of the projects and proponents, 
the implementing rules and regulations shall be assessed and reviewed by the Committee 
on Agriculture and Food of both Houses of Congress before its effectivity. 
SECTION 3. Repealing Clause - All laws, decrees, executive issuances, rules 
and regulations inconsistent with this Act are hereby repealed or modified accordingly. 
SECTION 4. Separability Clause - The provision of this Act are hereby 
declared to be separable, and in the event one or more of such provision are held 
unconstitutional, the validity of the other provision shall not be affected thereby. 
SECTION 5. Effectivity - This Act shall take effect fifteen (15) days from the 
date of its publication in the OficzaZ Gazette or in at least two (2) newspapers of general 
circulation, whichever comes earlier. 
Adopted,