FOURTEENTH CONGRESS OF TEE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
Introduced by Senator Antonio ''Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
Industrialization is a key to a nation's progress but 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 countries 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 countries 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 
A N $ O N ~  ~SONNY" F. TKILLANES N 
Senator 
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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S. N o . U B  
Introduced by Senator Antonio “Sonny” F, Trillanes IV 
AN ACT 
ESTABLISHING A FARM MACHINERY MANUFACTURING PROGRAM AND 
APPROPRIATING FUNDS THEREFOR 
Be in enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. This Act shall be known as the “Farm Machinery Manufucturing Program 
(EM‘@) Act of2008”. 
SEC. 2. The following are the objectives of the F’MMP: 
a) Development of a viable farm machineries manufacturing industry 
b) Technology transfer and development 
c) Employment generation 
d) Provide reasonable consumer price of farm machineries 
e) Foreign exchange savings and earnings 
SEC. 3. The Department of Trade and Industry (DTI) through the Board of Investment 
(BOI), shall be responsible €or the effective implementation of this program. 
SEC. 4, After the approval of this Act, applications for the Registration as participant in 
the FMMP together with the commitment of the applicants shall be submitted to the BO1 within 
thirty (30) days. The BO1 shall decide on the acceptance or rejection of the applications with 
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thirty (30) days from submission, based on commitments which shall form part of the terms and 
conditions for their continued participation. 
Approved participants shall be issued a Certificate of Registration by the BO1 and shall 
not comply with the terms and conditions provided with the Contract. 
The Certificate of Registration shall contain the commitments made by the proponents in 
their proposals. 
SEC 5. Farm machinery models and variants shall be registered and approved by the BO1 
prior to its manufacture. 
The following criteria shall be considered in defining a model: 
a) body configuration 
b) engine family / size 
c) drive line configuration 
A change in any two of the criteria from the basic models shall constitute a new basic 
mode. A variant is delivered firom the basic model but the change in any one of the 
criteria: 
The number of basic models and variants that a participant may have shall be maximum 
of three (3) basic models and two (2) variants for each models unless otherwise decided 
by the BOI. 
The basic models and variants shall be retained by the participants for over a maximum 
period of five ( 5 )  years in the Philippines, unless otherwise authorized by the BOI, taking 
into account the capability of the local components and parts manufacturing industry. 
SEC. 6. Increase use of local components over and above the prescribed local content 
percentages shall be encouraged by an incentive scheme. 
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SEC. 7. The BO1 shall promulgate the rules and regulations necessary for the effective 
implementation of this Act. 
SEC. 8. All privileges and exemptions mentioned in Republic Act 6135 otherwise known 
as the Export Incentives Act of 1970 shall be extended to all Program participants. 
SEC. 9. The amount necessav for the effective implementation of this Act shall be 
charged to the appropriations for the Department of Trade and industry under the current General 
Appropriations Act (GAA). Thereafter, such sum as may be necessary for the continued 
implementation of this Act shall be included in the annual GAA. 
SEC. 10. This Act shall take effect upon its approval 
Approved, 
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