, 
FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENA.,TE 
S.B. No. 1~72 
) 
) 
) 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
The Philippine agriculture and fisheries sector has huge labor and livelihood 
generating potentials, especially in the areas of agricultural and fisheries products and 
by-products processing, expansion of areas for cultivation, and intensification and 
diversification of agricultural and fishery production systems. 
To fully harness these, appropriate and efficient agricultural and fisheries 
machinery for the on-farm and off-farm operations covering all types of crops, livestock 
and fisheries are needed. 
Unfortunately, the present level of agricultural and fisheries mechanization in the 
Philippines is quite dismal when bench marked with its Asian neighbors such as Korea. 
This country's low level of mechanization is highly attributed to the various technical and 
socio-economic constraints such as lack of investment in research and development, 
inadequate training and extension, poor manufacturing technology, :Iack of credit and 
low farming income. 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. 
To address all these, this bill seeks to support the mechanization needed for the 
modernization of Philippine agriculture and fisheries as envisioned by the Agriculture 
and Fisheries Modernization Act (AFMA). Thus, Sec. 59. of the AFMA states that "The 
Department shall give priority fo the development and promotion of appropriate 
agricultural machinery and other agriculturalmechanization technologies to enhance 
agricultural mechanization. in the countryside". Mechanization can significantly increase 
land and labor efficiency to sustain increased food production and increase farm 
incomes. Just as important is that mechanization creates new jobs in the countryside 
since it requires non-farm economic activities such as machinery manufacturing, repair 
and maintenance and opens up more opportunities for processing of agricultural and 
fishery products with the design and supply of equipment and machineries suited to 
various locales at more affordable prices. 
There is a need to immediately pass this Bill to enable our fishery and agriculture 
sector to modernize and increase productivity and incomes as envisioned by the AFMA. 
In view of the foregoing, immediate passage of this bills is earnestly sought. 
~ 
';;;VILLA, JR, 


· FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
10 
JUL 26 AlO :t10 
PROMOTING THE AGRICULTURAL AND FISHERIES MECHANIZATION 
DEVELOPMENT IN THE COUNTRY 
Be it enacted by the Senate and 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. 
ARTICLE I 
DECLARATION OF POLICY, 
DEFINITION OF TERMS AND COVERAGE 
SECTION 2. Declaration of policy. It shall be the policy of the State to: 
a) 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; 
b) Provide a conducive environment to the local assembling and 
manufacturing of engines, machinery and equipment for agricultural 
and fisheries production, processing and marketing; 
c) Ensure the quality and safety of machineries and equipment locally 
manufactured or imported by strengthening regulation through the 
development and enforcement of machinery and machine performance 
standards, regular testing and evaluation, registration and the 
accreditation 
and 
classification 
of suppliers, 
assemblers 
and 
manufacturers to ensure compliance to prescribed quality standards; 


d) Unify, rationalize and strengthen the implementation, coordination 
activities and mechanisms on agricultural and fisheries mechanization 
programs and projects; and 
e) Deliver integrated support services to farmers, fisherfolk and other 
stakeholders, and assist them to be able to viably operate and manage 
their agricultural and fisheries mechanization projects. 
SECTION 3. Definition of Terms: 
a) Agricultural and Fisheries Machinery - refers to machinery and 
equipment for the production, 
harvesting, processing, storage, 
manufacture, preserving, transporting and distribution of agricultural 
and fisheries products. It includes but is not limited to tractors and their 
attachments, 
power 
tillers, 
seeders, 
transplanters, 
windmills, 
harvesting machines, crop protection and maintenance equipment, 
irrigation equipment and accessories, greenhouses and other thermal 
conditioning equipment, livestock equipment, fishery equipment, 
slaughtering equipment, meat/fishery and crop processing equipment, 
post harvest machines such as milling machines, dryer, threshers, 
grain and other strippers, agricultural transport machinery and storage 
facilities including cold storage, reefer vans, slaughter houses and 
fishing boats of three (3) gross tons or less. New agricultural and 
fishery machinery includes newly imported as well as one that has not 
been used since its manufacturing. 
b) Agricultural and Fisheries Mechanization -
is the development, 
adoption, assembly, manufacture and application of appropriate, 
location specific and cost-effective agricultural and fisheries machinery 
using human, animal, mechanical, electrical, renewable and other 
nonconventional sources of energy for agricultural production and 
postharvest/postproduction operations consistent with agronomic 
conditions and 
for efficient and 
economic farrr'l 
and 
fishery 
management towards modernization of agriculture and fisheries. 
c) 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, fisheries and forestry products. It also 
includes cleaning, sorting, grading, mixing, milling, canning, dressing, 
2 


slaughtering, freezing, pasteurizing, conditioning, packaging, repacking 
and transporting of said products. 
d) Fishing Boat - any boat, ship or other watercraft of three (3) gross tons 
or less, equipped to be used for taking of fishery species or aiding or 
assisting one (1) or more vessels in the performance of any activity 
relating to fishing, including but not limited to, preservation, supply, 
storage, refrigeration, transportation and! or processing. 
e) Small farmers - refers to farmers with not more than five (5) hectares 
of land and fisherfolks with not more than one fishing boat. 
f) 
Program - refers to the National Agri-fishery Mechanization Program. 
g) Department - refers to the Department of Agriculture. 
h) Secretary - refers to the Secretary of Agriculture 
i) 
DOLE -refers to the Department of Labor and Employment. 
j) 
DOST - refers to the Department of Science and Technology. 
k) DTI- Department of Trade and Industry 
I) 
A TI - refers to the Agriculture Training Institute. 
m) AMTEC - refers to the Agricultural Machinery Testing and Evaluation 
Center in the University of the Philippines, Los Banos. 
n) BAFPS - refers to the Bureau of Agriculture and Fisheries Products 
Standards. 
0) BAR - refers to the Bureau of Agricultural Research, Department of 
Agriculture. 
p) BPRE- refers to the Bureau of Post Harvest Research and Extension. 
q) NAFC - refers to the National Agricultural and Fishery Council. 
3 


r) 
TESDA - refers to the Technical Education and Skills Development 
Authority. 
s) CHED - refers to the Commission on Higher Education. 
t) 
BoAE - refers to the Board of Agricultural Engineering of the 
Professional Regulation Commission. 
u) UPLB - refers to the University of the Philippines at Los Banos. 
SECTION 4. Scope and Application. The provisions of this Act shall apply to 
the research, development and extension, promotion, distribution, supply, assembling, 
manufacturing, regulation, use, operation and maintenance of agricultural and fisheries 
machinery and equipment. 
ARTICLE II 
THE NATIONAL AGRI-FISHERY MECHANIZATION PROGRAM 
SECTION.5. The National Agri-fishery Mechanization Program. There shall 
be formulated a National Agri-fishery Mechanization Program by the Department with 
the following objectives: 
a) Promote and support through the provision of research grants, credit, 
transparent and predictable regulation the local development and 
manufacture of agricultural and fisheries machinery by the private 
sector; 
. b) Unify, lead and support the efforts of various institutions in the 
research, design and development of agricultural and fisheries 
machinery; 
c) Establish quality, safety and performance standards for agricultural 
and fisheries machinery; 
d) Support the establishment of quality, safety and performance testing 
centers for the certification of agricultural and fisheries machinery in 
strategic localities in the country; 
e) Establish guidelines for the registration of ownership of agricultural and 
fisheries machinery; and Promote the adoption of certified agricultural 
4 


and fisheries machinery for improving agriculture and fishery 
productivity. 
SECTION 6. Program implementation. The over-all implementation of 
the National Agri-fishery Mechanization Program shall be coordinated by the 
Department through the Undersecretary for Policy and Planning which shall: 
1) Conduct the formulation and review of 5-year National Agri-fishery 
Mechanization Programs for the Department; 
2) Provide leadership in the formulation of guidelines for the registration 
of ownership of agricultural and fisheries machinery; 
3) Ensure the formulation of quality, safety and performance standards 
for agricultural and fisheries machinery; 
4) Ensure the formulation of accreditation guidelines for testing centers 
for agricultural and fisheries machinery; 
5) Formulate and enforce guidelines for the credit program to include but 
not limited to access, disbursement and repayment; 
6) Oversee the implementation of the National Agri-fishery Mechanization 
Program by the various units of the Department; and 
7) Coordinate with other government agencies and LGUs in the 
implementation of measures provided for in this Act. 
ARTICLE III 
RESEARCH, EXTENSION AND HUMAN RESOURCE DEVELOPMENT 
SECTION 7. Unified National R&D and Extension Agenda. A unified 
National Agricultural and Fisheries Mechanization R&D and Extension (ROE) 
Agenda shall be formulated and implemented by the Department; Provided that 
the Department through the BAR as focal agency, shall integrate and .unify 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 which shall be geared towards development of 
machineries and eqUipment, job generation, address market and industry 
5 


demands and help accelerate agricultural and fisheries modernization in the 
countryside. 
The National Agricultural and Fisheries Mechanization ROE Agenda shall include 
but not b~ limited to the following: 
1) Development, pilot-testing and commercialization of appropriate, 
location-specific and cost-effective agricultural and fisheries 
machinery and equipment in support to contiguous farming and 
machinery pooling; 
2) Design and testing of new machineries and equipment for 
agriculture and fisheries; 
3) Local assembly and manufacture of agricultural engines and 
equipment; 
4) Development and utilization of renewable and non-conventional 
energy resources such as wind, biomass, hydro, solar and bio-
fuels for agricultural and fisheries equipment and machineries; 
5) Development 
of efficient 
production 
and 
postproduction 
mechanization systems; 
6) Continuous development of technical standards and testing 
procedures for quality agricultural machinery and components; 
7) Training of farmers, fisherfolk, manufacturers, extension workers, 
.agricultural engineers, technicians, and operators engaged in the 
agricultural and fisheries mechanization; 
8) Promotion of technologies through agricultural and industrial 
extension activities and techno-demo centers; 
9) Development of prototype and 
fabrication 
of agricultural 
machinery and equipment; and 
6 


10) 
Development and conduct of commercialization strategies 
involving all sectors representing the demand and supply sides of 
agricultural and fisheries mechanization technologies. 
SECTION 
8. 
Agri-Fisheries 
Mechanization 
RDE Network. 
An 
Agricultural and Fisheries Mechanization Research, Development and Extension 
(ROE) network is hereby organized, composed of research and educational 
institutions, Local Government Units, non-government organizations and the 
recognized and well established associations of agricultural and fisheries 
machinery assemblers, manufacturers and distributors, agricultural engineers, 
farmers and fisherfolk. The Agricultural and Fisheries Mechanization Research, 
Development and Extension (ROE) network is responsible for the formulation 
and implementation of the National Agricultural and Fisheries Mechanization 
ROE Agenda. The BAR shall be responsible for organizing the Network and shall 
serve as Secretariat to the Network. The Network shall be chaired by the Director 
of BPRE. 
SECTION 
9. 
Agricultural and Fisheries Machinery Information 
Network. The Agricultural Machinery Information Network (AgMachIN) of the 
Department and the OOST 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 fisheries 
machinery. 
SECTION 10. Research Grants. To enhance research and technological 
development on agricultural and fisheries mechanization, the government 
through the BAR, DOST and CHEO shall provide competitive research grants to 
members of the Network to undertake needs oriented research as well as 
institutional development and upgrading of laboratory facilities and equipment. 
SECTION 11. Agri-Fisheries Machinery and Equipment Service 
Centers. Equipment and machineries suppliers/dealers/distributors shall be 
required to establish and operate Agricultural and Fishery Machinery and 
Equipment Service 
Centers 
in 
the 
StrategiC Agricultural 
and 
Fishery 
Development Zones (SAFDZs) individually or as part of a legal entity. The Agri-
Fisheries Machinery and Equipment Service Centers shall provide any or all of 
the following services: 
7 


a) Provide after-sales service and warranty to their respective 
clients; 
b) Custom plowing, harrowing, harvesting, drying, milling and other 
farm mechanization services; 
c) Repair and troubleshooting services of agricultural and fishery 
machinery and equipment; and 
d) Training of maintenance and proper use of agricultural 
machineries and equipment. 
However, ownership and operation of Agricultural and Fishery Machinery 
and Equipment Service Centers, shall not be the exclusive domain of equipment 
and machineries suppliers. These may be owned and operated by registered 
cooperatives or SECt DTI registered businesses. 
SECTION 12. Manpower Complement. All agricultural and fisheries 
machinery pools and service centers including sales and distribution outlets and 
manufacturing establishments either public or private shall have the required 
manpower complement of licensed agricultural engineers and 
certified 
technicians and operators in accordance with the guidelines and standards to be 
promulgated by the BoAE and DOLE to ensure efficient operation and 
maintenance and good management practices. 
SECTION 
13. 
Skills 
Certification 
of 
Agricultural 
Machinery 
Technicians and Operators. The TESDA in collaboration with the Department, 
BoAE, NAMDAC and the national associations of agricultural engineers and 
agricultural 
machinery assemblers, 
manufacturers 
and 
distributors shall 
undertake skills certification and accreditation systems for agricultural and fishery 
machinery operators and technicians. 
SECTION 14. Training and Scholarship Proham. 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 fisherfolks on agricultural and fisheries 
8 


mechanization technologies and practices. The DOLE and TESDA shall be 
responsible in the training of agricultural and fisheries machinery technicians and 
operators. Furthermore, scholarships for graduate and undergraduate degree on 
agricultur.al engineering and trade/vocational courses on agricultural and 
fisheries mechanization shall be given priority by the Department, CHED and 
DOST. 
ARTICLE IV 
LOCAL ASSEMBLY, MANUFACTURE, SUPPLY AND 
AFTER SALES SERVICE 
SECTION 15. Incentives for local manufacturers and assemblers of 
agri-fisheries machinery, Ventures in local manufacture, fabrication and 
assembly of agri-fisheries equipment and machineries shall be eligible for loans 
under the ACEF. These businesses shall be classified as non-VAT business and 
shall be granted automatically tax holiday .in the first few years of operation 
commensurate to the number of jobs created by the business. They shall be 
eligible to apply for research grants from the BAR to support testing and 
certification. Patents shall be' accepted as equity or collateral for loans. The BAR 
shall within six months from the enactment of this Act support the conduct a 
study on how patents shall be valuated. 
SECTION 16. Exemption from Import Duties. To support the local 
agricultural and fisheries assembling and manufacturing industries, they are 
hereby exempted from the payment of import duties and VAT arising from 
importation of raw materials and components, engine and mechanical parts 
required for the assembly, manufacture and fabrication of agricultural and 
fisheries machinery and equipment. Whole goods which are not commercially 
available as certified by the BAFPMS may be imported. The AFMeC shall within 
six months after the enactment of this Act formulate and publish the guidelines 
for this certification function. From time to time the AFMeC shall make a list of 
machinery certified for importation and endorsed to the BAFPMS which shall 
publish this list in the Internet. 
SECTION 17. Supply of Agricultural ahd Fisheries Machinery in 
Government 
Procurement 
Program. 
Only 
assemblers, 
manufacturers, 
importers, suppliers, distributors and dealers accredited by the National 
9 


Agricultural and Fisheries Machinery Manufacturers, Importers, Distributors, and 
Dealers Accreditation and Classification Board (NAMDAC) shall be eligible to 
supply government procurement requirements on agricultural and fisheries 
machinery and equipment based on their classification rating. Only agricultural 
and fishery machinery certified by an accredited certifying body as having passed 
safety, quality and performance standards shall be procured. 
SECTION 18. After-Sales Service. All agricultural and fisheries machinery 
assemblers, manufacturers, importers, suppliers, distributors and dealers are 
required to provide after-sales service and warranty to their respective clients 
during the warranty period. 
ARTICLE V 
REGISTRATION, LICENSING AND STANDARDIZATION 
SECTION 19. Testing and Evaluation. Agricultural and fisheries 
machinery to be sold in the market must obtain certification from the accredited 
certifying bodies such as the AMTEC in accordance with the national poiicies and 
guidelines as promulgated by the Secretary. Specifically, before it can be 
manufactured and/or commercially sold in the market, the model of the machine 
and any mbdification thereof should be tested by an accredited certifying body 
and certi.fied that it has passed the prescribed safety, quality and performance 
standards. The regular testing and evaluation of machinery sold shall be 
undertaken by AMTEC or an accredited certifying body on new models and 
designs. Field tests shall likewise be undertaken by AMTEC or an accredited 
certifying body to ensure consistent quality of test units as well as on the 
commercial units. The Department Office of Policy and Planning, BAFPS and 
NAFC within one year upon the enactment of this Act into law shall formulate the 
poliCies, standards and guidelines for safety, quality and performance testing and 
evaluation for certification purposes for consideration and approval by the 
Secretary. These standards should be in conformity with the International 
Standards Organization (ISO) and shall be part of the existing Philippine 
Agricultural Engineering Standards. The BAFPS shall maintain a certification 
registry of equipment and machinery as well as a registry of those denied 
certification and shall make these registries available through the Internet. 
10 


SECTION 20. Registration of Ownership of Agricultural and Fishery 
Machinery and Equipment. All owners of agricultural and fishery machinery and 
equipment must register their property with the Agricultural Engineering Office of 
Municipal and City Government Units. 
For registration purposes the owners must provide the following information: 
1) name and address of the owner 
2) the engine serial number 
3) certification number for machinery/equipment registered 3 years 
after the enactment of this Act 
4) technical specifications of the engine 
5) original receipt for purchases six months after the enactment of 
this Act but for those purchased prior to this period the 
information of how the property was acquired should be provided 
including the address of the source 
The Agricultural Engineering Office of the Local Government Units shall 
establish and maintain a registry of agricultural and fishery machinery at the 
municipal or provincial leve/. The DA Regional Agricultural Engineering Division 
shall maintain a registry of agricultural and fishery machinery at the regional 
office whereas the BAFPMS shall maintain a national database of all registered 
agricultural and fishery machinery Each office shall ensure that these registries 
and databases are available through the Internet. 
The Secretary shall promulgate national guidelines and procedures for the 
registration, of agricultural and fisheries machinery by the LGUs including the 
collection of registration fees in accordance with the Local Government Code. 
SECTION 21. Registration of manufacturers, fabricators, assemblers 
and importers. Within six months upon the enactment of this Act, all 
manufacturers, fabricators, assemblers and importers must register with the 
BAFPMS by providing the following information: 
11 


1) name and address of the registrant 
2) list of equipmenUmachinery manufactured! fabricated!assembled! 
imported 
3) technical specifications of each product 
4) if product is imported name and address of source of product 
5) area of distribution 
6) list of distributors 
7) names and address of seNice centers 
Three years upon the enactment of this Act, registrants must provide 
, 
certification by an accredited certifying body of aI/ products that they have in the 
market or intend to market and withdrawal/ products that have no certification. 
One year after the enactment of this Act, the registrants must submit to the 
BAFPMS the list of equipmenUmachinery manufactured! fabricated!assembledl 
imported with their serial numbers. 
SECTION 
22. 
Standards 
Development and Enforcement. 
The 
Department through the BAFPS in coordination with the DTI, DOST, BoAE and 
AMTEC and in consultation with the accredited associations of farmers and 
fisherfolk, agricultural machinery assemblers, 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 (EO) and shall be part of the 
existing Philippine Agricultural Engineering Standards. 
Thereafter, the Department and LGUs and in collaboration with the BoAE 
shall enforce the above standards on the manufacture, sale and distribution on 
agriculture and fisheries machinery and equipment, and its accreditation system 
for agricultural and fisheries facilities and establishments. 
12 


Also, the Department of Public Works and Highways and the Local 
Building Officials, consistent with the provisions of R.A. No. 8559, shall enforce 
the Philippine Agricultural Engineering Standards as part of the implementation 
of the Natfonal Building Code of the Philippines particularly in the design, 
construction, operation and maintenance of agricultural and fisheries buildings 
and structures. 
ARTICLE VI 
INSTITUTIONS 
SECTION 23. Agricultural and Fisheries Mechanization Committee. 
The existing Agricultural and Fisheries Mechanization Committee (AFMeC) under 
the 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 Department 
concerning agricultural and fisheries 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 fisheries mechanization and 
infrastructure policies, plans, and programs. 
SECTION 24. Strengthening the DA Agricultural Engineering Groups. 
Pursuant to Section 46 of RA No. 8435, a Central Agricultural and Fishery 
Engineering Office (CAFEO) is hereby created under the Departmeht to be 
headed by a Department Undersecretary. The CAFEO shall plan, 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 (RAEDs) 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 and projects of the Department. 
SECTION 25. Expanding the functions and powers of the BAFPS. Sec 
62 of the AFMA is hereby revised to read as follows: The BAFPS shall set and 
implement standards for fresh, primary-and -secondary-processed agricultural 
and fishery products and agricultural and fishery machinery. The name of the 
Bureau of Agriculture and Fisheries Product Standards (BAFPS) is hereby 
13 


modified to Bureau of Agriculture and Fisheries Products and Macluneries 
Standards (BAFPMS). 
Consequently, in addition to the functions stated in Sec 63 of the AFMA 
the following new functions are hereby assigned to the BAFPMS 
1) formulate and enforce quality, safety and performance standards 
for agricultural and fisheries machinery 
2) formulate and enforce of accreditation guidelines for testing 
centers for agricultural and fisheries machinery 
3) formulate guidelines for the registration of ownership of 
agricultural and fishery machinery 
4) Maintain a national registry of agricultural and fisheries machinery 
certified by accredited testing centers 
5) Maintain a national registry of testing centers for agricultural and 
fisheries machinery 
6) Maintain a national registry of owners of agricultural and fishery 
machinery and corresponding serial numbers 
The BAFPMS is hereby authorized to create a new division on agricultural 
and fisheries machinery regulations with a minimum complement of 5 technical 
personnel and one administrative personnel. It may call upon experts, 
professional groups and other government agencies to assist in the performance 
of its functions. 
SECTION 26. The Agriculture Training Institute. The Agriculture 
Training Institute shall formulate and implement a agriculture and fisheries 
mechanization promotion program as part of National Agri-fishery Mechanization 
Program by the Department to include but not limited to an information campaign 
on the AFMP, the standards, procedures and guidelines on regulation on sales, 
manufacture, import of agricultural and fishery machinery, and access to credit 
by small farmers and manufacturers, the conduct of training courses for 
14 


agricultural and fishery machinery operators and demonstrations and trade fairs 
for agricultural and fishery machinery. 
With this added function, the A TI is hereby authorized to hire at least 3 
licensed engineers in the central office and one in each regional training center. 
SECTION 27. Organization of the NAMDAC Board. The National 
Agricultural and Fisheries Machinery Assemblers, Manufacturers, Importers, 
Distributors and Dealers Accreditation and Classification (NAMDAC) Board is 
hereby organized as a private sector-led 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) Formulate policies, guidelines and criteria for accreditation and 
classification on manufacturers of agricultural and fisheries 
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 28. Composition of NAMDAC. The NAMDAC shall be 
composed of representatives from the recognized and well established national 
association of assemblers, manufacturer, importers, suppliers and distributors of 
15 


agricultural and fisheries machinery and equipment. The Undersecretary for 
Policy and Planning as Coordinator of the Program shall serve as ex-officio 
adviser to the NAMDAC 
The Agricultural Mechanization and Infrastructure Section of the NAFC that 
serves as Secretariat to the Agricultural and Fisheries Mechanization Committee 
(AFMeC) shall also provide the necessary technical and administrative support to 
the NAMDAC and hereby strengthened into a regular division of NAFC. 
SECTION 29. Role of Bureau of Postharvest Research and Extension. 
The Bureau of Postharvest Research and Extension (BPRE) is hereby 
strengthened 
and 
restructured 
into 
Philippine 
Institute for 
Postharvest 
Development and Mechanization (PhMech). Its existing research, extension and 
postharvest development services functions on post-production is hereby 
expanded to 
include 
mechanization concerns. 
Likewise, 
its 
manpower 
complement shall be augmented to constitute at least one division on 
Mechanization Research Division with at least 15 technical personnel and two 
administrative staff. The BPRE shall coordinate, plan and execute agricultural 
and fishery mechanization and post harvest R&D and extension programs and 
projects of the Department. 
SECTION 30. Agricultural Machinery Testing and Evaluation Centers. 
The existing Agricultural Machinery Testing and Evaluation Center (AMTEC) of 
the College of Engineering and Agro-Industrial Technology (CEAT) of UPLB is 
hereby designated as the premier and reference Testing Center, and for 
purposes of functional coordination and integration, shall closely coordinate its 
activities with the BAFPMS. As the premier Testing Center, it shall assist the 
BAFPMS in the formulation of quality, safety and performance standards of 
agricultural and fisheries machineries and of accreditation guidelines for testing 
centers. It shall also provide technical assistance in the establishment of testing 
centers in other parts of the country. 
ARTICLE VII 
RESPONSIBILITIES OF THE LOCAL GOVERNMENT UNITS 
• 
SECTION 31. Implementation by the Local Government Units. The 
Local Government Units, pursuant to the provisions oi Republic Act No. 7160, 
16 


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. 
SECTION 32. Institutionalization of the Agricultural Engineering 
Groups of the Local Government Units. The Provincial, City and Municipal 
Agricultural Engineering Group/Offices of the LGUs organized under Section 46 
of R.A. 8435 and Executive Order No. 86, Series of 1999 are hereby 
strengthened and shall serve as the coordinating, planning, regulating and 
implementing bodies at the Provincial, City and Municipal levels on agricultural 
and fisheries infrastructure, engineering and mechanization projects. Specifically, 
it shall: 
1) Provide 
agricultural 
engineering 
services 
which 
include 
engineering survey, preparation and evaluation of plans, designs, 
technical specifications and feasibility studies of irrigation, small 
water impounding, farm machinery, slaughter houses, poultry 
dressing plants, post harvest facilities, auction markets, farm-to-
market roads, and other agricultural and fisheries infrastructure 
projects of the LGUs; 
2) Administer, supervise and coordinate the construction, operation, 
maintenance, improvement and management of irrigation, small 
water impounding, farm machinery, post harvest facilities, auction 
markets, farm-to-market roads and other agricultural and fisheries 
infrastructure projects of the LGUs; 
3) Undertake the registration and enforcement of the Philippine 
Agricultural Engineering Standards and other regulatory activities 
on Agri-fishery machinery and facilities in coordination and 
collaboration with the Local Building Officials and concerned 
national government agencies; 
4) Coordinate with concerned national government agencies with 
regards to the implementation of national government programs 
and projects on irrigation, farm mechanization, post harvest 
17 


facilities, farm-to-market roads and agricultural and fisheries 
infrastructure; 
5) Be in the frontline of the delivery of basic agricultural engineering 
services; 
,6) Provide training and extension activities to farmers and fisherfolks 
particularly in the installation, operation and maintenance of their 
irrigation, 
post 
harvest 
facilities, 
agricultural 
and 
fishery 
machinery projects in coordination with the agriculture and 
fisheries extension workers 
7) Undertake 
and 
or 
coordinate 
the 
pilot 
testing 
and 
commercialization 
of 
matured 
agricultural 
and 
fisheries 
engineering technologies; and 
8) Exercise such other powers and perform such other duties and 
functions as maybe prescribed by law or ordinance. 
In cases of provincial, city and municipal LGUs belonging to low income 
class which are not capable to establish its Agricultural Engineering Group due to 
financial constraints and limitations, the Department though its Regional 
Agricultural 
Engineering 
Divisions 
shall 
augment 
and 
perform 
such 
responsibilities, and as deemed necessary establish its provincial, city and 
municipal operation units, and shall be allocated and provided with necessary 
funding and manpower requirements for their operation. 
ARTICLE VIII 
MISCELLANEOUS PROVISIONS 
SECTION 33. Agricultural and Fisheries Mechanization Programs at 
the local levels. The Local Government Units through an. ordinance shall also 
formulate in consultation with the Department and implement their respective 
Provincial, City and Municipal Agricultural and Fishery Mechanization Plans as a 
vital component of their respective local development plans. 


SECTION 34. Contiguous Farming. The Department together with the 
Department of Agrarian Reform shall carry out contiguous farming projects 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 Contiguous Farming Projects shall: 
1) 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; 
2) Undertake farm development planning; and 
3) Strengthening offarmers' cooperatives and associations. 
SECTION 35. Use of Renewable Energy. The use of renewable and 
nonconventional energy such as wind, solar, hydro, bio-mass and other farm-
based energy sources shall be promoted as power sources for the operation and 
maintenance of agricultural and fisheries machinery. The Department in 
coordination with the Department of Energy, DOST and State Colleges and 
Universities, and the private sector shall undertake research and extension 
activities to enhance the use renewable and non-conventional energy in 
agricultural and fisheries operations. 
ARTICLE IX 
ENFORCEMENT 
SECTION 36. Penal Provisions. The following acts or omissions affecting 
the regulatory provisions of this Act are hereby prohibited: 
1) Selling, mortgaging or leasing of .agricultural and fishery 
machinery without being registered with the BAFPMS; 
19 


2) Selling of new agricultural and fishery machinery without a serial 
number, without having been certified by an accredited certifying 
body, without warranty or without after sales service 
3) Claiming ownership by any individual to an agricultural and 
fishery machinery that has not been properly registered in 
his/her name 
4) Operating a testing center without proper accreditation 
5) Violating the rules of safety operation by drivers and operators of 
agricultural and fishery machinery 
Penalty for the above prohibited Acts shall be punishable by a fine of not 
more than the value of the agricultural and fishery machinery involved. 
The purchase of non-certified or substandard agricultural and fishery 
machinery for the government shall be considered a corruption practice and shall 
be dealt with in accordance with the provisions of the Corrupt Practices Act. 
SECTION 37. Enforcement. This provision shall take effect four years 
upon the enactment of this Act when all regulatory provisions have already been 
in place. The Secretary has the power: 
a) To confiscate new agricultural and fishery machinery that is not 
duly certified,' without serial number, without warranty or 
substandard; 
b) To close or bring to court any business entity that is not 
registered as manufacturers, assemblers, dealers or importers of 
agricultural and fishery machinery or that sells new agricultural 
and fishery machinery that has not been duly certified, without a 
serial number, or without warranty, without after sales service or 
substandard; and 
c) To close or bring to court any testing center that has not been 
duly accredited. 
20 


The Secretary shall deputize the engineering offices of the LGUs to 
monitor the implementation of regulation concerning certification, registration of 
manufacturers, assemblers, dealers or importers and accreditation of agricultural 
and fishery machinery testing centers. 
Any business that sold a new agricultural and fishery machinery that has 
not been duly certified, without a serial number, without warranty, or without after 
sales service shall be given one month to refund or replace the sold machinery 
duly corrected for any deficiency as indicated. Failure to do so shall subject the 
business to closure or litigation initiated by the Secretary. 
SECTION 38. Implementing Rules and Regulations. The Department 
within six months upon the enactment of this Act and in consultation with the 
stakeholqers and other government agencies shall promulgate the necessary 
rules and regulations to implement this Act. 
SECTION 39. Funding. The amount necessary to carry out the program 
shall be incorporated in the General Appropriations Act. 
All funds currently allocated for agricultural and fisheries mechanization 
under the Agricultural and Fisheries Modernization Program, in particular, the 
Ginintuang Masaganang Ani (GMA) Programs for rice, corn, livestock, high value 
commercial crops 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 the Department of Science and 
Technology (DOST), shall be integrated to constitute the initial Agricultural and 
Fisheries Mechanization Program Fund, and thereafter, shall be incorporated as 
part of the funding appropriation of the Annual General Appropriations Act; 
All Local Government Units shall likewise include in their investment plans, 
as part of the priority appropriations of their 10% Economic Development Fund, 
the funding support for the implementation of their respective provincial, city, 
municipal and barangay agricultural and fisheries mechanization programs; 
The Department shall set aside at least a total of PhP700 Million of the 
Agriculture Competitiveness Enhancement Funds (ACEF) to support this Act as 
21 


• 
follows: PhP300 Million for loans to local manufacturers, fabricators and 
assemblers of agricultural and fisheries machinery to establish manufacturing 
and service center facilities, PhP200 Million for loans to small farmers for the 
purchase of agricultural and fisheries machinery and PhP200 for grants to 
upgrade AMTEC and establishing one testing center in the Visayas and one 
testing center in Mindanao. The Secretary shall formulate guidelines for access, 
disbursement and repayment for these funds. 
The BAR shall set aside PW 5 million annually from its regular R&D funds 
to support patent applications and a research competitive grants program for the 
testing and certification of locally designed agri-fisheries equipment and 
machineries. 
The ATI shall set aside at least PhP10 million annually of its AFMA budget 
to fund its mechanization promotion program. 
The Agricultural and Fisheries Mechanization Program Fund shall be 
managed by the Coordinator of the Program and shall be used for the following 
activities: 
1) Training of farmers, fisherfolk, farm workers, agricultural and 
fisheries machinery operators and technicians and program 
implementers; 
2) Upgrading of agricultural and fishery mechanization facilities and 
equipment of the 
Department of Agriculture 
and 
Local 
Government Units; 
3) Information campaign; 
4) Grants for the young entrepreneurs and agricultural engineers 
who intend to pursue agricultural and fishery machinery 
enterprises projects; and 
5) Strengthening the DA and LGU's Agricultural Engineering 
Groups. 
22 


• 
6) Formulation of regulations 
SECTION 40. Congressional Oversight Committee. The Congressional 
Oversight Committee on Agricultural and Fisheries Modernization (COCAFM) 
shall be the congressional oversight committee for purposes of this Act. The 
COCAFM shall review and approve the implementing rules and regulations of 
this Act and also perform the following functions: 
a) Monitor and ensure the proper implementation of this Act; 
b) Review the proper implementation of the National Agri-fishery 
Mechanization Program and the use of its fundS; and 
c) Such other functions it deems necessary 
In this regard, the President shall subm.it to the COCAFM,an annual report 
of Program implementation and corresponding budget request for the 
subsequent year. 
SECTION 41. 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 42. Repealing Clause. All laws, decrees, executive orders and 
other administrative issuances and parts thereof which are inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly. 
SECTION 43. Effectivity. This Act shall take effect fifteen (15) days after 
its publication in two (2) newspapers of general circulation. 
Approved . • 
')