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13th CONGRESS'OF THE REPUBLIC ) 
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'Oh. &I!- -6 
FJl :@5 
OF THE PHILIPPINES 
First Regular Session 
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Introduced by Senator Ralph G. Recto 
Explanatory Note 
This bill seeks to improve farmer and cooperative's productivity through the use of 
agricultural and fishery inputs, equipment and machinery by amendmg Republic Act No. 
8435, otherwise known as the Agriculture and Fisheries Modernization Act of 1997 as 
follows: 
a. 
Includmg individuals and cooperatives in the scope of those 
entitled to tariff and duty exemption on the importation of all 
types of agricultural and fishery inputs, equipment and machinery; 
Removing the qualification that enterprises exempted from tariff 
and duties shall be duly certified by the Department of 
Agriculture @A), in consultation with the Department of 
Finance (DOF) and the Board of Investment (€301); 
Extending the period of tariff and duty exemption privilege from 
5 to 10 years; and 
Removing the condition that the imported agricultural and fishery 
inputs, equipment and machinery shall be for the exclusive use of 
the importing enterprise. 
b. 
C. 
d. 
It is a twin measure to a bill exempting all types of agriculture and fisheries inputs, 
equipment and machinery from the coverage of the value-added tax (VAT). 
The AFMAiprovides for the exemption of all enterprises engaged in agriculture and 
fisheries, certified by the DA, in consultation with the DOF and the B01, from the payment 
of tariff and duties for the importation of all types of agriculture and fisheries inputs, 
equipment and machinery but only on the condition that the imported agricultural supplies 
shall be used exclusively by the importing enterprise. As such, under the existing regme, 
importers cannot S ~ U  
the imported equipment to small farmers, fishezfolls, cooperatives and 
other members of &e agricultural sector. Neither can the latter import directly since the law 
allows only businesd enterprises, not individuals. 
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.
 
Considering that the agmultural sector holds the second highest multiplier effect on 
the national economy and as such, the strongest potential for the country to withstand the 
possible effects of a seeming global recession, more incentives for our farmers and agri- 
basid industries are in order. 
Removing the tax burden of the sector would be the best 
course of action right now to improve productivity and increase production in the 
countryside. 
In view of the foregoing, immediate 
is earnestly sought. 
Mch 581776 Tariff&Dudes AFM4.doc 


13“’ CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
~ 
Introduced bv Senator Ralph G. Recto 
AN ACT 
ENGAGED IN THE IMPORTATION OF ALL TYPES OF AGRIGULTURE 
AND FISHERIES INPUTS, EQUIPMENT AND MACHINERY FROM 
PAYMENT OF TARIFFS AND DUTIES, AMENDING FOR THE PURPOSE 
REPUBLIC ACT NUMBERED EIGHT THOUSAND FOUR HUNDRED 
AND FISHERIES MODERNIZATION ACT OF 1997 
EXEMPTING I N b ~ v ~ D u A L s ,  
COOPERATIVES, AND OTHER ENTERPRISES 
THIRTY-FIVE (R.A. 8435), OTHERWISE KNOWN AS THE AGRICULTURE 
Be it enacted by the Senate and the House ofRepresentatives ofthe Pbih$pines in Congress assembled: 
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SECTION 1. 
Section 109 of Republic act No. 8435, otherwise known as the 
“Agriculture and Fisheries Modernization Act of 1997,is hereby amended to read as follows: 
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“SEC. 109. 
All, INDIVIDUALS, COOPERATIVES AND OTHER 
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enterprise] 
enteiprises [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 agriculture and 
fisheries inputs, equipment and’machinery such as, but not limited to, fertilizer, 
insecticide, pesticide, tractor, trailers, trucks, farm implements and machinery, 
haivesters, threshers, hybrid seeds, genetic materials, sprayers, packagmg machinery 
and materials, bulk-handling facilities such as conveyors and mini loaders, weighing 
scales, hamestmg equlpment, spare parts of all agncultural equipment, fishing 
equipment and parts thereof, refrigeration equipment, and renewable energy systems 
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panels [: Provided, however, That the imported agricultural and fishery 
inputs, equipment and machinery shall be for the exclusive use of the importing 
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“X x X.” 


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SEC. 2. 
The Department of Agriculture, in consultation with the Department of 
Finance and Board of investment, shall promulgate the necessary d e s  and regulations for 
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newspapers of general circulation. 
the effective implementation of the provisions of this Act. 
SEC 3. 
This Act shall take effect fifteen (15) days after its publication in two (2) 
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APPmved, 
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