415" Congress
First Regular Session

House Bill No._2098

EXPLANATORY NOTE

The country is now faced with two crucial issues and problems that need to be
addressed immediately and that is food security and poverty. With our growing
population, now close to 90 million, our rice production at 8.99 million metric tons is
not enough to meet our rice consumption at 9.13 million metric tons (2007 BAS data).
As reported by PhilRice, the annual deficit of staple food particularly rice is widening,

hence production increase is only at 3.58% over rice consumption at 4.59 %
increase.

Also, about 51% of our population resides in rural areas where 73% of this are poor
and mostly depends on agriculture for their livelihood (www.icarrd.org), and 35% of
the 34 million persons in the labor force are employed in the agriculture sector
(www.bas.gov.ph, 2007 data).

Mechanizing the Philippine agriculture and fisheries will improve our land and labor
efficiency, thus there will be an increase in farm production and income due to : 1)
Increase in cropping intensity; 2) better plant growth due to better cultivation thus
increase in yield per unit area; 3) reduce post harvest losses now at 10-37% for rice
and 30% for corn ; 4) competitive pricing with product value adding through agro-
processing; and 5) diversify farms and farm products, particularly to intercrop the 2.1
million hectares coconut lands which remained idle and underutilized for many
years.

But how can these potentials for increased farm production and income will happen,
Mr. President when our country is now at the forefront of the lowest mechanization
level in Asia only at 0.52 horsepower per hectare? While Japan is now enjoying a rice
production of 6.7 tons per hectare brought in by high mechanization level of 7 hp/ha,
China at 5.36 tons/ha. with 3.88 hp/ha mechanization level , yet the Philippines is
only at 2.64 tons per hectare with 0.56 hp/ha.

‘As reported in the findings of the AFMA Experts’ Review commissioned during the
43th Congress by the Department of Agriculture and the Congressional Oversight
Committee on Agricultural and Fishery Modernization (COCAFM), this dismal
situation of farm mechanization in the country is caused by inadequate yet
fragmented support services and promotion program, proliferation of substandard
machinery and limited farmers’ access to appropriate and affordable farm machinery
and equipment

The proposed Agriculture and Fishery Mechanization (AFMech) Law shall address ,
these issues and problems and seeks to :

a) fix the implementing structure within the DA and LGUs and its inter-agency
collaboration so that farm mechanization support services shall be effectively
and efficiently delivered even up to the barangays;


b) strengthen machinery testing and evaluation, standards development and
enforcement and monitoring through accreditation and registration system to
ensure the provision of quality machinery and equipment; and

c) _ strengthen local manufacturing to lower down the investment costs and the
establishment agri-fishery machinery service centers in key production areas
for custom plowing, harrowing, harvesting, drying, milling and other services
which may be owned and operated by registered farmers cooperatives and
associations

The proposed AFMech Law will also effect a new period in the agriculture sector
marked by agro-industrialization in the countryside and urbaf migration to rural
areas. With the increase of farm production and income and emergence of agro-
processing and machinery manufacturing, repair and maintenance enterprises,
more livelihood and employment opportunities shall be created.

Moreover, it is also a strategic measure to prepare the agriculture sector for the
adverse effect of climate change.



FIFTHTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES)
First Regular Session

HOUSE OF REPRESENTATIVES
House Bill No. 2596

INTRODUCED BY REPRESENTATIVE MARK LLANDRO L. MENDOZA

AN ACT
PROMOTING THE AGRICULTURAL AND FISHERIES MECHANIZATION
DEVELOPMENT IN THE COUNTRY

Be it enacted by the Senate and the 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 |
DECLARATION OF POLICY,
DEFINITION OF TERMS AND COVERAGE

SECTION 2. Declaration of Policy. \t shall be the policy of the State to:

&

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 and farmers income;

b) provide a conducive environment to the local assembling and manufacturing of
engines, machinery and equipment for agricultural and fisheries production,
processing and marketing;

9

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;

a

strengthen support services like credit facilities, research, training and extension
programs, rural infrastructures, post harvest facilities and marketing services;

@

unify, rationalize and strengthen the implementation, coordination activities and
mechanisms on agricultural and fisheries mechanization programs and projects;
and

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 uséd since its date of manufacture;

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 farm and fishery management towards
modernization of agriculture and fisheries;

c. Ago-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 but not limited to. cleaning, sorting,
grading, mixing, milling, canning, dressing, 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;

@. Program - refers to the National Agri-fishery Mechanization Program;

f£ Department - refers to the Department of Agriculture;

g. Secretary - refers to the Secretary of Agriculture;

h. DOLE -refers to the Department of Labor and Employment;

i, DOST- refers to the Department of Science and Technology;

j. DTl-refers to Department of Trade and Industry;

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) PhilMech- refers to the Philippine Center for Post Harvest Development and
Mechanization ;
q) NAFC- refers to the National Agricultural and Fishery Council;

1) TESDA- refers to the Technical Education and Skills Development Authority;
8) 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 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, maintenance and project
implementation 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 Agr-ishery 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;

ic)

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

f) promote the adoption of certified agricultural 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 to be designated by the Secretary who shall :

4

conduct the formulation and review of 5-year National Agri-fishery Mechanization
Program 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 Ill
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 (RDE) Agenda
shall be formulated and implemented by the Department, Provided that the
Department through the PHilMech 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 demands and help
accelerate agricultural and fisheries modernization in the countryside.

The National Agricultural and Fisheries Mechanization RDE Agenda shall include but
not be 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 manufacture and assembly 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


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 (RDE) 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
(RDE) network is responsible for the formulation and implementation of the National
Agricultural and Fisheries Mechanization RDE Agenda. The PhilMech shall be
responsible for organizing the Network and shall serve as Secretariat to the Network.
The Network shall be chaired by the Director of PhilMech. Moreover, the Agricultural
Mechanization Development Program of the University of the Philippines Los Banos,
which is part of the Network shall be strengthened and institutionalized to lead and
coordinate the agricultural and fishery mechanization research, development and
extension program of all academic institutions in the country.

Section 9. Agri-Fisheries Machinery and Equipment Service Centers-
The Department and the LGUs shall encourage and support the private sector and
other rural entrepreneurs to establish and operate Agricultural and Fishery Machinery
and Equipment Service Centers in the Strategic Agricultural and Fishery
Development Zones (SAFDZs) and Agrarian Reform Communities. The Agri-
Fisheries Machinery and Equipment Service Centers shall be operated as_ business
enterprises that will provide the following services :

a) 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 SEC/ DTI registered businesses.

SECTION 10. Agri-Fisheries Mechanization and Engineering Resource
Network. The existing agricultural machinery information and data base of BPRE
shall be strengthened into Agri-Fishery Mechanization and Engineering Resource

Network. It shall serve as a network of information system and data bank on agri- _

fisheries mechanization and engineering activities. It will also be used or tapped as a
facility for the on-line registration of agri-fisheries machinery and equipment, and
monitoring of agri-fisheries mechanization and infrastructure projects. This network
shall be linked to other existing information and data base networks of the
Department, Agricultural Machinery Information Network of DOST, Agricultural
Mechanization Development Program of UPLB and of other government agencies.


SECTION 11. Research Grants. To enhance research and technological
development on agricultural and fisheries mechanization, the government through
the BAR, DOST and CHED 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 12. Training and Scholarship Program. 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 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 agricultural
engineering and trade/vocational courses on agricultural and fisheries mechanization
shall be given priority by the Department, CHED and DOST.

SECTION 13. 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 14. Skills Certification of Agricultural Machiney 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.

ARTICLE IV
LOCAL ASSEMBLY, MANUFACTURE, SUPPLY
AND AFTER SALES SERVICE

Section 15. Local Assembling and Manufacturing - Production of locally
made engines and other machinery for agricultural and fisheries purposes shall be
promoted and encouraged by the Department in partnership with the private sector,
and through joint venture agreement. For this purpose, the Department in partnership
with the recognized national organization of agricultural machinery assemblers,
manufacturers and distributors, agricultural engineers and the DOST shall undertake
the feasibility study and R & D for the local assembly and manufacture of agricultural
engines/prime mover, and other agricultural machinery and equipment.

SECTION 16. Incentives for local manufacturers and assemblers of agri- «

fisheries machinery. Ventures in local manufacture, fabrication and assembly of
agrifisheries machinery and equipment shall be eligible for loans under the ACEF,
otherwise known as the Agricultural Competitiveness Enhancement Fund under the
Program of the Department of Agriculture. These businesses shall be granted
incentives as long as they are considered as registered enterprises engaged in a
preferred area of investment pursuant to Article 39 of Executive Order 226 as
amended. They shall be eligible to apply for research grants from the Bureau of
Agricultural Research (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 valued


SECTION 17. Supply of Agricultural and Fisheries Machinery in
Government Procurement Program. Only assemblers, manufacturers, importers,
suppliers, distributors and dealers accredited by the National 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 tested by AMTEC 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 which
shall be monitored by CAFEO.

ARTICLE V
TESTING AND EVALUATION, REGISTRATION,
STANDARDIZATION AND ACCREDITATION

Section 19. Testing and Evaluation - Agricultural and fisheries machinery
and equipment to be sold in the market shall pass through testing and evaluation by
MTEC in accordance with the national policies and guidelines to be promulgated by
the Secretary. Specifically, before it can be assembled, manufactured and
commercially sold in the market, the model of the machine and any modification
thereof should be tested by AMTEC and should pass the prescribed quality and
performance standards. The regular testing and evaluation of machinery sold shall be
undertaken by AMTEC on new models and design. Field tests shall likewise be .
undertaken by AMTEC to ensure consistent quality of test units as well as on the
commercial units. The BAFPS shall maintain a certification registry of equipment and
machinery as well as a registry of those denied certification.

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

The Agricultural Engineering Office of the Local Government Units shall
establish and maintain a registry of agricultural and fishery machinery at the
municipal, city and provincial levels. The DA Regional Agricultural Engineering
Division shall maintain a registry of agricultural and fishery machinery at the regional
office whereas the BAFPS 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 BAFPS

Three years upon the enactment of this Act, registrants must provide
certification by an accredited certifying body of all products that they have in the
market or intend to market and withdraw all products that have no certification. One
year after the enactment of this Act, the registrants must submit to the BAFPS the list
of equipment/machinery manufactured/ fabricated/assembled/ imported.


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. i

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.

The Secretary shall deputize the agricultural 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.

Also, the Department of Public Works and Highways and the Local Building
Officials, consistent with the provisions of R.A. No. 8559 and in coordination with
CAFEO shall enforce the Philippine Agricultural Engineering Standards as part of the
implementation of the National Building Code of the Philippines particularly in the
design, construction, operation and maintenance of agricultural and fisheries
buildings and structures

Section 23. Classification and Accreditation ‘of Assemblers,
Manufacturers, Importers, Suppliers, Distributors and Dealers- Agricultural and
fisheries assemblers, manufacturers, importers and suppliers, distributors and
dealers shall be classified into small, medium and large, and shall be encouraged to
have their manufacturing/service facility build-up; Provided that agricultural and
fisheries machinery assemblers, manufacturers, importers, suppliers, distributors and
dealers shall be classified and accredited based on their organizational strengths and
track records, area of operation, marketing and distribution network, after sales
service and manufacturing capabilities.

SECTION 24. 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;

SECTION 25. Composition of NAMDAC- The NAMDAC shall be composed
of the heads of CAFEO, PhilMech, AFMeC, AMTEC and representatives from the
recognized and well established national association of assemblers, manufacturer,
importers, suppliers and distributors of agricultural and fisheries machinery and
equipment, and agricultural engineers.


The Infrastructure Support and Coordination Section of 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.

ARTICLE VI
INSTITUTIONS

SECTION 26. Agricultural and Fisheries Mechanization Committee. The
Agricultural and Fisheries Mechanization Committee (AFMeC) under the NAFC shall -
act as an advisory body to ensure the success of the programs and activities of the
Department concerning agricultural and fisheries mechanization. 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.

The Agricultural and Fishery Mechanization Committees are likewise
organized and strengthened at the Regional, Provincial, City, Municipal and
Barangay Agricultural and Fishery Councils to integrate, coordinate, unify and
monitor the field implementation of agri-fisheries mechanization and infrastructure
projects of various national government agencies, local government units, banking
and financial institutions and the private sector.

SECTION 27. Strengthening the DA Agricultural and Fishery Engineering
Groups. Pursuant to Section 46 of R.A. No. 8435, a Central Agricultural and Fishery
Engineering Office (CAFEO) is hereby created as one of the regular service of the
Department which shall be under the supervision of the Department Undersecretary
in-charge of National Agricultural and Fishery Mechanization Program.

The CAFEO shall have the following functions and responsibilities:
1) Coordinate, dversee and monitor the national planning and implementation of

agrifisheries engineering, farm-to-market, roads and other agri-fisheries
infrastructure projects;

2) Assist in the national planning, coordination and implementation of the
national agri-fisheries mechanization program;

3) Prepare, evaluate, validate and recommend engineering plans, designs and
technical specifications on agri-fisheries mechanization and infrastructure
projects ;

4) Oversee and provide technical assistance to the operations of Agricultural
Engineering Divisions of the DA Regional Field Units;

5) Coordinate and integrate all agricultural and fisheries engineering activities of
DA bureaus, attached agencies and corporations; and

6) Enforce _ standards and other regulatory policies on agricultural and fishery
engineering

Likewise, the Regional Agricultural Engineering Divisions (RAEDs) are hereby
strengthened, institutionalized or created in the Regional Field Units of the
Department to carry out the field implementation of the agricultural and fishery
engineering, mechanization and infrastructure programs and projects of the
Department.


All concerned DA bureaus and attached agencies implementing agri-fishery
mechanization and infrastructure projects such as but not limited to National Meat
Inspection Service, Bureau of Animal Industry, Bureau of Plant Industry, Agricultural
Training Institute, Bureau of Agricultural Research, Bureau of Soils and Water
Management, Bureau of Fisheries and Aquatic Resources, Philippine Coconut
Authority, Fiber Industry Development Authority, National Food Authority and Sugar
Regulatory Administration shall also establish or strengthen their agricultural
engineering services/division as part of the over-all network of CAFEO

Section 28. Philippine Center for Post Harvest Development and
Mechanization — The Philippine Center for Post Harvest Development and
Mechanization shall coordinate, plan and execute agricultural and fishery
mechanization and post harvest R and D and extension programs and projects of
the Department and its manpower complement shall be augmented to assume these
responsibilities.

SECTION 29. Bureau of Agriculture and Fisheries Products Standards-
The Bureau of Agriculture and Fisheries Products Standards (BAFPS), in addition to
its functions under Sections 62 and 63 of R.A. No. 8435 shall :

1) set and implement standards for agricultural and fishery machinery and
equipment ;

2) formulate and enforce quality, safety and performance standards for
agricultural and fisheries machinery

3) formulate and enforce of accreditation procedures for testing centers for
agricultural and fisheries machinery i

5) _ formulate guidelines for the registration of ownership of agricultural and fishery
machinery

6) maintain a national registry of agricultural and fisheries machinery certified by
accredited testing centers

7) maintain a national registry of testing centers for agricultural and fisheries
machinery

8) maintain a national registry of owners, manufacturers, fabricators, assemblers
and importers of agricultural and fishery machinery and corresponding serial
numbers

The BAFPS is hereby renamed into Bureau of Agriculture and Fisheries Standards
(BAFS) and authorized to create a new division on agricultural and fisheries
machinery regulations. It may call upon experts, professional groups and other
government agencies to assist in the performance of its functions.

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
institutionalized and shall compose of a Director and technical and administrative
personnel. The AMTEC is hereby designated as the premier and reference Testing
Center in the country, and for purposes of functional coordination and integration,
shalll closely coordinate its activities with the BAFPS. As the premier Testing Center,
it shall assist the BAFPS in the formulation of quality, safety and performance
standards of agricultural and fisheries machinery 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.

SECTION 31. Department of Agrarian Reform- The DAR in coordination
with the Department shall provide assistance to Agrarian Reform Beneficiaries in
securing their appropriate and needed agri-fisheries machinery and equipment
and/or the establishment of Agri-Fishery Machinery Service Centers as part of the
support services in the Agrarian Reform Communities. The DAR shall complement
the technical support services of the Department and the LGUs by pooling and
mobilizing its agricultural engineers. In carrying out these tasks, the DAR shall
establish or strengthen its agricultural engineering services in its central, regional and
provincial offices. °

ARTICLE Vil
RESPONSIBILITIES OF THE LOCAL GOVERNMENT UNITS

SECTION 32. Implementation by the Local Government Units. The Local
Government Units, pursuant to the provisions of Republic Act No. 7160, 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 33. Agricultural Engineering Offices of the Local Government
Units. The Provincial, City and Municipal Agricultural Engineering Groups/Offices of
the Local Government Units (LGUs) organized under Executive Order No. 86, Series
of 1999 and Section 46 of R.A. 8435 shall serve as the planning, coordinating,
regulating and implementing bodies at the Provincial, City and Municipal levels on ,
agricultural and fisheries engineering, mechanization and infrastructure programs
and projects. Specifically, these Agricultural Engineering Offices shall have the
following functions and responsibilities:

1) provide agricultural engineering services which include engineering survey,
preparation and evaluation of plans, designs, technical specifications, feasibility
studies and cost estimates/program of work of irrigation, small water impounding,
soil conservation and management, farm machinery, slaugtherhouses, 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, soil and
water conservation structures and facilities, 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 of agri-fishery machinery and facilities, enforcement of
the Philippine Agricultural Engineering Standards and other agricultural and
fishery engineering regulatory activities in coordination and collaboration with
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 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.

To effectively carry out the above functions and responsibilities, the Provincial,
City and Municipal Agricultural Engineering Offices are hereby strengthened and
institutionalized into the organizational structure of the LGUs, and if not yet existing,
shall be created in the particular LGUs. The LGUs belonging to first up to third
income class which are providing or implementing agricultural and fishery
infrastructure, mechanization and engineering projects shall hire at least one
agricultural engineer at the provincial, city and municipal levels.

In cases of provincial, city and municipal LGUs belonging to 4" to 6" income
class which are not capable to establish its Agricultural Engineering Office 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 Vill
PROHIBITED ACTS, PENALTIES AND SANCTIONS

SECTION 34. Prohibited Acts. It is unlawful for any person to =

1) sell, mortgage or lease agricultural and fishery machinery without being
registered with the BAFPS;

2) sell new agricultural and fishery machinery with out warranty or after sales
service.

3) claim ownership to an agricultural and fishery machinery that has not been
properly registered in his/her name.

4) Operate a testing center without proper accreditation.

SECTION 35. Penalties- Any person who shall violate any provision of
Section 35 of this Act shall upon conviction, be subject to a fine of not less than One
thousand pesos (P1,000.00) but not more than Ten thousand pesos (P10,000.00) or
imprisonment of not less than two (2) months but not more than one (1) year, or both ,
upon the discretion of the court, and/or other applicable penalties imposed under the
Consumer Act of the Philippines.

The purchase of non- certified or substandard agricultural and fishery
machinery for the government shall be deait with the Corrupt Practices Act.


Section 40- Infrastructure Support- The government shall provide priority
investment for the infrastructure needs in clustered farm land identified as key
agricultural and fishery production areas to accelerate agricultural and fisheries
mechanization in the countryside and this include irrigation, farm-to-market roads,
post harvest, power and communications facilities.

SECTION 41. Implementing Rules and Regulations. The Department within
six months upon the enactment of this Act and in consultation with the stakeholders
and other government agencies shall promulgate the Hecessary 0 rules and regulations
to implement this Act.

SECTION 42. Funding. 1) The amount necessary to carry out the program
and in the implementation of the following activities shall be incorporated in the
General Appropriations Act:

a) Training of farmers, fisherfolk, farm workers, agricultural and fisheries
machinery operators and technicians, agricultural engineering
extension workers and program implementers;

b) Upgrading of agricultural and fishery mechanization facilities and
equipment of the Department of Agriculture and Local Government
Units;

c) Information campaign;

d) — Grants for the young entrepreneurs and agricultural engineers who
intend to pursue agricultural and fishery machinery enterprises projects;

e) Strengthening the DA and LGU's Agricultural Engineering Groups.
f) Formulation of regulations.

2) All Local Government Units shall likewise include in their investment plans, as,
part of the priority appropriations of their 20% Local Development Fund, the
funding support for the implementation of their respective provincial, city,
municipal and barangay agricultural and fisheries mechanization programs;

3) The Department shall set aside at least a total of PhP700 Milllion of the
Agriculture Competitiveness Enhancement Funds (ACEF) to support this Act
as 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;

4) The BAR shall set aside P 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 agrifisheries equipment and
machineries; a

5) The CHED shall allocate funds from the Higher Education Development Fund
necessary for the upgrading of agri-fishery mechanization laboratory facilities,
of concemed State Colleges and Universities, faculty training program and
scholarships;