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THIRTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
OCI 27 All 51 
C0,MMlTTEE REPORT NO. 
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Submitted 
by 
the 
Committee 
on 
Agriculture 
and 
Food 
on 
Re: 
S.B. No. 
183'7 
Recommending its approval in substitution of SB No. 1165 
Sponsor: 
Senator Ramon B. Magsaysay, Jr. 
MR. PRESIDENT: 
The Committee on Agriculture and Food, to which was referred Senate Bill 
No. 1165, introduced by Senator Magsaysay, Jr., entitled: 
"AN ACT 
EXTENDING THE UTILIZATION PERIOD OF THE AGRICULTURAL 
COMPETITIVENESS ENHANCEMENT FUND, AMENDING FOR 
THIS PURPOSE PERflNENT PROVISION OF REPUBLIC ACT NO. 
8178, ENTITLED "AN ACT REPLACING QUANTITATIVE IMPORT 
RESTRICTIONS ON AGRICULTURAL PRODUCTS, EXCEPT RICE, 
WITH 
1 TARIFFS, 
CREATING 
THE 
' AGRICULTURAL 
COMPETITIVENESS FUND" AND FOR OTHER PURPOSES 
has considered \he bill and has the honor to report it back to the Senate with the 
recommendatioi$ that the attached bill, Senate Bill No. 1 83") , prepared by 
the Committee, entitled: 
"AN ACT 
EXTEND NG THE UTILIZATION PERIOD OF THE AGRICULTURAL" 
THIS PURPOSE SECTION 8 OF REPUBLIC ACT NO. 8178, 
ENTITLED "AN ACT REPLACING QUANTITATIVE IMPORT 
RESTRICTIONS ON AGRICULTURAL PRODUCTS, EXCEPT RICE, 
WITH 
TARIFFS, 
CREATING 
THE 
AGRICULTURAL 
COMPETITIVENESS FUND" AND FOR OTHER PURPOSES 
COMPE lJ 
ilTlVENESS ENHANCEMENT FUND, AMENDING FOR 
be approved in substitution of SB No. 1165 with Senator Magsaysay, Jr. as author 
thereof. 
Rflspectfully submitted: 
Committee on Agriculture and Food 


Vice Chairmen: 
Members: 
i 
EDGARDO J. 
ent 
/- 
R 
ON “B 
GI’ REVILLA, JR. 
Y 4 “  
Ex-Officio Members: 
FRANC1 
Majority 
/ 
/- 
HON. FRANKLIN M. DRILON 
Senate President 
Pasay City 


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THIRTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
*M OCT 27 All 51 
6- 
SENATE 
WED w:, 
S. NO. 1837 
(In Substitution of SB No. 1165) 
Prepared by the Committee on Agriculture and Food with Senator Magsaysay, Jr., as 
author thereof 
AN ACT 
EXTENDING THE UTILIZATION PERIOD OF THE AGRICULTURAL 
COMPETITIVENESS ENHANCEMENT FUND, AMENDING FOR THIS 
’ PURPOSE SECTION 8 OF REPUBLIC ACT NO. 8178, ENTITLED “AN ACT 
REPLACING 
QUANTITATIVE 
IMPORT 
RESTRICTIONS 
ON 
AGRICULTURAL PRODUCTS, EXCEPT RICE, WITH TARIFFS, CREATING 
THE AGRICULTURAL COMPETITIVENESS FUND” AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled: 
SECTION 1. Section 8 of Republic Act Number 8178, entitled “An Act 
Replacing Quantitative Import Restrictions on Agricultural Products, Except Rice, with 
Tariffs, Creating the Agricultural Competitiveness Enhancement Fund, and for Other 
Purposes” is hereby amended to read as follows: 
“SEC. 8 Agricultural Competitiveness Enhancement Fund - To implement the 
policy enunciated in this Act, there is hereby created the Agricultural Competitiveness 
Enhancement Fund, hereinafter referred to as the Fund. THE FUND SHALL CONSIST 
OF ALL DUTIES COLLECTED FROM [The proceeds of] the importation of 
AGRICULTURAL PRODUCTS UNDER THE minimum access volume (MAV) 
MECHANISM, TO BE CREDITED TO THE SPECIAL ACCOUNT, FUND 183 IN 
THE GENERAL FUND OF THE NATIONAL TREASURY. 
[shall accrue to the 
General Fund and shall be deposited in the national Treasury.] 
The FUND [entire proceeds] shall CONTINUE TO be set aside and earmarked 
by Congress AS FOLLOWS: [for irrigation, farm to market roads, post-harvest 
equipment and facilities, credit, research and development, other marketing 
infrastructure, provision of market information, retraining, extension services, and other 
forms of assistance and support to the agricultural sector.] 
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1) EIGHTY-FIVE PERCENT (85%) FOR AGRI BASED PRODUCTION 
AND POST PRODUCTION AND PROCESSING ACTIVITIES, 
INCLUDING BUT NOT LIMITED TO NEW EXPORT INDUSTRIES 
AND AGRI-RELATED INFRASTRUCTURE AND EQUIPMENT TO 
ACHIEVE MODERN AGRICULTURAL PRACTICES; AND FOR 
MARKET 
PROMOTION 
ACTIVITIES, 
INCLUDING 
THE 
ESTABLISHMENT OF MARKET SUPPORT MECHANISM; AND 
2) FIFTEEN PERCENT (15%) 
FOR RESEARCH, DEVELOPMENT, 
AND THE COMMERCIALIZATION OF SUCH, INCLUDING THE 
UPGRADING OF THE RESEARCH FACILITIES OF QUALIFIED 
UNIVERSITIES AND COLLEGES. 
The Committees on Agriculture and Food, Appropriations and Finance of both the 
Senate and House of Representatives shall conduct AN ANNUAL [ a periodic] review 
of the use of the Fund. The Fund shall have a life of UP TO THE YEAR 2015 [nine (9) 
years], after which the remaining balance shall revert to the General Fund.” 
SEC. 2. Fund Management and Sustainabiliiy. For the purpose of fund 
management and sustainability, the Fund shall be released to the official designated 
depository bank, to which collections from repayments from loan beneficiaries including 
interests, if any, shall be credited. The Department of Agriculture and the official 
designated depository bank are hereby mandated to draw up a plan and such other 
mechanisms for fund utilization and sustainability. 
SEC. 3. Implementing Rules and Regulations. -The Department of Agriculture 
(DA) in consultation with all the concerned stakeholder groups in the agricultural and 
fisheries sectors and other agencies concerned, in coordination with the Congressional 
Oversight Committee on Agriculture and Fisheries Modernization (COCAFM), shall 
promulgate within a period of ninety (90) days from the effectivity of this Act, the 
implementing rules and regulations, for the effective implementation of this Act. 
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SEC. 4. Repealing Clause - All laws, decrees, executive issuances, rules and 
regulations inconsistent with this Act are hereby repealed or modified accordingly. 
SEC. 5. Separability Clause - The provision of this Act are hereby declared to be 
separable, and in the event one or more of such provision are held unconstitutional, the 
validity of the other provision shall not be affected thereby. 
SEC. 6. Esfecfivity - This Act shall take effect fifteen (15) days from the date of its 
publication in the OfJicial Gazette or in at least two (2) newspapers of general circulation, 
whichever comes earlier. 
Approved, 
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