~pl.

lblit:

crf tire ll~iJippitlno

~ous~ of ~~pr~s~tdati\J~s
)uuon

lUitv, .,1IItdro ~htnlln

THE DEPUTY SECRETARY GENERAL

FOR OPERATIONS

THE EXECUTIVE DIRECTOR

PLENARY AFFAIRS BUREAU

THESER~CEDIRECTOR
BILLS AND INDEX SERVICE

THE DEPUTY SECRETARY GENERAL FOR COMMITTEE AFFAIRS COMMITTEE REPORT Nt>~

79 _

We are transmitting six (6) copies of the Committee Report submitted by the Committee on Agriculture and Food on House Bili No. 2976, in substitution to HB Nos. 607, 1402, 1517, 1521 and 2470, entitled: 'AN ACT TO EXTEND THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AMENDING REPUBLIC ACT NO. 8178, ENTITLED AN 'AN ACT REPLACING QUANTITATIVE IMPORT RESTRICTIONS ON AGRICULTURAL PRODUCTS, EXCEPT RICE, WITH TARIFFS, CREATING THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AND FOR OTHER PURPOSES".

ATTY.

ENE DADA-ARNALDO Deputy S cretary General

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,OCT 23 2007 ,"

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Fourteenth Congress First Regular Session

-----------------------------------------------------------------------------;7--9---------------------------COMMITfEE REPORT NO. _

OCT 23 2007
: House Bill No.

_2_' _9_7_6_

Recommending its approval in substitution to House Bill Nos. 607, 1402, 1517, 1521 and 2470 Sponsors: Representatives Abraham Kahlil B. Mitra, Darlene R. Antonino-Custodio, Diosdado Macapagal Arroyo, Alfredo D. Maraiion III, Luis R. Villafuerte, Ma. Carissa O. Coscolluela

HB No. 607, entitled, 'AN ACT TO EXTEND THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AMENDING SECTION 8 OF REPUBLIC ACT NO. 8178, ENTITLED 'AN ACT REPLACING QUANTITATIVE IMPORT RESTRICTION ON AGRICULTURAL PRODUCTS, EXCEPT RICE, WITH TARIFFS, CREATING THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AND FOR OTHER PURPOSES', authored by Rep. Alfredo D. Maraiion III; HB No. 1402, entitled, 'AN ACT TO EXTEND THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AMENDING REPUBLIC ACT NO. 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', authored by Rep. Abraham Kahlil B. Mitra; HB No. 1517, entitled, 'AN ACT TO EXTEND THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AMENDING 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 ENHANCEMENT

FUND, AND FOR OTHER PURPOSES', authored by Rep. Luis R. Villafuerte;

lIB No. 1521, entitled, 'AN ACT EXTENDING THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 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', authored by Rep. Darlene R. Antonino-Custodio; and lIB No. 2470, entitled, 'AN ACT EXTENDING THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AMENDING FOR THE 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 ENHANCEMENT FUND, AND FOR OTHER PURPOSES', authored by Rep. Ma. Carissa O. Coscolluela, has considered th~.a.nd House Bill No. ~ ~ (0 has the honor to recommend to the House that the attached ,entitled:

"AN ACT TO EXTEND THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AMENDING REPUBUC ACT NO. 8178, ENTITLED 'AN ACT REPLACING QUANTITATIVE IMPORT RESTRICfIONS ON AGRICULTURAL PRODUCTS, EXCEPT RICE, WITH TARIFFS, CREATING THE AGRICULTURAL COMPETITIVENESS ENHANCEMENTFUND,AND FOR OTHER PURPOSES"
be approved in substitution to House Bill Nos. 607, 1402, 1517,1521 and 2470 with Reps. Ma. Evita R. Arago, Diosdado Macapagal Arroyo, Ferdinand Martin G. Romualdez, Rene M. Velarde, William Irwin C. Tieng, Edgar M. Chatto, Rodolfo W. Antonino, Faysah RPM Dumarpa, Ana Theresia N. Hontiveros Baraque~ George P. Arnaiz, Antonio F. Lagdameo Jr., Guillermo A. Romarate Jr., Jose V. Yap, Victor J. Yu, Adam Relson L. Jala, Thelma Z. Almario, Cecilia M. Seares-Luna, Mark Leandro I. Mendoza, Rommel C. Amatong, Dulce Ann K. Hofer, Nelson L. Dayanghirang, Nicanor M. Briones, Belma A. Cabilao, Jocelyn Sy-Limkaichong, Robert Raymund M. Estrella, Marina P. Clarete, Yevgeny Vincente B. Emano, Rosendo S. Labadlabad, Leonila V. Chavez, Ma. Victoria R. Sy-Alvarado, Danilo P. Lagbas, leci A. Lapus, Proceso 1. Alcala, Henry Pryde A. Teves, Isidro T. Ungab, Solomon R. Chungalao and Ronald V. Singson as co-authors thereof.

REP.AB

KAm,u,B.MITRA

Chairman Committee on Agriculture and Food

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flage of, tire ~

9leptvd on tfu 9JiJ1of, 9l9J .N6-6. 607,1402,1517,1521 and 2470

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CABILAO, DELMA A.

~~~.

CIIA VEl., LEONILA V.

ARROYO, DIOSDAOO M. fommittee on ~and flood

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CZARINA D.

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ESCUDERO III, SALVADOR

H.

FACT SHEET H.B.;". No.(. ON

2976_

(in substitution
TITLE

to HB Nos. 607, 1402, 1517, 1521 and 2470)

"AN ACT TO EXTEND THE U11UZATION PERIOD OF THE AGRICULTURAL COMPE 1IIIVENESS ENHANCEMENT FUND, AMENDING REPUBUC ACT NO. 8178, ENTITLED "AN ACT REPLACING QUANTITATIVE IMPORT RESTRICTION ON AGRICULTURAL PRODUCTS, EXCEPT RICE, WITH TARIFFS, CREATING THE AGRICULTURAL COMPE 1IIIVENESS ENHANCEMENT FUND, AND FOR OTHER PURPOSESn

AUTHORS

REPS. ALFREDO D. MARANON ill, ABRAHAM KAHLIL B. MITRA, MA. EVITA R. ARAGO, LUIS R. VILLAFUERTE, DIOSDADO MACAPAGAL ARROYO, DARLENE R. ANTONINO-CUSTODIO, MA CARISSA O. COSCOLLUELA, RENE M. VELARDE, FERDINAND MARTIN G. ROMUALDEZ, WILLIAM IRWIN C. TIENG, EDGAR M. CHATTO, RODOLFO W. ANTONINO, FAYSAH RPM DUMARPA, ANA-THERESIA N. HONTIVEROS-BARAQUEL, GEORGE P. ARNAIZ, ANTONIO F. LAGDAMEO JR., GUlLLERMO A. ROMARATE JR., JOSE V. YAP, VICTOR J. YD, ADAM RELSON L. JALA, THELMA Z. ALAMRIO, CECILIA M. SEARES-LUNA, MARK LEANDRO I. MENDOZA, ROMMEL C. AMATONG, DULCE ANN K. HOFER, NELSON L. DAYANGHIRANG, NlCANOR M. BRIONES, BELMA A. CABILAO, JOCELYN SY-LIMKAICHONG, ROBERT RAYMUND M. ESTRELLA, MARINA P. CLARETE, YEVGENY VICENTE B. EMANO, ROSENDO S. LABADLABAD, LEONlLA V. CHAVEZ, MA. VICTORIA R. SY-ALVARADO, DANILO P. LAGBAS, mCI A. LAPUS, PROCESO 1. ALCALA, HENRY PRYDE A. TEVES, ISIDRO T. UNGAB, SOLOMON R. CHUNGALAO and RONALD V. SINGSON

section 8 of Republic Act No. 8178 created the Agricultural Competitiveness Enhancement Fund (ACEF) with a life span of nine (9) years, the purpose of which was to cushion the effect of the lifting of quantitative restrictions on affected sectors of agriculture. However, money collected for ACEFfrom 1996 to 1998 was not disbursed according to its purpose as collections were used for budgetary support instead.
RATIONALE OBJECTIVE: There is a need to extend the utilization period of the ACEFin order to enable the government further to provide the farming sector the opportunity to use the funds to strengthen their development activities and to enhance their competitiveness.

All duties collected from the importation of agricultural products under the minimum access volume (MAV) mechanism, unused balance and repayments from loan benefidaries including interests, if any, shall accrue to Special Account 183 and shall be deposited with the National Treasury; and

After the expiration of the extension of the utilization in 2015, the remaining balance shall revert to the General Fund.

BRIEFER
ON

REPUBLIC ACT 8178

RA No. 8178 was signed into law on 28 March 1996. It is an kt replacing quantitative restrictions (QRs) on Agricultural Products, except rice, with tariffs; The State adopts the use of tariffs, in lieu of non-tariff import restrictions to protect local producers of agricultural products; RA 8178 created the Agricultural Competitiveness Enhancement Fund (ACEF), which was granted a life span of nine (9) years after which all remaining balancesshall revert to the General Fund; The ACEF consists of all tariffs collected from the importation of agricultural products under the Minimum AccessVolumes (MAVs); The proceeds of the importation of the minimum access volume shall be credited to SpecialAccount 183 and deposited with the National Treasury; The entire proceeds shall be set aside and earmarked by Congress 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 assistanceand support to the agricultural sector.

The Fund should have expired in 2005, however, ACEFwas not disbursed according to the intended original purpose; instead, the money collected for the ACEFfrom 1996 to 1998 was utilized for budgetary support, thus, extending the expiration of the Fund until December 2007; There are proposals to extend the utilization period of the Agricultural Competitive Enhancement Fund (ACEF)jSpecialAccount 183 until 2015, amending section 8 of RA 8178.

There is a need to extend the utilization period of the ACEFto enable the government to provide the farming sector the opportunity to use the funds to strengthen their development activities and enhance their competitiveness.

Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City FOURTEENTH CONGRESS First Regular Session

HOUSE BILL ~~~ _(: __

2_9_7_6_

Introduced by the Honorables ALFREDO D. MARANON Ill, ABRAHAM KAHLIL B. MITRA, MA. EVITA R. ARAGO, LUIS R. VILLAFUERTE, DIOSDADO MACAPAGAL ARROYO, DARLENE R. ANTONINO-CUSTODIO, MA. CARISSA O. COSCOLLUELA, RENE M. VELARDE, FERDINAND MARTIN G. ROMUALDEZ, WILLIAM IRWIN C. TIENG, EDGAR M. CHATTO, RODOLFO W. ANTONINO, FAYSAH RPM DUMARPA, ANA-THERESIA N. HONTIVEROS-BARAQUEL, GEORGE P. ARNAIZ, ANTONIO F. LAGDAMEO JR., GUILLERMO A. ROMARATE JR., JOSE V. YAP, VICTOR J. YD, ADAM RELSON L. JALA, THELMA Z. ALMARIO, CECILIA M. SEARES-LUNA, MARK LEANDRO I. MENDOZA, ROMMEL C. AMATONG, DULCE ANN K. HOFER, NELSON L. DAY ANGHIRANG, NICANOR M. BRIONES, BELMA A. CABILAO, JOCELYN SY-LIMKAICHONG, ROBERT RAYMUND M. ESTRELLA, MARINA P. CLARETE, YEVGENY VICENTE B. EMANO, ROSENDO S. LABADLABAD, LEONILA V. CRA VEZ, MA. VICTORIA R. SY-ALVARADO, DANILO P. LAGBAS, JECI A. LAPUS, PROCESO J. ALCALA, HENRY PRYDE A. TEVES, ISIDRO T. UNGAB, SOLOMON R. CHUNGALAO and RONALD V. SINGSON

AN ACT TO EXTEND THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AMENDING REPUBLIC ACT NO. 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"

7
8

SHALL CONSIST OF ALL DUTIES COLLECTED FROM the importation of AGRICULTURAL PRODUCTS UNDER THE minimum access volume (MAV)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

MECHANISM, INCLUDING UNUSED BALANCE AND COLLECTIONS FROM REPAYMENTS FROM LOAN BENEFICIARIES INCLUDING INTERESTS, IF ANY. THE FUND SHALL BE AUTOMATICALLY CREDITED TO SPECIAL ACCOUNT 183 IN THE GENERAL FUND OF THE NATIONAL TREASURY: PROVIDED, THAT FUND RELEASES SHALL NOT BE SUBJECT TO ANY CEILING BY THE DEPARTMENT OF BUDGET AND MANAGEMENT (DBM). The entire proceeds shall be set aside and earmarked by Congress 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, MICRO, SMALL AND MEDIUM SCALE ENTERPRISES (MSMSE) IN AGRICULTURE, AQUACULTURE AND FISHERIES SECTORS; YOUNG ENTREPRENEURS, AGRICULTURE, FISHERIES OUT-OF-SCHOOL YOUTH, GRADUATES OF

AND RELATED COURSES; AGRICULTURE

AND FISHERY COOPERATIVES ENGAGED IN ECONOMIC ENTERPRISES and other forms of assistance and support to the agricultural sector. The Committees on Agriculture and Food, Appropriations and Finance of both the Senate and the House of Representatives shall conduct a periodic review of the use of the Fund. The Fund shall [have a life of nine (9) years] EXIST UNTIL THE YEAR 2015, after which all remaining balances shall revert to the General Fund." SEC. 2. A new section is hereby inserted after Section 8 [ofR.A. 8178] to be designated as Section 9 to read as follows: SEe. 9. THE DEPARTMENT OF AGRICULTURE IN CONSULTATION WITH THE CONGRESSIONAL FISHERIES OVERSIGHT COMMITTEE ON AGRICULTURAL AND

MODERNIZATION

(COCAFM) SHALL FORTHWITH

REVISE AND

REFORM ITS PROCESSING AND APPROVAL PROCEDURES IN ORDER TO SPEED UP THE DISBURSEMENT PROCESS. The succeeding sections shall be renumbered accordingly.

1 2 3 4 5 6 7 8

SEC. 3. Repealing Clause. - Republic Act 8178 is hereby amended.

All laws, decrees,

executive issuances, rules and regulations inconsistent with this Act are hereby repealed or modified accordingly.
SEe. 4. Separability Clause. - The provisions of this Act are hereby declared to be separable,

and in the event one or more of such provisions are held unconstitutional, the validity of the other provisions shall not be affected thereby. SEC. 5. This Act shall take effect thirty (30) days from the date of its publication in the Official Gazette or in at least two newspapers of general circulation.

MINUTES OF THE MEETING OF THE COMMITTEE ON AGRICULTURE AND FOOD HELD ON 09 OCTOBER 2007 AT CONFERENCE ROOMS 14 AND 15 AT 1:30 PM

Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep.

Abraham Kahlil B. Mitra - Chairman Jeci A. Lapus Robert Raymund M. Estrella Proceso 1. Alcala Antonio F. Lagdameo Jr Rommel C. Amatong Danilo P. Lagbas Victor J. Yu Henry Pryde Teves

Rep. Rep. Rep. Rep. Rep. Rep. Rep.

Nelson L. Dayanghirang Leonila V. Chavez Isidro T. Ungab Solomon R. Chungalao Nicanor M. Briones Jocelyn Sy-Limkaichong Ronaldo V. Singson

The meeting was called to order at 1:50 pm; thereafter, the roll was called. approved the Minutes of the previous meeting.

The Body

The Chair presented for the approval of the body the substitute bill that provides for the extension of the utilization period of the Agricultural Competitiveness Enhancement Fund. In the previous meeting, 02 October 2007, the Committee agreed to consolidate the five (5) measures regarding the ACEF extension, however, the Secretariat prepared a substitute bill in order to give the Committee the flexibility to introduce amendments to the bill. He mentioned that the Bureau of Customs (with prompting from the Committee) has already granted the request of the Department of Agriculture to credit the MAV collections amounting to P4.1 B to Special Account 183. On the other hand, he explained that the Bureau of Treasury has to certify that the funds have already been transferred to the account and available for utilization. He informed the body that the Committee on Rules has cancelled all committee meetings for the day in order for all House members to attend the plenary sessions; however, he decided to push thru with the Committee's meeting because of the urgency of the bill.

The Chair presented to the members the substitute bill prepared by the Secretariat. The Body accepted the measure; however, an amendment was made to it by inserting a new section to read as follows: "SEC. 2. The Department of Agriculture in consultation with the Congressional Oversight Committee on Agricultural and Fisheries Modernization (COCAFM) shall forthwith revise and reform its processing and approval procedures in order to speed up the disbursement process. " The Chair directed the Committee Secretariat to prepare the Committee Report together with the amended substitute bill. He instructed the Secretariat to route the same together with the Signature page for the Committee Members to sign and signify their approval of the measure.

A motion was duly made and seconded to make all Members present as additional co-authors. The Chair instructed the Secretariat to include Rep. Ma. Victoria R. Sy-Alvarado as additional coauthor to the measure.

~k-1J,a~
CONSUELO

T. ALCID

Supervising Legislative Staff Officer I

1a~fj'H
Committee Secretary
ABRAHAM KABUL B. MITRA

Chairman

H.No.6436

s. No. 1450

Begun and held tn Metro ManU~, on Mdnday. the twentyfourth day of~, ~ hundred and nInety-fiva

AN

ACTRBPLACING RESTRICTlONSON

QUANTITATIVE
AGRICULTURAL

IMPORT

PRODUcrs,

EXCBPT RICB, WITH T~IFFS, CRHATING THE AGRIC'lJLTURAL COMPETITIVENESS BNHANCEMENT FUlID, A.i'4.D POR OTHER PURPOS.ES . Be it enacted by the StMte and llouse of Represenuuivu of t1u PIailippiJ1a in em"as membled:
SEcrION 1. Tith..- Thia Act shall be kaoW1l as the Agrk:a1tDrJ1 Ttriffieerian 1\4.,

SEe.. 2. ~tf Polky.'. it is the po1icyOftheSbltCto . mabt1Ie c:01IDt.rYa ~.eettor via1*. cffident ad gtobaJly eom.petidve.ThcStale adopta the use of tariffs m Heaofaoetariff import restrictiou to pratoct local produan .pa1taral
pro~ except
ill

the

C8$C of

rkC,whicl1 win continue

to have

quaMtative import reStric:tioaa. Consistent with the ~oml1 mandate of protectiDg PiIipi:Do firms against ufair trade, it is furthcrinore the paIky of the Statcto anploy aoti-dnmpiDg aDdcountmailiDg- ~ to protect local prochlcers from unfair trade practices, rather tluu1 'USe quwtitative import restridioDs .

_Tel help the agriCilltUral.seetor. cOlXlpetcglobally. the State shall se::ek to raise farm prodnctivil:'lle'!els by pfc"iding thenecessary support services such as. but not llidted to. irrigation. farm-(o-market roads. post~harvC8tequipcem aLd facilities, credit; research and development. extension services. other market infrastrllCture 2nd market information.
---

SEC. 3. L?efinition of Temrs. ~1y

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II

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The following definitions

(a) AgriculnJ:ial produds" shan have 'the same meaniag as agricultural products under Ch.apters,1-24 of Presidential Decree No. 1464. otherwise known as the Tariff and CUstoms Code of the _Pln1ippines. as amended. (b) "Applied rate" is the ~e of import duty that is actua11y i9lf t~: c;ollccdon. of ClInoms revel1:ues.
used by Customs authorities

(e) "Bound rate~ fefers to'iIia:Uilmn Jimitson.t8riffs on produeucomWtted bythctPhilippines:to the World-Trade Orga:niraticm:(WI'Q) \indet the UrugUay Round PhIal Act (d) ''In-Quota Tariff Rate" refers

fa the tariff

tates-for

m-j.iuwn acceas volnlDes committed by the PhiJippmes-to the World Trade OrganiZlJtion (W1'O) under the Uruguay Round Final Act' - (e) ~um,Acccss Volqmc" refers to 'the volume of a specific agricultu'ral prodUct ~ 8llowed be imported with a lower tariff as coinmitted by the Philippincs'to the World-Trade~~~)underthcU~-RoUDdF'.malAet --

is

to

toilOll-tariff te~t;ictiQIis used. t~ !imit the amountof-iiJlportcd 'commodities, -iD~dq but ,net limited to dis'ctetioDaty biiport JicensiDg ad impOrt quotas. whether qualified or ~e.
_(g) "Tarift'~e.rs to a tax levied OIl a commodity imported rc',-,another co~. It Wu ~ for the IOVCl'DIIlCllt and rCb,:ded as iDStrumeats to promote ~'industries by taJiDgtheir COI, ,?Ctifors. The benefit is accor~ to the Ioc:al produc:ers by the ma;ueniI..llce of a d<nestic price at a IeVd equal to the world price !Jk t:'<: ti,,:iJf

',~:-~(ij - ~o.l~iitative imp,m-lt~tef~

(11) BTariffieatiou" refers the lifting of, all' emting quantitative restricti.ons such as import quotas. or proht"b~~~ns, imposed on 3lcultura1 products. and replac:iDsthese restrictiOns Witlltariffs. . .' .
.
'

'to

..

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JAW,! :a.nd all other laws or p.rOriaions of law prcscribiDgquantitativc iiDportrea~ or lfaJltinggo'lerDJDutageuclol the .power impOcaucll rcst.iic.Qo~ on agricultara1prod1lct8~ except 'rice, are hereby

SEC4. Repe;al." The fonOwt1l3

to
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No.12%,CztroeJi: "'AnAd.~ ~ the . Importatioa of 0Jri0as, Potatoes, Gar.lU;and Cabbaps,.l!'rt.ept fOr SeedliDg Purposes. and to Provide PenAlties for ~ Violation Tbcteof";; . "
L

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No, 27~~e,ntit1ed:AnAd ~.~

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.. (3)hCsidcntial Decree No; 1297, asuCD.d~:Gtitled; . Bcentralizing thelmportatioa of R.utiuuu for Breeding, SJa'lgbtcr and Beet; . .. '.. _.
.
B \

/. (4) Pat'~6f&,h 19ofSe.;ti0Jl23 of Republic AC;No~7607, eot1tlcd= An Act ProvidiDs a Mapa Caztaf.S1IUI11 ~. . .. .t~.:.. ~.: .
'. (5) Paragraph (a) of Section 15 of Republie

eDWecJ: "SeedIndustryDewJopmatAct:'~
'..(6). Seetion4 ..-...., ad

".

Act.No;.
'~;:D~'/'
.

.' '.ea@kd= "AnAatoPrc:iiDOte _

--.1,

of Ropublic Act No~.41SS, u,~clod., StreDgthcathe'VirPda Tobacco ... ," ' ':<'r.. .... . ~ ~ ~~;
.

DectccNo.1. arided:A.JagrjijngtJae IJIlpdl'tatioll of Poreign Cigar Loaf T~acco for BJ:e~acliD.1 (7) ~

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'.,.' SE~ S. ~ - Subpaiagnph(~),~~~(l) Section 6 of PJoesicIeDtiaJ Deuee No. 4 (NatjoDiln:ii_,Autliarlty _ Act). ullmClldcd, is hereby further uile:DdCd to:tCad. ai.f~ws:
& ~

"'SEC.6. (a) P<?WeTS. -

'(xii) To. ~tabliSh :rules aDd replatioDl govel'lliag the import:atiouOt~u4 to Jiccme, impOtc,aacl coJIcct.fe"bd '-, char~ for'Sai4~~portatioa for~ ~'of equ6iie, the sdIiag price of sich~ rite Wida arprcvai1iaademit priCes.' .
. ~.
,-

-.

..

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, ":Ia-dIe aer~:.~.power. wit1l.dre'Ofliceot~ .. ~'sJaaJt

tko-tiJ ~ion fiattertifJ to

of

riee,"-y ()etai a rcAk:ofadort-faU prod'actioD

crida1;~ altate;of ~ oroW:r veritW reaaa.s:that miJ.:'warraat tJae~_4'_ :impOttaIima::PnniM4 '"-.,. ~.""~sWaot:applrtotlae-iDaportItioa of 'rice ,~.~ tile. Miui'PDM'-Aa:alVOiame oNipdon' .: the ~'PlUlfP.piD~.UG~r tJte- wr.o. ',:TM AatJaority .1aaU ..I.L... 01 .,:'..aaay .-aw .... - :--..t. ~SU;UD'~ --..-_.: ncc."CJI' .. ru . quotu '~OAI' certified and. licen$cd: _porter wtJle

P,.

_~~._w..: . =-........ ..

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dIa~tIrilaPcooper .

.-_

otUr

-btms

chan_:1t J'Ik* tll be:~ . die CouadJ rcprdIaa of ajsDg-'~ prices ad tJaeIIIbIidy the.rcotif IIIJ .w1le bono

tJ,-tkNIijaDal~""'.
" .

SSC;-6.. Tllli/JktlliiJ&;~1A lieu of,qvjmtjtatiYe tcItridioIIS. . ,., j",-bouad rates ;commiUld UDderthe tJnpaJ Roaa4 . ~lAcUItaJI_~cI;oia ,tJackapiculhJnl procIactanose cpueitamcreatridioJUlIPCPCaJeclbj'tJaia Ad..' -q.e PreaideDl ahaI dae COIf~d"m,.iffs tv:cinPiq.1996 up to 7caJ 2000: Prrwidd, ''ltit tbi~sckdlIIcol1bc idia1 ad fiDal appIiecI ratea,Jiballbe' couiatut witJt.lJat< co_tIT. tariff bUuIiDa _ coprmitmcpts .
",7:-'-

of ~ort or ablaoraal,rica iac:Aacaia.. ~ procIudI, reacridiou Jiltccl . . __ dais Ad, the?zaidcat. 'IDIt1 P'''' to Coapaa. ~. aodificaticmaor a4jutmenca :Ofau)." _AccaI VoI8ae. (MA V):--borhW, hMwrr, ,TIat ill die c1aIt CoaFea fai1ItO, ad'-atrz 1ifteea (15) daysfrom receipt.'of die IJfCJP'UI, rite shaIl1le~~" ... ..~.cuo
\

SEe. .1. M~ !ortIulntpkmlltbllioJr of Jl"1IIimum 'A-cceJs YolullJe (MAY):; AAcquitablc ad traupucnt "mech'" for alloCating the MiDimnm Aa:aa Volume (MAV) fA
.
.
.~

agriadtUral products, wJacu qumtitatie resUidio. are herein . lifted. shall "-developed and. cRaWishe, haYiac the least 'SOYeIDIIICDt iDtcrIatiOJI. .dclr~siDg tJacftilm.~ of "Ch. IcograjWcal .arca, aIlCI without cDl.i'fiaj,.. u, COIt- to iJDporrcrS/UICII of tlacse prondato tk:~ of JOQ}

0IMr" 'ii:tI.
.

-.

~.
~ s'

'.

.For -tlaia parloR' i1l'1lCCOrdnce widt th aboftllleJItioaed pi4iqt priacipJa, Cal;iact" o--iuec cnatedbi~'On1cr ~o. 2llS~ De. 19M to .oWIscc ._=y.aaiaiataa aca:.' "'aise-ilel,bJ the ftilippila Uder tie GCDcnl~oa ""'ucl Trade Unaaa' R01l1lcl ..witllthc jadtaliu oftJl6Natioaal B.C:PJlomic,~~l)cft1epJaeat Autkority (N$).A),.u4~iJl coas1tltatiOA witJl aUcoaccmcd ..apialtual farmetlplodDrLJ!III1ff*IOrrmi~ IfOUPI, t1W1 . to eoaan-'" aperiod ofsiIly(fO) -JSlri.ia- ,. thisAct. tJae apprOpriate mechnina fortllc,iaplmncntetin of the miIim_ aa.as ..

'. ,"8.~,~~Pu4.

..

- To illapJcmal tile poIiq "umadllcd'iIltWsAd; dlcnilllaeby ;aeateCIdlcAJric*unl~. Pah~CIII ~ hctciuftcr refcrrcdto.u the Put. nc:~~ of the '"impodldoa of . XCCIS~~ ~.D* GcDtnl PuaIlmdshail be cfcpOIUd ""JfiIionaI1'tcZ. .,. .

...

;"

ftC eJlCir~~.sialfbe:ldaawe" eU- lby . f.~iDi"'t;d ;_ : _ to-.artet~roaC1s".pOlli,;Uneat eqnipoear aacI '" Zia trOcJil. zeseiIrdl ~. odIa' mark:ctUig iilfrutnrctue; prcmsioa"'-,vl:~iaf aeion, =AM icniccs. aaclatJiCr__ of usiJtancc aad suppOd to.tpica1t .t~. ' .
CoJlgrtI&.

rcumm"
IIDd ~

. 11Ico-PnucesCJIl';ApiCa1I:iIre ..a:Poed, AppIopriatioDs ofbotJa die Sc:aate _ tlIo-..c ofRcpreICDtatives aha1l~ a pc&dic.-. ofdae .,-,:.aM PuDd. 'Tk P\md sUIl'mca lifC of .~')Ji.:ifacr"Wtic:k all la-aiDing .. R1at to . GcaeAIPW.

.sse. 9. RqalUtJ:a.a. . AI~4e~ aecutive .vutes., rules ud rcphtioD. mug rtnat widl thiI Act arc . hcrcbyrepea1cd iIi ~ aceordiDIlJ.
4

. SEc. 10. Separability CltJu.re, .~.1'he provi$ions of thU Act are ~ declared to be separabk. and in the event cine or more of such.provisiOns ~ held uncOnstitolioBat. the validity of the other pr~~ shallJlqt~.aff~ ~eby. ....~

.. '.' ..-SEC.l!. Eff~~-This:Jict

shaUtakedfcct tbi11;y'(30) da}'5~o.n the 'date Of;itspublicatioll in ~ .0jfiQal. Gazette odn at ic.-trwo (2) .neMpaperS of gcnetalclr"i'atiolL .. '.

This Act whiCh is a co.nso.lidation of Honse Bin No. 6436 and . Senate Bill No. 1450 was finally passed by the Honse of Repl'csentativesand the Senate on March 27, 1996 and March 26,J996. respecdV;eI.y

. Appro'ged:

28 Morch 1996

Republic of the Phiiippme~ HOUSE OF REPRESENTATIVES Quezon City

FOURTEENTH CONGRESS First Regular Session

HOUSE BILL NO. __

6_0_7

Republic Act # 8178 was signed into law on March 28, 1996. Section 8 of RA # 8178 created the Agricultural Competitiveness Enhancement Fund (ACEF) which was granted a life span of Nine (9) years. However. ACEF was not disbursed according to the intended original purpose. Instead, money collected for the ACEF from 1996 to 1998 was utilized for budgetary support. There is a need to extend the utilization period of the ACEF to enable the govermnent to provide the farming sector the opportunity to use the funds to strengthen their development activities and enhance their competitiveness. The availability of the ACEF will relieve farmers of the need of having to secure funds for their competitIve enhancement activities. Govenunent needs to contitiue to provide the fanning sector the opportunity to prepare for liberalized trade through the judicious use of the ACEF. This proposed measure tinds support in Section 21. Article II Declaration of Principles and State Policies of the 1987 Constitution which reads: Section 21. The State shall promote comprehensive agrarian reform. rural development and

To correct this fatal tlaw, the proposed measure was filed and the proponent seeks his colleagues' assent. It is therefore earnestly requested that this measure be approved immediately.

Republic of the Philippme:-: HOUSE OF REPRESENTATIVES

Quezon City

FOURTEENTH CONGRESS First Regular Session

HOUSE BILL NO. __

6_07

'AN ACT TO EXTEND THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS ENlL<\NCEMENT FUND, AMENDING SECTION 8 OF REPUBLIC ACT NO. 8178, ENTITLED "AN ACT REPLACING QUANTITATIVE IMPORT RESTRICTION ON AGRICULTURAL PRODUCTS, EXCEPT RICE, WITH TARIFFS. CREATING THE AGRICUL TURAL COMPETITIVENESS ENHANCEMENT FUND, AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled SECTION 1. Section 8 of Republic Act No. 8178, entitled "AN ACT REPLACING QUANTITATIVE IMPORT. RESTRICTION ON AGRICULTURAJ~ PRODUCTS, EXCEPT RICE, WITH TARIFFS. CREATING TIlE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AND FOR OTHER PURPOSES" is hereby amended. to read as follows: Section 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 proceeds of] THE FUND SHALL CONSIST OF ALL DUTIES COLLECTED FROM the importation of AGRICULTURAL PRODUCTS UNDER THE minimum access volume (MAV) [shall accrue to the General Fund and shall be deposited with the National Treasury] MECHANISM, INCLUDING UNUSED BALANCE AND COLLECTIONS FROM REPAYMENTS FROM LOAN BENEFICIARIES INCLUDING INTEREST, IF ANY. THE FUND SHALL BE

JflA~

v--'"J
,/).. tl tf?'f

AUTOMATICALLY CREDITED TO SPECIAL ACCOUNT 183 IN TIIE l-~~

GENERAL FUND OF THE NATIONAL TREASURY.

"h

Au ::~! ... "}1

~ ?~

,k. ~

The entire proceeds shall be set aside arid earmarked by' Congress for: irrigation, fann-to-market roads, post~harvest equipment and fa~ilities,credit research and development, other marketing infrastructure, provision of market information, retraining,.extension services, MICRO, SMALL AND MEDIUM SCALE ENTERPRISES (MSMSE) IN AGRICULTURE, AQUACUL TURE AND FISHERIES SECTORS; YOUNG ENTERPRENEURS, OUT-OF-SCHOOL YOUTH, GRADUATES OF AGRICUL TIJRE, FISHERIES, AND RELATED COURSES. AGRICULTIJRE AND FISHERY COOPERATIVES ENGAGED IN ECONOMIC ENTERPRISES and other forms of assistance and support to the agricultural sector. The Committees on Agricultural and Food, Appropriations and Finance of both Senate and the House of Representatives shall conduct a periodic review of the use of the Fund. The Fund shall [shall have a life of nine (9) years] EXIST UNTIL THE YEAR 2015, after which all remaining balances shall revert to the General Fund.
SECTION 2. Repealing Clause. All laws, decrees. executive issuances. rules and regulations inconsistent with this Act are hereby repealed or modified accordingly. SECTION 3. Separability Clause. The provisions of this Act are hereby declared to be separable. and in the event one or more of such provisions are held tUlconstitutionaL the validity of the other provisions shall not be affected thereby. SECTION 4. This Act shall take effect thirty (30) days from the date of its publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City, Metro Manila Fourteenth Congress First Regular Session

1402

.,

EXPLANATORY NOTE
In March 1996 during the 10th Congress, Republic Act 8178 or the Agricultural Tariffication Act was signed into law. One of the notable aspects of this law was the creation of an Agricultural Competitiveness Enhancement Fund (ACEF) to help the fanning sector remain competitive amid the country's free trade commibnent under the World Trade Organization (WTO); particularly by ensuring that money will be made available for such purposes as irrigation, farm-to-market roads, post-harvest equipment and facilities, credit, research and development, other marketing infrastructure, provision of market information, retraining, and extension services. The sole source of funding for ACEF, as per RA 8178, was tariff collections from all imports under t4e Minimum Access Volume scheme, which was also defined in RA 8178. However, Section 8 of RA 8178 specifically provided that ACEF will only have a lifespan of nine (9) years, after which, all remaining balances shall revert to the General Fund. That nine-year lifespan expired in March 2005, leaving what remains of the fund largely unutilized. As of December 2005, reports showed that a total of P5.819B was remitted to the Bureau of Treasury for ACEF. Of this amount, P2.768B was already utilized for various relevant projects, leaving an unutilized portion ofP3.06B. Three billion pesos is no small amount for a fledgling ecpnomy like ours, still beset with issues of recurring fiscal deficit and shortage of funding support fdr such a vital sector as agriculture. Congress needs to act, and assure that this amount will remain intact, and shall continue to be utilized for reasons it was proposed and collected in the first place. This can be achieved by amending Section 8 of RA 8178, which is the primary intent of this bill. ACEF was conceived specifically to support the local farming sector, and it would be a inappropriate, even morally wrong, to have what remains of this fund utilized for other purposes. Our farming sector needs, in fact, it deserves, every cent of what remains of ACEF. I thus urge my colleagues in the 14th Congress to consider and approve this bill with dispatch.

Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City, Metro Manila

FOUl'teebth Congress
Fitst Regulaf Session

1402

ACT TO EXTEND THE UTILIZATION PERIOD OF THE AGRICULtuRAL COMPETITIVENESS ENHANCEMENT FUND, AMENDING REPUBLIC ACT NO. 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" I Be it enacted by the Senate and House of Representatives of the Philip~ines in Congress assembled:

AN

Fund. [The proceeds of] THE FUND SHALL CONSIST OF ALL DUTIES COLLECTED FROM the importation of AGRICULTURAL PRODUCTS

LOAN BENEFIClMUES

INCLUDING INTERESTS,

IF ANY. THE FUND

SHALL BE AUTOMATICALLY

CREDITED TO SPECIAL ACCOUNT 183

IN THE GENERAL FUND OF THE NATIONAL TREASURY.

The entire proceeds shall be set aside and earmarked by Congress for irrigation,

,Itldi. ~..

aM ,.,,\ties.

ere&t. tesearcll

and

(MSMSE) IN AGRICULTURE, YOUNG ENTREPRENEURS, AGRICULTURE, FISHERIES

AQUACULTURE AND FIS~RIES

SECTORS;

Ou::r -OF-SCHOOL YOUTH, GRADUATES OF AND RELATED COURSES; AGRICULTURE

AND FISHERY COOPERATIVES

ENGAGED IN ECONOMIC ENTERPRISES

SEC. 9. OVERSIGHT COMMITTEE - AN OVERSIGHT COMMITTEE HEREBY CREATED COMPOSED

IS

OF FIVE MEMBERS EACH FROM THE TO MONITOR AND

SENATE AND THE HOUSE OF REPRESENTATIVES EVALUATE THE IMPLEMENTATION THE CHAIRPERSONS OF THIS ACT.

OF THE COMMITTEES

ON AGRICULTURE

AND FOOD OF THE SENATE AND THE HOUSE OF ~PRESENTATIVES SHALL BE THE CHAIRPERSON AND CO-CHAIRPERSON, OF THE OVERSIGHT COMMITTEE: THE SENATE AND THE HOUSE RESPECTIVELY,

PROVIDED, THAT THE MINORITY IN OF REPRESENTATIVES SHALL BE

ENTITLED TO NOT LESS THAN TWO SEATS EACH IN THE OVERSIGHT

COMMITTEE. THE OVERSIGHT NECESSARY COMMITTEE SHALL BE PROVIDED WITH THE

FUNDS TO CARRY

OUT ITS DUTIES RELATED TO THE

PERFORMANCE OF ITS FUNCTIONS AS PROVIDED HEREIN. The succeeding sections shall be renumbered accordingly. SEC. 3. Repealing Clause. - All laws, decrees, executive issuances, rules and regulations

1l1cottsistel1t with this Act are hereby repeal~d or modified accordingly.

. SEC. 4. Separability Clause. - The provisions of this Act are hereby declared to be separable, and in the.event one or more of such provisions are held unconstitutional, the validity

ofthe other provisions shall not be affected thereby.

SEe. 5. This Act shaH take effect thirty (30) days from the date of its publication in the

Official Gazette or in at least two newspapers of general circulation. Approved,

3B.epubHc of tbt ~~Uippine

HOUSE OF REPRESENTATiVES

4aut?on lit!'
r-OURTlEEN73-& CO~~GR1E:$

First Regular Session

1517
Introouced by HONORA~UE LUIS R..V:Il~FQJERTeT HON.ORABLE DIOSDADO MACAPAGAL ARROYO, HONORABLE FERDINAND MARTIN G. ROMUALDEZ

Republic Act No. 8178 replaced with tariffs the quantitative import restrictions on agricultural products except rice wllicl1 wiil continue to have quantitative import restrictions. In order to assist the agricultural sector to compete globally, the government envisions a program to raise 'farm productivity levels by providing the necessary support services such as, but not limited to, irrigation, farm-to-market roads, post-harvest equipment and facilities, credit, research and development, extension services, other market infrastructure and market information." To implement the policy enunciated in RepUblic Act No. 8178, the Agricultural Competitiveness Enhancement Fund (ACEF) was created from out of the proceeds of the minimum access volume of importation of agricultural products subject to the tarif{1cation poHcy. The duration for said fund is eleven (11) years, which means that the law enacted in 1996 will lapse this December, 2007. This duration is inadequate for the purposes, RA 8178 was enacted. There is a lot of work yet to be done throughout the country, and our agriculturai sector is stiil very much in need of the development and benefits that the fund allows for. Irrigation, farm-to-market roads, post-harvest equipment and facilities, credit, and research and development are ail still pressing needs

in our nation's countryside. There are in fact other pressing needs of our
agricultural, aqua-cultural and/or fisheries sectors that must be addressed and should also be given priority. The duration of the ACEF needs to be extended, as mcmy of our farmers have yet to benefit in more meaningful ways from the projects and services it finances. This bill proposes an extension of the effective

period of this fund that allows for an extended time for the availment of the benefits therefrom. Furthermore, this bill intends to ensure that the most deserving only of the benefits of ACEF will avail of it by making the preferred lending to micro-, small-, and medium-scale enterprises (MSME) in the agricultural and aqua-cultural sectors including technology transfer assistance, and limiting the lending to large-scale entities in these sectors to not more than 15% of the ACEF. Thus, this bill proposes the extension of the ACEF to 2015, for an addition of eight (8) more years, for a total duration of nineteen (19) years from the original start-up date of the fund. This extension will provide a necessary lifeline for our agriculture, aquaculture and/or fisheries sector at the crucial period of adjustment to a more competitive international environment, and may well prove to be the very instrument that ensures levels of global competitiveness of our agriculture, aquaculture and/or fisheries sector. To finance the ACEF, this bill also amends Section 6 of RA 8178, allowing the President of the Philippines to impose the tariffs provided in said Act from 2004 to 2015. The original tariffs, as provided, were to be imposed by the President only from 1996 to 2000. It would not work as effectively to extend the life of the ACEF for the purposes merely of allowing the use of its remaining funds, but more importantly, additional funding source must be provided by an extension of the power to impose the allowable tariff on the importation of the minimum access volumes indicated in RA 8178. In this era of globalization, we must, as a nation, take the necessary steps to make our sectors and industries viable, stable" and competitive. In light of the foregoing purposes, the immediate enactment of this bill is highly recommended.

DIOSDADO MAC~AGAL

ARROYO

l\.epublit of tbt ~btltppint~ HOUSE OF REPRESENTATIVES

aue?on :itp
FOURTEENTH CONGRESS First Regular Session HOUSE BILL NO.

151 7

Introduced by HONORABLE LUIS R. VILLAFUERTE, HONORABLE DIOSDADO MACAPAGAL ARROYO, HONORABlf fERDINAND MARTEN G. RO~~UAlDlEZ ' .

AN AC. TO EXTEND THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AMENDING SECTION 8 OF REPUBLIC ACT NO. 8178, ENTITLED "AN ACT REPLACING

QUANTITATIVE IMPORT RESTRICTION ON AGRICUL:ilURAl

PRODUCTS, E)(CEPT RICE, WITH TARIFFS, CREATING THE AGRICULTURAL COMPE rnlVENESS ENHANCEMENT FUND, AND FOR OTHER PURPOSES" Be it enacted by the Senate and House of Representatives Congress assembled:
SECTION

in

1. Section 8 of Republic Act No. 8178, entitled "An Act Replacing Quantitative Import Restriction on Agricultural Product, Except Rice, With Tariffs, Creating the Agricultural Competitiveness Enhancement Fund and for Other Purposes" is hereby amended to read as follows: 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 proceeds of] THE FUND SHALL CONSIST Of All DUTIES COLLECTED FROM the importation of AGRICULTURAL PRODUCTS UNDER THE minimum access volume (MAV) [shall accrue to the General Fund and shall be deposited wIth the National Treasury.) MECHANISM, INCLUDING UNUSED BALANCE AND COLLECTIOi~S FROM REPAVrJiENTS FR014 LOAN BENEFICIARIES INCLUDING INTERESTS, IF ANY, THE FUND SHALL BE AUTOMATICALLY CREDITED TO SPECIAL ACCOUNT 183 IN THE GENERAL FUND OF THE NATIONAL TREASURY.

SECTION. 8. Agricultural

The entire proceeds shall be set aside and earmarked by

Congress for: irrigation, farm-to-market roads,

post-harv@st

equipment and facilities, credit, research and development, other marketing infrastructure, provision of market information, retraining, extension services, MICRO, SMAll
AND MEDIUM SCALE ENTERPRISES (MSMSE) IN AGRICULTURE, AQUACULTURE AND fISHERIES SECTORS; YOUNG ENTREPRENEURS, OUT-Of-SCHOOL YOUTH, GRADUATES Of AGRICULTURE, fISHERIES, AND RELATED COURSES; AGRICULTURE AND fISHERY COOPERATIVES ENGAGED IN ECONOMIC ENTERPRISES

and other forms of assistance and support to the agriculture sector. The Committees on Agriculture and Food, Appropriations and Finance of both Senate and the House of Representatives shall conduct a periodic review of the use of the Fund. The Fund shall [have a life span of nine (9) years] EXIST UNTIL THE YEAR 2015, after which all remaining balances shall revert to the General Fund.
SEC. 2. Repealing Clause. - All laws, decrees, executive issuances, rules and regulations inconsistent with this Act are hereby repealed or modified accordingly.

3. Separability Clause. - The provisions of this Act are hereby declared to be separable, and in the event one or more of such provisions are held unconstitutional, the validity of the other provisions shall not be affected thereby. ..
SEC.

4. Effectivity. - This Act shall take effect thirty (30) days from the date of its publication in the 0ff!cial Gazette or in two (2) newspapers of general circulation.
SEC.
I

Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City, MetrQ Manila FOURTEENTH CONGRESS First regular session House Bill

1521

Introduced by: HONORABLE DARLNENE R. ANTONINO-CUSTODIO

This bill seeks to extend the utilization period of the Agricultural Competitiveness Enchancement Fund (ACEF) established under Republic Act No. 8178 from 2005 to 2~15, amending for the purpose the said Republic Act. The commitment of the Philippines to international cooperation paved the way to its becoming a signatory to the General Agreement on Tariffs and trade (GAIT) and its membership in the World Trade Organization (WTO). Under the Uruguay Round, we agreed. to open our agricultural markets to other WTO member-eountries, promising, among others. a zero percent (0%) tariff rate on all agricultural products by 2004.,. To fulfill this commitment, Congress passed. Republic Act No. 8178 on March 28. 1996 to among others-repeal seven (7) existing laws that either prohibited importation of agricultural products, or subjected such importation to stringent conditions.Thus. almost all agricultural products are now imported liberally into the country. Aware that opening up the local market to agricultural imports would place our farmers at a disadvantage. RA 8178 also provided for a gradual tariff quota scheme. Under this scheme, the government has reduced the tariff rates for agricultural imports on a yearly basis until it reaches 0% by the year 2004. This Tariff rate Quota (IRQ) scheme operates by imposing a ceiling on the volume of specified agricultural imports. Agricultural products imported within the ceiling enjoy a reduced tariff rate, compared to those imported in excess of the ceiling. For instance. a total of 1,000 tons of beans are imported into the Philippines 300 tons being the ceiling of these, 300 tons will enjoy a tariff rate of 35% while the remaining 700 tons will be subjected to a tariff of 80%. This 35% rate is called the In-quota tariff. The 80% rate is the out-quota tariff. The ceiling imposed on the product is called the Minimum Access Volume (MA V). But lowering the tariff rates for a certain volume of agricultural products also means lowering their competitive prices. This places local farmers at a district disadvantage. Thus RA 8178 further attempted to provide a solution: funds generated by

the in-quota tariffs would Enhancement Fund (ACEF).

be

pooled

under

the

Agricultural

Competitiveness

According to official records, however, the in-quota duties of MA V tariff collections of the Bureau of Custo~ from 1996 to 1998. were not credited by the Bureau of Treasury to the ACEF account, or Fund 183. Moreover, from 1999 to 2000, the Bureau of Customs claims to have collected an amount of only P250 Million out of an estimated collection target of PI. 73 Billion, based on the actual MA V licenses issued by the Department of Agriculture.

Congress was to have earmarked the ACEF funds for farm-to-market roads, irrigation facilities, and other projects, supposedly to cushion the adverse impact on our farmers of the availability of cheap agricultural imports. However, a subsequent Administrative Order 39, issued in 1999, provided that funding for farmers' project be subjected to the stringent requirements of the ACEF Executive Committee. And yet, even if a project was approved by the Committee, funds were not made readily available, but subject to the tight schedule of the Department of Budget and management (DBM). As a result, utilization of the ACEF fund has been very low. Only P447 Million pesos had been released thus far under the regular ACEF in 1999 alone. Customs collections amounted to Pl.3 Billion. Then too, a provision in RA 8178 limits the ACEF to a life of only nine (9) years. This means that the revenue collections generated for the ACEF account will revert to the general Fund by the year 2005. There is an urgent need, therefore, to extend the utilization period of the ACEF to allow government to continue providing assistance that will enable farmers to survive, and perhaps prosper, under a liberalized trade regime. Since low funds utilization defeats the very purpose for which the ACEF was established, there is also an equally compelling need to assure that assistance from the ACEF is made more accessible to farmers and the agricultural sector as a whole. In view of the foregoing considerations, therefore, earnestly sought. immediate approval of this bill is,

Republic of the Philippines HOUSE OF REPRESENTATIVES

Quezon City
FOURTEENTH CONGRESS First Regular Session HOUSE BILL

1521

Introduced by: HONORABLE DARLENE R. ANTONINO-CUSTODIO

AN ACT EXTENDING THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AMENDING FOR THE PURPOSE REPUBLIC ACT NUMBERED EIGHTY-ONE HUNDREDS AND SEVENTY-EIGHT, ENTITLED "AN ACT REPLACING QUANTITATIVE IMPORT RESTRICTION ON AGRICULTURAL PRODUCTS, EXCEPT RICE, WITH TARIFFS, CREATING THE AGRICYULTURAL COMPETITIVENESS ENHANCEMENT FUND, AND FOR OTHER PURPOSES" AND FOR OTHER . PURPOSES.

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled SECTION 1. Section 8 of Republic Act No. 8178, entitled " AN ACT REPLACING QUANTITATIVE IMPORT RESTRICTION ON AGRICULTURAL PRODUCTS, EXCEPT RICE, WITH TARIFFS, CREATING THE AGRICULTURAL COMPETITIVENSS ENHANCEMENT FUND, AND FOR OTHER PURPOSES" is hereby amended, to read as follows: "Section 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. proceeds of] THE FUND SHALL CONSIST OF ALL DUTIES COLLECTED FROM importation of AGRICULTURAL PRODUCTS UNDER THE minimum access volume (MAV) [ shall accrue to the General Fund and shall be deposited with the National Treasury] MECHANISM, INCLUDING UNUSED BALANCE AND COLLECTIONS FROM REPAYMENTS FROM LOAN BENEFICIARIES INCLUDING INTERESTS, IF ANY. THE FUND SHALL BE AUTOMATICALLY CREDITED TO SPECIAL ACCOUNT 183 IN THE GENERAL FUND OF THE NATIONAL TREASURY.

The entire proceeds shall be set and earmarked by Congress for: irrigation, fann-to-market roads, post-harvest equipment and facilities, credit, research and . development, other marketing infrastructure, provision of market information, retraining, extension services,. MICRO, SMALL AND MEDIUM SCALE

ENTERPRISES (MSMSE) IN AGRICULTURE, AQUACULTURE AND FISHERIES SECTORS; YOUNG ENTERPRENEURS, OUT -OF-SCHOOL YOUTH, GRADUATES OF AGRICULTURE, FISHERIES, AND RELATED COURSES; AGRICULTURE AND FISHERY COOPERATIVES ENGAGED IN ECONOMIC ENTERPRISES and other
forms of assistance and support to the agricultural sector. The Committed of Agriculture and Food, Appropriations and Finance of both Senate and the House of Representatives shall conduct a periodic review of the use of the Fund. The Fund shall [ have a life of nine (9) years] EXIST UNTIL THE YEAR 2015, after which all remaining balances shall revert to the General Fund. SEC.2. This Act shall take effect Fifteen (15) days after its publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City FOURTEENTH CONGRESS First Regular Session

House Sil(No.

-~2-470

Introduced by MA. CARISSA O. COSCOLLUElA, RENE M. VELARDE, and WIllIAM IRWIN C. TIENG

The Agricultural Competitiveness Enhancement Fund (ACEF) was created through Republic Act No. 8178 (R.A. 8178), entitled "An Act Replacing Quantitative Import Restrictions on Agricultural Products, Except Rice, With Tariffs, Creating the Agricultural .Competitiveness Enhancement Fund.- This fund consists of in-quota tariffs collected from the importation of Minimum Access Volumes (MAVs) of agricultural and fisheries products. The entire proceeds will be earmarked for irrigation, farm-to-market roads, post-harvest equipment and facilities, credit, research and development extension services, and other forms of B$Sistanceand support to the agricultural and fisheries sector. On December 21, 2007, the balance of the ACEF is set to revert to the General Fund, as mandated under Section 8 of R.A. 8178. Considering that our farmers and fisherfolk still belong to the most soci<reconomically challenged of sectors, the life of the ACEF must be extended to support projects that will help them compete in a global setting. Furthermore, an effective infonnation dissemination mechanism must be set in place to inform the general public, especially the intended beneficiaries of the ACEF, of its availability, in order to ensure participation of the widest range and effectiveness of the program towards a viable, efficient, and globally competitive agriculture sector. In view of the impending end of the utilization period of the ACEF the passage of this bill is urgently sought. '

MA. CARISSA O. COSCOlLUELA PL-BUHAY

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RENE M. VE-t:ARDE Pl-BUHAY

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M;1f{~6~nE
L-BUHAY

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Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City FOURTEENTH CONGRESS First Regular Session House Bill No.

2470

Introduced by MA. CARISSA O. COSCOLLUELA, RENE M. VELARDE, an~WlWAM IRWIN C. TIENG

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 ENHANCEMENT FUND," AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
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SECTION 1. 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 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 OFALLDUTIESCOllECTED FROM [The

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proceeds oij the importation of AGRICULTURAL PRODUCTS UNDER THE minimum access volume (MAV) MECHANISM, TO BE CREDITED TO A SPECIAL ACCOUNT IN THE GENERAL FUND OF THE NATIONAL TREASURY. [shall accrue to the General Fund and shallbe deposited in the national Treasury.]

The fUND [en~re 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.] 1) EIGHTY-FIVE PERCENT (85%) FOR AGRI-BASED PRODUCTION AND POST PRODUCTION AND .PROCESSING ACTIVITIES, INCLUDING BUT NOT LIMITED TO NEW EXPORT INDUSTRIES AND AGRIRELATED INFRASTRUCTURE AND MODERN AGRICULTURAL EQUIPMENT TO ACHIEVE AND FOR PUBLIC

PRACTICES;

INFORMATION AND PROMOTION ACTIVITIES, INCLUDING THE ESTABLISHMENT OF A PRINCIPAL MECHANISM THEREFOR TO PROMOTE THE DESIRED AGRICULTURAL PRODUCTS AND

ACTIVITIES AND CREATE NEW MARKETS; 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.
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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 [all] remaining balancerS] shall revert to the General Fund. Sec. 2. Fund Management and Sustainability. - For the purpose of fund management, the Fund shall be deposited to the land Bank of the Philippines (LBP). The Department of Agriculture and the LBP are hereby mandated to draw up a plan that shall allow regional application, processing and release of the fund to local farmers and such other mechanisms for fund utilization and sustainability. Sec. 3. Public Information. - The Department of Agriculture (DA), in coordination with the Philippine Information Agency (PIA) and the Department of Trade and IndUStry (DTI), shall ensure the proper information dissemination of this Act, inclUding administrative orders and/or implementing rules

and regUlations promulgated for the utilization of the Fund,

to the general public, especially its intended beneficiaries.

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Sec. 4. Repealing Clause. - All laws, decrees, orders, rules and regulations or other issuances or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly. Sec. 5. Separability Clause. - If any portion or provision of this Act is declared unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in force and effect. See. 6. Effectivity. - This Act shall take effect after fifteen (15) days following the completion of its publication either in the Official Gazette or in a newspaper of general circulation in the Philippines. Approved,

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