JULY 22, 2015

NR # 3903

House leader seeks extension of Agricultural Competitiveness

Enhancement Fund (ACEF) law until 2022
The Chairman of the House Committee on Agriculture and Food is seeking a further
extension of the Agricultural Competitiveness Enhancement Fund (ACEF) law from 2015 to
2022 to further boost the gains of the country in terms of agricultural productivity and higher
levels of competitiveness.
Rep. Mark Llandro L. Mendoza (4th District, Batangas) said his proposal shall extend the
law until 2022 wherein the available ACEF funds shall be used primarily or provide assistance to
qualified beneficiaries while earmarking 10 percent for the funding of a comprehensive
scholarship program for agriculture, forestry, fisheries and veterinary medicine education.
The extension of the ACEF law will further boost the improvements we have gained,
said Mendoza.
Mendoza said on March 28, 1996, Republic Act 8178, otherwise known as An Act
Replacing Quantitative Import Restrictions On Agricultural Products, Except Rice, With Tariffs,
Creating The Agricultural Competitiveness Enhancement Fund, And For Other Purposes, was
enacted into law. It aimed, among others, to maximize the countrys gain from the policy of trade
liberalization and minimize adjustment cost in the shift toward a liberalized trade regime, to raise
agricultural productivity and enable the agricultural sector to be more competitive.
The ACEF Fund consists of all duties collected from the importation of agricultural
products under the minimum access volume (MAV) mechanism, including unused balances and
collections form repayments from loan beneficiaries including interests, if any. The Fund is
automatically credited to Special Account 183 in the General Fund of the National Treasury and
its fund releases shall not be subject to any ceiling by the Department of Budget and Management
(DBM).
The law had a life span of nine years, which expired in December 2007. It was extended to
2015 through the enactment of RA 9496 on February 28, 2008 according to Mendoza.
In House Bill 5781, Mendoza sought the amendment of Section 8 of RA 8178, as amended
by RA 9496, so that the ACEF Fund shall continue to be set aside up to the year 2022, after
which the earmarking of the amount collected for the purpose shall terminate.
However, the bill provides that any remaining balance/s after the date of expiration of the
ACEF shall not revert to the General Fund but shall continue to be used for the purpose for which
it was collected and set aside.
Moreover, local government units (LGUs), State Universities and Colleges (SUCs), other
government institutions and accredited non-government organizations (NGOs), peoples
organizations (POs), cooperatives, farmer/fisherfolk organizations, and other accredited similar
organized groups involved in agricultural development and promotion may avail of the ACEF.

The Fund shall be set aside and used primarily to provide grant assistance to qualified
beneficiaries while earmarking 10 percent for the funding of a comprehensive scholarship
program for agriculture, forestry, fisheries and veterinary medicine education.
The provision of grant assistance shall be guided by a Strategic Investment Plan to be
formulated by the Department of Agriculture (DA), in consultation with the Congressional
Oversight Committee on Agricultural and Fisheries Modernization (COCAFM) which shall
periodically evaluate the Plan and review the utilization of the ACEF.
The Plan shall consider the urgency of supporting priority interventions including, but not
limited to, the following: establishment of common service facilities (public investments) for
agri-based production and post-production and processing support including agri-related
infrastructures and equipment to promote modern agricultural practices and create new markets;
funding of research and development and commercialization of matured research technologies,
including the upgrading of research facilities; conduct of market promotion activities; and
conduct of related feasibility studies and technical assistance.
Two portion of the ACEF running balance or P20 million annually, whichever is lower,
shall be set aside to support the administrative and operating expenses of the ACEF National
Technical Committee/ Secretariat.
Lastly, the DA, in consultation with the COCAFM, shall forthwith revise and promulgate
such rules and guidelines as are necessary to implement and ensure the widest possible
information dissemination of the provision of the Act. (30) rbb