Definition of Key Terms
- Agricultural and fisheries machinery includes equipment for production, harvesting, processing, storage, transport, and distribution, e.g., tractors, seeders, irrigation, fishery equipment, postharvest machinery.
- Agricultural and fisheries mechanization is the development, adoption, and use of location-specific machinery powered by various energy sources to modernize agriculture and fisheries.
- Agro-industrial processing covers activities that preserve or change agricultural/fisheries products including milling and packaging.
- Fishing boats are watercraft up to 3 gross tons equipped for fishing activities including preservation and transport.
Scope and Application
- The Act governs R&D, promotion, supply, assembly, manufacturing, regulation, operation, maintenance, and project implementation relating to agricultural and fisheries machinery.
National Agri-fishery Mechanization Program
- Formulated by DA to support local manufacture, unify institutional efforts, establish standards, certify machinery, register ownership, and promote adoption of certified machinery.
Program Implementation
- Coordinated by DA Undersecretary who formulates five-year plans, guidelines on registration, standards, accreditation, credit program, implementation oversight, and coordination with other agencies and LGUs.
Unified National R&D and Extension Agenda
- Formulated by DA integrating programs from government agencies, LGUs, SUCs.
- Focuses on development and commercialization of appropriate machinery, renewable energy use, prototype fabrication, training, technology promotion, and R&D commercialization.
Agri-fisheries Mechanization RDE Network
- Network composed of institutions, LGUs, NGOs, associations of manufacturers and operators.
- PHilMech serves as secretariat; UPLB coordinates academic R&D efforts.
Machinery and Equipment Service Centers
- Encouraged in strategic zones to provide after-sales service, custom services, repairs, and training.
- Open to private sector, cooperatives, and registered businesses.
Mechanization and Engineering Resource Network
- Strengthened PHilMech database linked with other governmental networks for registration and project monitoring.
Research Grants and Training
- Competitive research grants by government agencies support R&D and technology adoption.
- Training for extension workers, engineers, technicians, and operators prioritized with scholarships.
Manpower and Skills Certification
- Required licensed engineers and certified technicians/operators for machinery service centers and operations.
- Skills certification conducted by TESDA in collaboration with DA and professional bodies.
Local Assembly and Manufacture
- Local production of engines and machinery promoted through partnership and joint ventures.
- Feasibility studies and R&D for local assembly encouraged.
Incentives for Local Manufacturers
- Eligibility for loans under ACEF and incentives for registered enterprises in preferred investment areas.
After-Sales Service
- Mandatory provision of after-sales service and warranty by assemblers, manufacturers, importers, and distributors.
- Monitoring by LGUs and BAFE.
Testing and Evaluation
- Mandatory testing of machinery by AMTEC for quality and performance before commercial sale.
- Regular testing, field tests, and certification registries maintained by BAFE.
Registration of Machinery Ownership
- Owners to register machinery with local agriculture offices; LGUs, regional offices, and BAFE to maintain registries and databases.
- National guidelines for registration and fees promulgated by the Secretary.
Registration of Manufacturers and Importers
- Mandatory registration with BAFE within six months.
- Certification of products within three years and regular submission of equipment lists.
Standards Development and Enforcement
- Development of standards according to ISO by DA in coordination with DTI, DOST, BoAE, AMTEC.
- Enforcement of standards and accreditation system by DA and LGUs.
- Building code integration for agricultural structures enforced with DPWH and local officials.
Classification and Accreditation of Industry Players
- Classification of manufacturers, assemblers, importers, suppliers based on capacity and service.
- Private-led accreditation encouraged and assisted by DA.
Institutional Bodies
- Agricultural and Fisheries Mechanization Committee (AFMeC)/advisory and consultative body under NAFC.
- Bureau of Agricultural and Fisheries Engineering (BAFE) created to coordinate mechanization and infrastructure programs.
- PHilMech mandated to coordinate mechanization and postharvest R&D.
- Bureau of Agriculture and Fisheries Standards (BAFS) develops and enforces machinery standards.
- AMTEC designated premier testing center.
Local Government Responsibilities
- LGUs to engage in research, regulation, extension, management, registration, and fee collection.
- Strengthening of agricultural engineering offices/divisions with defined functions including technical evaluation, infrastructure management, regulation enforcement, coordination with national agencies, training, and commercialization activities.
- Requirement for agricultural engineers in LGUs based on income classification; DA support for lower-income LGUs.
Prohibited Acts
- Selling, mortgaging, leasing unregistered machinery.
- Selling new machinery without warranty or after-sales service.
- Claiming ownership of unregistered machinery.
- Operating unaccredited testing centers.
Penalties
- Fines from P1,000 to P10,000 or imprisonment for 2 months to 1 year or both.
- Additional penalties under Consumer Act and Anti-Graft laws for government procurement violations.
Sanctions
- Effective after four years of enactment when regulations are fully implemented.
- Secretary empowered to initiate forfeiture and closure proceedings for uncertified or substandard products/businesses.
- One-month period to refund or replace defective machinery before legal action.
Local Mechanization Programs
- LGUs to formulate and implement local mechanization plans aligned with local development plans through ordinances.
Contiguous Farming
- Projects promoting farm clustering for efficient mechanized operations with minimum 50-hectare clusters.
- Farm development planning and cooperative strengthening supported.
Promotion of Renewable Energy
- Encouragement of renewable energy for machinery power sources.
- Research and extension activities undertaken by DA, DOE, DOST, SUCs, and private sector.
Infrastructure Support
- Priority government investments in irrigation, roads, postharvest, power, and communication infrastructures in key production clusters.
Implementing Rules and Regulations
- DA to promulgate necessary implementing rules within six months post-enactment.
Funding Provisions
- Appropriations from General Appropriations Act and ACEF funds for program implementation, testing center upgrades, R&D, training, and scholarships.
- LGUs to include mechanization funding in local development plans per Local Government Code.
Congressional Oversight
- COCAFM will serve as congressional oversight body for this Act.
Separability and Repealing Clauses
- Invalid provisions shall not affect other provisions.
- Inconsistent laws and issuances are repealed or modified accordingly.
Effectivity
- The Act takes effect 15 days after publication in the Official Gazette or newspapers of general circulation.