Law Summary
Definition of Key Terms
- Agricultural and fisheries machinery: Includes tractors, harvesters, irrigation systems, postharvest equipment, fishing boats under three gross tons, etc.
- Agricultural and fisheries mechanization: Development and use of appropriate energy-powered machinery for production and postproduction tailored to location and agronomic conditions.
- Agro-industrial processing: Activities to maintain or change the quality or form of agricultural, fisheries, and forestry products such as milling, freezing, packaging.
- Fishing boat: Watercraft of three gross tons or less used for fishery operations including auxiliary activities.
Scope and Application
- Covers all activities related to research, development, promotion, supply, assembly, manufacture, regulation, use, operation, maintenance, and project implementation of agri-fishery machinery.
National Agri-fishery Mechanization Program
- Formulated by the Department of Agriculture (DA) to:
- Support local manufacture and research through grants and credit.
- Lead research and development unification.
- Establish machinery quality, safety, and performance standards.
- Set up certified testing centers.
- Develop registration guidelines for machinery ownership.
- Promote adoption of certified machinery to improve productivity.
Program Implementation
- Coordinated by the DA Undersecretary designated by the Secretary.
- Responsibilities include formulating and reviewing five-year programs, guidelines for registration and standards, accreditation, credit programs, coordination with government and LGUs.
Research, Extension, and Human Resource Development
- Unified National Research and Development and Extension (RDE) agenda led by DA and PHilMech.
- Focus on development, testing, commercialization, renewable energy use, technical standards, training, and commercialization strategies.
- Establishment of Agricultural and Fisheries Mechanization RDE Network composed of government, LGUs, NGOs, academia, industry, farmers, and fisherfolk.
- Encourage private sector operation of machinery and equipment service centers for repair, custom services, training, and after-sales service.
- Development of a mechanization and engineering resource network for data and online registration linked to other databases.
- Research grants available through BAR, DOST, and CHED.
- Training and scholarship programs involving DA, SUCs, DOLE, TESDA, and private sector.
- Manpower requirements mandating licensed engineers and certified technicians/operators for mechanization facilities.
- Skills certification for machinery technicians/operators coordinated by TESDA with relevant agencies.
Local Assembly, Manufacture, Supply, and After-Sales Service
- Promotion of local production of engines and machinery by DA and private sector, including joint ventures.
- Eligibility for loans and incentives under ACEF for local manufacturers and assemblers.
- Mandatory after-sales service and warranty provision by assemblers, manufacturers, importers, suppliers, distributors, and dealers.
Testing, Evaluation, Registration, Standardization, and Accreditation
- Testing and evaluation required for machinery before assembly, manufacture, and sale by AMTEC.
- Regular testing and field tests to ensure quality; BAFE maintains certification registries.
- Mandatory registration of machinery ownership with LGU agriculture offices; creation of registries and national database by BAFE.
- Registration of manufacturers, fabricators, assemblers, and importers within six months; certification of products within three years.
- Development and enforcement of standards by BAFPS (now BAFS), in coordination with DTI, DOST, BoAE, and AMTEC, consistent with ISO standards.
- Accreditation and classification of assemblers, manufacturers, importers, suppliers, distributors, and dealers based on organizational strength and track record.
- Deputization of LGUs to monitor certification, registration, and accreditation compliance.
- Enforcement of standards also through DPWH and local building officials.
Institutional Mechanisms
- Agricultural and Fisheries Mechanization Committee (AFMeC) under NAFC serves as advisory and feedback body.
- Creation and strengthening of Bureau of Agricultural and Fisheries Engineering (BAFE) in DA to coordinate planning, monitor projects, develop standards, issue permits, and implement accreditation.
- PHilMech leads RDE and mechanization programs.
- BAFS develops machinery standards and regulations.
- AMTEC institutionalized as premier testing center and assists other testing centers.
Responsibilities of Local Government Units (LGUs)
- LGUs mandated to research, extend, promote, manage, and regulate agricultural and fisheries machinery and equipment.
- Strengthening agricultural engineering divisions and sections to provide planning, coordination, registration, supervision, enforcement, training, and commercialization of technologies.
- LGUs classified by income must maintain agricultural engineers; DA assists lower-income LGUs with manpower.
Prohibited Acts and Penalties
- Illegal acts include selling unregistered machinery, selling machinery without warranty/after-sales service, false ownership claims, and operating unaccredited testing centers.
- Penalties: fines from P1,000 to P10,000, imprisonment from 2 months to 1 year, or both; consumer protection and graft laws also apply.
- Sanctions include forfeiture, closure of business entities or testing centers not complying with certification and registration rules.
- Offending businesses given one month to comply or face legal action.
Miscellaneous Provisions
- LGUs shall formulate and implement local mechanization plans aligned with local development plans.
- Contiguous farming projects encouraged for efficient mechanization through land clustering and cooperative arrangements.
- Promotion of renewable energy use for machinery operation and maintenance.
- Priority government investment for infrastructure supporting mechanization in key production areas.
- DA tasked to promulgate implementing rules within six months of enactment.
- Funding provided through DA programs, ACEF, BAR, CHED, TESDA, LGU local development funds, and others.
- Oversight committee established: Congressional Oversight Committee on Agricultural and Fisheries Modernization (COCAFM).
- Separability clause ensures unaffected provisions remain valid if part of the Act is invalidated.
- Repeals inconsistent laws and provisions.
- Effectivity: Act takes effect 15 days after publication in Official Gazette or newspapers of general circulation.