Legal basis and regulatory foundation
- Section 13 of Republic Act No. 10601 requires that agricultural and fisheries machinery pools and service centers—including sales and distribution outlets and manufacturing establishments, public or private—must have the required manpower complement of licensed agricultural engineers and certified technicians and operators.
- Section 13 of Republic Act No. 10601 ties manpower requirements to guidelines and standards promulgated by the Board of Agricultural Engineering of the PRC and the Department of Labor and Employment.
- Republic Act No. 8559 (Philippine Agricultural Engineering Act of 1998) provides authority for the Board’s regulation through Section 9 (a) and (g) Article III.
- Section 7 of the memorandum circular anchors sanctions and penalties by reference to Sections 31 and 32 of Republic Act No. 10601 and Section 32 of Republic Act No. 8559.
Purpose, policy, and regulatory intent
- Section 13 of Republic Act No. 10601 establishes the regulatory intent that required manpower complement should ensure efficient operation and maintenance and good management practices.
- The memorandum circular and its incorporated guidelines and standards are directed at setting enforceable manpower requirements for agricultural and fisheries machinery pools, service centers, sales and distribution outlets, and manufacturing establishments.
Definitions for key terms
- “Agricultural and fisheries machinery and equipment” refers to machinery and equipment for the production, harvesting, processing, storage, manufacture, preserving, transporting and distribution of agricultural and fisheries products, including listed examples such as tractors and their attachments, power tillers, seeders, transplanters, windmills, harvesting machines, and irrigation equipment and accessories.
- “Agricultural and fisheries machinery and equipment” includes equipment for crop protection and maintenance, greenhouses and other thermal conditioning equipment, livestock equipment, fishery equipment, slaughtering equipment, and processing equipment such as milling machines, dryers, threshers, and grain and other strippers.
- “Agricultural and fisheries machinery and equipment” includes agricultural transport machinery and storage facilities.
- “Board” refers to the Professional Regulatory Board of Agricultural Engineering.
- “Commission” refers to the Professional Regulation Commission.
Covered entities and required manpower
- At least one (1) registered and licensed Agricultural Engineer must be engaged, hired, or employed in each covered public or private entity or business specified by the memorandum circular.
- Covered entities include agricultural and fishery machinery service centers established and operated by registered cooperatives or by businesses registered with the SEC or with the DTI in Strategic Agricultural Development Zones (SAFDZs) or Agrarian Reform Communities (ARCs) under Section 9 of Republic Act No. 10601, which provide:
- After-sales service and warranty to their respective clients;
- Custom plowing, harrowing, harvesting, drying, milling and other farm mechanization services;
- Repair and troubleshooting services of agricultural and fishery machinery and equipment; and
- Training of maintenance and proper use of agricultural machineries and equipment.
- Covered entities include sales and distribution outlets of agricultural and fishery machinery and equipment operated by registered cooperatives or businesses registered with the SEC and DTI.
- Covered entities include agricultural and fishery machinery and equipment pools and service centers, including common service facilities, post harvest and agri-fisheries processing centers, established and/or operated by:
- agricultural plantations, agro-industrial firms, agri-fishery cooperatives, farmers organizations;
- Department of Agrarian Reform (OAR);
- research, demonstration and training stations/centers of the Department of Agriculture (DA);
- academic institutions;
- local government units; and
- other concerned government agencies and private institutions.
- Covered entities include manufacturing/assembling establishments of agricultural and fishery machinery and equipment registered with the SEC and DTI, including joint venture with foreign entities.
- The memorandum circular provides that the agricultural engineer shall be on full-time or part-time basis depending on the magnitude of professional services needed, and it allows engagement as consultant or otherwise.
Required professional services
- Covered registered and licensed agricultural engineers must provide professional services including:
- Preparation and/or evaluation of project feasibility studies including the technical specifications of agricultural and fishery machinery pools and service centers.
- Management or supervision of the operation and maintenance of agricultural and fishery machinery pools and service centers.
- Training and supervision of agricultural machinery technicians and operators in agricultural and fishery machinery pools and service centers.
- Management or supervision of the sales and distribution outlets and the assembling/manufacturing establishments of agri-fishery machinery and equipment, including preparation of designs and technical specifications.
- Research and development to improve operation and management of agricultural and fishery machinery pools and service centers and in agricultural and fishery machinery assembling and manufacturing establishments.
Qualifications and compensation rules
- Registered and licensed agricultural engineers engaged must hold a valid and updated PRC license.
- The compensation of registered and licensed agricultural engineers hired in the covered entities must be in accordance with the Salary Standardization Law, the Labor Code of the Philippines, and prevailing professional fee rates.
Monitoring, inspections, and compliance
- The Board and the Commission shall conduct monitoring and ocular inspections in:
- agricultural and fisheries machinery pools and service centers,
- sales and distribution outlets,
- manufacturing establishments, and
- other concerned public and private entities or businesses, to verify compliance with the guidelines and standards under Resolution 2014-03.
Sanctions and penalties for violations
- Any person who violates the memorandum circular’s incorporated guidelines and standards is liable for administrative and criminal sanctions and penalties under:
- Sections 31 and 32 of Republic Act No. 10601, and
- Section 32 of Republic Act No. 8559.
Publication and compliance direction
- A copy of the circular is required to be published in the Official Gazette or any newspaper of general circulation in the Philippines.
- The circular is issued for the information and compliance of all concerned.
- The memorandum circular is signed by Florentino C. Doble, M.D., Chairman.