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CONGRESS OF THE PHILIPPINES}FOURTEENTH CONGRESS

First Regular Session L \ i ; ; ; ; ; ; i I

CERTIFIED BY THE PRESIDENT FORITS IMMEDIATE ENACTMENT ONNOVEMBER8,2007

PREPARED BY THE COMMITTEE ON AGRICULTURE AND FOOD WITH

SENATORS BlAZON, GORDON, VILLAR AND ANGARA AS AUTHORS

THEREOF

AN ACT EXTENDING THE UTILIZATION PERIOD OFTHE AGRICULTURAL COMPETITIVENESSENHANCEMENT FUND, AMENDING FOR THIS

PURPOSE SECTION 8 OF REPUBLIC ACT NO.8178, ENTITLED "AN ACT REPLACINGQUANTITATIVE IMPORT RESTRICTIONS ONAGRICULTURAL PRODUCTS, EXCEPT RICE,WITH TARIFFS, CREATING THE AGRICULTURALCOMPETITIVENESS ENHANCEMENT FUND,"AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representativesof the Philippines in Congress assembled:

1 SECTION 1. Section 8 of Republic Act No. 8178, entitled

2 "An Act Replacing Quantitative Import Restrictions on

3 Agricultural Products, Except Rice, with Tariffs, Creating the

4 Agricultural Competitiveness Enhancement Fund, and for

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Other Purposes," is hereby amended to read as follows:

2 "SEC. 8. Agricultural Competitiveness

3 Enhancement Fund. - To implement the policy

4 enunciated in this Act, there is hereby created

5 the Agricultural Competitiveness Enhancement

6 Fund, hereinafter referred to as the Fund. THE

7 FUND SHALL CONSIST OF ALL DUTIES

8 COLLECTED FROM [The proceeds of] the9 importation of AGRICULTURAL PRODUCTS

10 UNDER THE minimum access volume (MAV)

II MECHANISM, TO BE CREDITED TO SPECIAL

12 ACCOUNT 183 OF THE FUND. [shall accrue to

13 the General Fund and shall be deposited in the

14 national Treasury.]

15 The FUND [entire proceeds] shall

16 CONTINUE TO be set aside UP TO THE YEAR

17 2015, AFTER WHICH THE COLLECTION OF

18 DUTIES AND THE SETTING ASIDE OF THE

19 AMOUNT COLLECTED FOR THE PURPOSE

20 SHALL TERMINATE. HOWEVER, ANY

21 REMAINING BALANCE(S) AT THE DATE OF

22 EXPIRATION OF THE FUND SHALL NOT

23 REVERT TO THE GENERAL FUND BUT

24 SHALL CONTINUE TO BE USED FOR THE

25 PURPOSE FOR WHICH IT WAS COLLECTED

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1 AND SET ASIDE. [and earmarked by

2 Congress] THE FUND SHALL BE UTILIZEDfor

3 irrigation, farm to market roads, post-harvest

4 equipment and facilities, credit, research and

5 development, other marketing infrastructure,

6 provision of market information, retraining,

7 extension services, and [other forms of]

8 assistance and support to [the] agricultural

9 [sector] ACTIVITIES SUCH AS REDUCTION

10 OF INPUT COST, QUALITY IMPROVEMENT

11 AND SUPPLY CHAIN EFFICIENCY.

12 The [Committees on Agriculture and Food,

13 Appropriations and Finance of both the Senate

14 and House of Representatives]

15 CONGRESSIONAL OVERSIGHT COMMITTEE

16 ON AGRICULTURAL AND FISHERIES

17 MODERNIZATION (COCAFM) shall conduct a

18 periodic review of the use of the Fund. [TheFund

19 shall have a lifeof nine (9) years, after which all20 remaining balances shall revert to the General

21 Fund.]"

22 SEe 2. The Department of Agriculture in consultation

23 with the Congressional Oversight Committee onAgricultural

24 and Fisheries Modernization (COCAFM) shall forthwith

25 revise and reformits implementing guidelines including the

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approval procedures in order to speed up the processing and

2 disbursement process, and incorporate therein the clear

3 overriding purposeand principlethat theFunds shall beused

4 toenhance agricultural competitiveness. and forthis purpose

5 the Department in coordination With the Philippine

6 Information Agency shall ensure the widest information

7 dissemination possibleisimplemented under this Act.

8 The Department ofAgriculturewiththeconcurrenceof

9 the Congressional Oversight Committee on Agriculture and

10 Fisheries Modernization shall draw up a prioritization plan

11 forthe optimumutilizationoftheFund.

12 SEC. 3. The Fund shall be set aside and earmark as

13 follows: 1) Seventy-five percent (75%) for agri-based

14 production and post-production, and processing activities15 including but not limited to new export industries and agri-

16 related infrastructure and equipment to achieve modern

17 agricultural practices; and for public information and

18 promotion activities including the establishment of a

19 principal mechanism therefor to promote the desired

20 agricultural products and activitiesand create newmarket.

21 The followingareas are likewise accordedpriorities:

22 assistance to individual Filipino farmers and fisherfolks,

23 cooperatives and micro-,small- and medium-scaleenterprises

24 as defined in Republic Act No. 6977 engaged in the

25 agricultural production, farming, fisheries, agri-business and

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similar activities;

2 2) Fifteenpercent (15%)for research developmentand

3 the commercialization of such, including the upgrading of

4 research facilitiesof qualifiedstate universities and colleges;

5 3) Ten percent (10%)to be used for the funding of a

6 comprehensivescholarship program for agriculture, forestry,

7 fisheries, andveterinary medicineeducation.

8 SEC.4...Fund Management and Bustainability. - For

9 the purposeof fundmanagement, the Fund shall bedeposited

10 to the Landbank of the Philippi~es (LBP)to whichcollections

11 from repayments fromloan beneficiaries including interests

12 shall becredited. TheDepartment ofAgricultureand the LBP

13 are hereby mandated to draw up a plan that shall allow

14 regional application, processing and release of the Fund to15 local farmers and such other mechanisms for fund utilization

16 and sustainability: Provided, That interest on loans shall be

17 lower than the prevailing interest at the time of grant, and:

18 Provided, further, That the interest imposedbythe LBP shall

19 not exceed the interest charged by QUEDANCORfor the

20 loans granted tofarmers.21 SEC.5. Supervisory Council. - A Supervisory Council

22 composedof the Secretaries of the Department of Agriculture,

23 Department of Science and Technology, or their

24 representatives who should have the rank of undersecretary,

25 Chairman of the Commissionon Higher Education, a senior

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vice president of the LBP, of the small business corporation

and the co-chairs of the Congressional Oversight Committee

on Agriculture and Fisheries Modernization (COCAFM)shall

oversee the implementation of this Fund and collect the

repayments of loans from ACEF borrowers and deposit the

same with the LBP. The Commission on Audit shall)

immediately conduct an audit of the ACEF Fund and submit

its report tothe Supervisory Council.

SEC.6. Repealing Clause. - All laws, decrees, executive

issuances, rules and regulations inconsistent with the

provisions of this Act are hereby repealed or modified

accordingly.

SEC. 7. Separability Clause. - The provisions of this

Act are hereby declared to be separable, and in the event oneor more of such provisions are held unconstitutional, the

validity of the other provisions shall not beaffectedthereby.

SEC. 8. Effectivity. - This Act shall take effect

immediately uponits approval.

Approved,