Republic of the Philippines

CONGRESS OF THE PHILIPPINES

Metro Manila
Fifteenth Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand twelve.
REPUBLIC ACT No. 10601
AN ACT PROMOTING AGRICULTURAL AND FISHERIES MECHANIZATION
DEVELOPMENT IN THE COUNTRY
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
Section 1. Title. This Act shall be known as the "Agricultural and Fisheries Mechanization
(AFMech) Law".
ARTICLE I
DECLARATION OF POLICY, DEFINITION OF TERMS
AND COVERAGE
Section 2. Declaration of Policy. It shall be the policy of the State to:
(a) Promote the development and adoption of modern, appropriate and cost-effective and
environmentally-safe agricultural and fisheries machinery and equipment to enhance
farm productivity and efficiency in order to achieve food security and safety and increase
farmers income;
(b) Provide a conducive environment to the local assembling and manufacturing of
engines, machinery and equipment for agricultural and fisheries production, processing
and marketing;
(c) Ensure the quality and safety of machineries and equipment locally manufactured or
imported by strengthening regulation through the development and enforcement of
machinery and machine performance standards, regular testing and evaluation,
registration, and the accreditation and classification of suppliers, assemblers and
manufacturers to ensure compliance to prescribed quality standards;
(d) Strengthen support services such as credit faculties, research, training and extension
programs, rural infrastructures, postharvest facilities and marketing services;
(e) Unify, rationalize and strengthen the implementation, coordination of activities and
mechanisms on agricultural and fisheries mechanization programs and projects; and
(f) Deliver integrated support services to farmers, fisherfolk and other stakeholders, and
assist them to be able to viably operate and manage their agricultural and fisheries
mechanization projects.

Section 3. Definition of Terms. The following terms are defined, as follows:

(a) Agricultural and fisheries machinery refers to machinery and equipment for the
production, harvesting, processing, storage, manufacture, preserving, transporting and
distribution of agricultural and fisheries products. It includes, but is not limited to,
tractors and their attachments, power tillers, seeders, transplanters, windmills, harvesting
machines, crop protection and maintenance equipment, irrigation equipment and
accessories, greenhouses and other thermal conditioning equipment, livestock equipment,
fishery equipment, slaughtering equipment, meat/fishery and crop processing equipment,
postharvest machines such as milling machines, dryers, threshers, grain and other
strippers, agricultural transport machinery and storage facilities including cold storage,
reefer vans, slaughter houses and fishing boats of three (3) gross tons or less. New
agricultural and fishery machinery includes newly imported as well as one that has not
been used since its date of manufacture;
(b) Agricultural and fisheries mechanization refers to the development, adoption,
assembly, manufacture and application of appropriate, location specific and cost-effective
agricultural and fisheries machinery using human, animal, mechanical, electrical,
renewable and other nonconventional sources of energy for agricultural production and
postharvest/postproduction operations consistent with agronomic conditions and for
efficient and economic farm and fishery management towards modernization of
agriculture and fisheries;
(c) Agro-industrial processing refers to the local activity or series of activities to maintain
or raise the quality or change the form or characteristics of agricultural, fisheries and
forestry products. It also includes, but not limited to, cleaning, sorting, grading, mixing,
milling, canning, dressing, slaughtering, freezing, pasteurizing, conditioning, packaging,
repacking and transporting of said products; and
(d) Fishing boat refers to any boat, ship or other watercraft of three (3) gross tons or less,
equipped to be used for taking of fishery species or aiding or assisting one (1) or more
vessels in the performance of any activity relating to fishing including, but not limited to,
preservation, supply, storage, refrigeration, transportation and/or processing.
Section 4. Scope and Application. The provision of this Act shall apply to the research,
development and extension, promotion, distribution, supply, assembling, manufacturing,
regulation, use, operation, maintenance and project implementation of agricultural and fisheries
machinery and equipment.
ARTICLE II
THE NATIONAL AGRI-FISHERY MECHANIZATION
PROGRAM
Section 5. The National Agri-fishery Mechanization Program. There shall be formulated a
National Agri-fishery Mechanization Program by the Department of Agriculture (DA) with the
following objectives:
(a) Promote and support through the provision of research grants, credit, transparent and
predictable regulation, the local development and manufacture of agricultural and
fisheries machinery by the private sector;
(b) Unify, lead and support the efforts of various institutions in the research, design and
development of agricultural and fisheries machinery;
(c) Establish quality, safety and performance standards for agricultural and fisheries
machinery;

(d) Support the establishment of quality, safety and performance testing centers for the
certification of agricultural and fisheries machinery in strategic localities in the country;
(e) Establish guidelines for the registration of ownership of agricultural and fisheries
machinery; and
(f) Promote the adoption of certified agricultural and fisheries machinery for improving
agriculture and fishery productivity.
Section 6. Program Implementation. The overall implementation of the National Agri-fishery
Mechanization Program shall be coordinated by the DA through the Undersecretary duly
designated by the Secretary who shall:
(a) Conduct the formulation and review of the five-year National Agri-fishery
Mechanization Program for the DA;
(b) Provide leadership in the formulation of guidelines for the registration of ownership
of agricultural and fisheries machinery;
(c) Ensure the formulation of quality, safety and performance standards for agricultural
and fisheries machinery;
(d) Ensure the formulation of accreditation guidelines for testing centers for agricultural
and fisheries machinery;
(e) Formulate and enforce guidelines for the credit program to include, but not limited to,
access, disbursement and repayment;
(f) Oversee the implementation of the National Agri-fishery Mechanization Program by
the various units of the Department; and
(g) Coordinate with other government agencies and local government units (LGUs) in the
implementation of measures provided for in this Act.
ARTICLE III
RESEARCH, EXTENSION AND HUMAN RESOURCE
DEVELOPMENT
Section 7. Unified National Research and Development (R&D) and Extension Agenda. A
unified National Agricultural and Fisheries Mechanization Research and Development and
Extension (RDE) Agenda shall be formulated and implemented by the DA: Provided, That the
DA, through the Philippine Center for Postharvest Development and Mechanization (PHilMech)
as focal agency, shall integrate and unify all agricultural and fisheries mechanization RDE
programs and projects of all concerned national government agencies, Local Government Units
(LGUs), state universities and colleges (SUCs), which shall be geared towards development of
machineries and equipment, job generation, address market and industry demands and help
accelerate agricultural and fisheries modernization in the countryside.
The National Agricultural and Fisheries Mechanization RDE Agenda shall include, but not be
limited, to the following:
(a) Development, pilot-testing and commercialization of appropriate, location-specific
and cost-effective agricultural and fisheries machinery and equipment in support to
contiguous farming and machinery pooling;
(b) Design and testing of new machineries and equipment for agriculture and fisheries;

(c) Local manufacture and assembly of agricultural engines and equipment;

(d) Development and utilization of renewable and nonconventional energy resources such
as wind, biomass, hydro, solar and biofuels for agricultural and fisheries equipment and
machineries;
(e) Development of efficient production and postproduction mechanization systems;
(f) Continuous development of technical standards and testing procedures for quality
agricultural machinery and components;
(g) Training of farmers, fisherfolk, manufacturers, extension workers, agricultural
engineers, technicians and operators engaged in the agricultural and fisheries
mechanization;
(h) Promotion of technologies through agricultural and industrial extension activities and
techno-demo centers;
(i) Development of prototype and fabrication of agricultural machinery and equipment;
and
(j) Development and conduct of commercialization strategies involving all sectors
representing the demand and supply sides of agricultural and fisheries mechanization
technologies.
Section 8. Agri-fisheries Mechanization RDE Network. An Agricultural and Fisheries
Mechanization RDE Network is hereby organized and composed of research and educational
institutions, LGUs, nongovernment organizations and the recognized and well-established
associations of agricultural and fisheries machinery assemblers, manufacturers and distributors,
agricultural engineers, farmers and fisherfolk. The Agricultural and Fisheries Mechanization
RDE Network shall be responsible for the formulation and implementation of the National
Agricultural and Fisheries Mechanization RDE Agenda. The PHilMech shall be responsible for
organizing the Network and shall serve as secretariat to the Network. The Network shall be
chaired by the Director of the PHilMech.
Moreover, the Agricultural Mechanization Development Program of the University of the
Philippines, Los Baos (UPLB), which is part of the Network, shall be strengthened and
institutionalized to lead and coordinate the agricultural and fishery mechanization RDE program
of all academic institutions in the country.
Section 9. Agri-fisheries Machinery and Equipment Service Centers. The DA and the LGUs
shall encourage and support the private sector and other rural entrepreneurs to establish and
operate agricultural and fishery machinery and equipment service centers in the Strategic
Agricultural and Fishery Development Zones (SAFDZs)) and Agrarian Reform Communities.
The Agri-fisheries Machinery and Equipment Service Centers shall be operated as business
enterprises that will provide the following services:
(a) After-sales service and warranty to their respective clients;
(b) Custom plowing, harrowing, harvesting, drying, milling and other farm
mechanization services;
(c) Repair and troubleshooting services of agricultural and fishery machinery and
equipment; and
(d) Training of maintenance and proper use of agricultural machineries and equipment.

The ownership and operation of Agri-fisheries Machinery and Equipment Service Centers shall
not be the exclusive domain of equipment and machineries suppliers. These may be owned and
operated by registered cooperatives or by businesses registered with the Securities and Exchange
Commission (SEC) or with the Department of Trade and Industry (DTI).
Section 10. Agri-fisheries Mechanization and Engineering Resource Network. The existing
agricultural machinery information and database of the PHilMech shall be strengthened into an
agri-fishery mechanization and engineering resource network. It will also be used or tapped as a
facility for the online registration of agri-fisheries machinery and equipment, and monitoring of
agri-fisheries mechanization and infrastructure projects. This network shall be linked to other
existing information and database networks of the DA, the Agricultural Machinery Information
Network of the Department of Science and Technology (DOST), the Agricultural Mechanization
Development Program of the UPLB and of other government agencies.
Section 11. Research Grants. To enhance research and technological development on
agricultural and fisheries mechanization, the government through the Bureau of Agricultural
Research (BAR) of the DA, the DOST and the Commission on Higher Education (CHED) shall
provide competitive research grants to members of the Network to undertake needs-oriented
research as well as institutional development and upgrading of laboratory facilities and
equipment.
Section 12. Training and Scholarship Program. The DA, in partnership with SUCs and the
private sector, shall train the agricultural extension workers and agricultural engineers of the
LGUs who in turn shall train the farmers and fisherfolk on agricultural and fisheries
mechanization technologies and practices.
The Department of Labor and Employment (DOLE) and the Technical Education and Skills
Development Authority (TESDA) shall be responsible in the training of agricultural and fisheries
machinery technicians and operators.
Furthermore, scholarships for graduate and undergraduate degrees on agricultural engineering
and trade/vocational courses on agricultural and fisheries mechanization shall be given priority
by the DA, the CHED and the DOST.
Section 13. Manpower Complement. All agricultural and fisheries machinery pools and service
centers, including sales and distribution outlets and manufacturing establishments, either public
or private, shall have the required manpower complement of licensed agricultural engineers and
certified technicians and operators, in accordance with the guidelines and standards to be
promulgated by the Board of Agricultural Engineering (BoAE) of the Professional Regulation
Commission (PRC) and the DOLE to ensure efficient operation and maintenance and good
management practices. The DA shall ensure compliance to this manpower complement
requirement.
Section 14. Skills Certification of Agricultural Machinery Technicians and Operators. The
TESDA, in collaboration with the DA, the BoAE and the national associations of agricultural
engineers and agricultural machinery assemblers, manufacturers and distributors, shall undertake
skills certification and accreditation systems for agricultural and fishery machinery operators and
technicians.

ARTICLE IV
LOCAL ASSEMBLY, MANUFACTURE, SUPPLY AND
AFTER-SALES SERVICE
Section 15. Local Assembling and Manufacturing. Production of locally-made engines and
other machinery for agricultural and fisheries purposes shall be promoted and encouraged by the
DA in partnership with the private sector, and through joint venture agreements. For this purpose,
the DA in partnership with the recognized national organization of agricultural machinery
assemblers, manufacturers and distributors, agricultural engineers and the DOST shall undertake
the feasibility study and R&D for the local assembly and manufacture of agricultural
engines/prime mover, and other agricultural machinery and equipment.
Section 16. Incentives for Local Manufacturers and Assemblers of Agri-fisheries Machinery.
Ventures in local manufacture, fabrication and assembly of agri-fisheries machinery and
equipment shall be eligible for loans under the Agricultural Competitiveness Enhancement Fund
(ACEF) under the program of the DA. These businesses shall be granted incentives as long as
they are considered as registered enterprises engaged in a preferred area of investment pursuant
to Article 39 of Executive Order No. 226. as amended.
Section 17. After-Sales Service. All agricultural and fisheries machinery assemblers,
manufacturers, importers, suppliers, distributors and dealers are required to provide after-sales
service and warranty to then respective clients which shall be monitored by the agriculture
offices of the LGUs and the Bureau of Agricultural and Fisheries Engineering (BAFE), created
under Section 24 of this Act.
ARTICLE V
TESTING AND EVALUATION, REGISTRATION,
STANDARDIZATION AND ACCREDITATION
Section 18. Testing and Evaluation. Agricultural and fisheries machinery and equipment to be
sold in the market shall pass through testing and evaluation by the Agricultural Machinery
Testing and Evaluation Center (AMTEC) in accordance with the national policies and guidelines
to be promulgated by the Secretary. Specifically, before it can be assembled, manufactured and
commercially sold in the market, the model of the machine and any modification thereof should
be tested by the AMTEC and should pass the prescribed quality and performance standards. The
regular testing and evaluation of machinery sold shall be undertaken by the AMTEC on new
models and design. Field tests shall likewise be undertaken by the AMTEC to ensure consistent
quality of test units as well as on the commercial units. The BAFE shall maintain a certification
registry of equipment and machinery as well as a registry of those denied certification.
Section 19. Registration of Ownership of Agricultural and Fishery Machinery and Equipment.
All owners of agricultural and fishery machinery and equipment must register these with the
agriculture offices of municipal and city government units. The agriculture offices of the LGUs
shall establish and maintain a registry of agricultural and fishery machinery at the municipal, city
and provincial levels. The DA Regional Agricultural Engineering Division shall maintain a
registry of agricultural and fishery machinery at the regional office whereas the BAFE shall
maintain a national database of all registered agricultural and fishery machinery. Each office
shall ensure that these registries and databases are available through the internet. The Secretary
shall promulgate national guidelines and procedures for the registration of agricultural and
fisheries machinery by the LGUs, including the collection of registration fees in accordance with
the Local Government Code.
Section 20. Registration of Manufacturers, Fabricators, Assemblers and Importers. Within six
(6) months upon the enactment of this Act, all manufacturers, fabricators, assemblers and
importers must register with the BAFE.

Three (3) years upon the enactment of this Act, registrants must provide certification by an
accredited certifying body of all products that they have in the market or intend to market and
withdraw all products that have no certification. One (1) year after the enactment of this Act, the
registrants must submit to the BAFE the list of equipment/machineries
manufactured/fabricated/assembled/ imported.
Section 21. Standards Development and Enforcement. The DA, through the Bureau of
Agriculture and Fisheries Product Standards (BAFPS), in coordination with the DTI, the DOST,
the BoAE and the AMTEC, and in consultation with the accredited associations of farmers and
fisherfolk, agricultural machinery assemblers, manufacturers and distributors and agricultural
engineers shall develop standards specifications and test procedures of agricultural and fishery
machinery and equipment. These standards should be in conformity with the International
Standards Organization (ISO) and shall be part of the existing Philippine Agricultural
Engineering Standards (PAES).
Thereafter, the DA and the LGUs, in collaboration with the BoAE, shall enforce the above
standards on the manufacture, sale and distribution of agricultural and fisheries machinery and
equipment, and its accreditation system for agricultural and fisheries facilities and
establishments.
The Secretary shall deputize the agriculture offices of the LGUs to monitor the implementation
of regulation concerning certification, registration of manufacturers, assemblers, dealers or
importers and accreditation of agricultural and fishery machinery and equipment testing centers.
The Department of Public Works and Highways (DPWH) and the local building officials,
consistent with the provisions of Republic Act No. 8559, otherwise known as the "Philippine
Agricultural Engineering Act of 1998, and in coordination with the agriculture offices of the
LGUs shall enforce the PAES as part of the implementation of the National Building Code of the
Philippines particularly in the design, construction, operation and maintenance of agricultural
and fisheries buildings and structures.
Section 22. Classification and Accreditation of Assemblers, Manufacturers, Importers,
Suppliers, Distributors and Dealers. Agricultural and fisheries machinery assemblers,
manufacturers, importers and suppliers, distributors and dealers shall be classified into small,
medium and large, and shall be encouraged to have their manufacturing/service facility build-up:
Provided, That agricultural and fisheries machinery assemblers, manufacturers, importers,
suppliers, distributors and dealers shall be classified and accredited based on their organizational
strengths and track record, area of operation, marketing and distribution network, after-sales
service and manufacturing capabilities.
For this purpose, the DA shall encourage and assist in the organization of a private-led
classification and accreditation system for agricultural machinery assemblers, manufacturers,
importers, suppliers, distributors and dealers.
ARTICLE VI
INSTITUTIONS
Section 23. Agricultural and Fisheries Mechanization Committee. The Agricultural and
Fisheries Mechanization Committee (AFMeC) under the National Agricultural and Fishery
Council (NAFC) shall act as an advisory body to ensure the success of the programs and
activities of the DA concerning agricultural and fisheries mechanization. It shall also serve as the
consultative and feedback mechanism from the lowest possible level to the top decision makers
and to assist in defining and formulating the goals and scope of the countrys agricultural and
fisheries mechanization and infrastructure policies, plans and programs. The agricultural and
fisheries mechanization committees under the regional, provincial, city, municipal and barangay
agricultural and fishery councils shall integrate, coordinate, unify and monitor the field
implementation of the agri-fisheries mechanization and infrastructure projects of various national
government agencies, LGUs, banking and financial institutions and the private sector.

Section 24. Strengthening the DA Agricultural and Fishery Engineering Groups. Pursuant to
Section 46 of Republic Act No. 8435, otherwise known as the "Agriculture and Fisheries
Modernization Act of 1997, a Bureau of Agricultural and Fisheries Engineering (BAFE) is
hereby created as a regular bureau of the DA which shall be under the supervision of the DA
Undersecretary and shall have the following functions and responsibilities:
(a) Coordinate, oversee and monitor the national planning and implementation of agrifisheries engineering, farm-to-market road and other agri-fisheries infrastructure projects;
(b) Assist in the national planning, coordination and implementation of the national agrifisheries mechanization programs;
(e) Prepare, evaluate, validate and recommend engineering plans, designs and technical
specifications on agri-fisheries mechanization and infrastructure projects;
(d) Oversee and provide technical assistance to the operations of the agricultural
engineering divisions of the DA regional field units;
(e) Coordinate and integrate all agricultural and fisheries engineering activities of the DA
bureaus, attached agencies and corporations;
(f) Coordinate and monitor the enforcement of standards and other regulatory policies on
agricultural and fishery engineering;
(g) Implement accreditation and registration scheme for agriculture and fishery
machinery, tools and equipment, in coordination with technology generators:
(h) Issue permits to operate to agriculture and fishery tools and equipment manufacturers,
fabricators, assemblers and importers; and
(i) Promulgate and implement accreditation guidelines for testing centers.
The BAFE shall be headed by a Bureau Director and Assistant Bureau Director, all appointed by
the President.
The BAFE shall have the following divisions: (1) Engineering Plans, Designs and Specifications;
(2) Programs and Projects Management; (3) Standards Regulation and Enforcement; and (4)
Administration and Finance.
Modifications shall be made in the organizational structure and staffing pattern of the regional
field units of the DA for the creation of Agricultural Engineering Division to strengthen the
provision of agricultural engineering services necessary to carry out the field implementation of
the agricultural and fishery engineering, mechanization and infrastructure programs and projects
of the DA.
All concerned bureaus and attached agencies of the DA implementing agri-fishery mechanization
and infrastructure projects shall review and modify their organizational structure and staffing
pattern with the end-view of strengthening the provision of agricultural engineering services as
part of the overall network of the BAFE.
Section 25. Philippine Center for Postharvest Development and Mechanization (PHILMech).
The PHilMech shall coordinate, plan and execute agricultural and fishery mechanization and
postharvest RDE programs and projects of the DA.
Section 26. Bureau of Agriculture and Fisheries Product Standards. The BAFPS, in addition to
its functions under Sections 62 and 63 of Republic Act No. 8435, shall develop standards for
agriculture and fishery machinery, tools and equipment in coordination with accredited testing
centers, and other concerned government and private entities.

The BAFPS is hereby renamed into Bureau of Agriculture and Fisheries Standards (BAFS) and
authorized to create a new section under the current Standards Development Division on
agricultural and fisheries machinery regulations. It may call upon experts, professional groups
and other government agencies to assist in the performance of its functions.
Section 27. Agricultural Machinery Testing and Evaluation Centers (AMTEC). The AMTEC of
the College of Engineering and Agro-Industrial Technology (CEAT) of the UPLB is hereby
institutionalized. The AMTEC is hereby designated as the premier and reference testing center in
the country, and for purposes of functional coordination and integration, shall closely coordinate
its activities with the BAFS and BAFE. As the premier testing center, it shall assist the BAFS in
the formulation of quality, safety and performance standards of agricultural and fisheries
machinery and of accreditation guidelines for testing centers. It shall also provide technical
assistance in the establishment of testing centers in other parts of the country.
ARTICLE VII
RESPONSIBILITIES OF THE LOCAL GOVERNMENT
UNITS
Section 28. Implementation by the LGUs. The LGUs, pursuant to the provisions of Republic
Act No. 7160, otherwise known as the "Local Government Code of 1991, shall undertake
applied research, extension, dispersal, management and regulation of agricultural and fisheries
machinery and equipment, including the collection of fees.
Section 29. Strengthening the Agricultural Engineering Groups of the LGUs. The agricultural
engineering division/section of the agriculture offices of the LGUs organized under Executive
Order No. 86, Series of 1999 and Section 46 of Republic Act No. 8435 shall serve as the
planning, coordinating, regulating and implementing bodies at the provincial, city and municipal
levels on agricultural and fisheries engineering, mechanization and infrastructure programs and
projects and shall have the following functions and responsibilities:
(a) Provide agricultural engineering services which include engineering survey,
preparation and evaluation of plans, designs, technical specifications, feasibility studies
and cost estimates/program of work of irrigation, small water impounding, soil
conservation and management, farm machinery, slaughterhouses, poultry dressing plants,
postharvest facilities, auction markets, farm-to-market roads and other agricultural and
fisheries infrastructure projects of the LGUs;
(b) Administer, supervise and coordinate the construction, operation, maintenance,
improvement and management of irrigation, small water impounding, soil and water
conservation structures and facilities, farm machinery, postharvest facilities, auction
markets, farm-to-market roads and other agricultural and fisheries infrastructure projects
of the LGUs;
(c) Undertake the registration of agri-fishery machinery and facilities, enforcement of the
PAES and other agricultural and fishery engineering regulatory activities in coordination
and collaboration with the concerned national government agencies;
(d) Coordinate with the concerned national government agencies with regard to the
implementation of national government programs and projects on irrigation, farm
mechanization, postharvest facilities, farm-to-market roads and agricultural and fisheries
infrastructure;
(e) Be in the frontline of the delivery of basic agricultural engineering services;
(f) Provide training and extension activities to farmers and fisherfolk particularly in the
installation, operation and maintenance of their irrigation, postharvest facilities,
agricultural and fishery machinery projects in coordination with the agriculture and
fisheries extension workers;

(g) Undertake and/or coordinate the pilot testing and commercialization of matured
agricultural and fisheries engineering technologies; and
(h) Exercise such other powers and perform such other duties and functions as may be
prescribed by law or ordinance.
To effectively carry out the above functions and responsibilities, the agricultural engineering
division of the provincial and city agriculture offices, and agricultural engineering section in the
municipal agriculture offices are hereby strengthened and institutionalized into the organizational
structure of the LGUs, and if not yet existing, shall be created in the particular LGUs. The LGUs
belonging to the first up to the third income classes which are providing or implementing
agricultural and fisheries infrastructure, mechanization and engineering projects shall hire at least
one (1) agricultural engineer at the provincial, city and municipal levels.
In the case of provincial, city and municipal LGUs belonging to the fourth up to the sixth income
classes which are not capable of establishing then agricultural engineering division/section due to
financial constraints, the DA through its regional agricultural engineering divisions shall
augment and perform such responsibilities and, as deemed necessary, establish its provincial, city
and municipal operation units, and shall be allocated and provided with necessary funding and
manpower requirements for their operation.
ARTICLE VIII
PROHIBITED ACTS, PENALTIES AND SANCTIONS
Section 30. Prohibited Acts. It is unlawful for any person to:
(a) Sell, mortgage or lease agricultural and fishery machinery without being registered
with the BAFE;
(b) Sell new agricultural and fishery machinery without warranty or after-sales service;
(c) Claim ownership to an agricultural and fishery machinery that has not been properly
registered in his/her name; and
(d) Operate a testing center without proper accreditation.
Section 31. Penalties. Any person who shall violate any provision of this Act shall, upon
conviction, be subject to a fine of not less than One thousand pesos (P1,000.00) but not more
than Ten thousand pesos (P10,000.00) or imprisonment of not less than two (2) months but not
more than one (1) year, or both, upon the discretion of the court and/or other applicable penalties
imposed under Republic Act No. 7394, otherwise known as the "Consumer Act of the
Philippines". The purchase of noncertified or substandard agricultural and fishery machinery for
the government shall be dealt with under Republic Act No. 3019, as amended, otherwise known
as the "Anti-Graft and Corrupt Practices Act."
Section 32. Sanctions. This provision shall take effect four (4) years upon the enactment of this
Act when all regulatory provisions have already been in place. The Secretary or his duly
authorized representative has the power to file before the proper court or regulatory agency the:
(a) Forfeiture proceedings for agricultural and fishery machinery that is not duly certified,
without serial number and without warranty, and is substandard;
(b) Closure proceedings against business entities not duly registered as manufacturers,
assemblers, dealers or importers of agricultural and fishery machinery, or sells new
agricultural and fishery machinery not duly certified, without a serial number, or without
warranty, without after-sales service and substandard; and
(c) Closure proceedings against testing centers that has not been duly accredited.

Any business that sells new agricultural and fishery machinery which was not duly certified,
without a serial number, without warranty, or without after-sales service shall be given one (1)
month to refund or replace the sold machinery duly corrected for any deficiency as indicated.
Failure to do so shall result to corresponding legal action against the offending party.
ARTICLE IX
MISCELLANEOUS PROVISIONS
Section 33. Agricultural and Fisheries Mechanization Programs at the Local Levels. The
LGUs, through an ordinance, shall also formulate in consultation with the DA and implement
their respective provincial, city and municipal agricultural and fishery mechanization plans as a
vital component of their respective local development plans.
Section 34. Contiguous Farming. The DA, together with the Department of Agrarian Reform
(DAR), shall carry out contiguous farming projects in order to effect suitable field shapes and
sizes conducive to efficient operation of agricultural machinery and equipment and likewise to
ensure economies of scale. The contiguous farming projects shall:
(a) Promote farm land clustering with a minimum of fifty (50)-hectare cluster for
synchronized farming operations, from land preparation to harvesting, in cooperation or
contract with agricultural mechanized operation service providers;
(b) Undertake farm development planning; and
(c) Promote the strengthening of farmers cooperatives and associations.
Section 35. Use of Renewable Energy. The use of renewable and nonconventional energy such
as wind, solar, hydro, biomass and other farm-based energy sources shall be promoted as power
sources for the operation and maintenance of agricultural and fisheries machinery. The DA, in
coordination with the Department of Energy (DOE), the DOST and SUCs, and the private sector
shall undertake research and extension activities to enhance the use of renewable and
nonconventional energy in agricultural and fisheries operations.
Section 36. Infrastructure Support. The government shall provide priority investment for the
infrastructure needs in clustered farm land identified as key agricultural and fishery production
areas to accelerate agricultural and fisheries mechanization in the countryside and this includes
irrigation, farm-to-market roads, postharvest, power and communications facilities.
Section 37. Implementing Rules and Regulations. The DA, within six (6) months upon the
enactment of this Act and in consultation with the stakeholders and other government agencies,
shall promulgate the necessary rules and regulations to implement this Act.
Section 38. Funding. The Secretary of Agriculture shall include in the DAs program the
implementation of this Act, the funding of which shall be included in the annual General
Appropriations Act.
The DA shall likewise set aside funds from the Agricultural Competitiveness Enhancement Fund
(ACEF) for grants to upgrade the AMTEC and to establish one (1) testing center in Visayas and
one (1) testing center in Mindanao.
The BAR shall allocate funds annually from its regular R&D funds to support research
programs, processing of patent applications, and testing and certification of locally designed
agri-fisheries equipment and machineries.

All LGUs shall include in their investment plans, as part of the priority appropriations for local
development fund, the funding support for the implementation of their respective provincial, city,
municipal and barangay agricultural and fisheries mechanization programs in accordance with
Republic Act No. 7160 and its implementing rules and regulations and the Department of the
Interior and Local Government-Department of Budget and Management (DILG-DBM) Joint
Memorandum Circular No. 1, Series of 2005.
The CHED shall allocate funds from the Higher Education Development Fund necessary for the
upgrading of agri-fisheries mechanization and engineering laboratory facilities of concerned
SUCs, faculty training program and scholarships.1wphi1
The TESDA shall likewise allocate funds from its annual appropriations necessary for the skills
certification and training program for agri-fishery machinery technicians and operators.
Section 39. Congressional Oversight Committee. The Congressional Oversight Committee on
Agricultural and Fisheries Modernization (COCAFM) shall be the congressional oversight
committee for purposes of this Act.
Section 40. Separability Clause. The provisions of this Act are hereby declared separable and
if any clause, sentence, provision or section hereof should be declared invalid, such invalidity
shall not affect the other provisions of this Act which can be given force and effect without the
provisions which have been declared invalid.
Section 41. Repealing Clause. All laws, decrees, executive and other administrative issuances
and parts thereof which are inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.
Section 42. Effectivity Clause. This Act shall take effect after fifteen (15) days from its
publication in the Official Gazette or m two (2) newspapers of general circulation.
Approved,

(Sgd.) JUAN PONCE ENRILE

President of the Senate

(Sgd.) FELICIANO BELMONTE JR.

Speaker of the House of Representatives

This Act which is a consolidation of Senate Bill No. 3338 and House Bill No. 6548 was finally
passed by the Senate and the House of Representatives on February 4, 2013.

(Sgd.) EDWIN B. BELLEN

Acting Senate Secretary

Approved: JUN 05 2013

(Sgd.) BENIGNO S. AQUINO III
President of the Philippines

(Sgd.) MARILYN B. BARUA-YAP

Secretary General
House of Representatives