conf.cttee.report

7/29/2019 Conf.cttee.report

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FOURTENTH CONGRESS

First Regular Session

Republic of the Philippines

CONGRESS OF THE PHILIPPINES

The Conference Committee on the disagreeing provisions of House

Bill No. 2976, entitled:

AN ACT

TO EXTEND THE UTILIZATION PERIOD OF THE AGRICULTURAL

COMPETITIVENESS ENHANCEMENT FUND, AMENDING REPUBLIC

ACT NO. 8178, ENTITLED "AN ACT REPLACING QUANTITATIVE

IMPORT RESTRICTIONS ON AGRICULTURAL PRODUCTS, EXCEPT

RICE, WITH TARIFFS, CREATING THE AGRICULTURAL

COMPETITIVENESS ENHANCEMENT FUND, AND FOR OTHER

PURPOSES"

AN ACT

EXTENDING THE UTILIZATION PERIOD OF THE AGRICULTURAL

COMPETITIVENESS ENHANCEMENT FUND, AMENDING FOR THIS

PURPOSE SECTION 8 OF REPUBLIC ACT NO. 8178, ENTITLED "ANACT REPLACING QUANTITATIVE IMPORT RESTRICTIONS ON

AGRICULTURAL PRODUCTS, EXCEPT RICE, WITH TARIFFS,

CREATING THE AGRICULTURAL COMPETITIVENESS

ENHANCEMENT FUND," AND FOR OTHER PURPOSES

after having met and discussed the subject matter in full and free conference,

has agreed and does hereby recommend to their respective Houses that House

Bill No. 2976 in consolidation with Senate Bill No. 1648, be approved in

accordance with the attached copy of the bill as reconciled and approved by the

conferees.

CONFEREES ON THE PART OF THE CONFEREES ON THE PART OF THE

SENATE OF THE PHILIPPINES HOUSE OF REPRESENTATIVES

~HON. EDGAR~~

/~DN. ROBERTRAY~RELL.\



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i O N . RICHARD J .G O R D O N

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HON. ~LACSON

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~~'J$~--HON. SALVADOR H. ESCUDERO III

4u1-U --(~. ~ARLOS M. PADILLA



FOURTENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )

First Regular Session )

J OINT EXPLANATION OF THE CONFERENCE COMMITTEEON THE DISAGREEING PROVISIONS OF

SENATE BILL NO. 1648 AND HOUSE BILL NO. 2976

The Conference Committee of the Senate and House of Representatives

on the disagreeing provisions of House Bill No. 2976 and Senate Bill No. 1837

submits the following joint statement to both Houses in explanation of the

amendments agreed upon by the conferees and recommended in the

accompanying Conference Committee Report:

1. The matrix which contains the Senate and House versions was adopted

as the working draft;

2. On Section 2 of the Senate version, the phrase "incorporate therein the

clear overriding purpose and principle that the Funds shall be used to

enhance agricultural competitiveness and for this purpose the

Department" be deleted;

3. On the same section of the Senate version, delete the phrase "is

implemented under" and in lieu, insert the article "of' between the words

"possible" and "this Act";

4. Delete the whole Section 4 of the Senate version;

5. Delete the whole Section 5 of the Senate version and renumber

succeeding Sections accordingly.

6. The Title of the Bill of the Senate version was adopted.

"AN ACT

EXTENDING THE UTILIZATION PERIOD OF THE

AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND,

AMENDING FOR THIS PURPOSE SECTION 8 OF REPUBLIC

ACT NO. 8178, ENTITLED "AN ACT REPLACING

QUANTITATIVE IMPORT RESTRICTIONS ON AGRICULTURAL

PRODUCTS, EXCEPT RICE, WITH TARIFFS, CREATING THE

AGRICULTURAL COMPETITIVENESS FUND" AND FOR OTHER

PURPOSES"

In case of a conflict between the statements/amendments stated in

this J oint Explanatory Statement and that of the provisions of the

consolidated bill in the accompanying Conference Committee Report, theprovisions of the latter shall prevail.

c::'-

~ //LS E N . E D G A R D O : A N ~~

Chairman

Senate Panel

R E P . R A H A M K A HL IL B . M IT R A

Chair, an

Hou Panel



CONGRESS OF THE PHILIPPINES }FOURTEENTH CONGRESSFirst Regular Session

R.A. No.--

AN ACT TO EXTEND THE UTILIZATION PE RIOD OF THE AGRICULTURALCOMPETITIVENESS ENHANCEMENT FUND, AMENDING REP UBLIC ACTNO. 8178, ENTITLED "AN ACT REPLACING QUANTITATIVE IMPORTRESTRICTIONS ON AGRICULTURAL PRODUCTS, EXCEPT RICE, WITH

TARIFFS, CREATING THE AGRICULTURAL COMPETITIVENESS

ENHANCEMENT FUND, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines

in Congress assembled:

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

2 Replacing Quantitative Import Restrictions onAgricultural Products, Except Rice,

3 With Tariffs, Creating the Agricultural Competitiveness Enhancement Fund, and

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

5 "SEC.8. Agricultural Competitiveness Enhancement Fund. - To implement

6 the policy enunciated in this Act, there is hereby created the Agricultural

7 Competitiveness Enhancement Fund, hereinafter referred to as the Fund. [The

8 proceeds of] THE FUND SHALL CONSIST OF ALL DUTIES COLLECTED

9 FROM the importation of AGRICULTURAL PRODUCTS UNDER THE minimum

10 access volume (MAV) [shall accrue to the General Fund and shall be deposited

11 with the National Treasury] MECHANISM, INCLUDING UNUSED BALANCES

12 AND COLLECTIONS FROM REPAYMENTS FROM LOAN BENEFICIARIES13 INCLUDING INTERESTS, IF ANY. THE FUND SHALL BE AUTOMATICALLY

14 CREDITED TO SPECIAL ACCOUNT 183 IN THE GENERAL FUND OF THE

15 NATIONAL TREASURY: PROVIDED, THAT FUND RELEASES SHALL NOT

16 BE SUBJ ECT TO ANY CEILING BY THE DEPARTMENT OF BUDGET AND

17 MANAGEMENT (DBM).

18

19 The FUND [entire proceeds] shall CONTINUE TO be set aside UP TO THE

20 YEAR 2015, AFTER WHICH THE COLLECTION OF DUTIES FROM THE MAV

21 MECHANISM AND THE SETTING ASIDE OF THE AMOUNT COLLECTED FOR

22 THE PURPOSE SHALL TERMINATE. HOWEVER, ANY REMAINING

23 BALANCE(S) AT THE DATE OF EXPIRATION OF THE FUND SHALL NOT



1 REVERT TO THE GENERAL FUND BUT SHALL CONTINUE TO BE USED

2 FOR THE PURPOSE FOR WHICH IT WAS COLLECTED AND SET ASIDE.

3

4 "The [entire proceeds] FUND shall be set aside and earmarked by

5 Congress: (A) FOR THE PROTECTION OF FARMERS AGAINST UNFAIR

6 TRADE PRACTICES SUCH AS SMUGGLING, DUMPING OF

7 AGRICULTURAL PRODUCTS OR OTHER SIMILAR ACTS OF UNFAIR

8 TRADE PRACTICES; AND (B) for THE INCREASED P RODUCTIVITY OF

9 FARMERS BY P ROVIDING THE NECESSARY SUPPORT SERVICES SUCH

10 AS, BUT NOT LIMITED TO, irrigation, farm-to-market roads, post-harvest

11 equipment and facilities, credit, research and development, other marketing

12 infrastructure, provision of market information, retraining, extension services,

13 MICRO, SMALL AND MEDIUM SCALE ENTERPRISES (MSMSE) IN

14 AGRICULTURE, AQUACULTURE AND FISHERIES SECTORS; YOUNG

15 ENTREPRENEURS, OUT-OF-SCHOOL YOUTH, GRADUATES OF

16 AGRICULTURE, FISHERIES AND RELATED COURSES; AGRICULTURE

17 AND FISHERY COOPERATIVES, CORPORATIONS AND OTHER

18 ENTREPRENEURS ENGAGED IN ECONOMIC ENTERPRISES RELATED TO

19 AGRICULTURE AND FISHERIES and assistance and support to agricultural

20 activities INCLUDING BUT NOT LIMITED TO the reduction of input cost, quality

21 improvement, supply chain efficiency AND OTHER INFRASTRUCTURE

22 INCLUDING ACCESS AS WELL AS AN ESTABLISHED TRANSPORTATION

23 MECHANISM TOWARDS SPEEDY DELIVERY OF PRODUCTS; PROVIDED,

24 THAT:

25

26 1.) PREFERENTIAL ATTENTION SHOULD BE CONTINUOUSLY GIVEN TO

27 PRODUCTS OR PEOPLE ADVERSELY AFFECTED BY THE REPEAL OR

28 REMOVAL OF QUANTITATIVE IMP ORT RESTRICTIONS TO

29 AGRICULTURAL PRODUCTS AS PROVIDED FOR IN SECTION 4OF THIS

30 ACT.

31

32 2.) BE CONSISTENT WITH THE P OLICIES AND PRIORITY THRUSTS

33 UNDER REPUBLIC ACT NO. 8435, AS AMENDED, OTHERWISE KNOWN

34 AS THE AGRICULTURE AND FISHERIES MODERNIZATION ACT Vls-A-

35 VIS GOALS 1 AND 2 UNDER THE MEDIUM TERM PHILIPPINE

36 DEVELOPMENT PLAN (MTPDP);

37



1 3.) BE COMPLEMENTARY AND SUPPORTIVE OF THE VARIOUS AND

2 CURRENT FUNDING ASSISTANCE WINDOWS OR PROGRAMS OF THE

3 DEPARTMENT OF AGRICULTURE AND OTHER GOVERNMENT

4 INSTITUTIONS;

5

6 (4.) ENHANCE THE COMP ETITIVENESS OF TARGET P ROJ ECT

7 BENEFICIARIES 0 R SECTORS, E SPECIALLY T HE SMALL FARMERS

8 AND FISHERFOLK;

9

10 (5) PROVIDE PRODUCT OR SERVICE COMPETITIVENESS IN THE

11 LOCAL AND FOREIGN MARKETS IN TERMS OF PRODUCT OR

12 SERVICE PRICES OR FEES AND QUALITY;

13

14 (6) PROMOTE UPSTREAM AND DOWNSTREAM LINKAGES WITH

15 RELATED AND COMPLEMENTARY AGRICULTURAL ACTIVITIES;

16

17 (7) PROVIDE CLEAR AND VERIFIABLE PROOF OF S USTAINABILITY

18 OF OPERATIONS; AND

19

20 (8) BE BENEFICIAL TO MOST, AND NOT ONLY SELECTED, FIRMS OR

21 GROUPS WITHIN A SECTOR.

22

23 "FOR PURPOSES OF THIS ACT, LOCAL GOVERNMENT UNITS,

24 STATE UNIVERSITIES AND COLLEGES OR OTHER GOVERNMENT

25 INSTITUTIONS INVOLVED IN THE RESEARCH AND DEVELOPMENT OF

26 AGRICULTURAL PRODUCTS MAY AVAIL OF THE ACEF IN THE FORM OF

27 FINANCIAL GRANT WITHOUT ANY COLLATERAL OR SECURITY.

28

29 The Fund shall be set aside and earmarked as follows:

30

31 1) Seventy percent (70%) for agri-based production and post-production,

32 and processing activities including but not limited to new export industries and

33 agri-related infrastructure and equipment to achieve modern agricultural

34 practices; and for public information and promotion activities including the

35 establishment of a principal mechanism therefore to promote the desired

36 agricultural products and activities and create new market.

37



1 The following areas are likewise accorded priorities: assistance to

2 individual Filipino farmers and fisherfolks, cooperatives and micro-, small- and

3 medium-scale enterprises as defined in Republic Act No. 6977 engaged in the

4 agricultural production, farming, fisheries, agri-business and similar activities;

5

6 2) Twenty percent (20%) for research development and the

7 commercialization of such, including the upgrading of research facilities of

8 qualified state universities and colleges;

9

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

11 scholarship program for agriculture, forestry, fisheries, and veterinary medicine

12 education.

13

14 The [Committees on Agriculture and Food, Appropriations and Finance of

15 both the Senate and House of Representatives] CONGRESSIONAL

16 OVERSIGHT COMMITTEE ON AGRICULTURAL AND FISHERIES

17 MODERNIZATION (COCAFM) shall conduct a periodic review of the use of the

18 Fund. [The Fund shall have a life of nine (9) years, after which all remaining

19 balances shall revert to the General Fund.]"

20

21 SEC. 2. The Department of Agriculture in consultation with the

22 Congressional Oversight Committee on Agricultural and Fisheries Modernization

23 (COCAFM) shall forthwith revise and reformits implementing guidelines including

24 the approval procedures in order to speed up the processing and disbursement

25 process, and [incorporate therein the clear overriding purpose and principle that

26 the Funds shall be used to enhance agricultural competitiveness. and for this

27 purpose the Department] in coordination with the Philippine Information Agency

28 shall ensure the widest information dissemination possible [is implemented

29 under]OF this Act.

30

31 The Department of Agriculture with the concurrence of the Congressional

32 Oversight Committee on Agriculture and Fisheries Modernization shall draw up a

33 prioritization plan for the optimum utilization of the Fund.

34

35 SEC. 3. Repealing Clause. - Republic Act No. 8178 is hereby

36 amended. All laws, decrees, executive issuances, rules and regulations

37 inconsistentwith this Act are hereby repealed or modified accordingly.



1

2 SEC. 4. Separability Clause. - The provisions of this Act are hereby

3 declared to be separable, and in the event one or more of such provisions are

4 held unconstitutional, the validity of the other provisions shall not be affected

5 thereby.

6

7 SEC. 5. Effectivity. - This Act shall take effect immediately upon its

8 approval.

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