Guidelines for the Organization of the National Agricultural and Fishery Machinery Assemblers, Manufacturers, Importers, Suppliers, Distributors and Dealers Accreditation Board

January 6, 2017

DA MEMORANDUM CIRCULAR NO. 01-17

 

I. Rationale

The Philippine Government prioritizes the development and promotion of appropriate agricultural and fishery machinery and other mechanization technologies as part of its agricultural modernization program. This entails the strong participation of the private sector in the government mechanization undertakings aimed at developing an environment conducive to the adoption of mechanization programs, improvement of farm mechanization support services and infrastructure as well as protection of farmers and fisherfolks against fly-by-night suppliers. This strategy is anchored on the principle that stakeholders are provided with opportunities to contribute meaningfully in the formulation and implementation of development policies, projects and programs of the government.

In the forefront of today's challenges and changes ushered in by the advent of the global economy is the agricultural machinery manufacturing sector. This sector shall continue to play a vital role in the development of the agricultural mechanization industry of the country.

II. Legal Bases

In 2001, the Department of Agriculture, pursuant to Section 59 of R.A. No. 8435 (Agriculture and Fisheries Modernization Act) issued Administrative Order (AO) No. 11, Series of 2001, Re: "Implementation of the National Agriculture and Fisheries Mechanization Program. This AO directed the National Agricultural and Fishery Council, now the Philippine Council for Agriculture and Fisheries (PCAF) to coordinate the organization of the private sector-led National Agricultural Machinery Manufacturers, Distributors and Dealers Accreditation and Classification (NAMDAC) Board and provide the initial secretariat support.

Pursuant to Section 22 of Republic Act No. 10601 (Agricultural and Fisheries Mechanization Law), the Department of Agriculture is mandated to encourage and assist in the organization of a private-led classification and accreditation system for agricultural machinery assemblers, manufacturers, importers, suppliers, distributors and dealers.

In line with this mandate, the Philippine Council for Agriculture and Fisheries (PCAF) through Special Order No. 34, Series of 2016 created a Technical Working Group to prepare the Terms of Reference (TOR) for the Organization of the National Agricultural and Fishery Machinery Assemblers, Manufacturers, Importers, Suppliers, Distributors and Dealers Accreditation (NAMDAC) Board.

III. Composition of the NAMDAC Board

The NAMDAC Board shall be composed of five (5) members from the following organizations/agencies:

Private Sector (4 seats)

• Agricultural Machinery Manufacturers and Distributors Association, Inc. (AMMDA) — (2 seats)

• Philippine Society of Agricultural Engineers (PSAE) — (1 seat)

• Metal Industry Association of the Philippines (MIAP) — (1 seat)

 Government Sector: (1 seat)

• Department of Agriculture-Bureau of Agricultural and Fisheries Engineering (BAFE) — (1 seat)

 The Chairperson shall be elected by the members and shall come from the private sector.

Advisory Body:

• DOST-MIRDC, DTI, UPLB-AMTEC, PRC-BoAE, DILG

IV. Term of Office of the NAMDAC Board

The term of office of the NAMDAC Board Chairperson and Members shall be three (3) years and renewable thereafter. The organization/agency representative/s shall be officially nominated and designated by their respective Heads of Office or members of the Board of Trustees. Appointment to the NAMDAC Board shall be issued by the Secretary of Agriculture.

V. Functions, Power and Duties of the NAMDAC Board

The NAMDAC Board shall be primarily tasked to classify and accredit agriculture and fishery assemblers, manufacturers, dealers, suppliers, and distributors into small, medium and large firms based on their organizational strengths and track record, area of operation, marketing and distribution network, after-sales service and manufacturing capabilities. Specifically, it shall:

a. Prepare guidelines and procedures on the classification and accreditation of agricultural and fisheries machinery assemblers, manufacturers, dealers, suppliers, and distributors for approval by the Department of Agriculture;

b. Prepare and implement a program that promotes and encourages manufacturing/service facility build-up and complementation of resources and expertise among agricultural and fisheries machinery assemblers, manufacturers, importers and suppliers, distributors and dealers;

c. Prepare and recommend rules and regulations to prevent proliferation of fly-by-night agricultural and fisheries machinery and equipment suppliers and distribution of sub-standard agricultural and fisheries machinery and equipment;

d. Coordinate, validate and monitor the implementation of the accreditation and classification guidelines with the concerned agencies; and

e. Submit annual activities of the Board to the Department of Agriculture and other relevant agencies.

VI. Secretariat, Administrative and Logistical Support of the NAMDAC Board

The DA, through PCAF shall provide the necessary technical, logistical and administrative support to the operation of the NAMDAC Board.

This Circular shall take effect immediately. CAIHTE

(SGD.) EMMANUEL F. PIÑOLSecretary