WHEREAS, this trade liberalization policy provides the country's agricultural producers greater opportunities for increasing exports while allowing for the lifting of import bans on most agricultural products;

WHEREAS, in order to maximize the country's gains from the policy of trade liberalization and minimize the adjustment costs in the shift toward a liberalized trade regime, government has to institute measures that would increase the agricultural sector's productivity and enable it to achieve higher levels of competitiveness;

WHEREAS, Congress enacted into law R.A. 8178, otherwise known as "An Act Replacing Quantitative Restrictions on Agricultural Products, Except Rice, with Tariffs, Creating the Agricultural Competitiveness Enhancement Fund, and for Other Purposes";

WHEREAS, R.A. 8178 created the Agricultural Competitiveness Enhancement Fund (ACEF) which consists of the in-quota tariffs collected from the importation of Minimum Access Volumes (MAVs) of agricultural products;

 WHEREAS, there is a need to define the mechanisms and procedures that must be instituted to efficiently and effectively dispose of the ACEF;

NOW, THEREFORE, this administrative order containing the rules and regulations that will govern the disposition and utilization of the ACEF is hereby issued.
    

Section I.  General Framework

A.  Declaration of Policy
B.  Definition of Terms
C.  ACEF Source
D.  ACEF Use
E.  Intended Beneficiaries
F.  Eligible Project Proponents
G.  Minimum Eligibility Requirements from Private Proponents
H.  Eligibility of Projects
 I.  Minimum Project Requirements
J.  Financing

Section II.  Organizational Structure

A.  MAV Management Committee
B.  ACEF Project Executive Committee (ExeCom)
C.  ACEF Project Technical Committee
D.  ACEF Project Technical Secretariat (TS)
E.  Enabling Budget for ACEF Administrative Activities

Section III.  Procedures

A.  Project Identification and Formulation
B.  Evaluation and Pre-Qualification
C.  Approval and Financing
D.  Pre-Implementation and Implementation
E.  Monitoring and Post-Project Evaluation
F.  ACEF TS Budget

Section IV.  Transitory Provision

Section V.  Repealing Clause

Section VI.  Separability Clause

Section VII.  Effectivity

Annex A.  ACEF Project Proposal (Feasibility Study) Format

Annex B.  Application Requirements

Annex C.  Provision of the Memorandum of Agreement (MOA) Between
                 the Proponent and the Department of Agriculture