Section 15Sec./Art. 15

Creation of the Animal Competitiveness Enhancement Fund. - In addition to the regular budget of the livestock agencies, there is hereby created the Animal Competitiveness Enhancement Fund (AnCEF).

The AnCEF shall consist of an annual appropriation of Twenty billion pesos (P20,000,000,000.00) from tariff collections from livestock, poultry, and dairy following the effectivity of this Act and ten (10) years thereafter.

Livestock imports include imported products under the following Harmonized System (HS) headings or ASEAN Harmonized Tariff Nomenclature (AHTN) Codes, and Descriptions:

(a) 01.01 - Live horses, asses, mules and hinnies;

(b) 01.02 - Liv bovine animals;

(c) 01.03 - Live swine;

(d) 01.04 - Live sheep and goats;

(e) 01.06 - Other live animals, except 0106.12;

(f) 02.01 - Meat of bovine animals, fresh or chilled;

(g) 02.02 - Meat of bovine animals, frozen;

(h) 02.03 - Meat of swine, fresh, chilled or frozen;

(i) 02.04 - Meat of sheep or goat, fresh, chilled or frozen;

(j) 02.05 - Meat of horses, asses, mules or hinnies, fresh, chilled or frozen;

(k) 02.06 - Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen;

(l) 02.08 - Other meat and edible meat offal, fresh, chilled or frozen;

(m) 02.09 - Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, fresh, chilled, frozen, salted, in brine, dried or smoked;

(n) 02.10 - Meat and edible meat offal, salted, in brine, dried or smoked, edible flours and meals of meat or meat offal;

(o) 04.09 - Natural honey;

(p) 04.10 - Edible products of animal origin, not elsewhere specified or included;

(q) 05.02 - Pigs', hogs', boars', bristles and hair; badger hair and other brush making hair; waste of such bristle or hair;

(r) 05.04 - Guts, bladders and stomachs of animals (other than fish), whole and piece thereof, fresh, chilled, frozen, salted, in brine, dried or smoked;

(s) 05.06 - Bones and horn-cores, unworked, defatted, simply prepared (but not cut to shape), treated with acid or degelatinised; powder and waste of these products; and

(t) 05.07 - Ivory, tortoise-shell, whalebone and whalebone hair, horns, antlers, hooves, nails, claws and beaks, unworked or simply prepared but not cut to shape; powder and waste of these products;

Poultry imports include imported products under the following HS headings or AHTN Codes, and Descriptions:

(a) 01.05 - Liv poultry, that is to say, fowls of the species Gallus domesticus, ducks, geese, turkeys and guinea fowls;

(b) 02.07 - Meat and edible offal, of the poultry of heading 01.05, fresh, chilled or frozen;

(c) 0209.90.00 - Pig fat, free of lean meat and poultry fat, not rendered or otherwise extracted, fresh, chilled, frozen, salted, in brine, dried or smoked - - Other;

(d) 0210.99.10 - Meat and edible meat offal, salted, in brine, dried or smoked; edible flours and meals of meat or meat offal - - Freeze dried chicken dice;

(e) 04.07 - Birds' eggs, in shell, fresh, preserved or cooked;

(f) 04.08 - Birds' eggs, not in shell,, and egg yolks, fresh, dried, cooked by steaming or by boiling in water, moulded, frozen or otherwise preserved, whether or not containing added sugar or other sweetening matter; and

(g) 0410.00.10 - Edible products of animals origin, not elsewhere specified or included - - Birds' nest.

Dairy imports include imported products under the following HS headings or AHTN Codes, and Descriptions:

(a) 04.10 - Milk and cream, not concentrated not containing added sugar or other sweetening matter;

(b) 04.02 - Milk and cream, concentrated or containing added sugar of other sweetening matter;

(c) 04.03 - Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa;

(d) 04.04 - Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included;

(e) 04.05 - Butter and other fats and oils derived from milk; dairy spreads; and

(f) 04.06 - Cheese and curd.

All tariff collections from livestock, poultry, and dairy shall be automatically credited to the AnCEF special account in the General Fund which shall be place within forty-five (45) days from the effectivity of this Act: Provided, That if the tariff collection exceeds Twenty billion pesos (P20,000,000,000.00) in any given year within the next ten (10) years following the effectivity of this Act, the excess tariff revenue shall be earmarked and allocated towards direct financial support programs for farmers, including recovery and compensation programs and support to those affected by biosafety threats, participants of the livestock, poultry, and dairy value chain, and to Filipino consumers, and towards the capitalization of the NDA in the succeeding General Appropriations Act: Provided, further, That allocation and utilization of the AnCEF shall be subject to the following guidelines:

(a) The recipient agency shall be accountable and responsible for the management and utilization of the said fund in coordination with the government agencies concerned. It shall provide the DA Secretary, through the Administrator of the BAI, a regular report on its fund management and utilization;

(b) The amount allocated shall be released directly to the implementing agencies as provided in this Act based on the objectives and plans of the National Animal Industry Development Plan (NAIDP): Provided, That the unutilized portion of the AnCEF allocated to the implementing agencies shall not revert to the General Fund but shall continue to be used for the purpose for which it was set aside. Fund releases charged against the said fund shall not be subject to any ceiling by the DBM; and

(c) Any program undertaken in accordance with this Act shall be in addition to any existing government programs for the livestock sector.