BP olicy tools final ver 18 Apr by JXA949

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									(MECHANIZATION) POLICY TOOLS AND RELATED ACTIONS

For whom?                              Objective                              Tool                                  Action
International manufacturers            To ensure safety and quality of the     Test & evaluation, safety            Disseminate measures on test
Domestic manufactures                  machineries suit the local situation      inspection and certification of        and evaluation plus
Machine operators                                                                quality of machinery (MOA)             certification & standards
                                                                               Appropriation and standardization
                                                                                 of machineries imported / locally
                                                                                 produced (MOI)
International manufacturers            To make imported machineries /          Reduced import tariffs and VAT       Lobbying at parliament level in
Importing agents                       spare parts more affordable               for machinery and spare parts         order to approve law
                                                                                 that cannot be produced locally       modification on tariff reduction
                                                                                 (MOF)                                 for international manufacturers
International manufacturers            To ensure appropriate maintenance                                             Impose after-sales service,
                                       of the imported machineries                                                     warranty and supply of spare
                                                                                                                       parts as pre-conditions
International manufacturers            To prevent overpricing of               Introduction of ‘appropriate retail
Domestic manufactures                  machineries / spare parts                 price’
Dealers
International manufacturers            To encourage private investment in        Suitable investment code              Disseminate this investment
Domestic manufactures                  setting up businesses                      encouraging the business of            code
Dealers                                                                           agricultural machines
International manufacturers            To protect their products from            Trade mark and copy rights            Need specific terms for
Domestic manufacturers                 counterfeit                               Licensing system                       mechanization (for some
                                                                                                                         countries)
International manufacturers            To promote competition amongst          Fairness committee under the     
Domestic manufacturers                 manufacturers and dealers                Ministry of Trade / Commerce to
Dealers / Distributors / Retailers /   To improve the business practices of     oversee the bad business
Traders (including transportation)     the enterprises                          practices CONDITIONAL OF:
                                                                                Sufficient demand to allow
                                                                                operation of many manufactures /
                                                                                dealers
International manufacturers            To make imported machineries /          Licensing system
                                       spare parts more affordable through
                                       competition
Importing agents                       To reduce the time of custom                                                     Enhance efficiency of the
                                       clearance (and reduce the price of                                                custom clearances for shorter
                                       the merchandise)                                                                      period at the port
                                                                                                                            Define minimum required for
                                                                                                                             SAV (after selling services)
Domestic manufactures                  To reduce the cost of production           Reduced import duties and VAT
Material suppliers                                                                 for raw materials (MOT) which
                                                                                   cannot be obtained locally
Domestic manufactures                  To make the quality of domestic            Engineering standard (MOI)
                                       machineries better and consistent
Domestic manufactures                  To facilitate setting up of factories      Incentives of infrastructure (e.g.
Milling service providers                                                          land, electricity, machineries for
                                                                                   rent / procurement with loans)
Domestic manufactures                  TBC                                        Manufacturers association
                                                                                   CONDITIONAL OF: Sufficient
                                                                                   demand to allow operation of
                                                                                   many manufactures / dealers
Domestic manufactures                  To ease the financial burden at the        Tax holidays for small- and
                                       initial stage                               medium enterprises
Domestic manufactures                  To improve the access to financial         Improved credit facilities,
Dealers / Distributors / Retailers /   resources for capital investment /          schemes (start-up funds, seed
Traders (including transportation)     cash flow                                   funds, soft loans, guarantee fund
Custom hiring providers                                                            etc.) CONDITIONAL OF: capacity
                                                                                   of financial management and
                                                                                   profitability of business
Dealers                                To ensure the quality of services          Licensing system                         Enlist minimum qualifications
                                                                                                                             and pre-requisites (workshop,
                                                                                                                             human capacity)
Dealers / Distributors / Retailers /   To facilitate setting up business in       Package of start-up incentives in
Traders (including transportation)     the areas required                          remote and rural areas (higher
Local workshops for maintenance                                                    credit limits, functional linkages
Custom hiring services                                                             with government , soft loans,
                                                                                   training, insurance, registration /
                                                                                   licensing) CONDITIONAL OF:
                                                                                   capacity of financial management
                                                                                   and profitability of business
Dealers / Distributors / Retailers /   To improve the value for money of          Fairness committee to oversee
Traders (including transportation)     their merchandise                           the pricing (MOT)
                                                                                  Associations
Financiers                          To facilitate lending                      Two step loans (MOI, MOF)              Elaborate soft procedures
                                                                               Common collateral system               Sensitize financiers
Custom hiring providers             To institutionalize privatized services    Introduction of system of
                                                                                privatized hiring service (MOA)
                                                                               Custom hiring providers’
                                                                                association
Custom hiring providers             To make privatized services                Tax incentives (VAT)
                                    affordable
Custom hiring providers             To make business start-up more             Simplified registration system of
                                    efficient                                   farm machineries
Milling service providers           To improve quality of rice,                Rice quality standard (MOA, MOC)
                                    particularly for urban consumption
Machine operators                   To ensure the quality of skills            Licensing of machine operators
                                                                               Organization of machine
                                                                                operators
Small scale farmers / association   To promote group use of                    Farmer association
                                    machineries
Small scale farmers / association   To facilitate procurement of               Soft loans (MOA, MOF)                  Need Subsidies from
Animal draught power users          machineries / animals                      Purchase subsidy (MOA)                  government and financial
                                                                                                                        partners
Small scale farmers / association   TBC                                        Land consolidation

Small scale farmers / association   To prevent theft                           Security                               Introduce tracking tools for
Animal draught power users                                                                                              draught animals

								
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