Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 8163

Introduced by: Rep. Josephine Y. Ramirez Sato

EXPLANATORY NOTE

The Philippine news media will always have reports of species
being poached or smuggled out of the country in order to be sold - be it
the cockatoo birds and pangolins from Palawan and before that, in 2011,
black corals, some twenty containers full of them, stopped in Zamboanga
port.

And we can further go back in time on various Philippine biological
resources that were taken from us - medicinal plants from Coron,
Palawan, soil samples from Panay Island, mollusk species from Balicasag
Island. There was also a reported research group that tried to get blood
samples of Aetas, perhaps to explore why most of them were resistant to
tuberculosis, but these were rejected by the NGO that helped these
communities.

Actually there are a lot more, of reports of takings of biological
resources, of indigenous and local communities who entertained
researchers who went to their areas to document their traditional
knowledge of biodiversity.

Getting a sense of these reports, you will realize that along with
actual acts of poaching of our biological resources, there is also a less-
noticed part of taking of these resources, but from way back this was called
biopiracy.

These are the instances where Philippine biological and genetic
resources were either taken from our shores or the knowledge by our


indigenous peoples and local communities of some unique properties of
our plants or animals were further developed, and they are patented.

When these patented natural compounds get further developed into
useful products in the market that are commercialized, some become
successful, some don’t but most of these things we have no idea have
happened and ultimately the benefits from these resources do not
immediately come back to the country.

Take for example the plant banaba or what is scientifically called
Lagerstroemia speciosa, When one takes a simple patent search on the
internet on this species, one can see that there are numerous patents and
patent applications to the active compounds of this plant, which by way is
not entirely endemic to the Philippines but is also found in other countries
of Southeast Asia

There is even a dedicated website
http://tgs.freshpatents.com/Banaba-bxl.php, that tracks the patent
applications of mostly foreign researchers on the beneficial properties of
this plant, a sample of which include the following :

a) Dietary supplement for use in a weight loss program

b) Dietary therapeutic composition for ameliorating disease symptoms
and conditions associated with diabetes

©) Compositions for preventing and reducing delayed onset muscle
soreness

The Philippines is a mega-diverse country, a country with high
endemicity, where most of the species found in its territory cannot be
found anywhere else in the world.

From what we submitted in 2009 to the United Nations Convention
on Biological Diversity as our 4th National Report, species endemism is
very high covering at least 25% of plant genera and 49% of terrestrial
wildlife; we are ranked 4! in bird endemism; 5t in the number of plant
species and we hold 5% of the world's flora.

This proposed measure is part of the Philippines’ continuing efforts
in strengthening its rules and regulations on access to Philippine genetic
resources and the indigenous knowledge systems and practices including
the associated traditional knowledge therein or the so-called access and
benefit-sharing or ABS regulations.


Being a country with unique biodiversity, we haven't even
completed our inventory of what we have, and judging at the rate of what
our researchers discover and what current biological diversity is lost
through human interventions, we are running against time.

‘A 2008 Technical Paper of the Convention on Biological Diversity on
Access and Benefit-Sharing: Trends in Partnerships Across Sectors show the
following US $ 8968 billion market value per sector in 2006 broken down
as follows:

a) pharmaceutical industry ~ USS 643 billion;

b) biotechnology industry (pharmaceutical, agricultural and industrial
process technology) - US $70 billion;

) seed, crop protection and plant biotechnology industry - US$ 30
billion;

) ornamental horticulture (live trees, plants, bulbs, roots, cut flowers
and foliage) - US$ 14,386 million;

e) botanicals (herbal dietary supplements) - US$ 21.8 billion (2005
figures)

f) herbal personal care and cosmetic sector - US 12 billion (2005
figures)

g) “healthy foods” (functional foods, natural and organic foods) and
“lesser evil foods” ~ US market value alone is US$ 120 billion

With just a fraction of this estimated economic value being shared to
developing countries from which most of these genetic resources have
come from, there is now an opportunity to strengthen the implementation
of existing ABS regulations in countries where they have them, so that
more countries get benefits if the genetic resources coming from their
jurisdictions are utilized by industry.

This opportunity is provided by the international instrument
adopted in Nagoya, Japan last October 2010, during the 10'Meeting of the
Conference of the Parties to the Convention on Biological Diversity.

This international instrument, called the Nagoya Protocol will go a
long way in tracking the way genetic resources are used, enabling provider
countries to claim benefits from the use of their resources and therefore

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generating money not only for conservation of the remaining patches of
biological diversity that we have but also money for the well-being, of the
indigenous and local communities of the developing and least developing
countries of the world.

This will also generate funds so countries on their own can take
steps to support their attainment of the Millennium Development Goals
which is currently beset by lack of actual money being put forward by the
donor governments.

This proposed measure in the implementing legislation to enable the
Philippines to fully avail of the benefits of the provisions of the Nagoya
Protocol, after it has acceded to it, in the usual manner of taking on
obligations from an international instrument on which it had a part in
negotiating.

If the use of biodiversity is likened to mining especially through
what is called biodiversity prospecting, at least the promise of benefits that
can be secured from the use of the biological resources can be extended
even many years after the actual resources has been collected, the
obligation to share benefits also includes the various derivatives and
products arising from the original specimens initially collected, depending,
on how the source country can negotiate the terms and conditions of the
access to the biological resources, the authority to do so is lodged by the
Convention on Biological Diversity as part of the sovereign rights of states
to their natural resources. Part of the benefits that can be secured include
technology transfer including through, among others, preferential and
concessional terms for technology capacity building.

Another important highlight of the ABS Protocol is to show to the
world that “another knowledge is possible”, especially when it comes to
how the biological resources are utilized, nurtured and conserved by the
indigenous peoples and local communities of the world.

The Philippines, with its 110 recognized indigenous peoples as set
by its National Commission on Indigenous Peoples, shows how this is
done by recognizing the ways and approaches of these communities as
another means of how to conserve, protect and maintain looking these
resources. If we go back to the examples of all those specimens taken out
from our country, perhaps if we were able to follow through how they
were developed and eventually commercialized, maybe just one of them
may be a good basis for one thriving industry.


The proposed measure also ensures that the customary laws as well
as the community protocols of indigenous and local communities, where
available, will also be taken into account in discussions relating to the
access and benefit-sharing from the utilization of indigenous knowledge
systems and practices including, the associated traditional knowledge of
the genetic resources.

Given the potential benefits this measure will give to the country,
this proposed measure should be considered and approved by the House
of Representatives with all deliberate dispatch.

In view of the foregoing, the passage of this measure is earnestly
urged.

HON. JOSEPHINE Y. RAMYREZ-SATO.
Lone District dffOcpidental


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No, 8163

Introduced by: Rep. Josephine Y. Ramirez Sato

“AN ACT INSTITUTING REFORMS IN THE EXISTING
POLICY ON ACCESS AND BENEFIT-SHARING FROM
THE UTILIZATION OF PHILIPPINE GENETIC
RESOURCES AND FOR OTHER PURPOSES”

Section 1. TITLE - This Act shall be known and referred to as the
“ACCESS AND BENEFIT-SHARING FROM THE UTILIZATION OF
PHILIPPINE GENETIC RESOURCES ACT AND FOR OTHER
PURPOSES” or the Philippine Genetic Resources Access and Benefit-
Sharing Act or PGRABS Act of 2014.

Section 2, DECLARATION OF POLICY - Alll natural resources
belong to the State and it is hereby declared the policy of the State to
secure the fair and equitable sharing of benefits arising from the utilization
of all the genetic resources in the country in order to generate wealth for
poverty alleviation and to secure the necessary means within which to
pursue the strategic programs and initiatives on conservation and
sustainable use of biological diversity in the country. This policy will be
pursued by promoting and facilitating the conduct of scientific researches
and enabling them to have speedier regulatory approvals from the key
agencies while at the same time enhancing the tracking of the progress of
these researches from the initial effort of collection on the ground and in
the fields and from the indigenous and local communities including the
provision of necessary support and incentive for investments to be made
from the utilization of Philippine genetic resources.


Section 3. DEFINITION OF TERMS - As used in this Act, the
following words and phrases shall have the following meaning:

(a) “Access” - means the collection, taking and gathering of genetic
resources from the field, in order that they may be utilized for
further academic or scientific research and bioprospecting; this also
includes the conduct of field research, interviews and surveys
involving the indigenous knowledge systems and practices
including the associated traditional knowledge of indigenous and
local communities in the Philippines;

(b) “Biotechnology” - as defined in article 2 of the United Nations
Convention on Biological Diversity, means any technological
application that uses biological systems, living organisms, or
derivatives thereof, to make or modify products or processes for
specific use;

(©) “Derivatives” - means a naturally occurring biochemical
compound resulting from the genetic expression or metabolism of
biological or genetic resources, even if it does not contain functional
units of heredity

(A) “Fair and equitable benefit-sharing” ~ the principle derived from
art. 3 of the United Nations Convention on Biological Diversity
which will form the basis in asserting that the benefits that may be
derived by the Philippines as a country or its researchers is
appropriate taking into account the level of effort applied to secure
the resources and would take into account the country’s current
socio-economic and cultural standing.

(e) “Genetic material” - means any material of plant, animal, microbial
or other origin containing functional units of heredity.

() “Genetic resources” ~ means genetic material of actual or potential
value.

(g) “Nagoya Protocol” - means the Nagoya Protocol On Access To
Genetic Resources And The Fair And Equitable Sharing Of Benefits
Arising From Their Utilization To The Convention On Biological
Diversity;

(h) “Utilization of genetic resources” ~ means to conduct research and
development on the genetic and/or biochemical composition of
genetic resources, including through the application of
biotechnology as defined in Article 2 of the United Nations
Convention on Biological Diversity.


Section 4. - OVER-ARCHING POLICY FRAMEWORK ON
ACCESS AND BENEFIT-SHARING FROM THE UTILIZATION OF
PHILIPPINE GENETIC RESOURCES- The policy framework on access
and benefit-sharing from the utilization of genetic resources
institutionalized in this Act implements the Philippine commitments to the
Nagoya Protocol with some key changes in specific policy areas relating to
access to genetic resources, compliance mechanisms to ensure similar
legislation or policy relating, to access and benefit-sharing arising from the
utilization of genetic resources from another country used in the
Philippines are respected and implemented, tracking and monitoring
mechanisms, traditional knowledge associated with genetic resources,
capacity-building and technology transfer. The special mandates of
identified government agencies are also amended, to fully implement the
policy established in this Act.

Section 5. ACCESS TO GENETIC RESOURCES - The existing
policies on access to genetic resources as currently implemented by the
appropriate government agencies under Republic Act 9147 shall continue
to exist and be implemented for all purposes; however, to facilitate
harmonization of these policies with the Nagoya Protocol, the following
shall also be implemented:

(a) Any existing Philippine government agency requiring prior informed
consent before access to genetic resources is granted shall provide for
the issuance at the time of access an evidence of the decision to grant
prior informed consent and the establishment of the mutually agreed
terms or the agreement relating to access and benefit-sharing involving
the genetic resource. These agencies shall also take administrative and
policy measures to notify the Access and Benefit-Sharing (ABS)
Clearing-house of the United Nations Convention on Biological
Diversity of such issuances;

(b) Any mutually agreed terms or agreement relating to access and
benefit-sharing involving the genetic resource established between the
agency or community concerned shall provide for clear provisions on
third-party use including the change of intent relating to the utilization
of this genetic resource from its non-commercial or scientific stage; any
existing implementing regulations of existing agencies for this purpose
shall be amended and updated accordingly.


Section 6, - COMPLIANCE MECHANISMS - There shall be
established compliance mechanisms that will ensure that Philippine
agencies will implement any relevant policy or measure on access and
benefit-sharing of any Party to the United Nations Convention on
Biological Diversity and/or the Nagoya Protocol in the following manner
and shall cooperate as far as possible and as appropriate in cases of alleged
violation of domestic access and benefit-sharing legislation or regulatory
requirements of another country and shall take appropriate, effective and
proportionate measures to address situations of non-compliance with such
measures of another country Party to the United Nations Convention on
Biological Diversity and/or the Nagoya Protocol :

(a) Compliance with Domestic Legislation. The appropriate agency
shall enact appropriate, effective and proportionate policy and
administrative measures to provide that genetic resources utilized
within the Philippines have been accessed in accordance with the
prior informed consent as well as the mutually agreed terms that
have been established, as required by the domestic access and
benefit-sharing legislation or regulatory requirements of a Party to
the United Nations Convention on Biological Diversity and/or the
Nagoya Protocol;

(b) Compliance with Domestic Legislation on Access and Benefit-
Sharing for Traditional Knowledge Associated with Genetic
Resources, The appropriate agency shall enact appropriate,
effective and proportionate policy and administrative measures to
provide that traditional knowledge associated with genetic
resources utilized within the Philippines have been accessed in
accordance with the prior informed consent as well as the mutually
agreed terms that have been established, as required by the
domestic access and benefit-sharing legislation or regulatory
requirements of a Party to the United Nations Convention on
Biological Diversity and/or the Nagoya Protocol.

(©) Compliance with Mutually Agreed Terms. It is hereby ensured that
there will be provided an opportunity to seek recourse is available
under the Philippine judicial system, consistent with applicable
jurisdictional requirements as provided for by existing rules of
procedure and any relevant amendments thereto as may be
provided by the Philippine Supreme Court, in cases of disputes
arising from mutually agreed terms. There shall likewise be
measures that will be taken by the Department of Justice to ensure,
as appropriate :


(1) Access to justice; and
(2) The utilization of mechanisms regarding mutual recognition
and enforcement of foreign judgments and arbitral awards

Section 7, TRACKING AND MONITORING THE UTILIZATION
OF GENETIC RESOURCES - There shall be established tracking and
monitoring mechanisms to be implemented by existing agencies to
monitor and to enhance transparency about the utilization of genetic
resources in the Philippines through the following :

(a) The designation of checkpoints at any stage of the research,
development, innovation, _pre-commercialization and
commercialization of the genetic resources and its derivatives
utilized in accordance with this Act including from the point of
collection in the field and in product marketing approvals; there
shall also be the appropriate disclosure of prior informed consent,
mutually agreed terms and the utilization of genetic resources_in
each of the checkpoints;

(b) Encouraging the users and providers of genetic resources to include
provisions in mutually agreed terms or agreement relating to acces
and benefit-sharing involving the genetic resource to share
information on the implementation of such terms, including
through reporting requirements.

(© Encouraging the use of cost-effective communication tools and
systems among the users and the providers of the genetic resource.

Section 8. MATTERS RELATING TO THE UTILIZATION OF
ASSOCIATED TRADITIONAL KNOWLEDGE ASSOCIATED WITH
GENETIC RESOURCES - Whenever the indigenous knowledge systems
and practices including the associated traditional knowledge associated
with genetic resources of indigenous and local communities are utilized,
the following shall be implemented by the appropriate agencies,
particularly the National Commission on Indigenous Peoples, the Palawan
Council for Sustainable Development as well as the Philippine Institute for
Traditional and Alternative Health Care:

(a) The customary laws as well as the community protocols of
indigenous and local communities, where available, will apply at
the first instance, in matters relating to access and benefit-sharing
from the utilization of indigenous knowledge systems and practices
including the traditional knowledge associated with genetic
resources;

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(b) Establishment of mechanisms with the effective participation of
indigenous and local communities to inform users of their
obligations as relates to the utilization of indigenous knowledge
systems and practices including. traditional knowledge associated
with genetic resources;

(c) Establishment of mechanisms to indigenous and local communities
to develop their own community protocols, minimum requirements
for mutually agreed terms and model contractual clauses;

(d) The customary use of indigenous knowledge systems and practices
including traditional knowledge associated with genetic resources
by the indigenous and local communities themselves shall continue
to be respected; this principle will not be recognized if asserted by
non-indigenous and local communities.

Section 9. CAPACITY-BUILDING AND TECHNOLOGY
TRANSFER - The Department of Environment and Natural Resources, in
collaboration with the agencies implementing the Wildlife Act, shall take
the lead in initiating capacity-building activities in relation to the
implementation of existing and future policies on access and benefit-
sharing in collaboration with key implementing agencies and partners.

There shall also be established a unit within the Department of
Environment and Natural Resources that will handle matters relating to
technology development and transfer relating to the conservation and
sustainable use of biological diversity including the cooperation in
technical and scientific research and development programs, including
biotechnological research in order to enable the development and
strengthening of a sound and viable technological and scientific base of the
country. Where possible and appropriate such collaborative activities shall
take place in the Philippines.

Section 10, SPECIAL MANDATES OF IDENTIFIED AGENCIES -
The following mandates of existing agencies are hereby reinforced to
enable them to assist in the implementation of this Act:

(a) The Philippine National Museum - Sec. 7.2 of Republic Act 8492 is
hereby amended as follows :

a


“Section 7, Duties and Function. The Museum shall have the following
duties and functions:

7.2 Conduct researches, archaeological and scientific, on Philippine
Alora and fauna; collect, preserve, identify and exhibit to the public
systematically all types of plants and animals found in che Philippines,
_prepate for publication manusceipes and scientific papers on them and
maintain a reference collection on such objeces INCLUDING THE
ESTABLISHMENT OF A SYSTEM OF CHECKPOINTS TO
DETERMINE THE PROGRESS IN THE UTILIZATION OF
THE GENETIC RESOURCE IN THE RELEVANT MUSEUM
REFERENCE COLLECTIONS WORLDWIDE;”

(b) The Philippine National Museum - Sec. 17 of Republic Act 10066 is
hereby amended as follows :

“Section 17. Systematic Research in Natural History. - The National Museum
shall have the authority to collect, maintain and develop the national reference
collections of Philippine flora and fauna, rocks and minerals cheough research
and field collection of specimens including important cultural property within
the territorial jurisdiction of the Philippines. It shall be exempt from any and
all permit systems regulating the same PROVIDED IT ESTABLISHES A

SYSTEM OF CHECKPOINTS TO DETERMINE. THE PROGRESS IN
THE UTILIZATION OF THE GENETIC RESOURCE IN THE

RBLEVANT MUSEM REFERENCE COLLECTIONS WORLDWIDE.
‘The National Museum shall inform the Department of Environment and
Nauural Resouces and the Department of Agriculture of such collection AS
WELL ANY RELEVANT INFORMATION GENERATED FROM
THE CHECKPOINTS, All gypes of specimen collected in the Philippine
territory shall be deposited in the Nacional Museun

(c) The National Commission for Culture and the Arts - Sec. 23 of
Republic Act 10066 is hereby amended as follows :

“Section 23, Export of Cultural Property. » Whoever desires to export cultural
property registered in the Philippine Registry of Cultural Property shall adhere

to the following eequicements:

(@) Authorization from che Commission through the appropriate
cultural agencies;

(b) Application for export permit shall be submitted thirty (30) days
before the intended expore from the Philippines; and

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(©) Application for export permit must include the following: (I) the
purpose of che temporary export; (2) the export date of the
Cultural property; (3) the repatriation date of the cultural
property; (4) a description of the cultural property; and (5) the
Inventory of the cultural property in the Philippine Registry of
Cultural Property.

(@) COMMITMENT TO PROVIDE INFORMATION ON
THE PROGRESS OF THE UTILIZATION OF THE
GENETIC RESOURCES EXPORTED AS CULTURAL
PROPERTY TO THE SYSTEM OF CHECKPOINTS
THAT MAY BE ESTABLISHED BY THE CULTURAL
AGENCIES IN COLLABORATION WITH THE
DEPARTN OF ENVIRONMENT AND NATURAL
RESOURCES FOR THE PURPOSE OF TRACKING AND
MONITORING THE UTILIZATION OF THE GENETIC
RESOURCES,”

(d) The National Plant Genetic Resources Laboratory - Sec. 1 of
Presidential Decree 729, as amended by Presidential Decree 1046-a,
is hereby further amended as follows :

“To systematically collect, introduce, preserve and maintain a
germplasm bank of important and potentially useful agricultural
crops AND TO ESTABLISH A SYSTEM OF CHECKPOINTS
TO GENERATE INFORMATION CONCERNING THE
UTILIZATION OF THE GENETIC RESOURCE TAKING INTO
ACCOUNT THE STANDARD MATERIAL TRANSFER
‘AGREEMENT SYSTEM UNDER THE INTERNATIONAL
TREATY ON PLANT GENETIC RESOURCES FOR FOOD
AND AGRICULTURE;”

(c) The Philippine Institute for Traditional and Alternative Health Care
~ There is hereby inserted the following provision, to be known as
Sec. 12-A, in Republic Act 8423, to implement Art. 2 of the Act, to
read as follows :

“SEC, 12-A - RECOGNITION OF BASIC RIGHTS OF
INDIGENOUS SOCIETIES, ALSO KNOWN AS INDIGENOUS
CULTURAL COMMUNITIES UNDER REPUBLIC ACT 8371, OR
LOCAL COMMUNITIES, IF THEY DO NOT COME UNDER
THE DEFINITION OF SUCH INDIGENOUS CULTURAL
COMMUNITIES UNDER REPUBLIC ACT 8371,

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(1) THE RIGHT OF OWNERSHIP BY INDIGENOUS
SOCIETIES OVER THEIR KNOWLEDGE OF
TRADITIONAL MEDICINE;

(2) THE RIGHT OF THESE INDIGENOUS SOCIETIES TO
REQUIRE THE USERS TO ACKNOWLEDGE WHERE.
THE USERS GOT THE MATERIALS THE USERS
ARE UTILIZING AND TO GET SOME SHARE OF
BENEFITS, PARTICULARLY OF A FINANCIAL
NATURE, FROM ANY OF THE COMMERCIAL USES
OF THIS KNOWLEDGE OF TRADITIONAL
MEDICINE, AND

(3) THE RIGHT TO REQUIRE AUTHORIZATION FOR
ANY COMMERCIAL USE OF THE TRADITIONAL
MEDICINE FROM THE CONCERNED INDIGENOUS
SOCIETIES

Section 11. VOLUNTARY BENEFIT-SHARING MECHANISMS -
There shall be established a voluntary benefit-sharing mechanism in cases
where it is not possible to secure prior informed consent and the
researcher and his/her partner or collaborating institution will commit to
provide a minimum level of benefits that may be derived from the
utilization of the genetic resources and/or the indigenous knowledge
systems or practices including the associated traditional knowledge
therein and as the utilization progresses from research, development,
innovation, pre-commercialization and commercialization. The
implementing, agencies of this Act will conduct the necessary consultations
to determine the levels of these benefits, which will be adjusted from time
to time depending on the level of advancement of researches in these types
of activities.

Section 12. IMPLEMENTING RULES AND REGULATIONS - The
implementing agencies of Republic Act 9147, including the agencies which
issued the 2005 Guidelines or the Joint DENR-DA-PCSD-NCIP
Administrative Order No. 1, series of 2005, are hereby tasked to issue the
implementing regulations of this Act. The Department of Environment and
Natural Resources shall take the lead in the implementation of this Act.

Section 13, PENALTIES - The user of genetic resources who does
not comply with the provisions of this Act, including any relevant
administrative issuance that may be issued by the appropriate agencies as
indicated by this Act shall be penalized with the crime of biopiracy and

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shall be subject to a penalty of six years and one day up to eight years,
with the appropriate fine not less than FIVE HUNDRED THOUSAND
PESOS, as may be determined by the appropriate court.

Section 14, SEPARABILITY CLAUSE - In case any provision of this
‘Act is found to be unconstitutional upon final declaration by the
appropriate Court, the other provisions not so declared unconstitutional or
unaffected by the declaration shall remain valid and effective and shall
continue to be implemented by the Department of Environment and
Natural Resources and other relevant agencies.

Section 15. - EFFECTIVITY CLAUSE - this Act shall take effect
fifteen (15) days after its publication in a newspaper of general circulation
in the Philippines.

Approved,