HOUSE 1F REPRESENTATIVES
RECEIVED

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HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRES: re 3007
First Regular Session BY:
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HoOUs= BING: BILLS AND INDEX SERVICE

Introduced by HON. DEOGRACIAS VICTOR “DV” B. SAVELLANO.

EXPLANATORY NOTE

There is remarkable potential in the bamboo industry. Globally, the value of
exports of bamboo and bamboo products is estimated to be US$ 12 billion. Locally
the reported value of exports of bamboo and bamboo products in 2014 was US$ 10
million. Bamboo production and processing has provided direct and indirect
employment to an estimated 190,000 people and these numbers can continue to
climb, with the right support system in place for the industry.

Nonetheless, bamboo is only classified as a minor forest product by PD No.
750 otherwise known as the Revised Forestry Code. As a consequence of this
classification, the main considerations and attention of the Department of
Environment and Natural Resources (DENR) has been focused on timber and timber
products, which is understandable because of timber’s sizable economic
contributions. With the destruction of our forests and the diminution of the supply
of wood and wood products, there are attempts to fill the void with suitable
substitutes such as bamboo.

Bamboo has always been an important construction material in the rural
areas. Because of its versatility it has found applications in many uses, from house
construction, farm implements, kitchen utensils, furniture and handicrafts. Bamboo
is also relatively cheap given its ubiquity and ready availability in the rural areas.

The research sector has been working on technologies to lengthen the service
life of bamboo and has developed new bamboo products such as engineered
bamboo, which can take the place of wood as panel products and for structural
Purposes. Today, furniture and handicraft manufacturers incorporate bamboo in the
design of their products with amazing results, even attracting foreign buyers.
Bamboo has also become a medium in carving and architects have designed
structures entirely made of bamboo.


In the environmental front, bamboo has been found to excellently reduce
erosion. It is also capable of absorbing heavy metals in mined-out areas. Studies
have also shown that it can sequester carbon dioxide of about 45% of its dry
weight.

An important advantage of bamboo to tree plantations is that there is a need
to replant when trees in plantations are harvested. In contrast only mature culms
are harvested from a clump of bamboo and if managed well a clump of bamboo can
continuously provide raw materials indefinitely.

With these developments and benefits, bamboo has been gaining popularity
both locally and in foreign countries. Unfortunately there is no national program on
bamboo industry development.

It is recognized in the industry that there is a general insufficiency of raw
materials for which reason many enterprises on bamboo processing have closed
down because of lack of raw materials yet there is little initiative in bamboo
plantation development. Support to research and development is surely insufficient
and product marketing is left generally to the private sector.

In order for the country to be more competitive in foreign markets, capture a
sizeable portion of the global market, provide livelihood to rural communities, and
take advantage of the environmental contributions of bamboo to rehabilitate
degraded watersheds, sequester carbon dioxide, and assist in the mitigation of
climate change, it is necessary to have an organized and well managed bamboo
industry development program.

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



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HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

904

House Bill No.

Introduced by HON. DEOGRACIAS VICTOR “DV” B. SAVELLANO

AN ACT
INSTITUTIONALIZING A PHILIPPINES BAMBOO INDUSTRY
DEVELOPMENT PROGRAM

Be it enacted by the Senate and House of Representatives of the Philippines
‘in Congress Assembled:

SECTION 1. Short Title. - This Act shall be known as the “Philippines
Bamboo Industry Development Program Act of 2016”.

SEC. 2. Declaration of Policy. — It is the policy of the State to promote and
support industries that create and generate employment especially in the rural
areas, reduce poverty, promote sustainable environment, mitigate the impacts of
climate change, and promote inclusive growth.

SEC. 3. Objectives, - The objectives of this Act are: (1) to promote
Philippine bamboo industry by providing a development program; (2) to discover and
evolve technologies that involve bamboo; and (3) to provide incentives to investors.

SEC. 4. Definition of Terms. — For the purpose of this Act, the following

term shall refer to:

(a) Program - The Philippine Bamboo Industry Development Program
designed to promote competiveness of the bamboo industry.

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(b) Philippine Bamboo Industry Development Council (PBIDC) ~ The Council
established under EO No. 879 of 2010.

(c) Secretariat - The Secretariat under the PBIDC established to provide
assistance to the PBIDC Executive Committee created under EO No. 879 of
2010.

SEC. 5. JInstitutionalizing the Philippines Bamboo Industry
Development Program (PBIDP). - There is hereby established and
institutionalized a Philippines Bamboo Industry Development Program within the
mandate of the Philippine Bamboo Industry Development Council (PBIDC) which was
created under the Executive Order No. 879 of 2010.

SEC. 6. Objectives of the Philippine Bamboo Industry Development
Program. — The PBIDP aim to make the Philippine bamboo industry competitive in
the local and global markets while providing opportunities for local employment and
establishing bamboo-based community enterprises by:

(a) Ensuring that the bamboo industry has sufficient quality raw materials;

(b)Ensuring that the bamboo industry continuously receives from the
research and development sector relevant technologies and new products;

(c) Ensuring that the industry receives pertinent and accurate data from the
PBIDC upon which the industry can make business decisions;

(d) Promoting investment in bamboo industry by establishing bamboo
plantations and establishing bamboo processing operations by providing
substantial incentives to Investors;

(e)Providing skilled labor and manpower through continuous relevant
capacity building;


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(f) Ensuring provision of locally manufacture machines of improve capacity
and quality at Competitive costs;

(g) Ensuring markets of bamboo product locally and globally; and

(h) Ensuring sustainable resources for implementing the bamboo industry
development program.

SEC. 7. The Philippine Bamboo Industry Development Program. -
The PBIDC through its strengthened Secretariat shall formulate a national bamboo
industry development program though close participation of all stakeholders of the
industry that includes producers of raw materials, processors and marketing and
promotion service providers and concerned national agencies and local government
units (LGUs). The program shall ensure that the objectives indicated in Section 6 of
this Act can be achieved.

SEC. 8. Authority to generate resources for the implementation of
the Program. — The PBIDC through its strengthened Secretariat is hereby
authorized to accept donations from local and international donors and funding
agencies and organizations to implement the Program.

SEC. 9. Support to the program by the League of Provinces and
League of Municipalities. - The League of Provinces and League of Municipalities
are hereby directed to participate closely in the implementation of the Program
through the establishment of corresponding Bamboo Industry Development Councils.

Provincial and Municipal Local Government Units (PLGUs and MLGUs) are
hereby directed to establish Provincial and Municipal Bamboo Industry Development
Councils and to formulate and implement their respective Bamboo Industry
Development Programs within two (2) years from the enactment of this Law.


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The MLGUs through their Municipal Bamboo Industry Development Councils
are hereby directed to conduct a survey of existing bamboo clumps and bamboo
Processing enterprises in their municipalities. Results of the surveys shall be
submitted to the national Philippine Bamboo Industry Development Council as part
of a data base on bamboo.

SEC. 10. Incentives to investors in plantation development and
bamboo processing factories. - The Following incentives shall be provided to
investors in bamboo plantation development and bamboo processing factories:

1. Free from payment of rent for the use of government lands for commercial
bamboo plantation for the first five years or when the plantation owner starts
the harvest his plantation;

2. Forest plantation in private land shall not be required to secure a cutting
permit for harvesting nor shall it need a transport permit, for as long as the
plantation is registered with the Community Environment and Natural
Resources Office (CENRO) of the DENR. All that is required is for the
plantation owner to inform the CENRO that the plantations will be harvested
in a given date, including the estimated volume that will be harvested.
Inventory of the plantation prior to harvest shall not be required. CENROs
are obligated to approve and enter into their book of registry, applicant for
registration for plantation in private lands;

3. Free form payment of forest charges and other fees for taxes that local
government units may impose;

4, Bamboo from plantations from public and private lands shall not be subjected
to inspection in check points;

5. Plantation developers can access development loans from the public financial
institutions;


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6. Insurance coverage of plantations and plantation development equipment by
the Philippine Crop Insurance Corporation;

7. Tax free importation of plantation development equipment; including tree
nursery facilities;

8. Expenses incurred shall be allowed as deductible expenses for income tax
Purposes, subject to the provisions of the National Internal Revenue Code of
1997, as amended. Provided, that the deduction shall only apply to the
Taxable Period, when the expenses were incurred;

9. Expenses incurred in the development and operation of a bamboo plantation
Prior to the commercial harvest shall be regarded as ordinary and necessary
expenses or as capital expenditure;

10. The Board of investments (BOI) shall classify bamboo plantations as pioneer
and preferred areas of investment under its annual priority plan, subject to
pertinent rules and regulations;

11.The plantation developer shall be given priority to access credit assistance
being granted by Government-owned, - controlled and/or supported financial
institutions;

12.Piantation shall be accepted as collateral for loans in government owned or
controlled banks;

13.For tenured developer, upon the premature termination of the agreement at
no fault of the holder, all depreciable permanent and semi-permanent
improvements such as roads, building, and nurseries including the planted
and standing trees and other forest crops, introduced and to be retained in
the area, shall be properly evaluated and the holder shall be entitled to a fair
compensation thereof, the amount of which shall be mutually agreed upon by


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both the Department and the tenure-holder and in case of disagreement
between them, by arbitration through a mutually acceptable and impartial
third party adjudicator;

14.Bamboo culms from plantation may be exported without restrictions in
volume;

15. Processors of bamboo may import processing equipment, tax-free; and

16. The National Economic and Development Authority (NEDA) shall include in its
annual investment program, the use of the forest lands to establish industrial
bamboo plantations, and to give first priority in allocating adequate fund, both
from external and internal sources.

SEC. 11. Funding. - The Program shall have an initial appropriation of One
Hundred Million Pesos (Php 100,000,000.00) upon enactment of this bill into law and
shall have an annual appropriation of no less than One Hundred Million Pesos
annually to be included in the Annual Appropriations Act to carry out its objectives.
The DTI shall provide for the budget of the Philippine Bamboo Industry Development
for its operations. The members of the Council shall be entitled to an honorarium the
amount of which shall be as provided by law for each meeting attended.

SEC. 12. Implementing Rules and Regulations. — the DTI-PBIDC, the
Department of Environment and Natural Resources, Department Science and
Technology shall promulgate the implementing rules and regulations (IRR) of this
Act within sixty (60) days after the affectivity hereof,

SEC. 13. Separability Clause. - If any provision or part hereof is held
invalid or unconstitutional, the remainder if the law or the provision not otherwise
effected shall remain valid.

SEC. 14. Repealing Clause. — Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation contrary


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to or inconsistent with the provision of this Act is hereby repealed, modified or
amended accordingly.

SEC. 15. Effectivity. - This Act shall take effect thirty (30) days after its
Publication in the Official Gazette or two (2) newspapers of general circulation.

Approved,