EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENAT.1!
S.B. No.
2389
Introduced by SENATOR IMEE R. MARCOS
nATF:.SePt-6|2021 
<jr> TIMPV 06:'19 Pm
E-FILED
GJLLG
AN ACT ABOLISHING THE PHILIPPINE INTERNATIONAL TRADING 
CORPORATION (PITC), AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 27, Article II of the 1987 Constitution provides that, "The State shall 
maintain honesty and integrity in the public service and take positive and effective 
measures against graft and corruption."
The Philippine International Trading Corporation (PITC) was established on 21 
July 1973 through Presidential Decree (PD) No. 252 which is an attached agency to 
the Department of Trade and Industry (DTI) whose primary mandate is to facilitate 
trade with Socialist and Other Centrally Planned Economy Countries.
The PITC was originally crafted as a mechanism to formalize trade with planned 
economies through government-to-government procurement. However, as of today, 
only two (2) centrally planned economies are in existence, which are Cuba and North 
Korea. The Philippines has also moved away from government-to-government trade, 
as exemplified by the passage of Republic Act No. 11203 or the "Rice Tariffication 
Law" on 14 February 2019, among others.
In addition, the passage of RA No. 9184 or the "Government Procurement 
Reform Act" has undermined the mandate of the PITC through the inclusion of 
relevant provisions that seeks to strengthen the procurement service of national 
government agencies. Section 11, Article 5 of RA No. 9184 states '&\'dC all procurement 
agencies shall establish a single BAG (Bids and Awards Committee) for its 
procurement" Section 63(c) further tasks the Government Procurement Policy Board


(GPPB) to strengthen the said BACs by ensuring ''that Procuring Entities reguiariy 
conduct procurement training programs and prepare a procurement operation manuai 
for aii offices and agencies of government"
In addition to its mandate being undermined by changes in national policies, the 
PITC has dealt with issues regarding the exercise of their mandate in the previous 
years. In particular, the 2020 Annual Audit Report of the PITC states that PhP 11.02 
billion of funds transferred from 2014 to 2020 by various source agencies remain 
unutilized as of 31 December 2020. These transfers were conducted in order to 
increase the utilization rate of government agencies, as funds transferred to the PITC 
is considered obligated and disbursed already. There are reports of source agencies 
using the interest of money transferred to the PITC to generate savings, which are 
used by the source agency to fund bonuses, among others.
Thus, this bill seeks to address the systemic corruption in the PITC by abolishing 
the said agency. The trade liberalization thrust of the global economy has made the 
mandate of the PITC archaic and irrelevant in the current times. The passage of RA 
No. 9184 or the "Government Procurement Reform Act" has also weakened the 
mandate of the PITC. The PITC became a repository for unobligated funds of national 
government agencies, and as such should be abolished as it has outlived its functions 
to the National Government.
In view of the foregoing, the approval of this bill is earnestly sought.
IMEE R. MARCOS


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENAT.1!
S.B. No. 2389
Introduced by SENATOR IMEE R. MARCOS
7^
’ ■ e-'fILed*' 5:^
liJ Date: SePt'6-2021
Tl.).1P‘.06:19 Pm 
P.Y:
BILLS
N(>E X
AN ACT ABOLISHING THE PHILIPPINE INTERNATIONAL TRADING 
CORPORATION (PITC), AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
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SECTION 1. Declaration of Policy. - The State shall maintain honesty and 
integrity in the delivery of public service and take positive and effective measures 
against graft and corruption. Thus, the State shall maintain accountability and 
responsibility among its public officials and employees and shall take appropriate 
measures to prevent unlawful and ineffectual acts and practices, therefore promoting 
efficiency and transparency in the conduct of its business.
Sec. 2. Abolition of the Philippine International Trading Corporation (PITC). - 
The Philippine International Trading Corporation (PITC) created under the Presidential 
Decree No. 252 shall be abolished.
In lieu of the abo ition of the PITC, the respective Departments and Agencies 
shall, thereafter, undertake the procurement of supplies, equipment, and 
infrastructure projects. Further, the Department of Trade and Industry (DTI) shall 
undertake the functions of PITC in relation to facilitative trade-related services, 
responsive business solutions, and trade-related government-to-government 
transactions, among others.
Sec. 3. Separation and Retirement from Service. - Employees affected by the 
abolition of the PITC shall receive separation benefits under the Government


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Reorganization Law and other existing laws, rules, and regulations. Provided that, 
those who are qualified to retire and receive retirement benefits under existing 
retirement laws shall be allowed to retire under existing laws, rules, and regulations.
Sec. 4. Reversion of Funds. - In coordination with the concerned Departments 
and Agencies, the PITC shall revert all prior years unutilized advances to the National 
Treasury. Current year's advances for the procurement of supplies and equipment and 
all other funds held in trust by the PITC shall be returned to the concerned 
Departments and Agencies.
Sec. 5. Repeaiing Ciause. - All laws, decrees, orders, rules and regulations or 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
Sec. 6. Separabiiity Ciause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall 
remain in force and effect.
Sec. 7. Effectivity. - This Act shall take effect after fifteen (15) days following 
the completion of its publication either in the Official Gazette or in a newspaper of 
general circulation in the Philippines.
Approved,