Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILLNO, 4926

Introduced by: “KUYA” JOSE ANTONIO R. SY-ALVARADO

AN ACT
INSTITUTIONALIZING BAMBOO INDUSTRY DEVELOPMENT IN THE
PHILIPPINES, CREATING THE BAMBOO INDUSTRY RESEARCH AND.
DEVELOPMENT CENTER (BIRDC), APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Bamboo is the tallest perennial grass that belongs to the graminae family. The long
cylindrical woody stem strength and ease of workability, bamboo is very versatile material for a
variety of economic uses such: handicrafts and furniture; farm implements; fishpen; fish cages;
and other fishing gears. Banana props; musical instruments; pulp and paper, and house
construction. The demand for these materials are increasing. However, the demand is not being
currently met. Bamboo production is a good income for agroforestry farmers. Given the beneficial
uses of bamboo, the country does not have an administrative body or agency that maximize the
full economic potential of bamboo.

This bill seeks to establish an agency named Philippine Bamboo Industry Development
+ Council (PBIDC) that is mandated to provide policies and programs that will maximize the use of
bamboo and will provide scientific research development of bamboo products.

Hence, this proposal is submitted for consideration.

“KUYA” JOSE ANTONIO R. SY-ALVARADO,_
Representative
First District of Bulacan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

4926
HOUSE BILL NO.

Introduced by: “KUYA” JOSE ANTONIO R. SY-ALVARADO.

AN ACT
INSTITUTIONALIZING BAMBOO INDUSTRY DEVELOPMENT IN THE
PHILIPPINES, CREATING THE BAMBOO INDUSTRY RESEARCH AND
DEVELOPMENT CENTER (BIRDC), APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES.

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

SECTION 1. Title, - This Act shall be known as the "Philippine Bamboo Industry
Development Act of 2019."

SEC. 2. Declaration of Policy. - The State shall provide for a self-reliant and
independent economy to its people. It shall support indigenous, scientific and technological
capabilities, and skills. It shall establish a program for a sustainable utilization, propagation
and promotion of bamboo as furniture, food, construction and design materials, and other
uses. It shall promote the bamboo industry for poverty reduction, inclusive growth,
environmental Conservation and protection, agricultural productivity enhancement and
climate change mitigation and adaptation.

' SEC. 3. Definition of Terms, - As used in this Act:

a) Bamboo refers to a plant belonging'to the subfamily Bambusoideae of grass
family Gramineae (Poaceae) whose culms (stems) are Woody,

b) Bamboo stand - for plantation, an aggregate of clumps occupying a specific area
and sufficiently uniform in composition (species), age, spacing, and condition as to be
distinguished from the natural and or existing bamboo stands (with unknown clump age).
‘The latter stands have irregular spacing and species Composition not necessarily uniform
and the clumps are randomly and widely distributed;

¢) Bamboo Industry - a sector with very high potential contribution in the Socio
economic development and environmental protection of the Country. The sector may still
be classified as essentially agricultural considering that majority of its market and supply
is essentially for agricultural requirements such as fish pens, banana props and other low
value applications like scaffoldings, and fences,

d) Bamboo Backyard Farming - those whose plantation and operations are basically
in the house backyard, with the household members as workers. The majority of bamboo
+ Processing enterprises in the Philippines belong to this category; and


” through aggressive trade promotions; and P

¢) Bamboo Processing - conversion of bamboo poles for various products and
applications including walls, panels, trusses, handicraft, and novelty products (furniture,
handicraft, and decors) focused on the possible use of bamboo as substitutes for Wood for
yarious applications (plywood, Composites, pulp and paper, bamboo arts, and other
architectural applications).

SEC. 4. Objectives of This Act - This Act aims to make the Philippine bamboo
industry competitive in the local and international markets while providing opportunities
for local employment and establishing bamboo-based Community enterprises by:

a) Ensuring that the bamboo industry has sufficient supply of quality raw materials
through the establishment and management of bamboo nurseries and plantations,

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 Center
Created under Sec. 9 of this Act, and other relevant sources upon which the industry can
make business decisions,

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‘)<d) Promoting investments in the bamboo ‘industry by providing substantial and
attractive incentives to investors,

e) Providing skilled labor and manpower through continuous relevant capacity
building: fea) i

f) Ensuring provision of locally-manufactured machines of improved capacity,
efficiency, and quality at competitive Costs,
\ ~g). Ensuring continuing and new material and design research and development to
adyance market access for Philippine bamboo and bamboo products locally and
internationally, sas

h) Providing access to markets of bamboo products locally and intemationally

iy! Ensuring'sustainable resources in the implementation of the bamboo industry
development program. I

‘SEC. 5. The Philippine Bamboo industry Development Roadmap (PBIDR). - To
be able to attain the policy and objectives set forth in this Act, there shall be established a
Philippine Bamboo Industry ‘Development Roadmap, hereinafter referred to as the
Roadmap, which shall include but not be limited to programs and projects for the scientific
propagation, development and management, processing, utilization, business development,
and Commercialization’ of Philippine bamboo ‘and bamboo products. The Roadmap shall
include the following objectives, among others:

a) Expand the numbér of bamboo nurseries with quality planting materials,
f i

~/o) Erisure the propagation, breeding, site species matching and plant nutrition:


©) Observe sustainable planting, management and harvesting, and soil and water
conservation practices,

d) Encourage bamboo backyard farming,
e) Ensure the sustainability and viability of the bamboo industry,
f) Promote investments in the bamboo industry development programs,

g) Advance market access for Philippine bamboo and bamboo products locally and
internationally,

h) Extend technical and financial assistance for the development, processing,
Commercialization and marketing of various bamboo products,

i) Require bamboo to be at least twenty percent (20%) of the annual planting
materials needed in the national greening program or in reforestation of open, denuded,

. and degraded forestlands,

'j) Use bamboo in the manufacture of at least twenty five percent (25%) of desks and
chairs, as an alternative to wood, in public primary and secondary schools in the Country,

k) Make ayailable to the bamboo industry releyant and current research and
technological information and new product lines,

1) Provide’ Continuous training’ and capacity building in the bamboo industry
development, and

m) Provide technical and financial assistance in the local design and fabrication of
high capacity processing equipment and machineries for the bamboo industry.

SEC) 6Philippinel Bamboo Industry! Development Council - There is hereby
created a Philippine Bamboo industry Development Council (PBIDC), herein referred to
as the Council, which’ shall. provide the overall policy and program directions and
Coordinate: the activities | of various ‘agencies’ and instrumentalities to. ensure’ the

+ implementation, accomplishment, and periodic review and enhancement of the Roadmap.

The Council shall be administratively pieced to the Department of Trade and Industry
TD, nt

SEC. 7. Powers and Functions of the Council, ~ The Council shall have the following
powers and functions:

a) Formulate the Philippine Bamboo Industry Development Roadmap,

a b) Identify specific programs and projects in support and in line with the Philippine
Bamboo Industry Development Roadmap,

© “¢) Identify sources of financing to expand bamboo industry development;

d) Identify) programs, projects and activities to be funded by the Philippine Bamboo
Industry Development Trust Fund through a resolution:


¢) Submit annual reports to the Office of the President, the Senate Committee on
Trade, Commerce and Entrepreneurship, and the House of Representatives
Committee on Trade and Industry on the status of the implementation of the Roadmap and
the bamboo industry development in the country; and
d f) Promulgate such rules and regulations and exercise Such other powers and
functions as may be necessary to carry out effectively the attainment of the purposes and
objectives of this Act,

SEC. 8. Composition. - The Council shall be composed of the following:

a) Secretary of the Department of Trade and Industry (DTI) as the Chairperson;
b) Secretary of the Department of Environment and Natural Resources (DENR),
¢) Secretary of the Department of Agriculture (DA);

d) Secretary of the Department of Science and Technology (DOST);

4 ¢) Secretary of the Department of Labor and Employment (DOLE);

}\'f) Secretary of the Department of Interior and Local Government (DILG);

8) Three (3) representatives from state universities and colleges, one each from the
island group of Luzon, Visayas and Mindanao,

h) One (1) representative each from bamboo farmers, bamboo manufacturers, and
bamboo processors associations,

i) One (1) representative from non-goyernment organization promoting bamboo.
‘The DTI Secretary may designate the Undersecretary for Regional Operations Group (DTI-
ROG) as his/her alternate and shall have the same powers as his/her principal and his/her
acts shall be considered the acts of his/her principal; and

j) One (1) representative from the Union of Local Authorities in the Philippines
(ULAP), g
The Council members from the different Departments may designate their respective
alternates who shall be'at least Assistant Secretary in rank and whose designation shall be
on a permanent capacity and their acts shall be considered the acts of their principals.
‘The representatives from the’ state universities and'colleges, private industry associations,
bamboo farmers/producers/processors association, and nongovernment organizations shall
be appointed by the President of the Republic of the Philippines from the list of nominees
submitted by the DTI Secretary. ‘The DTI Secretary shall choose the nominees from the
respective lists submitted by the different organizations and associations.

‘The representatives must be citizens and residents of the Philippines and must be
knowledgeable in bamboo industry development and committed to the policies and
programs provided under this Act: They shall serve for a term of three (3) years, and may
be reappointed once. " ‘



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The Council shall meet quarterly and may hold special meetings whenever the need
arises to consider urgent matters upon the call of the Chairman or any seven (7) Council
members.
fi SEC. 9. Bamboo industry Research and Development Center (BIRD). - The
Bamboo Industry Research and Development Center, hereinafter referred to as the Center,
shall be created to serve as the secretariat of the Council to be headed by an executive
director. The Center shall consist of divisions for the following purposes: research and
development, trade promotion. and education; networking and linkages, internal
administration; and such other purposes as necessary. The composition of the divisions
shall be prepared by the executive director and approved by the Council

The organizational structure, staffing pattern and compensation schedule of the
Center shall be drawn up in accordance with existing laws, rules and regulations. Other
member agencies of the Council shall provide additional administrative and technical staff’
Support upon the determination of the necessity by the Council

The Center shall have the following powers and functions: .

a) Promote and encourage the establishment and management of bamboo nurseries,
plantations and processing facilities that would accelerate the production and
commercialization of bamboo and various bamboo products,

*\"\b) Promote'the commercialization and market access of appropriate, innovative and
Viable bamboo industry development technologies and products,

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9) Monitor!and' evaluate the performance of) bamboo “industry. development
programs and projects)\},)))S!,) f i

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i d) Coordinate and partner with other government agencies in the implementation of
bamboo industry development programs and projects,

I *e) Coordinate“and partner ‘with the: private’ sector, people's organizations and
hongoyernmental: organizations.) and the academe in providing assistance on matters
pertaining to bamboo industry development;

f) Accept grants, donations and contributions from local and international donors
and such similar sources of funds for the implementation of this’ Act, subject to the usual
budget! accounting and auditing rules and regulations,
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g) Conduct, in Cooperation or partnership with appropriate government agencies, a
periodic review of the Philippine Bamboo industry Development Roadmap,

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h) Conduct ‘capability-building initiatives for farmers, processors, designers, and
other stakeholders in'the bamboo industry, * iN
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i) Conduct research and development in partnership with appropriate government

, agencies'to'advance sustainable bamboo industry development practices,
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j) Supervise the implementation of the plans and programs of the Council:
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k) Manage and administer the projects identified by the Council under Section 7 (d)
of this Act, and

1) Submit periodic reports to the Council on the progress and accomplishment of
programs and projects.

SEC. 10. The Executive Director of the Center. - The Executive Director shall be
‘pointed on a permanent capacity by the President of the Republic Philippines from the
list of nominees submitted by the DTI Secretary. He/she shall be a citizen and resident of
the Philippines and must possess executive and management experience of at least three
(3) years and with considerable knowledge in bamboo industry development
|.» |The Executive Director, in addition to his/her duties in the Center, shall have the
following powers and functions:

a) Assist the Council in the performance of its tasks,

(>) Provide technical and administrative support to the Council;
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* 1"! ¢) Oversee the day-to-day operations of the Center, and

4) Perform suich other|functions, duties and responsibilities as may be necessary to
implement this Act,

SEC. 11. ‘Establishment of Local Bamboo industry Development Councils -
Regions, provinces, cities ‘and municipalities, when applicable, shall establish’ their
Fespective local Bamboo Industry Development Councils. Local government units shall
regularly conduet'a' survey: of existing bamboo’ stands, nurseries and plantations and
bamboo enterprises in their respective localities,

"SEC. 12. Provision'‘of Incentives ‘to investors. in Nursery and Plantation
Development and Bamboo Enterprises, - The following incentives shall be provided to
Inyestors in plantation development and bamboo processing factories:

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| a) The Board of Investments (BOI) shall classify bamboo nurseries and plantations
as pioneer and bamboo’ processing as preferred areas of investment under its Investment
Priorities Plan (IPP) subject to pertinent rules and regulations,

___,b) Nursery and plantation owners shall be exempt from the payment of rent for the
use of public'lands for commercial bamboo plantation for the first 10-years or when the
plantation ‘owner'starts to harvest his/her nursery/plantation subject to existing tenurial
‘agreement with concemed government agencies,

Bea er

‘¢) Plantation owners in public lands ‘shall be exempt from the payment of forest
charges imposed ‘by ‘national’ goyernment' and other fees or taxes imposed by’ local
government units! h :

4) Plantation owners, including nursery facilities, bamboo processing, and other
elated: businesses’ shall/be exempt from the payment of import duties’ for imported
machines and equipment’subjectto pertinent rules and regulations,



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€), 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
expenses were incurred;

r £) 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 expenditures for purposes of tax treatment;

g) Bamboo plantations shall be accepted as among the collateral for loans in
government-owned or controlled banks,

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h) The bamboo plantation developer and bamboo processors shall be given priority
to access Credit assistance and guarantee schemes being granted by governmentowned,
controlled and/or supported financial institutions;

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{ i) Bamboo plantations shall not require a Cutting permit for harvesting nor shall it
heed a transport permit, Provided, that such plantation is registered with the Community
Enyironment and ‘Natural Resources Office (CENRO) of the Department of Environment
and Natural Resources (DENR),

© >) j) Bamboo plantations and plantation deyelopment equipment shall be covered by
the Philippine Crop Insurance Corporation;

ESS eet O MER RthedeL olor smeMt and ope aniuot Abi rf
9k) Bor tenured developer! upon the premature termination of the tenurial agreement
at no!!fault ofthe holder; all capital improvements, depreciable permanent and Semi-
permanent improyements such as roads, buildings, nurseries including the planted and
Standing bamboo and other‘intercrops, introduced and toibe retained .in the

area, shall be evaluated’and the holder shall be entitled to a fair Compensation thereof, the
amount of which shall be mutually agreed upon by both the DENR and the tenure-holder
and in case of disagreement!between them, by arbitration through a mutually acceptable

_ And-impartial third party‘adjudicator through the!DENR, and
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+) ||1) The’ export of bamboo poles, shall be regulated by the Council, while other
bamboo products may be'exported without restrictions!ini volume: n

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©) SEC: 13. The' Philippine Bamboo industry Development Trust Fund. = There is
hereby established a Special Account in the General Fund with the National Treasury to be
called the Philippine Bamboo Industry Development Trust Fund herein referred to as the
‘Trust Fund)''The purpose’ ofthe fund is’for research and development, trade promotion,
€redit} human resource development in the bamboo industry and for the welfare of farmers,
workers, processors arid other stakeholders. The Trust Fund shall be capitalized, managed,
utilized and accounted ‘for in the manner provided under this Act:

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S9)Upon’ approval!\of *this ‘law,"'the | Office of ‘the ‘President’ through 'Philippine
Amusement and Gaming’ Corporation! (PAGCOR) shall “allocate One Hundred Million
Pesos'(PHP: 100,000,000:00) as initial funding for the Trust Fund for the implementation
this Act.) 4

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#0 Dhereafter,*/ the’ “amount of \inot/'léss!! than ‘Two Hundred Million | Pesos
(PHP200,000,000.00)'shall be allocated every year for the next twenty (20) years for the
‘Trust Fund lodged in the Centers: iar i

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——_

‘The program of expenditures for the programs, projects and activities to be funded
by the Trust Fund shall be itemized on a project-to-project basis and Submitted annually
to Congress. In the identification and prioritization of specific programs, projects and
activities, the Council shall conduct prior Consultation with representatives of farmers,
manufacturers, processors, associations and the academe,

i SEC. 14. Role of the Local Government Units (LGUs). - The full implementation
Of the objectives of this Act shall be with the partnership and Cooperation of the concerned
LGU, which may also, be release Counterpart funding or provide other services should it
deem necessary or available. This role is pursuant to the enshrined principle in the Local
Government Code that capabilities of local government units shall be enhanced by
Providing them with opportunities to participate actively in the implementation of national
programs and projects,

» SEC. 15, Appropriations. - The sum. of One. Hundred Million Pesos (PHP
100,000.000.00) to be sourced from the unexpended contingency fund of the Office of the
President and the existing budget for bamboo industry development under the DTI is
hereby appropriated for the initial budgetary requirements of the Center. Thereafter, such
amount as may.be necessary’for the continuous operation of the Genter shall be included
in the annual’/GAA. The budgetary’ requirements, of Cooperating agencies shall’:be
incorporated in their respective annual budgets, Y i
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+) SEC. 16 \Umplementing Rules and Regulations, Within six (6) months fi-om the
effectivity of this Act, the DTI, in consultation with other concerned government agencies,
the academe, the private sector and non-government organizations; shall promulgate the
necessary implementing rules'and regulations for the effective implementation of this Act:
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§ SEG. 17; Separability Clause. ~ If any provision of this Act shall be declared invalid
‘orunconstitutional, the same’shall not affect the validity of the other provisions of this Act.
SEC.\18. Repealing Clause.'- All laws, decrees, orders, rules, and regulations or other
issuances which are\incompatible or inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

st shall take effect fifteen (15) days following its lull
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