Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Session
HoUsEBiLLNo.9&39
Introduced by Rep .  Loreto 8. Acharon
EXPLANATORY NOTE
The  Philippines  is a  megadiverse  country with  most of its  biodiversity   found
only within the country. Around 81°/o of its amphibians, 69°/o of its reptiles,  59°/o of its
mammals,  500/o of its flora and 36°/o of its birds, are found nowhere else in the world
according  to  data  provided  by  the  Biodiversity  Management  Bureau  (BMB)  of the
Department of Environment and  Natural  Resources (DENR) Given more support for
taxonomic research and discovery,123 fauna or mammals and 170 flora or flowering
plants have been newly-discovered from 1987, This high endemicity means there is a
large potential for these biological and genetic resources to provide economic returns
to the country once the country's policy framework on ABS or   access   and  benefit-
sharing   from   the   utilization   of  these   biological   and   genetic  resources   and   the
associated traditional knowledge therein is enhanced and optimized such that these
benefit-sharing opportunities are maximized.
The  Philippines  is  the  first  country  in  the  world  to  come  up  with  a  national
measure on ABS particularly the Executive  Order No. 247 signed by President Fidel
V.  Ramos in  1995.  It has since been updated by the Vvildlife Act or Republic Act 9147
whose  implementing  regulations  in  2005  on  bioprospecting   laid  out  the  general
procedure on which   competent national authorities or the permilgranting  agencies
such   as   the   Department  of  Environment  and   Natural   Resources   (DENR),   the
Department of Agriculture  (DA),  the  Palawan  Council  for Sustainable  Development
(PCSD) as well as the National Commission on Indigenous Peoples (NCIP) may work
together towards issuing the necessary prior informed consent certificates as well as
determining the terms and conditions for the sharing of benefits from the utilization of
these  biological  and  genetic  resources  and  their  associated  traditional  knowledge
through a bioprospecting undertaking for such purpose.
This ABS regulatory framework is underpinned by article 15.1 of the Convention
on  Biological  Diversity  (CBD)  which  recognized  the  sovereign  rights  of States  over
their natural resources, and provided that the authority to determine access to genetic
resources rests with the national governments and is subject to national legislation.
Later,  in 2010, this provision of the Convention was reiterated and given more
dctatl by  the  Nagoya  Protocol  on  Access  to  Genetic  Resources  and  the  Fa.Ir  and
Equitable  Sharing  of  Benefits  Arising  from  their  Utilization  to  the  Convention  on
Biological Diversity, or the Nagoya Protocol.
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Equitable  Sharing  of  Benefilts  Arising  from  their  Utilization  to  the  Convention  on
Biological Diversity, or the Nagoya Protocol.
The   Philippines  acceded  to  this  Protocol  on  September  29,   2015  and   it
entered into force in the country on December 28, 2015.
Given the current above-mentioned ABS regulatory framework that pre-dated
the  entry into force of the Nagoya Protocol, it is imperative that Congress update the
existing     regulatory    framework    particulariy    the    Jo/'n£    DEIVR-DA-PCSD-IVC/P
Admf.ni.sfrafi.ve Order IVo.  7,  sert.es of 2005 and  put into effect the various provisions
of the  Nagoya  Protocol  among  which  are  its  user measures  including  the  tracking
and    monitoring    provisions    and    the    measures    on    the    institutionalization    of
mechanisms   on   access  to   and   the   sharing   of  benefits  from   the   utilization   of
traditional knowledge associated with genetic resources.
As  a  practical  matter,  this  proposed  measure  seeks  to  expand  the  list  of
agencies  that  are  now  mandated  to  tackle  the  issue  of ABS  on  a  regular  basis
especially now that more and more international instruments have incorporated ABS
to enable biodiversityendowed countries like the Philippines maximize the benefits it
may possible get from  the development and  utilization  of its  biological  and  genetic
resources and the associated traditional knowledge therein including the recognition
of digital  sequence  information  or genetic sequence  data  that  is  regularly  used  by
researchers on biological and genetic resources.
As we  speak,  there  are  various  Philippine  genetic  resources that are  being
patented  or are  undergoing  patent application;           a  recent example  involves the
much-publicized Aqu/./aH.a rna//acenst.s,  or agarwood tree species that is endemic to
the country.  If this species is subjected to a patent search,  it appears that there are
currently several patent applications and granted patents a large part of which does
not involve  Filipinos or excludes  Filipinos,  thus giving  basis for asserting that this  is
an  example  of a  species  subjected  to  biopiracy,  the  global  phenomenon  where  a
country's   genetic   resources   or   the   associated   traditional   knowledge   and   its
derivatives,  or the genetic sequence data or digital sequence information therein is
commercialized by outsiders without any economic return going back to the country
of origin or without any participation of the local communities who may have provided
leads for these resources to be identified in the first place.
Truly,  there  are  current  international  agreements  that  seek  to  diminish  the
opportunities for biopiracy, thus enhancing the fair and equitable sharing of benefits
from  the  utilization  of these  biodiversity  resources which was  initially  mandated  by
the   Convention   on   Biological   Diversity.     When  this   is  adequately  pursued   and
consistently sought for by countries rich in biological diversity, then its prospects for
enhancing  its  basic  R&D  capacity and  ability to  use  its genetic  resources  and  the
associated traditional knowledge therein is eventually realized.
Countries such as Brazil and  Peru,  including our Southeast Asian  neighbors
from Viet Nam, Indonesia and Malaysia have taken steps to minimize the opportunity
for instances of biopiracy, by enhancing its existing regulatory frameworks on access
and benefit-sharing from the utilization of their genetic resources and the associated
traditional  knowledge therein, and this was before international  instruments on ABS
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are only lodged within the Convention on Biological Diversity. Through time however,
there were other international instruments that saw fit to pursue ABS internationally,
including the regularization of general policy measures and approaches to deal with
digital sequence information.  .
These   international   instruments   include  the   lntemational   Treaty  on   Plant
Genetic Resources for Food and Agriculture, the United Nations High Seas Treaty or
the  Biodiversity Beyond  National Jurisdiction Treaty and the upcoming World  Health
Organization   (WHO)  convention,   agreement  or  other  international  instrument  on
pandemic  prevention,  preparedness  and  response,  also  known  as  the  Pandemic
Treaty, the negotiation of which is set to be finalized in 2024.
It  is  therefore  imperative  that  the  Philippines  unifies  and  consolidates  its
current  ABS  system  and  optimizes  it  so  that  the  Philippines  can  maximize  the
benefits  it may be  able to  share from  those who  undertake the  utilization  of   these
biological  and  genetic  resources  and  the  associated  traditional  knowledge  therein
including their digital sequence information or genetic sequence data.
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Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Session
HousEBILLNo.9839
Introduced by Rep .  Loreto 8. Acharon,
AN ACT
STRENGTHENING  THE   NATIONAL   POLICY  ON   WEALTH   GENERATION   BY
MAXIIvllzING   THE    BENEFITS    DERIVED    FROIVI   THE    DEVELOPIVIENT   AND
UTILIZATION    OF    PHILIPPINE    GENETIC    RESOURCES    AND    FOR    OTHER
PURPOSES
Sec.1.  Title -This Act shall  be  known  and  refemed  to  as the  "PHILIPPINE
BIODIVERsllY BENEFITS MAXIMIZATION ACT AND FOR OTHER PURPOSES" or
the PBBM Act.
See. 2.  Declaration of Policy -All 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.
Sec. 3. Scope. This Act shall apply to:
(a) Philippine  genetic  resources  and  their  digital  sequence  information   or
genetic sequence data,  whether found  in  Philippine territory  and  in  areas
where the country enjoys sovereign rights and jurisdiction, originating from
the same, or exporfed to other countries for development and utilization; and
(b) Genetic  resources  originating  from  other countries  and  imporfed  into  the
Philippines for development and utilization.
See.  4.  Definition  of Terms - As  used  in this Act,  the following  words  and
phrases shall have the following meaning :
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Sec.  4.  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,   jn  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;
(c)  Biopiracy - the  unethical or unlawiul appropriation or commercial exploitation
of biological  materials  such  as  medicinal  plant  extracts  that  are  native  to  a
particular country or territory without  providing  fair financial  compensation  to
the people of government of that country or territory.
(d) Bioethics -is the study of ethical issue and moral implications emerging from
advances in biology and medicine.
(e) 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.
(f)   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
socioeconomic and cultural standing.
(g) Genetic  material  -  means  any  material  of  plant,  animal,  microbial  or  other
origin containing functional units of heredity.
(h) Genetic resources -means genetic material of actual or potential value.
(i)   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;
0)   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
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Sec.  5.  Policy  Framework    On  Access  and  Benefitlsharing  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.
Sec.  6.  Creation  and  Composition  of  Inter-Agency  Committee  on  Genetic
Resources and Associated Traditional Knowledge.
a)   The   Inter-Agency   Committee   on   Genetic   Resources   and   Associated
Traditional    Knowledge    (Inter-Agency   Committee)    is    hereby   created    to
coordinate   national   government  efforts  to  harmonize,   integrate,   enhance,
implement   and   monitor   compliance   with   treaty,   statutory   and   regulatory
provisions on ABS and utilization of Philippine genetic resources.
b) The Inter-Agency Committee shall be composed of the following offices:
b.1  Department of Environment and Natural Resources (DENR)
a. Biodiversity Management Bureau (BMB)
b. Ecosystems Research and Development Bureau (ERDB)
b.2 Department of Agriculture (DA)
a. Bureau of Fisheries and Aquatic Resources (BEAR)
b.  Bureau of Animal  Industry (BAl)
c. Bureau of Plant Industry (BPI)
b.3 Department of Science and Technology (DOST)
a. Philippine Council for Health Research and Development (PCHRD)
b.  Philippine  Council  for  Agriculture,  Aquatic  and  Natural  Resources
Research and Development (PCAARRD)
c.  Philippine  Council  for  Industry,  Energy  and  Emerging  Technology
and Research and Development
b.4 Department of Health (DOH)
a.    Philippine   Institute   of   Traditional   and   Alternative   Health   Care
(PITAHC)
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b. Food and Drug Administration
b.5 Department of Foreign Affairs (DFA)
b.6 Department of Justice (DOJ)
b.7 Department of the Interior and Local Government (DILG)
b.8 Department of Health
b.9 Department of Trade and Industry
b.10 Palawan Council for Sustainable Development
b.11  National Commission on  Indigenous Peoples (NCIP)
b.12 Intellectual Property Office of the Philippines (lpopHIL)
b.13 National Museum of the Philippines (NM)
b.14 University of the Philippines (UP) System
c)  DENR and  DA shall  be the  Chairperson  and  Co-Chairperson  of the  Inter-
Agency Committee, respectively.
d) Each member Department of the Inter-Agency Committee shall designate a
permanent   representative   with   the   rank   of   Undersecretary   or   Assistant
Secretary.   Member   Bureaus   and   Cffiices   shall   be   represented   by   their
respective Directors and Heads of Office.
e)  The  Inter-Agency  Committee  shall  be  supported  by  a  Secretariat  to  be
headed jointly by BMB and ERDB.
Sec.  7.  Powers  and  Duties  of  the  Inter-Agency  Committee.  The  lnter-
Agency  Committee  shall  have the  power to  issue  rules/guidelines  pertaining  to the
access,  benefit-sharing  and  utilization  of Philippine  genetic  resources,  the  grant of
incentives  under existing  laws,  the third-party  use  in  any  mutually agreed  terms  or
agreements  relating to access and  benefit sharing  involving genetic resources,  and
the standard  procedures and  process flow of national  checkpoint agencies,  among
others. It shall likewise be responsible in the following:
a)  Designation  of Checkpoint  National  Government  Agency  at  any  stage  of
research ,         development,         innovation ,         pre¢om meroialization         and
commercialization of genetic resources and its derivatives including its digital
sequence information or genetic sequence data.
c)  Establishment of the  Philippine Clearing  House and the formulation  of the
Philippine  Clearing   House  Mechanism  which  shall  serve  as  a  means  for
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sharing of information related to access and benefit-sharing and shall provide
access to  information  made available by each  Party to the  Nagoya  Protocol
relevant to the jmplementation of the same;
d)   Creation  of appropriate sub-committees to handle specific concerns such
as   inventory   of   genetic   resources,   ABS   compliance,   monitoring,   wealth
creation, communication, capacity building and technology transfer;
e) Call of other government agencies and instmumentalities to act as resource
person  as  necessary  and  civil  society  organizations,   indigenous  peoples'
organizations,    private    sector    and    members    of   the    academe    in    its
deliberations;
f)  Analysis   and   monitoring   of  technological     and   policy  developments   in
various  international fora  not limited to the Convention on  Biological  Diversity
including  the  International  Treaty on  Plant Genetic  Resources for  Food  and
Agriculture, the High Seas Treaty on Biodiversity Beyond National Jurisdiction
and  the  International  Health  Regulations  of  the  World  Health  Organization
including the outcome of the negotiations relating to the Pandemic Treaty and
other relevant international instruments, processes and mechanisms;
g) Establishment of a (1 ) national inventory of genetic resources within one (1 )
year from the  adoption  of the  implementing  guidelines of this Act,  prioritizing
those   with   potential   commercial   application;   (2)   reporting   mechanism   of
biodiversity   resources   including   genetic/DNA   characterization   of   genetic
resources and other living organisms;  (3) tracking and  monitoring  mechanism
to enhance transparency of utilization  of genetic resources in the  Philippines
taking into account the existing information systems that are in place or under
development at the time of the effectivity of this Act;
h) Strict application of guidelines, processes and protocols on the utilization of
traditional knowledge associated with genetic resources as well as applicable
customary  laws  and  community  protocols  of  indigenous  peoples  and  local
communities, particularly in securing free prior and informed consent; and
i)  Capacity  building  in  the  implementation  of  existing  and  future  policies  in
access,  benefit-sharing and  utilization  of genetic resources and development
of a  sound  and  viable  technological  and  scientific  base  taking  into  account
any   existing    intemational   frameworks   on   ABS   as    provided    by   other
international agreements to which the Philippines is a Party and
j) establishment of any relevant environmental and social safeguards as well
as measures that address matters arising from gender considerations across
the  value   chain   of  the  biological   and   genetic   resources   and   associated
traditional   knowledge   that   may   need   to   be   taken   into   account   in   the
formulation  and  negotiation  of  any  relevant  mutual  agreed  terms  or  ABS
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agreements involving the said resources and associated traditional knowledge
as may be raised by the communities concerned.
Sec.  8.  Designation  of  National  Focal  Point  and  Competent  National
Authorities.  The  BMB  of DENR  shall  continue  to  be  the  Philippine  National  Focal
Point on Access and Benefit Sharing. The designated Philippine Competent National
Authorities  for  access  and  benefit-sharing  and  for  ensuring  Philippine  compliance
with obligations under the CBD and Nagoya Protocol shall be DENR,  DA,  NCIP and
PCSD.
Sec.  9.  Coordination  and  Cooperation  of  Other  National  Government
Agencies.  To  ensure  compliance  with  the  rules  or guidelines  on  access,  benefit-
sharing and utilization of genetic resources, policy and administrative measures shall
be adopted  by the  national government agencies to notify the Access and  Benefit-
Sharing clearing-House created through the Philippine Clearing  House Mechanism.
All  national government agencies with  research and development functions relating
to  genetic  resources  shall  provide  the  Inter-Agency  Committee  with  the  relevant
information  on  the  status  of  researches  with  potential  commercial  application  and
prioritize  studies  aimed  at better understanding  genetic  resources  or  in  developing
commercial products through bio-technology or through other means.
See.  10. Access to Information. Access to information collected by virtue of
this   Act   as   well   as   to   government   research   data   used   as   basis   for   policy
development shall be in accordance with the source agency's People's  Freedom of
Information (Fol) Manual prepared and adopted in accordance with Executive Order
No. 2, series of 2016.
Sec.  1 1 . 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 ageney  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€haring  (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
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regulations  of  existing   agencies  for  this   purpose   shall   be   amended   and
updated accordingly.
Sec.  12.  -   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  including  the  grant  of  the
requisite  free  and  prior  informed  consent  as  provided  by  sec.  35  of the
Indigenous Peoples' Rights Act;
(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.
See.    13.   Voluntary   Benefit€haring   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.
Sec.  14. Appropriations. All concerned government agencies included in the
Inter-Agency Committee shall allocate necessary funds for the implementation of this
Act in  accordance with  regular government budget procedures,  for the first year of
implementation of this Act.  For the subsequent   years, agencies in the  Inter-Agency
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Committee shall  include in their respective programs funding for the implementation
of this Act which shall be included in the Annual General Appropriations Act.
Sec.15. Implementing Rules and Regulations -  Within six (6) months from
the effectivity of this Act, the DENR and DA as Co-Chairpersons of the Inter-Agency
Committee  shall   issue  the  implementing   rules  and   regulations  of  this  Act.   The
Department  of  Environment  and   Natural   Resources  shall  take  the  lead   in  the
implementation of this Act.
Sec.16. -   Penalties -   Except in the relation to plant genetic resources for
food and agriculture covered under the provisions of the international treaty on plant
genetic  resources  for  food   and   agriculture,   including   the   multilateral   system   of
access  and  benefit-sharing  and  its  standard  material  transfer agreement  (SMTA),
specifically Articles 7 and 8 of the SMTA, 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  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.
Sec.17. -  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.
Sec.18.  Effectivify clause -this Act shall take effect fifteen (15) days after
its publication in a newspaper of general circulation in the Philippines.
Approved,
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