Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

3309

House Bill No.

Introduced by REP. CAMILLE A. VILLAR

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

EXPLANATORY NOTE

The Philippine government has been supporting the production and
development of bamboo in the country in recent years. In May 2010, Executive
Order (EO) No. 879, series of 2010 was issued creating the Philippine Bamboo
Industry Development (PBID) Council and directed the use of bamboo for at least
twenty five percent (25%) of desk and other furniture requirements of public
elementary and secondary schools and prioritizing the use of bamboo in furniture,
fixtures and other construction requirements of government facilities. Thus, bamboo
was tapped as the main material to substitute for the reduced supply of wood
government facilities. E.O. 879 was reinforced by Memorandum Circular No. 30 s.
2012, which directed the full implementation of the Philippine Bamboo Industry
Program.

In February 2011, Executive Order No. 26, series of 2011, which declaring an
interdepartmental convergence initiative for a National Greening Program to plant
15 billion trees covering 1.5 million hectares for a period of six (6) years from 2011
to 2016 in lands of the public domain, was issued by then President Aquino. This is
in response to worldwide concern on global warming as the country intended to
contribute to the Asean commitment of 20 million hectares of new forest by 2020
through reforesting over 500,000 hectares with bamboo. The administration's
environmental initiative, has a total budget of P28.8 billion (§59.37million) from 2011
to 2016.


On November 12, 2015, EO No. 193, series of 2015 was issued expanding
the coverage of the National Greening Program since there is still an estimated 7.1
million hectares of unproductive, denuded and degraded forestlands needing
reforestation and rehabilitation in order to arrest the environment-related risks such
as soil erosion, landslides, and flooding. The EO specified that the government shall
involve the participation and investment of the private sector with a view towards
enabling private companies to achieve carbon neutrality; and consistent with the
updated Master Plan for Forestry Development (2016 — 2028), there is a need to
harmonize all forest development activities that will encourage and enhance
development of forest plantations and parks, with greater participation from the
private sector, local government units and organized upland communities.

The Forest Products Research & Development Institute (FPRDI) of the
Department of Science and Technology (DOST) said that bamboo is one of the most
economically-important non-timber forest products in the Philippines. Its fast growth
and excellent properties make it an ideal substitute to wood for furniture, handicrafts,
construction material, and chemical products. Bamboo utilization is geared to exploit
its use as substitute to wood. The DOST- PCAARRD boosted the value of bamboo
by completing a study on mainstreaming engineered-bamboo products as raw
materials for construction and furniture, through appropriate S&T interventions in
processing, machine engineering and design, capacity building and marketing.

The Department of Trade and Industry through the years has been providing
MSMEs across the country access to better technology and more sophisticated
equipment through shared services facility (SSF) that could boost productivity and
improve efficiency. The SSF program addresses both the gaps and bottle necks in
the value chain of priority industry clusters, while increasing agriculture and rural
based MSMEs’ reach and profit.

Through concerted efforts from relevant stakeholders, the Philippines was
able to increase its share in the global market for bamboo. Based on figures from the
Philippine Bamboo Industry Cluster Report, the global market for bamboo rose to
US$17 billion in 2015 from US$7 billion in 2009. Of this market growth, the
Philippines generated P306.3 million in investments, P261.8 million worth of sales,
and created 13,103 jobs from 2012-2014.’ The country was ranked as the Sth
largest bamboo exporter in the world in 2010, next to China, EU, Indonesia, and
Vietnam. Its total exports of bamboo reaches about $30 million annually, which
represents a mere 10 percent of what the US, the world's leading bamboo importer,
buys annually from China, which amounts to about $300 million.

The Philippines has an edge in design and craftsmanship and the local
bamboo sector can be further developed. The honing of the Filipino capacities and

DTI Corner. MSMES to advance local bamboo industry. The Freeman. 23 February 2016
z


skills and providing them with global perspective will definitely help our bamboo
industry become a major revenue and employment generator.

Still the main challenges in developing the Bamboo Industry is the lack of land
planted with it. There are about 8,500 hectares devoted to Bamboo cultivation, with
four economically viable species — the Kawayan Tinik, Giant Bamboo, Buho, and
Bolo. According to the DTI, while 8,500 hectares is a significant number, the huge
demand for bamboo requires more coverage. The bamboo industry could also use
incentives and develop a comprehensive database of the industry to encourage
more investors in plantation development and processing plants.

Stronger convergence programs and cooperation among the government,
private sector and other stakeholders are needed.

A bamboo industry development program should be institutionalized to bring it
to a more efficient, transparent, and effective service delivery set-up. The task is not
yet completed. The Philippines still has more international markets to reach to
‘showcase its fine crafted furniture and products, it needs to still create more jobs for
the rural folks, and it has to protect the environment still for the harsher climatic
conditions to come.

| therefore recommend the early approval of the bill.

cd Wor
CAMILLE A. VILLAR
Representative
Lone District, Las Pifias City


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 3309

Introduced by REP. CAMILLE A. VILLAR

AN ACT
INSTITUTIONALIZING THE 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 shalll 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, food 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;


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c) 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

e) 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 various applications (plywood, composites, pulp and paper,
bamboo arts, and other architectural applications).

Sec. 4. Objectives. - 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 ofbamboo 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;

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;

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 advance market access for Philippine bamboo and bamboo products
locally and internationally;


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h) Providing access to markets of bamboo products locally and
internationally through aggressive trade promotions; and

i) Ensuring sustainable resources in the implementation of the bamboo
industry development program.

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 number of bamboo nurseries with quality planting materials;

b) Ensure the propagation, breeding, site species matching and plant
nutrition;

c) 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 forest lands;

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 available to the bamboo industry relevant and current research and
technological information and new product lines;


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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. 6. Philippine 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 attached to the Department of Trade and
Industry (DTI).

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;

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

c) 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;

e) 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

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 of the Council. - The Council shall be composed of the
following:

a) Secretary of the Department of Trade and Industry (DTI) as the
Chairperson;


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b) Secretary of the Department of Environment and Natural Resources
(DENR);

c) Secretary of the Department of Agriculture (DA);

d

Secretary of the Department of Science and Technology (DOST);
e) Secretary of the Department of Labor and Employment (DOLE);

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

g) 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; and

i) One (1) representative from non-government 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.

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 non-
government 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.

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.


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Sec. 9. Bamboo Industry Research and Development Center (BIRDC). - 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;

c) Monitor and evaluate the performance of bamboo industry development
programs and projects;

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

e) Coordinate and partner with the private sector, people’s organizations and
non- governmental 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;

g) Conduct, in cooperation or partnership with appropriate government
agencies, a periodic review of the Philippine Bamboo Industry Development
Roadmap;

h) Conduct capability-building initiatives for farmers, processors, designers,
and other stakeholders in the bamboo industry;

i) Conduct research and development in partnership with appropriate
government agencies to advance sustainable bamboo industry development
practices;

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 appointed 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;
b) Provide technical and administrative support to the Council;
c) Oversee the day-to-day operations of the Center; and

d) Perform such 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
respective local Bamboo Industry Development Councils. Local government units
shall regularly conduct 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 investors in plantation development and bamboo processing factories:

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 concerned government agencies.

c) Plantation owners in public lands shall be exempt from the payment of
forest charges imposed by national government and other fees or taxes imposed by
local government units;


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d) Plantation owners, including nursery facilities, bamboo processing, and
other related businesses shall be exempt from the payment of import duties for
imported machines and equipment subject to pertinent rules and regulations;

e) 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;

f) 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 not require a cutting permit for harvesting nor
shall it need a transport permit. Provided, that such plantation is registered with the
Community Environment and Natural Resources Office (CENRO) of the Department
of Environment and Natural Resources (DENR).

h) Bamboo plantations and plantation development equipment shall be
covered by the Philippine Crop Insurance Corporation;

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

j) The bamboo plantation developer and bamboo processors shall be given
priority to access credit assistance and guarantee schemes being granted by
government-owned, controlled and/ or -supported financial institutions;

k) For tenured developer, upon the premature termination of the tenurial
agreement at no fault of the holder, all capital improvements, depreciable permanent
and semi-permanent improvements such as roads, buildings, nurseries including the
planted and standing bamboo and other intercrops, introduced and to be 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

1) The export of bamboo poles shall be regulated by the Council while other
bamboo products, may be exported without restrictions in volume.

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 of the fund is for research and
development, trade promotion, credit, human resource development in the bamboo
industry and for the welfare of farmers, workers, processors and other stakeholders.

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The Trust Fund shall be capitalized, managed, utilized and accounted for in the
manner provided under this Act.

Upon approval of this law, the Office of the President through Philippine
Amusement and Gaming Corporation (PAGCOR) shall allocate One Hundred Million
Pesos (PHP100,000,000.00) as initial funding for the Trust Fund for the
implementation of this Act. Thereafter, the amount of not less 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 Center.

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.

Sec. 14. Appropriations. - The sum of One Hundred Million Pesos (PHP
400,000,000.00) 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
Center shall be included in the annual GAA. The budgetary requirements of
cooperating agencies shall be incorporated in their respective annual budgets. Sec.
45. Implementing 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.

Sec. 15. Separability Clause. - If any portion or provision of this Act is
declared unconstitutional or invalid, the remainder of this Act or any provisions
hereof not affected thereby shall continue to be in force and effect.

Sec. 16. Repealing Clause. — Any law, presidential decree or issuance,
‘executive order, letter of instruction, rule or regulation inconsistent or contrary to the
provisions of this Act is hereby repealed or modified accordingly.

Sec. 17. Effectivity. —This Act shall take effect after fifteen (15) days following
its complete publication in the Official Gazette or a newspaper of general circulation.

Approved,