Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

Lo, 39068

HOUSE BILL

Introduced by REP. FAUSTINO ‘INNO’ A. DY V

EXPLANATORY NOTE

Bamboo provides economic opportunities for the country, Its versatility enables
it to be a wood substitute for a broad array of use from furniture making to construction
materials, industrial and paper products, and even food. Thus, bamboo, both raw and
processed, has an untapped market that has the potential to propel the agro-forest sector
in the country. Bamboo also provides a cleaner and safer environment for the people by
mitigating deforestation, preventing soil degradation, and acting as a carbon sink.

Despite these advantages and potentials, the bamboo industry remains
underdeveloped. Presently, there is more work to be done to meaningfully support
bamboo farmers, producers, processors, and exporters with concrete policy actions and
fiscal incentives to sustain their enterprise.

Thus, the need to promote a sustainable and integrated development of the
Philippine Bamboo Industry capitalizing on the role of bamboo as a strategic,
indigenous, renewable source of livelihood and too! for both agricultural productivity
and environmental protection and management.

Through this bill, we institutionalize the Philippine Bamboo Industry
Development Council which is a mere creation of an executive order. The PBIDC shall
ensure that the scientific propagation, processing, utilization, and business development
of bamboo will be made a priority through the Philippine Bamboo Industry
Development Program.

The local government units shall also be rallied to ensure a whole-of-government
approach in steering the industry to reach its full potential.

Considering the crucial role of bamboo in helping the country recover from the effects
of the pandemic on our economy, the passage of this bill is earnestly sought.



a,

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STING INNO DYV


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

LNo, 3908

HOUSE BILL NO.

Introduced by REP. FAUSTINO ‘INNO’ A. DY V

AN ACT
PROMOTING THE DEVELOPMENT OF THE BAMBOO INDUSTRY
BY STRENGTHENING THE PHILIPPINE BAMBOO INDUSTRY DEVELOPMENT
COUNCIL, CREATING THE BAMBOO INDUSTRY RESEARCH AND
DEVELOPMENT CENTER, PROVIDING INCENTIVES FOR BAMBOO PLANTATION
DEVELOPMENT, AND APPROPRIATING FUNDS THEREFOR

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 “Philippine Bamboo Industry
Development Act of 2022.”

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

It shall also be the policy of the State to foster a self-reliant and independent economy
that supports indigenous, scientific and technological capabilities, and skills. To this
end, the State shall recognize the strategic importance of the bamboo as a sturdy,
versatile, and replenishable material that can be a sustainable source of livelihood and
catalyst for agricultural productivity.

The State shall likewise ensure the integrated and continuous development of the
Philippine bamboo industry through policies and programs that encourage the planting
of bamboo, accelerate the development of bamboo-based products and designs, and
promote Philippine bamboo products in international markets. It shall establish a
program for a sustainable utilization, propagation and promotion of bamboo as furniture,
food, construction and design material, and other uses


SECTION 3. The Philippine Bamboo Industry Development Program
(PBIDP).—The PBIDC shall formulate the Philippine Bamboo Industry Development
Program which shall include programs and projects for the scientific propagation,
development and management, processing, utilization, business development, and
commercialization of Philippine bamboo and bamboo products, through the cooperation
of all stakeholders of the industry that include producers of raw materials, processors,
marketing and promotion service providers, and concerned national agencies and local
government units (LGUs).

SECTION 4. Objectives of the Philippine Bamboo Industry Development
Program. ~ The PBIDP shal! aim to make the Philippine bamboo industry competitive
in the local and global markets and provide opportunities for local employment and the
establishment of bamboo-based community enterprises. The PBIDP shall:

a) Ensure that the bamboo industry has sufficient quality raw materials through the
establishment and management of bamboo nurseries and plantations;

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

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

d) Promote investment in the bamboo industry by establishing bamboo plantations
and bamboo processing operations, and providing substantial incentives to

investors;

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

f) Provide continuous training and capacity building in the bamboo industry
development;

g) Ensure provision of locally manufactured machines of improved capacity and
quality at competitive costs;

h) Ensure access to markets of bamboo products locally and globally; and

i) Ensure sustainable resources for implementing the bamboo industry development
program.

SECTION 5. Role of the Philippine Bamboo Industry Development Council
(PBIDC). ~ The Philippine Bamboo Industry Development Council (PBIDC), created
under Executive Order No. 879, series of 2010, hereinafter referred to as the Council
shall provide the overall policy and program directions of various agencies and
instrumentalities to ensure the implementation of the Philippine Bamboo Industry
Development Program (PBIDP).

The Council shall be administratively attached to the Department of Trade and Industry
(DTI) and shall now be composed of the following:

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

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

f) Secretary of the Department of Labor and Employment (DOLE);

g) Executive Director of the Bamboo Industry Research and Development Center;

h) Chairperson of the National Commission of Indigenous Peoples;

i) National President of the Union of Local Authorities of the Philippines;

j) Two (2) Representatives from Non-Government Organizations;

k) One Representative from a reputable private industry association; and

1) One Representative each from the Bamboo Farmers, the Bamboo Manufacturers,
and the Bamboo Processors’ Associations.

The PBIDC shall promulgate such rules and regulations as may be necessary for the
attainment of the objectives of this Act.

SECTION 6. Bamboo Industry Research and Development Center (BIRDC). ~ The
Bamboo Industry Research and Development Center, hereinafter referred to as the
Center, is hereby created to serve as the secretariat of the Council to be headed by an
Executive Director. The Center shall consist of divisions as may be necessary to ensure
the effective implementation of the goals and objectives of the Center, including the
following functions: research and development; trade promotion and education;
networking and linkages; internal administration and finance; and such other divisions as
may be necessary.

‘The organizational structure, staffing pattern and compensation schedule of the Center
shall be prepared in accordance with existing laws, rules and regulations. Other member
agencies of the Council shall provide additional administrative and technical staff
support to the Center upon the determination by the Council of the necessity for such
augmentation.

a) The Center shall perform the following powers and functions:

b) 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;

Promote the commercialization and market access of appropriate, innovative and
viable bamboo industry development technologies and products;

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

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

{) 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;

Accept grants, donations and contributions from local and international donors
and such similar sources of funds for the implementation of the provisions of
this Act, subject to the usual budget, accounting and auditing rules and
regulations;

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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;

k) Manage and administer the projects identified by the Council;

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

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

SECTION 7. The Executive Director of the Center. The Executive Director shall be
appointed by the Chairperson of the PBIDC with the approval of the Council. The
Executive Director shall be a citizen and resident of the Philippines and must possess
executive and management experience of at least three (3) years, and considerable
knowledge about the bamboo industry.

In addition, the Executive Director shall have the following powers and functions:
a) Oversee the day-to-day operations of the Center;
b) Provide technical and administrative support to the Council;
c) Assist the Council in the performance of its tasks; and
d) Perform such other functions, duties and responsibilities as may be necessary to
implement this Act.

SECTION 8. Support to the Program by Local Government Units. — Local
government units (LGUs) shall participate in the implementation of the PBIDP. Each
LGU shall establish a Bamboo Industry Development Council and shall endeavor to
capacitate agricultural workers and encourage entrepreneurs to acquire the needed
competencies in harvesting and post-harvesting operations

Provincial governments shall formulate and implement their respective bamboo industry
development programs within two (2) years from the enactment of this law.

SECTION 9. Incentives for bamboo in plantation development. The following
incentives shall be provided to investors in bamboo plantation development:

a) Exemption from the payment of rent for the use of government lands for
commercial

b) bamboo plantation for the first five (5) years of operation reckoned from the date
of

¢) the first harvest of the plantation;

d) Exemption of private plantations from the requirements to secure a cutting
permit for

e) the harvesting of bamboo and a transport permit for as long as the plantation is
registered with the Community Environment and Natural Resources Office
(CENRO)



f) of the DENR: Provided, that the plantation owner shall inform the CENRO about
the

g) date of harvest, and the estimated volume of the harvest. Inventory of the

plantation prior to harvest shall not be required. All CENROs shall approve and

enter into a registry, the names of private bamboo plantation investors;

Exemption from the payment of forest charges and other fees for taxes that local

government units may impose;

i) No inspection of harvested bamboo at checkpoints;

j) Access to development loans from public financial institutions for
plantation developers;

k) Insurance coverage of plantations and plantation development equipment by the
Philippine Crop Insurance Corporation (PCIC);

1) Tax free importation of plantation development equipment, including tree nursery
facilities, pursuant to Republic Act No. 10863, otherwise known as the Customs
Modernization and Tariff Act (CMTA);

m) Expenses incurred for plantation operations 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;

n) 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;

0) Prioritized access for plantation developers to credit assistance from

government- owned, controlled and/or supported financial institutions;

Acceptance of plantation as collateral for loans in government owned or

controlled banks;

q) For tenured developer, entitlement to fair compensation upon the premature
termination of the agreement at no fault of the holder: Provided , that all
depreciable permanent and semi-permanent improvements such as roads,
buildings, and nurseries including the planted and standing trees and other forest
crops introduced and retained in the area, shall be properly evaluated: Provided
further, that the amount of compensation shall be mutually agreed upon by both
the Department and the tenure-holder: Provided finally, that in case of
disagreement between them, the matter shall be submitted to arbitration by a
mutually acceptable and impartial third party adjudicator;

1) Exportation of bamboo culms from plantation without restrictions in volume;

s) Tax free importation of processing equipment by processors engaged in bamboo

industry, pursuant to Republic Act No. 10863, otherwise known as the Customs

Modernization and Tariff Act (CMTA); and

Inclusion in the annual investment program of the National Economic

Development Authority of industrial bamboo plantations in forest lands and

priority access to funds from external and internal sources.

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SECTION 10. Appropriations. — The funds necessary to carry out the initial
implementation of this Act shall be charged against the current year’s budget of the DTI.
Thereafter, such sums as may be necessary for the continued implementation of this Act



shall be included in the annual General Appropriations Act.

SECTION 11. Implementing Rules and Regulations. — Within sixty (60) days after
the effectivity of this Act, the DTI-PBIDC shall, in coordination with the DENR, and
DOST promulgate the rules and regulations to implement this Act.

SECTION 12. Separability Clause. — If any provision of this Act or part hereof is
declared invalid or unconstitutional, the other provisions not affected by such
declaration shall remain in full force and effect.

SECTION 13. Repealing Clause. — All laws, executive and administrative orders, rules
and regulations inconsistent with this Act are hereby repealed or amended accordingly.

SECTION 14. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,