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EIGHTEENTH CONGRESS = DATE Peco 15, 2021 (|
REPUBLIC OF THE PHILIPPINES } ey & Toy pm yy
Third Regular Session ) on Bei

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez
House Bill No.10636

Wo INES

EXPLANATORY NOTE

The success of participating in domestic and international markets and giobai vaiue
chains is largely dependent on the quality of products and services. In most countries, the
capacity to develop globally competitive products and services and assist industries in
complying with local and international market requirements is increasingly becoming a priority
for economic growth. To this end, the existence of an effective national quality infrastructure
(NQI) is necessary. The Philippines has long struggled with weak and fragmented national
quality institutions as well as inconsistent policies on promoting a culture of quality. And one
of the reasons for this is the lack of a National Quality Policy that would prescribe commitment
from government, medium- to long-term objectives, interrelationship with reguiators and
industries, action plans, and funding. Institutionalizing the National Quality Policy enables the
government to build a system of trust, create a culture of quality and safety, and promote the
value of accreditation.

The proposed bill aims to develop this much-needed National Quality Policy and build
a robust NQI as embodied under the Philippine Development Plan (PDP) 2017-2022. Chapter
9A of the PDP 2017-2022 includes in the legislative agenda to expand economic opportunities
in industry the pursuance of the passage of an NQI law. Through the passage of such law, the
government shali set up the NQi to integrate series of activities involving metrology,
standardization, testing, accreditation, and certification. It shall serve to coordinate policies
and programs to meet quality requirements for products and services with the goal of
Promoting innovation, competitiveness, sustainable development, and compliance with
international commitments.

There is thus an urgent need to reassess the current landscape of our fragmented NQI
institutions, programs, and policies, and to harmonize the same in order to promote and
institutionalize cooperation and coordination between the various local, regional, and
international NQi bodies. it is nigh time for the country to develop a robust NQI that is unified,
responsive, and sustainable. Unified in the sense that its components work together as a
system in a coherent manner to support industry efficiency and effectiveness, consumer
protection; and the people's need for NI services. Responsive in addressing the needs of
industry, regulators, and Filipino peopie. And finally, sustainable enough to keep up and
continuously carry on the work. The proposed bill seeks to accomplish this by establishing the
Philippine National Quality Infrastructure Coordination Council, which will serve as the lead
policy body for developing a Philippine National Quality Policy, and providing the needed
direction and order to our NQi landscape.

Understanding the importance of NQI is understanding that it is present in every
‘system and in our daily lives — from the light bulbs in our homes to the food we consume and
export, NQI exists.

in view of the foregoing, the approval of this measure is earnestiy sought.

RUFS B. RODRIGUEZ

J



EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
Third Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriquez

House ili No. 10636

AN ACT
TO DEVELOP A NATIONAL QUALITY POLICY DEFINING THE PHILIPPINE NATIONAL
QUALITY INFRASTRUCTURE (NQI) THEREOF, CREATING FOR THIS PURPOSE, THE
PHILIPPINE NATIONAL QUALITY INFRASTRUCTURE COORDINATING COUNCIL

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

SEC. 1. Title. — This Act shall be known as the “National Quality Infrastructure Development
Act’

SEC. 2. Declaration of Policy. - Itis declared the policy of the State to adopt a culture of quality
among its citizens to encourage competitiveness among firms, to facilitate trade, and to
promote consumer welfare in accordance with good regulatory practices.

The State shall adopt and strengthen its quality infrastructure network that would
support national policies and strategies on economic development, industrialization, trade and
investments, ease of doing business, consumer protection, and environmental protection,
While adhering to international best practices and international standards.

The State recognizes the critical role of the private sector in the national quality
infrastructure, and shall promote a transparent, participatory, coherent, and efficient
mechanism to enable businesses to effectively comply with market requirements and
consumer needs.

Pursuant thereto, the State shall also develop a National Quality Policy (NQP) that will
further strengthen the Philippine National Quality Infrastructure (NQI) to provide the necessary
institutional apparatus so that the country’s private sector can produce products and services
of a prescribed national or international standard; and the verification of conformance to these
standards can be achieved by internationally accepted means.

It is hereby declared the policy of the State to harmonize the fragmented quality
programs and policies, as well as institutionalize effective cooperation and coordination
among the NQJ institutions in the country, as weil as with their regional and international
counterparts. The NQI shall serve both the regulatory authorities and the market place in order
to comply with the State's constitutional mandate to protect consumer rights and encourage
industries and other organizations to adopt quality improvements and best practices into their
day-to-day activities.

SEC. 3. Coverage. - This Act shall apply to activities, processes, programs, and to public and
private institutions relevant to standards, accreditation, metrology, conformity assessment,
and other matters incidental thereto.

SEC. 4. Definition of Terms. — For purposes of this Act, the following terms are defined as
follows:

a) Accreditation refers to a third-party attestation conveying a formal

‘demonstration of the competence of a conformity assessment body to carry out


b)

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specific conformity assessment tasks. it provides a basis for uniform technical
policy and conditions for mutual recognition at the international level;
Calibration refers to the operation that is used to establish that the measuring
instruments used remain accurate within specified parameters;

Certification refers to a third-party attestation of conformance to standards,
technical regulations, other specified requirements or guidelines related to
products, processes, systems or persons. This can be accomplished by
conducting inspection, verification, audit and/or testing;

Conformity Assessment refers to the demonstration that specified
requirements relating to a product, process, system, person or body are
fulfilled;

Conformity Assessment Body refers to a body that performs conformity
assessment activities and that can be the object of accreditation;

Culture of Quality refers to the set of group values that guide how
improvements are made to everyday working practices and consequent
outputs;

inspection refers to the examination of a product, process, service, or
installation, or their design and determination of its conformity with specific
requirements or, on the basis of professional judgment, with general
requirements;

Metrology refers to the science of measurement and its application, which
includes all theoretical and practical aspects of measurement;

National Quality Infrastructure (NQI) refers to policy, legal, regulatory, and
administrative frameworks, and the institutional arrangements, public and
private, to implement standardization, accreditation, and totality of the testing,
certification, and measurement necessary to provide acceptable evidence that
products and services meet the defined government and market standards.
National Quality Policy (NQP) refers to the basic government instrument for
establishing and overseeing the quality infrastructure system;

Philippine National Standard (PNS) refers to a document established by
consensus and promulgated by the Bureau of Philippine Standards, which
provides, for common and repeated use, rules, guidelines, or characteristics
for activities or their results which aim at the achievement of the optimum
degree of order in a given context;

Quality refers to the degree to which a set of inherent characteristics fulfill
requirements;

‘Standard refers to the document approved by a recognized body that provides
for common and repeated use, rules, guidelines, or characteristics for products
or related processes and production methods, with which compliance is not
mandatory. It may also include terminology, symbols, packaging, marking, or
labelling requirements as they apply to a product, process, or production
method;

Standardization refers to the process of developing technical specifications of
standards based on consensus among all interested parties, consumers, trade
associations, manufacturers and providers of goods and services, non-
governmental organizations (NGOs), and government agencies and
instrumentalities;

Testing refers to the determination of a product's characteristics against the
requirements of the standard;

SEC. 5. Philippine National Quality Policy. - a Philippine National Quality Policy shall be

developed to

ensure that Philippine products and services are globally accepted; earn a

reputation of highest quality in terms of safety, standards, and acceptability; promote a national
culture of quality among the citizenry; and that Philippine goods and services are designed,
manufactured, and supplied in a manner that fully matches or exceeds the needs,


expectations, and requirements of the retailers, purchasers, consumers, and regulatory
authorities in the local, regional and international markets.

The National Quality Policy shall define the National Quality Infrastructure in
accordance with the objectives set forth in this Act.
SEC. 6. Scope of the NQI, The NQI shall prescribe the policy, regulatory, and legal frameworks
on Standardization, Accreditation, Metrology, and Conformity Assessment that shall be
defined in the implementing rules and regulations of this Act.

SEC 7. Institutional Arrangements. To achieve the objectives set forth in this act, there is
hereby created a Philippine National Quality Infrastructure Coordination Council (PNQICC),
herein referred to as the Council.
The Council shall be composed of the following:
a) The Department of Trade and industry (DT!) Secretary and Department of
Science and Technology (DOST) Secretaries as Co-Chairpersons;
b) A representative of the private sector as Vice-Chairperson;
¢) The Secretary of the Department of Budget and Management (DBM);
) The Secretary of the Department of Agricuiture (DA)
e) The Secretary of the Department of Energy (DOE);
f) The Secretary of the Department of Environment and Natural Resources
(DENR);
@) The Secretary of the Department of information and Communications
Technology (DICT);
h) The Secretary of the Department of Finance (DOF);
i) The Secretary of the Department of Health (DOH);
}) The Secretary of the Department of Tourism (DOT);
k) The Department of the Department of Public Works and Highways (DPWH);
1) The Director-General of the National Economic and Development Authority
(NEDA);
m) A representative of the Union of Local Authorities of the Philippines (ULAP);
n) Four (4) members from the private sector who shall represent exporters,
manufacturers, importers, and consumers;
©) A representative of the academe or research institutions;

The DTI and DOST Secretaries may designate the appropriate Undersecretary as their
alternate, and the other ex-officio members may designate an alternate with the rank not below
the rank of Director.

The President shall appoint the Vice-Chairperson from the nominees submitted by
reputable business groups or associations.

‘A permanent secretariat shall be organized by the DTI to assist the Council in the
discharge of its functions.

SEC. 8. Functions of the Philippine National Quality infrastructure Coordination Council. The
Council shall perform the following functions:

a) Formulate and adopt a Philippine National Quality Policy pursuant to Section 5 of this
Act;

ib) instil a culture of quailty in ail levels of society, at the individual and institutional levels,
through an effective information, education, capacity building, and communication
campaign to relevant regulatory bodies and to the public;

©) Ensure the adoption of good regulatory practices and policy cohesion by NQI
institutions and in the delivery of NQi services, as well as in the development and
promotion of programs and projects;

d) Create committees or technical _—_working groups and request the
participation, assistance and cooperation of government agencies, industry
associations, consumers, the academe, and other stakeholders, if necessary for the
performance of its functions and the attainment of the objectives of this Act;


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Identify the roles and contribution of government agencies, the private sector, industry
associations, non-government organizations, and other stakeholders in attaining the
vision and adhering to the principles prescribed in this Act;

Coordinate and support programs, projects, and activities that will foster the
development of a responsible and sustainable NQI, such as but not limited to improving
and increasing the availability of experts, technical assessors, laboratories, calibration
services, and product certification bodies, among others;

Provide direction and order, and encourage the participation of the public and private
sectors in conformity assessment activities and mechanisms as a means to
demonstrate compliance with voluntary and mandatory requirements to public and
private sectors;

Promote the adoption of quality management practices and necessary training to those
in charge of the production and commercialization of goods and services in the country;
Promulgate rules to enable the NQI institutions under its direction to offer technical
support to relevant industries;

Ensure that standardization, accreditation, and metrological processes are in line with
and comparable to international best practices;

Ensure the proper promulgation of all standards created by other agencies and
instrumentalities of the government, and perform standardization functions over
conformity assessment bodies in the country;

Direct the development of the National Standardization Strategy and the National
Accreditation Strategy, with the involvement of all stakeholders;

m) Ensure that the country participates in regional and international standardization efforts

n)

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and accreditation activities, arrangements, and fora;

Support the formation of cooperation and conclusion of mutual recognition
arrangements and agreements with national, regional, and international organizations;
Promote the recognition of accreditation among regulatory agencies by:

i. Requiring their testing and calibration laboratories, inspection bodies and
certifying bodies to seek accreditation;

ii, Requiring government agencies to utilize the services of test and calibration
laboratories, inspection bodies, certification bodies and other conformity
assessment bodies that are accredited by the Accreditation Philippines or a
signatory member of the Asia Pacific Accreditation Cooperation (APAC),
International Accreditation Forum (IAF), International Laboratory Accreditation
Cooperation (ILAC), and International Halal Accreditation Forum (IHAF);

iii, Establishing agreements, Memorandum of Understanding (MoU) and Mutual
Recognition Arrangement (MRA) with regulatory bodies, other accreditation
bodies, signatory members and other interested parties

Ensure the maintenance and continuous update of the national measurement
standards in all relevant fields for the Philippines, guaranteeing that all metrological
laboratories, infrastructure, equipment, instruments, artifacts, reference standards,
and other similar articles are in good condition, internationally compliant, and reliant
and other qualities that may be required in the future;

Provide metrological traceability to the Intemational System of Units (SI) for
measurements used in regulations, trade, and manufacturing;

Engage and coordinate research and development work with other local
institutes/bodies having metrological responsibilities (radiation, standard time and
dissemination, etc.);

Exercise responsibility for legal metrological controls in the country through
coordination with other executive branches of government,

Ensure uniformity of metrological procedures in the same prescribed manner of their
implementation; and

Perform such other functions as may be necessary, incidental, or proper to its
mandate.


SEC. 9. Role of NQI Institutions. - Under the direction of the Philippine National Quality
Infrastructure Council, all existing NQI institutions involved in standards development,
accreditation, metrology, and conformity assessment shall continue to perform the mandates
‘and functions assigned to them by their respective enabling laws, including but not limited to:
a) Department of Agriculture (DA)
i. Bureau of Agriculture and Fisheries Standards (BAFS) pursuant to Republic
Act No. 8435;

ii. National Meat Inspection Service (NMIS), pursuant to Republic Act No. 9296;
Department of Environment and Natural Resources (DENR), pursuant to Executive
Order No. 192, series of 1987;

Department of Information and Communications Technology (DICT)
i. National ICT Planning Policy and Standards Bureau (NIPPSB), pursuant to
Republic Act No. 10844;
Department of Energy (DOE)
i. Energy Research and Testing Laboratory (ERTL), pursuant to Administrative
Order No, 38, series of 2002;
ji, National Renewable Energy Board (NREB), pursuant to Republic Act No. 9513;
iii, Oil Industry and Management Bureau (OIMB), pursuant to Republic Act No.

b)

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Department of Health (DOH)
i. Food and Drugs Administration (FDA), pursuant to Republic Act No. 9711;
f) Department of Science and Technology (DOST)
i. Forest Products Research and Development Institute (FPRDI), pursuant to
Executive Order No. 128, series of 1987;
ji, Industrial Technology Development Institute (ITDI), pursuant to Executive
Order No. 128, series of 1987;
iii, Metals Industry Research and Development Center (MIRDC), pursuant to
Republic Act No. 4724;
iv. National Metrology Laboratory (NML), pursuant to Republic Act No. 9236;
Department of Tourism (DOT)
i. Office of Tourism Standards and Regulations, pursuant to Republic Act No.
9593;
Department of Transportation (DOTr)
i. Land Transportation Franchising and Regulatory Board (LTFRB), pursuant to
Executive Order No. 202, series of 1987
i) Department of Public Works and Highways (DPWH)
i. Bureau of Research and Standards (BRS), pursuant to Executive Order No.
292, series of 1987;
}) Department of Trade and Industry (DT!)
i. Bureau of Philippine Standards (BPS), pursuant to Republic Act No. 4109;
ii, Philippine Accreditation Bureau (PAB), pursuant to Executive Order No. 602,
series of 2009;
k)_ National Commission of Muslim Filipinos (NCMF), pursuant to Republic Act No 9997;
1) National Water Resources Board (NWRB), pursuant to Presidential Decree No. 1067,
s. 1976; and
m) Local Government Units, pursuant to Republic Act No. 7394

e)

9

h

SEC. 10. Appropriations. — The amount necessary for the conduct of activities and projects of
the Council to effectively perform its mandated functions under this Act, shall be sourced from
the budgets of the different government departments tasked to implement the same.

SEC. 11. Implementing Rules and Regulations. - Within sixty (60) working days from the
effectivity of this Act, the Department of Trade and Industry (DT!) and Department of Science
‘and Technology (DOST), in consultation with the DBM, DOF, NEDA, and other relevant
stakeholders shall issue the implementing rules and regulations of this Act.


SEC. 12. Separability Clause. — It any provision of this Act Is declared invalid or
unconstitutional, the other provisions not affected by such declaration shall remain in full force
and effect.

SEC. 13. Repealing Clause. — All provisions of other laws, presidential decrees, issuances,
executive orders, letter of instructions, administrative orders, rules or regulations which are
contrary to or inconsistent with the provisions of this Act are hereby deemed repealed,
modified, or amended accordingly.

SEC. 14, Effectivity. - This Act shall take effect fifteen (15) days following its publication in at
least two (2) newspapers of general circulation in the Philippines, and the filing of three (3)
certified copies hereof with the Office of the National Administrative Register (ONAR) of the
University of the Philippines (UP) Law Center, Diliman, Quezon City, pursuant to Presidential
Memorandum Circular No. 11 dated 09 October 1992.

Approved,