Republic of the Philippines
House of Representatives
Quezon ity, Metro Manila
EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 7728

INTRODUCED BY
REP. ALFRED VARGAS

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

EXPLANATORY NOTE

The Philippines has the potential to become the second-largest
bamboo producer in the world with the abundance of bamboo species
growing within its territory. In 2009, the Philippines ranked sixth as the
biggest exporter of bamboo products in the world, with a total export value
reaching $30 million. Economically, this plant has been proven to be a
sustainable alternative to wood as it can reach maturity in five years and
can be harvested once every two years for about 100 to 120 years.
Environmentally, the bamboo has also been showcased as a strategic tool to
mitigate the effects of climate change.

This bill seeks to promote the sustainable management and proper
utilization of the country’s bamboo resources. It shall provide guidelines for
massive bamboo reforestation and rehabilitation projects, education and
awareness-raising campaigns, adequate technology transfer mechanisms,
and capacity-building programs for Filipinos in the bamboo industry. These
capacity-building programs range from support services to incentives to
bamboo farmers and exporters, among others, while also promoting
research on the versatility and marketability of bamboo products.

In view of the foregoing, the immediate passage of this bill is
earnestly sought.

FRED VARGAS


Republic of the Philippines
House of Representatives
Quezon City, Alotro Manila
EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 1728

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
INSTITUTIONALIZING BAMBOO INDUSTRY DEVELOPMENT IN THE
PHILIPPINES, CREATING THE BAMBOO INDUSTRY DEVELOPMENT
CENTER (BIDC), 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."

SECTION 2. Declaration of Policy. - The State shall provide for a self-
reliant and independent economy for its people. It shall support indigenous,
scientific and technological capabilities, and skills. It shall establish a
program for sustainable consumption, production, propagation and
promotion of bamboo as furniture, 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.

SECTION 3. Definition of Terms. — As used in this Act:

(a) Bamboo - refers to a tropical or semi-tropical fast-growing grass
usually having hollow culms and lignocellulose matrix;

(b) 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;

(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 Industry Development Roadmap - shall provide specific
programs and projects, including the timeline for the propagation,
development and management, processing, utilization, business
development, and commercialization of the Philippine bamboo and
bamboo products. It shall contain a comprehensive national industrial
strategy for the Philippine bamboo industry;

(e) Bamboo Processing - conversion of bamboo for various products and
applications including walls, panels, trusses, handicraft, consumer
products (tooth brush, tissues, toothpicks, and chopsticks among
others) 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); and

(f) 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.

SECTION 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) Promoting the integrated and holistic development of the bamboo
industry in various aspects of research, production, processing,
marketing, consumption, capacity building, and regulation;

(b) Ensuring that the bamboo industry has sufficient supply of quality
raw materials through the establishment and management of bamboo
nurseries and plantations;

(c) Ensuring that relevant and accurate data on the bamboo industry are
collated and published by the Center created under Section 7 of this
Act, in cooperation with various government agencies, private entities
and other relevant sources, to aid in business decisions related to the
industry;

(4) Promoting investments in the bamboo industry by providing
substantial and attractive incentives to investors;


(c) Providing skilled labor and manpower through continuous relevant
capacity building;

(9 Ensuring the provision of locally manufactured machines with
improved capacity, efficiency, and quality at competitive costs;

(g) Improving bamboo industry research and development to discover new
products and technologies, and advance market access for Philippine
bamboo and bamboo products locally and internationally;

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

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

SECTION 5. Composition of the Philippine Bamboo Industry
Development Council. — The composition of the Philippine Bamboo
Industry Development Council (PBIDC), as provided for under Executive
Order No. 879, is hereby amended as follows:

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

(b) Secretary of the Department of Environment and Natural Resources
(DENR) or his/her duly appointed representative, who has sufficient
expertise on the Philippine bamboo industry;

(c) Secretary of the Department of Agriculture (DA) or his/her duly
appointed representative, who shall come from the Bureau of DA-
Agricultural Research (DA-BAR);

(d) Secretary of the Department of Science and Technology (DOST) or
his/her duly appointed representative, who shall come from the
DOST- Forest Products Research and Development Institute (DOST-
FPRD));

(c) Secretary of the Department of Education (DepEd) or his/her duly
appointed representative;

() Executive Director of the Center;

(g) A representative from the Department of Interior and Local
Government (DILG);

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

i) Two (2) representatives from Non-Governmental Organizations
involved in the agricultural sector; and


) One (1) representative from the private sector involved in the bamboo
industry.

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 representatives from the private sector, bamboo farmers, bamboo
manufacturers, bamboo processors associations, and non-
governmental associations 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. They shall serve for a term of three (3) years, and may be
re-appointed once.

The Council shall meet quarterly and may hold special meetings
whenever the need arises to consider urgent matters upon the call of
the Chair or any of the council members.

The Council shall continue to provide the overall policy and program
directions of the bamboo industry, coordinate activities of the various
government agencies and instrumentalities, and ensure the
implementation, accomplishment, and periodic review of the Bamboo
Industry Development Roadmap.

The Council shall be administratively attached to the Department of
Trade and Industry (DTI).

SECTION 6. Powers and Functions of the Council. - The Council shall
have the following powers and functions, among others:

(a) Formulate the Philippine Bamboo Industry Development Roadmap;

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

(c) Identify sources of financing to expand bamboo industry development;

(d) 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

(c) 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.

SECTION 7. Bamboo Industry Development Center (BIDC). - The Bamboo
Industry 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 (1) research and development, (2)
trade promotion and education, (3) networking and linkages, (4) internal
administration and such other purposes deemed necessary by the Council.
The composition and staffing 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 the Civil Service
Commission (CSC) law, rules and regulations. Government agencies
represented in the Council shall provide additional administrative and
technical staff support upon request by the Council.

The Center shall have the following powers, functions and duties:

(a) Promote and encourage the establishment and management of
bamboo nurseries and bamboo plantations for commercialization, in
coordination with DENR and DA;

(b) Coordinate and partner with DOST-FPRDI for continuous research
and development to advance sustainable bamboo industry
development practices;

(c) Work with the Council and coordinate with the DENR and DOST-
FPRDI in formulating a holistic National Bamboo Industry
Development Program;

(d) Work with the Council and coordinate with the DENR and DOST-
FPRDI in formulating a holistic National Bamboo Industry
Development Program;

(c) Promote the establishment and creation of bamboo farm tourism
camps in coordination with the Department of Tourism;

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

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

(h) Monitor and evaluate the performance of the bamboo industry, and


the bamboo development programs and projects;

(i) Coordinate and partner with the private sector, people's organizations
and non-governmental organizations, and State Colleges and
Universities 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 this Act, subject to the usual budget, accounting
and auditing rules and regulations;

(k) Assist the Council, in cooperation with other appropriate government
agencies, in conducting a periodic review of the Philippine Bamboo
Industry Development Roadmap;

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

(m) Conduct capability-building initiatives for farmers, farm workers,
processors, designers, and other stakeholders in the bamboo industry;

(n) Supervise the implementation of the plans and programs of the
Council;

(c) Manage and administer the projects approved by the Council under
this Act; and

(p) Submit periodic reports to the Council on the progress and
accomplishment of bamboo industry programs and projects.

SECTION 8. 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.

SECTION 9. Department of Environment and Natural Resources (DENR)
on Bamboo for Commercialization. - In addition to its mandate, under


the Bamboo Plantation Development Program (BPDP), the DENR shall
ensure the development and expansion of nurseries and plantations of
bamboo for commercialization and industrial purposes, while taking into
consideration the ecological balance in areas identified for plantation and
propagation. It shall continue to conduct research and development
activities for production or propagation of bamboo.

SECTION 10. Department of Science and Technology for Research and
Development. - The DOST - Forest Products Research and Development
Institute (DOST-FPRDI) shall be the main research and development arm for
bamboo utilization of the Council. It shall work closely in coordination with
the Center (BDIC) and other government agencies such as the DA-BAR to
innovate and advance sustainable bamboo industry development practices.

SECTION 11. Role of the Local Government Units. - Local Government
Units in cooperation with the DENR, DTI and the DOST-FPRDI, and in
consultation with DA and the National Commission on Indigenous People
(NCIP) when necessary, shall regularly conduct surveys of existing bamboo
stands, nurseries and plantations in their respective localities, and shall
strengthen the local bamboo industry by promoting bamboo enterprises in
their respective localities.

SECTION 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 a "pioneer’ industry, and bamboo processing as
preferred area of investment under its Investment Priorities Plan (IPP)
subject to pertinent rules and regulations. Provided, that the
mandatory classification as such shall only be for a period of five (5)
years, and thereafter its inclusion in the preferred area of investment
under the IPP shall be decided by the BOI;

(b) Nursery and plantation owners shall be exempt from the payment of
government share for the use of public lands for commercial bamboo
plantation for the first ten (10) years or when the plantation owner
starts to harvest the nursery or 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 that may be imposed by national government and
other fees or taxes imposed by local government units;

(d) Plantation owners, including those with nursery facilities, bamboo
processing plants, and other related businesses shall be exempt from
the payment of import duties for imported machines and equipment to
be used exclusively therein, subject to all pertinent rules and


regulations;

(e) Ordinary and necessary expenses incurred for the business 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;

() Expenses incurred in the development and operation of a bamboo
plantation prior to the commercial harvest shall be regarded as
ordinary and necessary expenses or as capital expenditures for
purposes of tax treatment;

(g) Bamboo plantations shall be accepted as among the collaterals for
loans in government-owned or controlled banks, subject to its rules
and regulations;

(h) Bamboo plantation developers 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;

(i) Bamboo plantations shall not require a cutting permit for harvesting
nor shall its produce need a transport permit for transporting.
Provided, that such plantation is registered with the Community
Environment and Natural Resources Office (CENRO) of the DENR;

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

(k) For tenured bamboo plantation owners, upon the premature
termination of the tenurial agreement with 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
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

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

SECTION 13. Appropriations. - The sum of One Hundred Million Pesos
(PHP100,000,000.00) to be sourced from the unexpended contingency fund
of the Office of the President, the existing budget for bamboo industry


development under the DTI, the existing budget allocation for DENR-FPRID’s
bamboo related research and development, and the existing budget
allocation for DENR's BPDP, are 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.

SECTION 14. Implementing Rules and Regulations. - The Department is
hereby authorized under this Act to receive donations from government and
non-government organizations and to administer the same strictly and
exclusively for the beneficiaries and qualified applicants of the TUPAD
Program, subject to relevant accounting and auditing rules and regulations.

SECTION 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.

SECTION 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.

SECTION 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,