NINETEENTH CONGRESS

CONGRESS OF THE PHILIPPINES }
First Regular Session

HOUSE OF REPRESENTATIVES

House Bill No. 710 5

BY Hons. JOSE MANUEL F. ALBA, JONATHAN KEITH T. FLORES,
JOSE MARIA Jr. R. ZUBIRI, LAARNI LAVIN ROQUE

EXPLANATORY NOTE

The Philippines is 6th among the largest exporters of bamboo in the world having a total area of bamboo
stands from 39,000-53,000 hectares. In 2021, Mindanao’s bamboo industry received an International
Commodity Certification (ICC) which will allow it to penetrate various multi-billion dollar industries This
was prompted by the rising global demand for bamboo and bamboo products as substitutes for all wood-
based products.

In Bukidnon alone, various species of bamboo including bambusa blumeana and dentrocalamus asper can
be found and utilized for housing or building construction. It can also be used as a raw material for
manufacturing paper and textiles, raw material for fuel, pellets, and chips.

With the moratorium on the cutting and harvesting of timber, bamboo is truly the best substitute.

Unfortunately, the bamboo industry in the Philippines cannot attain its full potential in various areas like
producing export products, generating rural employment, and contributing to local economic development
and community livelihood because it is hampered by the lack of concrete strategic direction and national
policies on the development of the bamboo industry.

Thus, this Bill proposes to further strengthen the Philippine Bamboo Industry Development Council and
to create the Bamboo Industry Research and Development Council and empowered to provide overall
policy and program direction, and to ensure proper implementation of the Bamboo Industry Roadmap. This
roadmap supports the scientific propagation, development, management, processing and
commercialization of bamboo.

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

cL F. ALBA JOSE MARIA IRI
Rept itive, IstlDistrict, Bukidnon Representative, 3rd District, Bukidnon

'. FLORES L ROQUE
Represenjative, 2nd Distrty, Bukidnon Representative, 4th Pistrict, Bukidnon


‘NINETEENTH CONGRESS

(CONGRESS OF THE PHILIPPINES
First Regular Session }

HOUSE OF REPRESENTATIVES

77290. 7105

By Hows. JOSE MANUEL F. ALBA, JONATHAN KEITH T. FLORES,
JOSE MARIA JR. R. ZUBIRI, LAARNI LAVIN ROQUE

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.”

SEC. 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 intemational 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.

SEC. 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).

SEC. 4. Objectives of the Philippine Bamboo Industry Development Program. — The
PBIDP shall 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;

(c) 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 markets of bamboo products locally and globally; and

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

SEC. 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;

») Secretary of the Department of Environment and Natural Resources (DENR);
©) Secretary of the Department of Agriculture (DA);

4) Secretary of the Department of Education (DepEd);

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

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

g) Executive Director of the Bamboo Industry Research and Development Center;
hh) Chairperson of the National Commission of Indigenous Peoples;

i) National President of the League of Municipalities of the Philippines;

j) Executive Director of the Union of Local Authorities of the Philippines;

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

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

m) 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.

SEC. 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 pattem 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.

The Center shall perform 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;

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

4) 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;

f) 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;

1g) Conduct capability-building initiatives for farmers, processors, designers, and other
stakeholders in the bamboo industry;

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

i) Supervise the implementation of the plans and programs of the Council;

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

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

1) Submit periodic reports to the Council on the progress and accomplishment of
programs and projects,


SEC. 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;

©) Assist the Council in the performance of its tasks; and

4) Perform such other functions, duties and responsibilities as may be necessary to
implement this Act.

SEC. 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.

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

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

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

the first harvest of the plantation;

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

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)of the DENR:

Provided, that the plantation owner shall inform the CENRO about the date of harvest,

and the estimated volume that 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;

4) No inspection of harvested bamboo at check points;

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

) Insurance coverage of plantations and plantation development equipment by the

Philippine Crop Insurance Corporation (PCIC);

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

h) 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;

Expenses incurred in the development and operation of a bamboo plantation prior to

b)


the commercial harvest shall be regarded as ordinary and necessary expenses or as
capital expenditure;

) Prioritized access for plantation developers to credit assistance from government-
owned, controlled and/or supported financial institutions;

k) Acceptance of plantation as collateral for loans in government owned or controlled banks;

}) 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;

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

1) 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

0) 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.

SEC. 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 anual General
Appropriations Act.

SEC. 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.

SEC. 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.

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

SEC. 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.