NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 1122
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'22 AUG 10 P5 :45
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Introduced by SENATOR IMEE R. MARCOS
AN ACT
ABOLISHING THE PHILIPPINE INTERNATIONAL TRADING 
CORPORATION (PITC), AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 27, Article II of the 1987 Constitution provides that, "The State shall 
maintain honesty and integrity in the public service and take positive and effective 
measures against graft and corruption."
The Philippine International Trading Corporation (PITC) was established on 21 
July 1973 through Presidential Decree (PD) No. 252 which is an attached agency to the 
Department of Trade and Industry (DTI) whose primary mandate is to facilitate trade 
with Socialist and Other Centrally Planned Economy Countries.
The PITC was originally crafted as a mechanism to formalize trade with planned 
economies through government-to-government procurement. However, as of today, 
only two (2) centrally planned economies are in existence, which are Cuba and North 
Korea. The Philippines has also moved away from government-to-government trade, 
as exemplified by the passage of Republic Act No. 11203 or the "Rice Tariffication Law" 
on 14 February 2019, among others.
In addition, the passage of RA No. 9184 or the "Government Procurement Reform 
Act" has undermined the mandate of the PITC through the inclusion of relevant 
provisions that seeks to strengthen the procurement service of national government 
agencies. Section 11, Article 5 of RA No. 9184 states thatall procurement agencies 
shall establish a single BAC (Bids and Awards Committee) for its procurement" Section 
63(c) further tasks the Government Procurement Policy Board (GPPB) to strengthen 
the said BACs by ensuring "that Procuring Entities regularly conduct procurement


training programs and prepare a procurement operation manual for all offices and 
agencies of government"
In addition to its mandate being undermined by changes in national policies, the 
PITC has dealt with issues regarding the exercise of their mandate in the previous 
years. In particular, the 2020 Annual Audit Report of the PITC states that PhP 11.02 
billion of funds transferred from 2014 to 2020 by various source agencies remain 
unutilized as of 31 December 2020. These transfers were conducted in order to increase 
the utilization rate of government agencies, as funds transferred to the PITC is 
considered obligated and disbursed already. There are reports of source agencies using 
the interest of money transferred to the PITC to generate savings, which are used by 
the source agency to fund bonuses, among others.
Thus, this bill, which was also filed last Eighteenth Congress, seeks to address the 
systemic corruption in the PITC by abolishing the said agency. The trade liberalization 
thrust of the global economy has made the mandate of the PITC archaic and irrelevant 
in the current times. The passage of RA No. 9184 or the "Government Procurement 
Reform Act" has also weakened the mandate of the PITC. The PITC became a 
repository for unobligated funds of national government agencies, and as such should 
be abolished as it has outlived its functions to the National Government.
In view of the foregoing, the approval of this bill is earnestly sought.
IMEE R. MARCOS


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S.B. No.
SENATE 
1122
72 AU5 10 P5:45
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ABOLISHING THE PHILIPPINE INTERNATIONAL TRADING 
CORPORATION (PITC), AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
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SECTION 1. Declaration of Policy. - The State shall maintain honesty and 
integrity in the delivery of public service and take positive and effective measures 
against graft and corruption. Thus, the State shall maintain accountability and 
responsibility among its public officials and employees and shall take appropriate 
measures to prevent unlawful and ineffectual acts and practices, therefore promoting 
efficiency and transparency in the conduct of its business.
SEC. 2. Abolition of the Philippine International Trading Corporation (PITC). - 
The Philippine International Trading Corporation (PITC) created under the Presidential 
Decree No. 252 shall be abolished.
In lieu of the abolition of the PITC, the respective Departments and Agencies 
shall, thereafter, undertake the procurement of supplies, equipment, and infrastructure 
projects. Further, the Department of Trade and Industry (DTI) shall undertake the 
functions of PITC in relation to facilitative trade-related services, responsive business 
solutions, and trade-related government-to-government transactions, among others.
SEC. 3. Separation and Retirement from Service. - Employees affected by the 
abolition of the PITC shall receive separation benefits under the Government 
Reorganization Law and other existing laws, rules, and regulations. Provided that, those


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who are qualified to retire and receive retirement benefits under existing retirement 
laws shall be allowed to retire under existing laws, rules, and regulations.
SEC. 4. Reversion of Funds. - In coordination with the concerned Departments 
and Agencies, the PITC shall revert all prior years unutilized advances to the National 
Treasury. Current year's advances for the procurement of supplies and equipment and 
all other funds held in trust by the PITC shall be returned to the concerned Departments 
and Agencies.
SEC. 5. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
other Issuances or parts thereof Inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
SEC. 6. Separability Clause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall 
remain in force and effect.
SEC. 7. Effectivity. - This Act shall take effect after fifteen (15) days following 
the completion of its publication either In the Official Gazette or In a newspaper of 
general circulation In the Philippines.
Approved,