Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

NINETEENTH CONGRESS _ LY J
First Regular Session Nee . & Ye
2643 &, npey Ss
HOUSE BILL NO. 7
Introduced by HON. LINABELLE RUTH R. VILLARICA
4" DISTRICT, BULACAN

EXPLANATORY NOTE

Bamboos grow rapidly and reach maturity in three to five years making it a viable
alternative to hardwood and traditional timber when it comes to the furniture industry. For
small farmers it can be an attractive and sustainable community project since the return on
investment is faster. Because of its huge income potential, it can be utilized to improve the
lives of people in the countryside.

In addition to its contribution to the economy, bamboo can also contribution to
humanity's battle against climate change. A hectare of bamboo is capable of isolating or
removing up to 12 tons of carbon every year. Bamboo can address the worldwide concern of
deforestation since it can prevent soil erosion, landslides and flooding.

Presently, however, the local market of the bamboo industry has to be fully developed
before it can be globally competitive. It should also be enabled as a revenue and employment
generator.

This proposed bill seeks to address these concerns by: 1.) Institutionalizing the
Philippine Bamboo Industry Council (PBIC); 2.) Establishing the secretariat of the Council,
the Bamboo Industry Research and Development Center (BIRDC); 3.) Mandating the PBIC to
formulate the Philippine Bamboo Industry Development Program (PBIDP); 4.) Directing the
Provincial and Municipal Governments to establish their respective Bamboo Industry
Development Councils to formulate and implement their respective Bamboo Industry
Development Programs; 5.) Providing incentives to investors to plantation development and
bamboo processing factories; 6.) Allocating funds thru the annual budget of the Department of
Trade and Industry (DTI) under the General Appropriations Act

This bill was filed during the 16", 17", and 18"* Congresses but was not taken up due
to time constraints. This is re-filed in this 19" Congress for its consideration.

Support for the enactment of this measure is camestly requested.

ST Maree
REP. LINABELLE RUTH R. VILLARICA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

2643

HOUSE BILL NO.

Introduced by HON. LINABELLE RUTH R. VILLARICA
4"™ DISTRICT, BULACAN

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 rural areas, reduce poverty, foster a
sustainable environment and mitigate the impact 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 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 continued 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.

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;

(©) 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;

() Provide continuous training and capacity building in the bamboo industry
development:

(g) Ensure provision of locally manufactured machines of improved capacity and
quality of 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. - 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 League of Municipalities of the Philippines;

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

(k) Two (2) representatives from the Non-Government Organizations:


(1) One (1) representative from a reputable private industry association; and
(m) One (1) 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 divisions a 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.

‘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 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;

1) 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;

2) 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 implantation 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



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 for 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 operation 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 respectve 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:

a) 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;

b) 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 planation 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 of that harvest. Inventory of the plantation prior to
the harvest shall not be required. All CENROs shall approve and enter into a registry,
the names of private bamboo plantation investors:

c) Exemption from the payment of forest charges and other fees for taxes that local
government unit may impose:

d) No inspection of harvested bamboo at the check point

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

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

g) Tax-free importation of plantation development equipment, including the nursery
facilities, pursuant to to Republic Act No. 10863, otherwise known as the Customs
Modemization and Tariff Act:



1h) 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;

i) 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;

i) Priotitized 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;

1) 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 the in case of disagreement between the matier shall be submitted to arbitration by
a mutually acceptable and impartial third party adjudicator;

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

1n) 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; and

©) Inclusion in the annual investment program of the National Economic Development
Authority of industrial bamboo plantation 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
annual General Appropriations Act.

SEC. 11. Jmplementing 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. — All laws, executive and administrative orders, rules and

regulations inconsistent with this Act are herby repealed or amended accordingly.

SEC. 13. Repealing Clause. ~ All laws, executive and administrative orders, rules and

regulations inconsistent with this Ac 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,