Republic of the Phil
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
FIRST REGULAR SESSION
574

House Bill No.

INTRODUCED BY Rep. GREG G. GASATAYA

EXPLANATORY NOTE

One of the duties of the Philippine legislative body is to ensure public safety, protect the
populace from hazardous products, and promote the right to health and instill health
consciousness. Furthermore, Article II, Section 16 of the 1987 Philippine Constitution poses that
the State shall protect and advance the right of the people to a balanced and healthful ecology in
accord with the rhythm and harmony of nature.

Due to rapid economic growth, improved quality of life, and reduced poverty, demand for
consumer products has increased over the years. The low cost and convenience of using plastic
makes it as the go-to material in the manufacturing, production, and packaging of consumer
products. With the increased usage of plastic by both manufacturers and consumers, plastic
waste has become incommensurate with the current waste disposal infrastructure of the country.

A 2015 report on plastic pollution conducted by the international group Ocean
Conservancy and McKinsey Center for Business and Environment ranked Philippines as the
third (3") biggest source of plastic leaking into the oceans despite having the highest trash
collection rates in Asia due to irresponsible haulers dumping their hauls on the way to dumpsites
to cut costs. Because of this, of the 2.7 million metric tons of plastic garbage collected per year,
20% or 521,000 metric tons leaks into the ocean and waterways around the country.

As plastic is oftentimes discarded immediately, it has become one of the most common
causes of clogging in sewerage and drainage systems especially in cities. During an instance of
massive rainfall in 2018, flooding occurred in this representation’s district despite the city-wide
flood control project. Upon conducting an investigation, this representation personally found
plenty of plastic garbage clogged in the sewers and waterways of the district due to improper
disposal.

With our dependence in agriculture, plastic pollution also poses a grave threat in our food
security. Disaster risks and hazards arising from plastic pollution may put farms at risk of
flooding resulting in wastage of agricultural products along with its threats to a balanced


ecology. Microplastics leaked in our bodies of water may also put public health at risk as it gets
into our food chain

As such and pursuant to the intentions of Republic Act No. 9003 otherwise known as the
Solid Waste Management Act of 2000, approval of this Bill is earnestly sought.

ssn I

REP. GREG G. GASATAYA
Lone District of Bacolod City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
FIRST REGULAR SESSION

House Bill No. 574

INTRODUCED BY Rep. GREG G. GASATAYA

AN ACT
REGULATING THE MANUFACTURING, IMPORTATION, ANAD USE OF SINGLE-
USE PLASTIC PRODUCTS, AND PROVIDING PENALTIES, LEVIES, AND AN
INCENTIVES SYSTEM FOR INDUSTRIES, BUSINESS ENTERPRISES AND
CONSUMERS THEREOF

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 “Single-use Plastic Product
Regulation Act of 2019.”

SECTION 2. Declaration of Policy. — It is hereby declared a policy of the state to adopt
a systematic, comprehensive, and ecological regulation of single-use plastic products to advance
the right of the people to a healthy environment and ecology.

SECTION 3. Definition of Terms. — For purposes of this Act, the following terms shall
refer to and/or mean as hereunder defined:

a. Business enterprises — refers to establishments engaged in the production,
manufacturing, processing, repacking, assembly, or sale of goods and/or services,
including service-oriented enterprises. It shall include retailers, self-employed or
‘own-account workers, micro, small, and medium enterprises, and community-based
business enterprises;

b. Consumer ~ refers to a person who is a purchaser, lessee, recipient, or prospective
purchaser, lessor, or recipient of consumer products, services, or credit;

c. Disposal — refers to the discharge, deposit, dumping, spilling, leaking, or placing of
waste into or on land or bodies of water;


d. Incentives — refers to incentives provided for and as defined in Republic Act No.
9178, otherwise known as the Barangay Micro-Business Enterprise Act of 2002,
Republic Act No, 9501, otherwise known as the Magna Carta for Micro, Small, and
Medium Enterprises, Republic Act No. 10771, otherwise known as the Green Jobs
Act of 2016, Executive Order No. 226, otherwise known as the Omnibus Investment
Code of 1987, or as defined by concerned local government units through legislation
specifically for this purpose, where applicable;

¢. Plastic — refers to a lightweight, resistant, and synthetic material made from a wide
range of organic polymers which can be molded into a variety of forms depending on
purpose or utility;

f Recycling — shall refer to the treatment of used or waste materials through a process
of making them reusable or transforming them into new products or raw materials for
the production of other goods and/or services;

g. Retailer — refers to a person engaged in the business of selling products directly to
consumers,

h. Reusable material — refers to any material specifically designed or manufactured for
multiple usage. Reusable materials shall meet the following conditions:

1. May be capable of composting and is biodegradable;

2. Recyclable;

3. Does not contain any toxic or harmful substance or chemical such as but not
limited to lead, cadmium, or any other substance or chemical as provided by
existing rules and regulations of the Department of Environment and Natural
Resources (DENR).

i. Single-use plastic — refers to disposable plastics which are commonly used for
packaging and include items intended to be used only once before disposal or
recycling. These include but are not limited to items such as grocery bags, food
packaging films and bags, bottles, straws, stirrers, containers, styrofoam, cups,
sachets, and cutlery.

SECTION 4. Prohibition of Single-use Plastics and Levy for the Use in the Interim
Period. ~

The prohibition of single-use plastics by all business enterprises shall be in full force and effect

one (1) year from the effectivity of this Act. In the interim period, the following shall be

enforced:

a. Prohibition on the issuance of single-use plastics by food establishments, stores,
markets, and retailers;

b. Diversion of consumers to usage of reusable materials in substitution of single-
plastics;


c. Collection, recycling, and disposal by manufacturers of single-use plastics
manufactured and/or in circulation in the general market;

d. Recycling of unavoidable single-use plastics by manufacturers;

e. For each piece of single-use plastics already manufactured, in circulation, and for use
in transaction, retailers shall charge the consumer a minimum levy of (Php 5.00);

£ The amount collected in subparagraph (e) of this Section by retailers shall be
reflected in the official receipt. Twenty percent (20%) of the said amount shall be
kept by the business enterprise to cover the cost of the single-use plastics, while
eighty percent (80%) shall be remitted quarterly to the Special Fund created under
this Act;

g. A discount of five pesos (Php 5.00) shall be given to consumers that bring their own
containers for take-outs and purchase of food and beverages.

At the end of the one (1) year interim period, single-use plastic provision by all business
enterprises and use by consumers shall be strictly prohibited

SECTION 5. Prohibition on the Importation of Single-use Plastics. — Importation of
single-use plastics shall be prohibited. Tariffs shall be correspondingly imposed by the Tariff
Commission and collected by the Bureau of Customs.

SECTION 6. Recycling of Used Single-use Plastics. — All used single-use plastics as
allowed by this Act shall be recycled. It shall be the duty of single-use plastic manufacturers to
collect, recycle, dispose and keep records of the said single-used plastics in a manner consistent
with Republic Act No. 9003 and existing laws, rules, and regulations. The minimization or
absence of negative externalities in the process shall likewise be ensured by the manufacturers.

SECTION 7. Research and Development for Alternatives. — The Department of Science
and Technologu (DOST) shall include in their respective programs and Research and
Development Agenda and fund research on single-use plastic alternatives.

SECTION 8. Program for Affected Employees and Workers. — Upon the effectivity of
this Act, research and technology development initiatives, pilot-testing of innovations and
technologies resulting from the studies with the assistance of the DOST, and capacity-building
activities shall be undertaken with plastic-manufacturing industries and business enterprises for
them to adopt these technologies.

The DOST, the Department of Labor and Employment (DOLE), and the Technical
Education and Skills Development Authority (TESDA), with the help of Local Government
Units (LGUs) shall provide capacity building programs, technical assistance, and trainings to
relevant stakeholders.


SECTION 9. Incentives for Shifting to Alternatives. — Business enterprises, individuals,
cooperatives, partnerships, and corporations which engage in the manufacture of identified
alternatives to single-use plastics shall be given incentives provided for under Republic Act No
9178, otherwise known as the Barangay Micro-Business Enterprise Act of 2002, Republic Act
No. 9501, otherwise known as the Magna Carta for Micro, Small, and Medium Enterprises,
Republic Act No. 10771, otherwise known as the Green Jobs Act of 2016, and Executive Order
No. 226, otherwise known as the Omnibus Investment Code of 1987.

SECTION 10. Certification, Monitoring, and Inspection. — The Department of Trade
and Industry (DTI), in coordination with the LGUs and local law enforcement agencies shall
conduct regular inspection and monitoring of business enterprises and facilities of manufacturers
to determine compliance with this Act.

The LGUs concerned, after the conduct of a thorough inspection, shall issue a certificate
indicating whether or not business enterprises in their jurisdiction are compliant to this Act. The
certification shall be a requirement for the renewal of local permits.

SECTION 11. Information and Education Campaign. — The DENR, in coordination
with LGUs, the Department of Education (DepEd), and the Commission on Higher Education
(CHED), and the Philippine Information Agency (PIA), shall conduct a public information and
education campaign on the proper regulation of single-use plastics in the country.

SECTION 12. Penalties and Sanctions, — Any violation of this act shall be imposed the
following penalties:

a. For Business Enterprises, Micro, Small, and Medium Enterprises as defined in
Republic Act No. 6977, as amended, Barangay Micro Business Enterprises under
Republic Act No. 9178, and all other enterprises and establishments not otherwise
value-added tax (VAT) registered:

1. First Offense ~ A fine of ten thousand pesos (Php 10,000.00);

2. Second Offense ~ A fine of thirty thousand pesos (Php 30,000.00) and suspension
of business permit for six (6) months;

3. Third Offense — A fine of fifty thousand pesos (Php 50,000.00) and suspension of
its business permit for one (1) year; and

4. Fourth Offense — A fine of one hundred thousand pesos (Php 100,000.00) and
revocation of business permit and ineligibility for application of business permit
for a period of five (5) years.

Any further violation of this Act shall perpetually bar the operator from conducting its
business in the LGU concerned.

b. For VAT registered enterprises, establishments, and stores, and for all plastic
manufacturers found violating this Act, the following penalties shall be imposed:

1. First Offense — A fine of one hundred thousand pesos (Php 100,000.00);


2. Second Offense — A fine of two hundred and fifty thousand pesos (Php
250,000.00) and suspension of business permit for six (6) months;

3. Third Offense — A fine of five hundred thousand pesos (Php 500,000.00) and
suspension of its business permit for one (1) year, and

4, Fourth Offense ~ A fine of one million pesos (Php 1,000,000.00) and revocation
of business permit and ineligibility for application of business permit for a period
of five (5) years

Any further violation of this Act shall perpetually bar the operator from conducting its
business in the LGU concerned

Local government officials and officials of government agencies who fail to comply with
and enforce this Act shall be administratively charged in accordance with Republic Act
No. 7160 and other existing laws, rules, and regulations.

SECTION 13. Special Fund. — A Special Fun for Single-use Plastic Regulation,
hereinafter referred to as the Fund, to be administered by the DENR, is hereby created to be
composed of tariffs, levies, fees, and fines collected pursuant to this Act.

The fund shall be used exclusively for the following:

a. Capacity-building of LGUs and local law enforcement agencies for the
purposes of this Act;

b. Establishment of recycling centers;

c. Information and education campaigns relative to Section 11 of this Act,

d. Assistance and incentives for manufacturers and community-based initiatives
for the reduction of single-use plastics, as well as for non-government and
civil society organizations promoting proper solid waste management;

e. Capacity building programs, technical assistance, and trainings to relevant
stakeholders, relative to Section 8 of this Act; and

f. Additional provisions for the Solid Waste Management Fund under Republic
Act No. 9003.

‘The fund may be augmented by donations, endowments, grants, and contributions which
shall be subject to the provisions of the National Internal Revenue Code of 1997, as amended

SECTION 14. Access to Information and Public Disclosure. — The public shall have
access to records, reports, or information concerning the implementation and mandates of this
Act, provided that the DENR or concerned LGU may consider a record, report, or information or
portions thereof confidential when such would be of adverse effect to the competitive position of
a manufacturer, seller, or distributor.

SECTION 15. Appropriations. — Such amount that may be necessary to carry out the
provisions of this Act shall be included in the annual appropriations of the DENR and other
implementing agencies under the General Appropriations Act.


SECTION 16. Congressional Oversight Committee. — The Joint Congressional
Oversight Committee created under Section 60 of Republic Act No. 9003 shall also have the
power to monitor and evaluate the implementation of this Act.

SECTION 17. Implementing Rules and Regulations. ~ The DENR, in coordination
with the DTI, DILG, Climate Change Commission (CCC) and other concerned government
agencies and representatives of LGU organization shall issue the necessary Implementing Rules
and Regulations within one hundred (100) days after the effectivity of this Act

SECTION 18. Separability Clause — If any part or provision of this Act is held invalid

or unconstitutional, other provisions not affected thereby shall remain in full force and effect.

SECTION 19. Repealing Clause. — Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent
with the provisions of this Act is hereby repealed, modified or amended accordingly.

SECTION 20. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette orin at least two (2) newspapers of general circulation.

APPROVED,