Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

1194

HOUSE BILL NO.

Introduced by Representative Dante Sotelo Garcia

EXPL

NATORY NOTE

DTI Secretary Ramon Lopez, in one of his speeches, highlighted the contributions of bamboo
such as its environmental impact—producing 35% more oxygen than hardwood trees—and the
livelihood opportunities for communities directly involved in the planting and maintenance,
including the Micro, Small, and Medium Enterprises (MSMEs) that process bamboo into
finished goods.

DENR also lead in the bamboo plantation efforts with its National Greening Program. Under the
leadership of Environment Secretary Roy Cimatu, DENR has included bamboo as one of its
priority materials. For 2020 alone, Sec. Cimatu said that DENR targets to cover 16.867 hectares,
of land nationwide with bamboo trees. While the Department of Agriculture ChiefSecretary
William Dar made a policy pronouncement earlier this year declaring bamboo as a high-value
crop. Under its agri-industrial strategy, the DA brings together efforts in supporting items in
high-value crops. undertaking various interventions that include research and development,
budgetary support, and the use of technology to enhance farm productivity.

The proposed law promotes the growth and development of the Philippine bamboo industry.
make it more competitive in foreign markets, and enable it to become a major revenue and
employment generator, while at the same time take advantage of the environmental contribution
of bamboo to rehabilitate degraded watersheds and assist in the mitigation of climate change

Government agencies’ effort supporting bamboo industry is a manifest that bamboo industry is
lucrative both domestically and abroad. Thus, it is prudent to institutionalize the bamboo
industry development by creating the Philippine Bamboo Industry Council (PBIC), which is
tasked to provide the overall policy and program directions of the bamboo industry. and
coordinate the activities of government bodies to ensure the success of the industry.

The proposed law mandates the PBIC to formulate the Philippine Bamboo industry Development
Program (PBIDP), which shall include programs and projects for scientific propag
development and commercialization of Philippine bamboo and bamboo products that will be
competitive in the local and global markets

It also directs the Provincial Local Government Units (PLGUs) and the Municipal Local
Government Units (MLGUs) to establish Provincial and Municipal Bamboo Industry
Development Councils that shall formulate and implement their respective Bamboo Industry
Development Programs within two (2) years from the enactment of this law.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

1194

HOUSE BILL NO.

Introduced by Representative Dante Sotelo Garcia

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

producti

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

pine bamboo products in international markets. It shall establish a program for a
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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
PBIDCshall 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 aimto 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) Ensurethat 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) Promoteinvestment in the bamboo industry by establishing bamboo plantations and

bamboo processing operations, andproviding substantial incentives to investors;

(e) 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.


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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);

©) Secretary of the Department of Agriculture (DA);

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

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

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

2) 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;

) 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 members of the Council shall be entitled to an honorarium for each meeting

attended, in accordance with existing rules and regulations.

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.



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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)

b)

8)

h)

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;

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;

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:

's from local and international donors and

Accept grants, donations and cont

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;

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

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

‘Supervise the implementation of the plans and programs of the Council;

Manage and administer the projects identified by the Council;

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

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;

) 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;

c) Exemption from the payment of forest charges and other fees for taxes that local

government units may impose;


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4)

8)

h)

i

k)

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);

Tax free importation of plantation development equipment, including tree nursery

facilities, pursuant to Republic Act No. 10863, otherwise known as the Customs
Modernization and Tariff Act;
s shall be allowed as deductible expenses

Expenses incurred for plantation operatio
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
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;

‘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
n shall be mutually agreed upon by both the Department and the

of compensat
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;

n)

°)

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 plantations in forest lands and priority access to

funds from external and internal sources.



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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. Implementing Rules and Regulations. Within sixty (60) days after the
effectivity of this Act, the DTI-PBIDCshall, in coordination with the DENR, and DOST

promulgate the rules and regulations to implement this Act.
SEC. 12, Separability Clause. \f 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,