THIRTEENTH CONGRESS OF THE REPUBLIC 
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34 JtSM 38 pg :;"l6 
OF THE PHILIPPINES 
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First Regular Session 
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S E N A T  
S. No. 
Introduced by Senator S. R. Osmeiia 111 
EXPLANATORY NOTE 
The promotion and development of small and medium scale industries (SMEs) 
is one of the priorities of the government. The role of SMEs in promoting economic 
development is acknowledged in Article II See. 20 of the Constitution, 
which 
recognizes the indispensable role of the private sector 
and encourages private 
enterprise, and in Article Xlll Sec, I 
which speaks of creating economic opportunities 
based on freedom of initiative and self-reliance. 
This bill seeks to encourage the formation of chambers of commerce and 
industry (CCls) as venues for addressing the collective concerns of small and medium 
scale enterprises in the business sector. 
In countries such as Germany, Canada, Japan, Australia and Thailand, 
membership of enterprises in the chamber of commerce and industry is mandated by 
law, and membership fees are collected through the government bureaucracy. 
As proposed in this bill, voluntary membership of enterprises in the chambers is 
encouraged through the incentives given to the chambers, and the value-added 
services that they provide. A concept of shared responsibility and partnership with the 
national and local government units govern the division of functions among the CCls, 
private enterprises, and the government sector in the delivery of services. 
A chamber of commerce and industry works for the entire community of private 
enterprises, especially for small and medium enterprises. In this era of free trade and 
global exchange and cooperation, private sector businesses need to be strong 
organizationally and functionally at the domestic front so that the country can compete 
in the world economy. 
In view of the foregoing, early passage of this bill is earnestly requested. 
S E ~ G I O  
QSMENA 111 
Senator 


THIRTEENTH CONGRESS OF TH 
OF THE PHILIPPINE 
I 
First Regular Session 
S. No. 
Introduced by Senator S. R. OsmeAa Ill 
AN ACT 
PROVIDING FOR A CHAMBER OF COMMERCE AND INDUSTRY SYSTEM, 
PROMOTING ORDER, EFFICIENCY AND EFFECTIVE DELIVERY OF SERVICES 
BETWEEN AND AMONG CHAMBERS OF COMMERCE AND INDUSTRY, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled: 
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SECTION 1. Short Title. - This Act shall be known and cited as the 
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"Chamber of Commerce and Industry Act of 2004." 
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Article I 
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General Provision 
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SEC. 2. Declarafion of Policy, - It is the policy of the State to recognize 
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the indispensable role of the private sector, encourage private enterprise, and 
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provide incentives to needed investments in nation-building. Towards this end, a 
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chamber of commerce and industry system shall be established in order for the 
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Philippines to achieve accelerated economic growth and development and to 
compete in the global market. 
SEC. 3. Applicafion. This Act shall apply to all chambers of commerce and 
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industry, hereinafter referred to as CCls, affiliates and their officials and members. 
SEC. 4 Definifion of Terms - For purposes of this Act, the following terms 
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shall mean: 
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a) 
“Philippine Business Registry Databank (PBRD)” is the repository of 
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relevant economic and business information of all business enterprises 
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within a particular territory; 
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b) 
“Business enterprises” 
refers to entities organized for profit and 
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c) 
“Chamber of Commerce and Industry” of “CCI” means an institution 
registered and doing business in the Philippines under existing laws; 
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established by several business enterprises under this Act and the 
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Corporation Code of the Philippines. 
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e) 
“Supervision” refers to the exercise of oversight functions by the 
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“National Federation’’ is the organization of all CCls in the country; and 
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National Federation over the local chambers, in the promotion of 
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efficiency, economy and effective delivery of services between and 
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SEC. 5. 
Establishment of the Chamber of Commerce and Industry 
among CCls and it enterprise members. 
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System - There is established a system of CCls in the Philippines, in accordance 
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with the provisions of existing laws and the provisions of this Act. 
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Under this system, there shall be: 
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a) one National Federation, which shall be the federation of local chambers; 
b) local chambers in municipalities, cities or provinces; and 
c) such other entities as may be provided in the by-laws of the National 
Federation, 
The Federation may provide for regional/provincial groupings of local 
chambers for the purpose of better coordination. 
The National Federation 
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SEC. 6. National Federafion and the Ro 
- The National 
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Federation shall be called the Philippine Chamber of Commerce and Industry, or 
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PCCI, which shall be organized as a non-stock, non-profit corporation, and shall 
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function as follows: 
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a) act as the voice of the Philippine business sector at the national and 
international levels; and 
b) supervise and coordinate the activities of local chambers. 
SEC. 7. Membership in fhe PC . - The PCCl shall have such members as 
may be provided in its article and by-laws. 
SEC. 8. 
Board of Direcfors of PCCl, Composition and Manner of 
Election; Execufive Officers. - The articles of incorporation and by-laws of the 
PCCl as a non-stock, non-profit corporation shall be governed by the Corporation 
Code of the Philippines. 
Article 911 
The Local Chambers 
SEC. 9. Establishmenf of Local Chambers; Cerfjficafion. - The standard 
by-laws for local chambers shall provide the criteria for the establishment of local 
chambers. 
Local chambers shall be organized as non-stock, 
non-profit 
corporations . 
Only local chambers organized pursuant to the standard for local chambers 
shall use the name “Philippine Chamber of Commerce and Industry” as part of their 
corporate names. 
The Securities and Exchange Commission shall not approve the articles and 
by-laws of a local chamber, including amendments thereto, unless the National 
Federation certifies that it has met the requirements of this Act, and that its by- 
laws are consistent with the standard by-laws for local chambers adopted by the 
federation under Section 12 of this Act. 
SEC. I O .  Common Functions of Local Chambers. - Local chambers shall 
have the following common duties: 
a) to establish and maintain a Business Registry 
for all business 
enterprises within its territory. The Business Registry shall be periodically 
updated, and shall contain pertinent data that may be required for trade 
and investment promotions of Philippine businesses; 
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b) to promote trade, industry, agriculture, finance and the economy in 
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general; 
c) to give business advice and to provide services to its members; and 
d) to undertake such other activities as may be beneficial to its members, or 
as may be entrusted to it by the government. 
SEC. 1 I. Standard Chamber By-Laws. The National Federation shall 
provide for standard chamber by-laws for local chambers consistent with and in 
accordance with Philippine Laws on non-stock, non-profit corporations. 
SEC. 12. Fees and Duties. Membership fees, duties, assessments shall 
be provided by the local chamber in its by-laws, consistent with the standard by- 
laws for local chambers. 
Dues and contributions to be paid by the local chamber to the National 
Federation shall be fixed by the federation in its by-laws. 
Article IV 
Miscellaneous Provisions 
SEC. 13. Incentives; Representation and Consultation. - To ensure the 
effective implementation of this Act, the following incentives shall be extended to 
accredited and registered chambers: 
a) to represent the private sector, 
or to nominate the private sector 
representative in government boards, agencies and instrumentalities, 
and other special bodies created by law, where private sector 
representation is needed or required; and 
b) to represent the private sector in trade and investment promotion 
activities of the National Government as well as the local governments. 
SEC. 14. Exclusivity of Name . - After two (2) years from the effectivity of 
this Act, ‘no institution other than the PCCl or a local chamber established under 
this Act shaJJ use the phrase “Philippine Chamber of Commerce and Industry’’ as 
its corporate name or part thereof. The by-laws of the National Federation shall 
provide for a uniform format for the corporate name of local chambers. 
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Any violation of this provision shall be a ground for the dissolution of the 
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offending corporation, without prejudice to any civil or criminal liability under the 
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law. 
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SEC. 15. Cooperation of Government gencies and Local Government 
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Units. - To achieve the objectives of this Act, including the establishment and 
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maintenance of a Philippine business database, 
agencies of the National 
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Government and Local Government Units shall cooperate with and render all 
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possible assistance to local chambers, regional groupings thereof and the National 
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Federation. 
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SEC. 16. Implementing Rules and Regulafions. - Within three (3) 
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months after the effectivity of this Act, the Securities and Exchange Commission 
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and the Department of Trade and Industry in consultation with the existing 
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Philippine Chamber of Commerce and Industry shall promulgate rules and 
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regulations necessary to implement the provisions of this Act. 
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SEC. 17. 
Rules of Interpretation. The provisions of this Act shall be 
liberally construed in favor of the CCI. 
SEC. 18. Dissolution of Chambers. The dissolution of existing chambers 
of commerce and industry and.CCls created under this Act shall be pursuant to the 
Corporation Code of the Philippines. 
SEC. 19. Transitory Provisions. - Existing chambers of commerce and 
industry shall continue as such: Provide, That within two (2) years from the date of 
the effectivity of this Act, they shall comply with the provisions of this Act as 
certified by the National Federation, otherwise they shall cease to be a CCI and 
shall function as an ordinary corporation or association. 
The existing Philippine Chamber of Commerce and Industry shall be deemed 
the National Federation for purposes of this provision. 
Article V 
Final Provisions 
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SEC. 20. 
Repealing Clause. - All laws, 
decrees, orders, rules and 
regulations or parts thereof if any, inconsistent with this Act are hereby deemed 
amended,’ repealed, or modified accordingly. 
SEC. 21. Separability Clause. If for any reason, or reasons, any part or 
provision of this Act shall be held unconstitutional or invalid, other parts or 
provisions hereof which are not affected thereby shall continue to be in full force 
and effect. 
SEC. 22. Eflecfivify, This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national newspapers of general circulation. 
Approved, 
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