Republic of the Philippines RECEI
Bouse of Representatives [F oares? 0" MS
Quezon City, Metro Manila
Twentieth Congress
First Regular Session

19

HOUSE BILL NO.

Introduced by Representatives Ferdinand Martin G. Romualdez,
Andrew Julian K. Romualdez and Jude A. Acidre

EXPLANATORY NOTE

In an increasingly integrated and fast-paced global economy, the competitiveness
of a country is not only hinged on the volume of goods and services produced,
more so, on the quality, consistency and credibility of such outputs.

A national quality infrastructure system is a vital component in elevating the
quality of our commodities and boosting the overall productivity that will
ultimately allow us to carve our very own niche in international trade.

Quality infrastructure, as defined by the UN Industrial Development
Organization, is an institutional framework that supports the quality, safety, and
environmental soundness of goods, services and processes. It is a critical element
in the effective operation of domestic markets, at the same time, a passport to
access international markets.

While the Philippines does possess some elements of a national quality
infrastructure (NQI), such initiatives usually operate in silos, and at times,
insufficient. This fragmentation deters the efficient use of NQI resources that
make policy implementation difficult, further increasing transaction costs borne
by industry players and consumers.


The proposed bill aims to institutionalize a national quality policy that shall set
the standards in ensuring that Philippine-made goods and services are of the
highest quality in terms of safety, condition and acceptability. The NQI shall
cultivate a coordinated system anchored on standardization, accreditation,
conformity assessment, and market surveillance. This shall strengthen the
country’s quality infrastructure network for improved trade facilitation, upgraded
industry and competitiveness, better consumer protection, and more conducive
business environment.

In view of the foregoing, the approval of this measure is earnestly sought.

wn G. ROMUALDEZ

JUDE ¥ ACIDRE ANDREW JULIAN K. ROMUALDEZ


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Republic of the Philippines

Bouse of Representatives
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILL NO. _19

Introduced by Representatives Ferdinand Martin G. Romualdez,
Andrew Julian K, Romualdez and Jude A. Acidre

AN ACT
TO DEVELOP A NATIONAL QUALITY POLICY DEFINING THE
PHILIPPINE NATIONAL QUALITY INFRASTRUCTURE (NQI)
THEREOF, CREATING FOR THIS PURPOSE, THE PHILIPPINE
NATIONAL QUALITY INFRASTRUCTURE COORDINATING
COUNCIL

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Title. — This Act shall be known as the “National Quality
Infrastructure Development Act.”

SEC. 2. Declaration of Policy. — It is declared the policy of the State to
adopt a culture of quality among its citizens to encourage competitiveness among
firms, to facilitate trade, and to promote consumer welfare in accordance with
good regulatory practices.

The State shall adopt and strengthen its quality infrastructure network that
would support national policies and strategies on economic development,
industrialization, trade and investments, ease of doing business, consumer
protection, and environmental protection, while adhering to international best
practices and international standards.


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The State recognizes the critical role of the private sector in the national
quality infrastructure, and shall promote a transparent, participatory, coherent,
and efficient mechanism to enable businesses to effectively comply with market
requirements and consumer needs.

Pursuant thereto, the State shall also develop a National Quality Policy
(NQP) that will further strengthen the Philippine National Quality Infrastructure
(NQI) to provide the necessary institutional apparatus so that the country’s private
sector can produce products and services of a prescribed national or international
standard; and the verification of conformance to these standards can be achieved
by internationally accepted means.

It is hereby declared the policy of the State to harmonize the fragmented
quality programs and policies, as well as institutionalize effective cooperation and
coordination among the NQI institutions in the country, as well as with their
regional and international counterparts. The NQI shall serve both the regulatory
authorities and the market place in order to comply with the State’s constitutional
mandate to protect consumer rights and encourage industries and other
organizations to adopt quality improvements and best practices into their day-to-
day activities.

SEC. 3. Coverage. — This Act shall apply to activities, processes,
programs, and to public and private institutions relevant to standards,
accreditation, metrology, conformity assessment, and other matters incidental
thereto.

SEC. 4. Definitions of Terms. — For purpose of this Act, the following
terms are defined as follows

a) Accreditation refers to a third-party attestation conveying a formal
demonstration of the competence of a conformity assessment body to
carry out specific conformity assessment tasks. It provides a basis for
uniform technical policy and conditions for mutual recognition at the
international level;

b) Calibration refers to the operation that is used to establish that the

measuring instruments used remain accurate within specified

parameters;

Certification refers to a third-party attestation of conformance to

standards, technical regulations, other specified requirements or

guidelines related to products, processes, systems or persons. This can
be accomplished by conducting inspection, verification, audit and/or
testing;

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d) Conformity Assessment refers to the demonstration that specified
requirements relating to a product, process, system, person or body are
fulfilled

e) Conformity Assessment Body refers to a body that performs conformity
assessment activities and that can be the object of accreditation;

f) Culture of Quality refers to the set of group values that guide how
improvements are made to everyday working practices and consequent
outputs;

g) Inspection refers to the examination of a product, process, service, or
installation, or their design and determination of its conformity with
specific requirements or, on the basis of professional judgment, with
general requirements;

h) Metrology refers to the science of measurement and its application,
which includes all theoretical and practical aspects of measurement;
National Quality Infrastructure (NQl) refers to policy, legal, regulatory,
and administrative frameworks, and the institutional arrangements,
public and private, to implement standardization, accreditation, and
totality of the testing, certification, and measurement necessary to
provide acceptable evidence that products and services meet the defined
government and market standards;

National Quality Policy (NQP) refers to the basic government

instrument for establishing and overseeing the quality infrastructure

system;

k) Philippine National Standard (PNS) refers to a document established

by consensus and promulgated by the Bureau of Philippine Standards,

which provides, for common and repeated use, rules, guidelines, or
characteristics for activities or their results which aim at the
achievement of the optimum degree of order in a given context;

Quality refers to the degree to which a set of inherent characteristics

fulfill requirements;

m) Standards refers to the document approved by a recognized body that
provides for common and repeated use, rules, guidelines, or
characteristics for products or related processes and production
methods, with which compliance is not mandatory. It may also include
terminology, symbols, packaging, marking, or labelling requirements as
they apply to a product, process, or production method;

n) Standardization refers to the process of developing technical
specifications of standards based on consensus among all interested
parties, consumers, trade associations, manufacturers and providers of
goods and services, non-governmental organizations (NGOs), and
government agencies and instrumentalities; and

©) Testing refers to the determination of a product’s characteristics against
the requirements of the standard.

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SEC. 5. Philippine National Quality Policy. ~ A Philippine National
Quality Policy shall be developed to ensure that Philippine products and services
are globally accepted; earn a reputation of highest quality in terms of safety,
standards, and acceptability; promote a national culture of quality among the
citizenry; and the Philippine goods and services are designed, manufactured, and
supplied in a manner that fully matches or exceeds the needs, expectations, and
requirements of the retailers, purchasers, consumers, and regulatory authorities in
the local, regional and international markets.

The National Quality Policy shall define the National Quality
Infrastructure in accordance with the objectives set forth in this Act.

SEC. 6. Scope of the NQI.—The NQI shall prescribe the policy, regulatory,
and legal frameworks on Standardization, Accreditation, Metrology, and
Conformity Assessment that shall be defined in the implementing rules and
regulations of this Act.

SEC. 7. Institutional Arrangements. — To achieve the objectives set forth
in this Act, there is hereby created a Philippine National Quality Infrastructure
Coordination Council (PNQICC), herein referred to as the Council.

The Council shall be composed of the following:

a) The Department of Trade and Industry (DTI) Secretary and
Department of Science and Technology (DOST) Secretary as Co-
Chairpersons;

b) A representative of the private sector as Vice-Chairperson;

c) The Secretary of the Department of Budget and Management (DBM);

d) The Secretary of the Department of Agriculture (DA);

e) The Secretary of the Department of Energy (DOE);

f) The Secretary of the Department of Environment and Natural
Resources (DENR);

g) The Secretary of the Department of Information and Communications
Technology (DICT);

h) The Secretary of the Department of Finance (DOF);

i) The Secretary of the Department of Health (DOH);

j) The Secretary of the Department of Tourism (DOT);

k) The Secretary of the Department of Public Works and Highways
(DPWH);

1) The Director-General of the National Economic and Development
Authority (NEDA);

m) A representative of the Union of Local Authorities of the Philippines
(ULAP);


n) Four (4) members from the private sector who shall represent
exporters, manufacturers, importers, and consumers; and
0) Arepresentative of the academe or research institutions.

The DTI and DOST Secretaries may designate the appropriate
Undersecretary as their alternate, and the other ex officio members may designate
an alternate with the rank not below the rank of Director.

The President shall appoint the Vice-Chairperson from the nominees
submitted by the reputable business groups or associations.

A permanent secretariat shall be organized by the DTI to assist the Council
in the discharge of its functions.

SEC. 8, Functions of the Philippine National Quality Infrastructure
Coordination Council, ~The Council shall perform the following functions:

a) Formulate and adopt a Philippine National Quality Policy pursuant to
Section 5 of this Act;

b) Instill a culture of quality in all levels of society, at the individual and

institutional levels, through an effective information, education,

capacity building, and communication campaign to relevant regulatory
bodies and to the public;

Ensure the adoption of good regulatory practices and policy cohesion

by NQI institutions and in the delivery of NQI services, as well as in

the development and promotion of programs and projects;

d) Create committees or technical working groups and request the

participation, assistance and cooperation of government agencies,

industry associations, consumers, the academe, and other stakeholders,
if necessary for the performance of its functions and attainment of the
objectives of this Act;

Identify the roles and contribution of government agencies, the private

sector, industry associations, non-government organizations, and other

stakeholders in attaining the vision and adhcring to the principles
prescribed in this Act;

f) Coordinate and support programs, projects, and activities that will
foster the development of a responsible and sustainable NQI, such as
but not limited to improving and increasing the availability of experts,
technical assessors, laboratories, calibration services, and product
certification bodies, among others;

g) Provide direction and order, and encourage the participation of the
public and private sectors in conformity assessment activities and

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mechanisms as a means to demonstrate compliance with voluntary and
mandatory requirements to public and private sectors;

h) Promote the adoption of quality management practices and necessary
training to those in charge of the production and commercialization of
goods and services in the country;

i) Promulgate rules to enable the NQI institutions under its direction to
offer technical support to relevant industries;

j) Ensure that standardization, accreditation, and metrological processes
are in line with and comparable to international best practices;

k) Ensure the proper promulgation of all standards created by other

agencies and instrumentalities of the government, and perform

standardization functions over conformity assessment bodies in the
country;

Direct the development of the National Standardization Strategy and the

National Accreditation Strategy, with the involvement of all

stakeholders;

m)Ensure that the country participates in regional and international
standardization efforts and accreditation activities, arrangements, and
fora;

n) Support the formation of cooperation and conclusion of mutual
recognition arrangements and agreements with national, regional, and
international organizations;

0) Promote the recognition of accreditation among regulatory agencies by:

i. Requiring their testing and calibration laboratories, inspection
bodies and certifying bodies to seek accreditation;

ii, — Requiring government agencies to utilize the services of test
and calibration laboratories, inspection bodies, certification
bodies, and other conformity assessment bodies that are
accredited by the Accreditation Philippines or a signatory
member of the Asia Pacific Accreditation Cooperation
(APAC), International Accreditation Forum (IAF),
International Laboratory Accreditation Cooperation (ILAC),
and International Halal Accreditation Forum (IHAF);

iii. Establishing agreements, Memorandum of Understanding
(MoU) and Mutual Recognition Arrangement (MRA) with
regulatory bodies, other accreditation bodies, signatory
members and other interested parties;

p) Ensure the maintenance and continuous update of the national
measurement standards in all relevant fields for the Philippines,
guaranteeing that all metrological laboratories, infrastructure,
equipment, instruments, artifacts, reference standards, and other similar


articles are in good condition, intentionally compliant, and reliant and
other qualities that may be required in the future;
q) Provide metrological traceability to the International System of Units
(ISU) for measurements used in regulations, trade, and manufacturing;
Engage and coordinate research and development work with other local
institutes/bodies having metrological responsibilities (radiation,
standard time and dissemination, etc.);
s) Exercise responsibility for legal metrological controls in the country
through coordination with other executive branches of government;
Ensure uniformity and metrological procedures in the same prescribed
manner of their implementation; and
u) Perform such other functions as may be necessary, incidental, or proper
to its mandate.

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SEC, 9. Role of NQI Institutions. — Under the direction of the Philippine
National Quality Infrastructure Council, all existing NQI institutions involved in
standards development, accreditation, metrology, and conformity assessment
shall continue to perform the mandates and functions assigned to them by their
respective enabling laws, including but not limited to:

a) Department of Agriculture (DA)
i, Bureau of Agriculture and Fisheries Standards (BAFS) pursuant to
Republic Act No. 8435;
ii. National Meat Inspection Service (NMIS), pursuant to Republic Act No.
9296;

b) Department of Environment and Natural Resources (DENR), pursuant to
Executive Order No. 192, Series of 1987;

c) Department of Information and Communications Technology (DICT)
i, National ICT Planning Policy and Standards Bureau (NIPPSB), pursuant
to Republic Act No. 10844;

d) Department of Energy (DOE)
i, Energy Research and Testing Laboratory (ERTL), pursuant to
Administrative Order No. 38, Series of 2002;
ii, National Renewable Energy Board (NREB), pursuant to Republic Act
No. 9513;
iii, Oil Industry and Management Bureau (OIMB), pursuant to Republic
Act No. 8479;

e) Department of Health (DOH)


i, Food and Drugs Administration (FDA), pursuant to Republic Act No.
9711;

f) Department of Science and Technology (DOST)
i, Forest Products Research and Development Institute (FPRDI), pursuant
to Executive Order No. 128, Series of 1987;
ii Industrial Technology Development Institute (ITDI), pursuant to
Executive Order No. 128, Series of 1987;
iii, Metals Industry Research and Development Center (MIRDC),
pursuant to Republic Act No. 4724;
National Metrology Laboratory (NML), pursuant to Republic Act
No. 9236;

iv.

g) Department of Tourism (DOT)
i, Office of Tourism Standards and Regulations, pursuant to Republic Act
No. 9593;

h) Department of Transportation (DOTr)
i. Land Transportation Franchising and Regulatory Board (LTFRB),
pursuant to Executive Order No, 202, Series of 1987

i) Department of Public Works and Highways (DPWH)
i, Bureau of Research and Standards (BRS), pursuant to Executive Order
No. 292, Series of 1987;

j) Department of Trade and Industry (DTI)
i. Bureau of Philippine Standards (BPS), pursuant to Republic Act No.
4109;
ii, Philippine Accreditation Bureau (PAB), pursuant to Executive Order No.
802, Series of 2009;

k) National Commission of Muslim Filipinos (NCMF), pursuant to Republic
Act No. 9997;

1) National Water Resources Board (NWRB), pursuant to Presidential Decree
No. 1067, s. 1976; and

m) Local Government Units, pursuant to Republic Act No. 7394.

SEC. 10. Appropriations. - The amount necessary for the conduct of
activities and projects of the Council to effectively perform its mandates functions


under this Act, shall be sourced from the budgets of the different government
departments tasked to implement the same.

SEC. 11. Implementing Rules and Regulations. — Within sixty (60)
working days from the effectivity of this Act, the DTI and DOST, in consultation
with the DBM, DOF, NEDA, and other relevant stakeholders shall issue the
implementing rules and regulations of this Act.

SEC. 12. Separability Clause. — If any provision of this Act 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 provisions of other laws, presidential
decrees, issuances, executive orders, letter of instructions, administrative orders,
rules and regulations which are contrary to or inconsistent with the provisions of
this Act are hereby deemed repealed, modified, 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,