EIGHTEENTH CONGRESS OF THE) 
REPUBUC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
S.B. NO. 1871
tCEfVEO
FILED
Noex
Introduced by SENATOR IMEE R. MARCOS
AN ACT REVITALIZING AND STRENGTHENING THE SELF-RELIANT 
DEFENSE POSTURE PROGRAM TO ADDRESS EXTERNAL AND INTERNAL 
SECURITY THREATS AND CHALLENGES TO NATIONAL DEVELOPMENT, 
INCLUDING PANDEMICS, AND PROVIDING FUNDS THEREFOR
EXPLANATORY NOTE
Article II, Section 3 of the 1987 Constitution provides that" the Armed Forces 
of the Philippines is the protector of the people and the State. Its goal is to secure the 
sovereignty of the State and the integrity of the national territory.” Article XIV, Section 
12 further provides that "the State shall regulate the transfer and promote the 
adaptation of technology from all sources for the national benefit It shall encourage 
the widest participation of private groups, local governments and community-based 
organization of science and technology."
The rise of recent Chinese military exercises in the South China sea has 
continued to increase tensions between South East Asian nations in the region. 
Further, the threat of technological and cyber warfare continue to highlight the need 
for more advanced cyber security to protect the State. Moreover, our vulnerability to 
outbreaks or possible biological warfare has been brought to the forefront as the world 
continues to struggle bringing the CoVID-19 pandemic under control.
In light of the above, in order to prepare and adapt to the evolving security 
threats brought about by the 21st century, both external and internal, and the shifting 
pronouncements of defense alliances between and among nations, it is imperative 
that the country should revitalize and strengthen its goal for self-reliance in defense.
The country's pursuit to modernize the Armed Forces of the Philippines, through 
the AFP Modernization Act (R.A. No. 7898, as amended) and its efforts to achieve a 
minimum credible defense posture are monumental steps towards establishing a 
credible armed forces to secure our sovereignty and the integrity of the national 
territory. However, the country remains heavily reliant on foreign governments, 
defense contractors and suppliers to provide, mostly by purchase, the necessary 
hardware, weaponry or materiel, thereby contributing to the depletion of our foreign


exchange reserve and squeezing further our budgetary constraints. Certainiy, the 
revival and strengthening of the Self-Reliance Defense Posture (SRDP) Program will 
be a big boost to our modernization effort and in sustaining a credible Armed Forces 
of the Philippines. In fact, during the early years of the implementation of the SRDP 
program under Presidential Decree No. 415, it was able to manufacture armaments 
such as the M16 Assault Rifle, 60mm Mortar Tube, 81mm Mortar Tube and gun 
barrels; ammunitions like 5.56mm ammunition. Hand grenade MKII, and 81mm Mortar 
Ammunition. The country was also able to produce vehicles like the jiffy jeeps, mini 
cruisers, hovercraft, speed boats, marcelo boats, PCF, LCVP and whale boat.
This bill seeks to revitalize and strengthen the Self-Reliant Defense Posture 
(SRDP) program with the principal goal of accelerating the establishment of defense 
industry in the country that will adequately address the requirements for the desired 
defense buildup and with maximum utilization of indigenous materials. Its coverage 
shall also be expanded to address non-military challenges that are regarded as serious 
threats to national development, such as calamities, cyber-terrorism and pandemics.
Thus, the passage of this bill is earnestly requested.
. MARCOS


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE 
S.B. NO. 1871
Lii nA TIT? Oct 05 2020
E-FILED
2:30 p.m.
tu.ie:
INDEX
Introduced by SENATOR IMEE R. MARCOS
AN ACT REVITALIZING AND STRENGTHENING THE SELF-RELIANT 
DEFENSE POSTURE PROGRAM TO ADDRESS EXTERNAL AND INTERNAL 
SECURITY THREATS AND CHALLENGES TO NATIONAL DEVELOPMENT, 
INCLUDING PANDEMICS, AND PROVIDING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Short Title. - This Act shall be known as the "Self-Reliance
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Defense Posture Revitalization Act".
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SEC. 2. Declaration of Policy. - The State recognizes the important roie of
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a self-reliant in defense in national development. Thus, there is a need to revitalize
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the seif-reliance defense posture program amidst the growing and imminent external
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and internal security threats and other chalienges to national development, including
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pandemics. The attainment of this goal requires the undertaking of nationai defense
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projects that is locally sourced, thus generating local employment opportunities, and
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spurring the growth of in-country entrepreneurship.
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The State also recognizes the dynamic nature of the security environment
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necessitating a drastic upgrade of defense capabilities not oniy on conventional
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warfare but also on addressing evolving security threats such as terrorism, insurgency,
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iiiegai drugs, inciuding natural calamities and public health emergencies and
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pandemic.
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SEC. 3. Self-Reliant Defense Posture Revitalization Council- There is
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hereby created a Seif-Reliant Defense Posture Revitalization Council under the
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administrative supervision of the Office the President. The councii shall serve as the
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policy making body and oversee the implementation of a revitalized self-reliance
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defense posture program.
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SEC. 4. Composition of the Council- The council shall be composed of the
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Secretary of National Defense (DND) as its chairman and the Secretary of the


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Department of Interior and Local Government (DILG) as its vice-chairman, and shall
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further be composed of the following officials as members:
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a) Secretary of the Department of Foreign Affairs (DFA);
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b) Secretary of the Department of Finance (DOF);
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c) Secretary of the Department of Science and Technology (DOST);
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d) Secretary of the Department of Budget and Management (DBM);
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e) Secretary of the National Economic Development Authority (NEDA)
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f) Secretary of the Department of Health (DOH);
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g) Secretary of the Department of Information and Communication
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Technology (DICT);
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h) Chief of the Philippine National Police (PNP);
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i) Chief of Staff of the Armed Forces of the Philippines (AFP);
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The Council shall have a secretariat to be headed by an Executive Director. The
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organizational structure and staffing pattern of the secretariat shall be formulated by
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the Secretary of the National Defense, subject to the approval of the Department of
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Budget and Management (DBM) in accordance with executive order no. 292, otherwise
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known as the "administrative code of 1987.
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The Council may invite concerned public and private agencies or entities to
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participate, complement, and assist in the attainment of its objectives.
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SEC. 5. Self-Reliant Defense Posture Program (SRDP). - The council
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shall formulate a revitalized short, medium and long range self-reliant defense posture
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programs under the following guidelines:
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a) It shall endeavor to benefit in-country enterprises, stimulate local labor, 
and help save on foreign currency exchange. It shall take advantage of the 
world- class Filipino talent on advanced and frontier technologies.
b) It shail be aimed to protect the country from geo-politicaliy motivated 
disruptions in the supply of defense materials and other materials that are 
deemed crucial to national security. It shall also enable the country, 
logistically, to respond more effectively in times of natural calamities, 
disasters and pandemics.
c) It shall ensure an aggressive research and development program of the 
Department of National Defense (DND) and the Armed Forces of the 
Philippines (AFP) and utilizing new and advanced technologies for the 
purpose of upgrading existing inventory of equipment and weapons 
systems.
d) It shall provide a comprehensive guidance to the DND, AFP other agencies 
and institutions of the government and locai industry stakeholders towards 
the attainment of the goals of this Act.


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e) It shall complement the Philippine Development Plan and be aligned with
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the National Security Policy. It shali identify the current status of the
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country, its objectives and the measures to be taken to achieve the
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objective. It shail define development horizons to give time to the private
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industry to acquire the expertise and technology required to respond to a
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future government request for products.
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f) It shaii contain, as far as practicable, a list of defense materiel the country
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wants to produce on its own to achieve its security goais and those that
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wiil be farmed out to the private industry. It shall identify specific areas
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where prospective in-country enterprises can pitch in, in support of
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attaining the overarching nationai goal of attaining a self-reliant defense
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posture.
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SEC. 6. - Enhancing the Development Support and Security
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Operations Capability of the Armed Forces of the Phiiippines (AFP). - The
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AFP shail Strengthen its deveiopment support and security operations capabiiity to
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sustain peace, ensure security, help maintain peace and order, and support national
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resilience.
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The Department of National Defense (DND) and AFP shall upgrade its level of
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preparedness and response to the highest standard on disasters and pandemics. The
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DND/AFP shall organize, train and capacitate special units for disaster and pandemic
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response. The DND/AFP shall also enhance stakeholder's engagement and
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coordination with other government agencies, non-government organizations as well
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as civilian and military partners in humanitarian assistance and disaster reiief
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operations.
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The DND/AFP shail strengthen its medicai corps, medical reserve units,
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engineering corps and logistics units to serve as ready reserve response units for
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health emergencies, disasters and pandemics.
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The DND/ AFP shall also upgrade and capacitate its special units tasked on
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chemical, biological, radiological and nuclear emergency response and risk mitigation.
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As far as practicabie, the aforementioned capability strengthening and
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upgrading shali be undertaken through the Self-Reliance Posture (SRDP) program.
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SEC. 7. Government Arsenai Modernization. - The Government Arsenal
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shall be modernized and the Government Arsenal Defense Industrial Estate shall be
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developed into an industrial base to serve as the take-off point for the revitalization
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of the SRDP program.
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The Secretary of National Defense shall implement a Master Development Plan
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to modernize the Government Arsenal and fully develop the Government Arsenal
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Defense Industrial Estate.


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SEC. 8. Modernization of the Phiiippine Aerospace Development
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Corporation. - The modernization of the Philippine Aerospace Development
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Corporation (PADC) shall be pursued in the interest of national security.
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The PADC shall have the mission to fully provide world-class support services
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and research for aerospace development for private and government clients.
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The
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PADC.
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Council shall develop and implement a modernization program for the
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SEC. 9. Government Sector Partnership and Collaboration - In the
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pursuit of the objectives of the SRDP, the DND and AFP shall collaborate and cooperate
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with other government agencies and institutions, particularly in areas beneficial and
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supportive to the convergence approach of development, governance and security.
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The DND and AFP shall collaborate with the Department of Science and
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Technology and establish partnerships on research and development, focusing on
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the aspects of scientific, technical cooperation, and technology transfer.
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The DND and AFP, in the pursuit of the attainment of SRDP'S goals and
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objectives, shall align the revitalization of the SRDP along with the objectives of the
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Philippine Innovation Act enacted on April 2019 particularly on the specific objective
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of strengthening and deepening interactions and partnerships among different actors
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from the public and private sector, academe. MSMEs, research and development
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institutions and communities towards promoting inclusive growth and improving the
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quality of life through innovation.
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SEC. 10. Participation of the Local Industry Sector. - The local industry
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sector representatives shall be consulted and tapped in the development and
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implementation of the SRDP program to ensure alignment of defense and response
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outcomes with industry requirements and add value qualifications within the
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workplace.
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An institutionalized framework to operationalize a government - private sector
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partnership shall be established that will include guidelines in the creation of
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memoranda of understanding for liaising between government/defense entities and
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private sector stakeholders.
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SEC. 11. The National Defense Industry. - For the interest of the nation,
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and as an anchor of the SRDP, a national defense industry shall be developed in
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accordance with the following objectives:
a. To develop the defense capability of the country and the development support 
and security operations capability of the AFP, the State shall give preference 
to in-country enterprises, allocating substantial resources and manpower to 
defense research, utilizing to the fullest the country's natural resources as the 
source of the country's defense and security needs, and providing relevant 
technical and financial assistance to the private sector;


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b. The State shall rely primarily on defense and security articles that are being 
produced, manufactured or developed by in-country enterprises. The State 
shall only use materiel from foreign sources when such materiel cannot be 
locally produced, manufactured or otherwise competitive to international 
standard; Provided that, importation from such foreign sources shall be for 
the ultimate objective of acquiring technology for the production of such 
unavailable materiel;
c. In order to reduce foreign exchange outflow, generate local employment 
opportunities, and enhance technology transfer to the Philippines, the 
Secretary of National Defense shall, as far as practicable. Incorporate special 
foreign exchange reduction schemes and countertrade, in-country 
manufacture co-production, or other innovative arrangements or 
combinations thereof in all contracts and agreements for the manufacturing 
and servicing of materiel;
d. To support the development of advanced and frontier technology products 
relevant to national defense and security manufactured by in-country 
entrepreneurs;
e. To win the commitment of private sector stakeholders to the long gestation 
period associated with building a viable defense and security industry; and
f. For defense and security materiel developed by or with the private sector, 
the Government shall promote the export of locally-made materiel and the in­
country enterprises to other countries, whether civilian or military, for an 
expanded market and is encouraged to provide financial marketing support for 
such promotion to ensure the sustainability of the local defense industry.
SEC. 12. Incentives. - (a) Any provision of law to the contrary 
notwithstanding, foreign or local enterprises engaged or proposing to engage in the 
manufacture, servicing and/or operation of materiel for Government may be registered 
and may avail of incentives under and subject to the conditions in Executive Order No 
226 otherwise known as the Omnibus Investments Code: Provided, That, 
notwithstanding Article 27 thereof, manufacturing, servicing, and/or operation of 
materiel shall be included in the Investment Priorities Plan every year by operation of 
law after the effectivity of this Act until otherwise removed by the Board or the 
President; Provided, further. That the removal of manufacturing, servicing, and/or 
operation of materiel from the Plan subsequent to the effectivity of this Act shall not 
be interpreted as a bar or restriction on the Board from later including the 
manufacturing, servicing and/or operation of materiel in the Plan.
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In the interest of National Security, the Board of Investment shall adopt a
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special procedure in the processing of applications for registration by enterprises in
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the Industry and offering goods and services to the Government under the Program.
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(b) Government financial institutions are highly encouraged to support the Industry
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by formulating and extending financial products that would benefit its hastened
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development.
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(c) In addition to the incentives provided in E.O. 226, foreign and local enterprises
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engaged in the manufacture, servicing, and/or operation of materiel registered with
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the Board of Investment shall enjoy exemption from customs duties and national
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Internal revenue taxes payable on the importation of raw materials and critical
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components by registered enterprises for the purpose of producing such materiel.
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SEC. 13. Congressional Oversight Committee. - There is hereby created
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a Congressional Oversight Committee to monitor progress of the implementation of
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the provisions of this Act. The Committee shall, among others. In aid of legislation
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monitor and ensure the implementation of this Act.
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The Committee shall be composed of six (6) members of the Senate and six
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(6) members of the House of Representatives with the Chairpersons of the Committees
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on National Defense and Security of both Houses as Joint Chairpersons. The five (5)
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members of from each Chamber shall be designated by the Senate President and the
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Speaker of the House of Representatives, respectively. The Minority shall have one
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(1) representative from both Chambers.
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SEC. 14. Appropriations. - The sum of One billion pesos
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(P1,000,000,000.00) is hereby appropriated as initial fund to carry out this Act, taken
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from the current fiscal year's appropriation of the AFP modernization fund. Thereafter,
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the amount needed for the implementation of this Act shall be included in the General
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Appropriations Act.
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SEC. 15. Implementing Rules and Regulations. - Within ninety (90) days
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from the effectivity of this Act, the DND and AFP, in coordination with the other
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relevant government agencies, shall promulgate the necessary rules and regulations
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for the effective implementation of this Act.
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SEC. 16. Separability Clause. - Should any provision herein be declared
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unconstitutional, the same shall not affect the validity of other provisions of this Act.
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SEC. 17. Repealing Clause. - All laws, decrees, orders, rules, and regulations
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or other issuances of parts inconsistent with the provisions of this Act are hereby
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repealed or modified accordingly.
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SEC. 18. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in any two (2) newspapers of general circulation
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in the Philippines.
Approved,