EIGHTEENTH CONGRESS ) 2
REPUBLIC OF THE PHILIPPINES.) ATEFEB 2 6 2020%
First Regular Session ‘FB 6 2020 ral
TIME: 3:28 QJ
HOUSE OF REPRESENTATIVES © By: Sy
oy &

Introduced by Representative Rufus B. Rodri

6338

House Bill No.
EXPLANATORY NOTE

There are 62 species of bamboo thriving in the Philippines and 21 of which can only
be found in the country.

‘According to the Department of Environment and Natural Resources (DENR),
bamboo's many vital economic and ecologic uses may propel it as the country's next
alternative material for lumber and as an effective greening agent to increase the country's
forest cover.

‘According to the Philippine Council for Agriculture, Aquatic, and Natural Resources
Research and Development (PCAARRD), bamboo is a popular non-timber forest product
and a viable substitute for wood in fumiture, wall and floor panels. Also, bamboo can be
used in handicrafts and consumed as food. Studies show it prevents soil erosion and
sequester carbon from the atmosphere.

Bamboo is known to be easy to plant and grow and has high survival rate. Many
species of bamboo are already used in the cottage industries of basket weaving, hut-making
and furniture making in the many provinces of the country. However, many still do not
understand the benefits and uses of this species.

Which is why bamboo remains to be one of the underdeveloped industries in the
country despite its versatility, economic potentials, and environmental contributions. At
present, we have yet to fully support bamboo farmers, producers, processors, and exporters
with concrete policy actions and fiscal incentives to sustain the bamboo enterprises that they
have started or to entice investors to go into the bamboo industry.

It is, thus, the aim of the bill to promote the rapid, steady and continuous integrated
development and growth of the Philippine bamboo industry, recognizing the
bamboo's salient role as a strategic, indigenous, replenishable, and renewable source of
livelinood and tool for agricultural productivity and environmental protection and
management

The bill also mandates the DENR to use bamboo as planting material for at least
twenty percent (20%) of its annual reforestation and rehabilitation programs.

Furthermore, the bill mandates the Department of Education (DepEd) to procure at
least twenty five percent (25%) of its annual school desk and/or armchair requirements for
public elementary and secondary schools nationwide with the use of Philippine Bamboo.

The Department of Labor and Employment (DOLE) is likewise mandated to
implement bamboo livelihood programs for preference employment of special groups and
organizations of persons with disabilities (PWD), marginalized sectors, the unemployed, and
fetrenched Overseas Filipino Workers (OFWs).

In view of the foregoing, immediate approval of this measure is eamestly requested.

RU B. IRIGUEZ

“RECEIVED ©



EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES }
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez
6396

House Bill No.

AN ACT
TO PROMOTE AND STRENGTHEN THE PHILIPPINE BAMBOO INDUSTRY,
PRESCRIBING ITS SCIENTIFIC PROPAGATION, PROCESSING, UTILIZATION, AND
BUSINESS DEVELOPMENT AS A PRIORITY PROGRAM, AND ALLOCATING FUNDS
THEREFOR AND FOR OTHER PURPOSES.

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

Section 1. Title. This Act shall be known as the “Philippine Bamboo Industry Development
Act’.

Section 2. Declaration of Policy. It is hereby declared the policy of the State to promote
industrialization and full employment based on sound agricultural development and agrarian
reform, through industries that make full and efficient use of human and natural resources,
and which are competitive in both domestic and foreign markets. To this end, the State shall
promote the rapid, steady and continuous integrated development and growth of the
Philippine bamboo industry, recognizing the bamboo's salient role as a strategic, indigenous,
replenishable and renewable source of livelihood and tool for agricultural productivity. It is
also here by declared a policy of the state to acknowledge the great contribution of bamboo
in environmental protection and management, more importantly in light of the perils of
climate change.

Section 3. Priority Program. It is here by authorized and prescribed, as a priority program,
the scientific propagation, processing, utilization and business development of Philippine
bamboo under the Philippine Bamboo Framework for Development.

Section 4. Implementing Agency. there is here by created a Philippine Bamboo Industry
Development Coordinating Council (BIDCC), hereinafter referred to as the Council,
administratively attached to the Department of Trade and Industry, charged with the main
function of coordinating the Activities of various agencies and instrumentalities to ensure the
accomplishment of the Philippine Bamboo Framework for Development.

If ever practicable and required, the Chairman of the Council shall submit an annual report to
both houses of Congress on the status of the implementation of this Act.

Section 5. Composition. The Philippine Bamboo Industry Development Coordinating
Council shall be composed of the following:
a. Secretary of the Department of Trade and Industry as Chairman (DTI);
b. Undersecretary of the Department of Trade and Industry-Regional Operations and
Development Group (DTI-RODG) as Head of the Council Secretariat;
c. Executive Director of the Cottage Industry Development Center (CICT) as Head of
the Bamboo Technical Working Group;
d. Secretary of The Department of Environment and Natural Resources (DENR);
e. Secretary of the Department of Agriculture (DA);


Secretary of the Department of Education (DepEd);

Secretary of the Department of Agrarian Reform (DAR);

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

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

Representative from the League of Municipalities of the Philippines;

Representative from the League of Cities of the Philippines;

Representative from reputable Private Industry Association;

m. Two (2) representatives from Bamboo Farmers'/Producers'/Processors’ Associations;
n. One (1) representative from Non-Governmental Organizations (NGOs);

cxtrses

The Council shall regularly meet every two (2) months and may hold special meetings,
whenever the need arises, to consider urgent matters upon the call off the chairman or any
eight (8) Council members.

Section 6. Council Secretariat. The Council Secretariat shall be headed by the
Undersecretary of the Department of Trade and Industry-Regional Operations and
Development Group (DTI-RODG). Technical support shall be provided by the Bamboo
Technical Working Group as headed by the executive director of the Cottage Industry
Development Center (CICT)

The secretariat and technical staff shall be detailed from the existing personnel of the
Department of Trade and Industry without prejudice to the designation of the Council of such
additional staff members as it may deem necessary for the proper discharge of its function
and responsibilities

Section 7. Philippine Bamboo Framework for Development. The Philippine Bamboo
Industry Development Coordinating Council shall formulate a ten- year Framework for
Development, to be validated and updated annually. Such framework shall serve as guide to
the formulation and implementation of plans, projects, programs, and policies for the
scientific propagation, processing, utilization, and business development of Philippine
Bamboo, The Framework shall likewise provide the following

a. Site Identification - the Department of Environment and Natural Resources in
coordination with the Department of Agriculture, Department of Agrarian Reform, and
the Local Government Units, shall identify the broad areas suitable for the planting
and propagation off Philippine bamboo, within six (6) months after the effectivity of
this Act. The Department of Environment and Natural Resources shall also establish
nurseries focusing on species suitable for shoot production.

b. Scientific Propagation and Development — The Department of Environment and
Natural Resources and the Department of Science and Technology shall establish
sites and/or pilot farms for the cultivation and propagation of Philippine bamboo. The
same also covers the transfer and improvement of appropriate technology and
techniques, which will be utilized in ever phase of bamboo production, processing,
marketing and distribution. Particular emphasis shall be made on adoption and
upgrading of post-harvest technology;

©. Production and Extension - The Department of Environment and Natural Resources,
Department of Agriculture, Department of Trade and Industry, and the Department of
Science and Technology in coordination with the Local Government Units, non-
governmental organizations, Technical Education and Skills Development Authority
(TESDA), Cooperative Development Authority (CDA), state universities and colleges
(SUCs), and other relevant government agencies, shall establish programs which
promote and provide adequate training on adapting technologies to individuals
engaged in propagation, production, processing, marketing and distribution of
Philippine bamboo strengthen farmers'/producers'/processors’ cooperative's and
organizations involved in the sustainable and viable development of Philippine


bamboo, and afford opportunities for participation in international conventions,
workshops and fora.

4. Market Promotion and Business Development - The Department of Trade and
Industry, in coordination with private industry associations, shall link-up agribusiness
cooperatives and organizations directly with consumers’ cooperatives and
organizations, agro-processing companies, or exporters to provide marketing outlets
and assure relatively higher and stable prices of bamboo. This also includes
exploring national and intemational markets and facilitating the participation of local
farmers, growers, and exporters in local and international conferences, trade fairs,
expositions, and exhibits;

e. Infrastructure Development - Access to post harvest facilities, storage and
distribution/transport facilities of existing govemment agencies shall be facilitated by
the Department of Environment and Natural Resources, Local Government Units,
and Department of Agriculture. Assistance shall be given to qualified and viable
farmers'/producers'/processors’ cooperatives and organizations and the availment of
soft loans or grants for the construction of post-harvest, processing and storage
facilities;

f Quality Assurance - To ensure health and proper trading, the Department of Trade
and Industry and Department of Science and Technology, respectively, shall
establish and enforce standards in grading, sampling and inspection, tests and
analysis, specifications, nomenclature, units of measurement, packaging,
preservation, conservation or transportation of Philippine bamboo products and by-
products; and

9. Philippine Bamboo Information Center - the Department of Trade and Industry and
coordination with Local Goverment Units shall establish a Philippine Bamboo
Information Center and areas identified pursuant to section 7(a) of this Act.

Section 8. Bamboo as Planting Material for Annual Reforestation and Rehabilitation.
The Department of Environment and Natural Resources shall use Philippine bamboo as
planting material for at least twenty percent (20%) of its annual reforestation and
rehabilitation program.

Section 9. Bamboo Furniture Procurement Project. The Department of Education shall
procure at least twenty-five (25%) of the annual school desk and/or armchair requirements of
public elementary and secondary schools nationwide with the use of Philippine bamboo
pursuant to schedules and arrangements to be agreed upon with the Department of Trade
and Industry.

Section 10. Bamboo Livelihood Programs. The Department of Labor and Employment, in
cooperation with the Council and Local Government Units, shall formulate and implement
Bamboo Livelinood Programs for preference employment of special groups and
organizations of Persons with Disabilities (PWDs), marginalized sectors, the unemployed,
and retrenched Overseas Filipino Workers (OFWs). The program shall have an appropriate
training and/or skills-retooling component to be provided by the Commission on Information
and Communications Technology (CICT) in coordination with the Technical Education and
Skills Development Authority (TESDA) or allied government institution.

Section 11. Philippine Bamboo Development Fund. To provide for the funding
requirements for the propagation, production, processing, marketing and distribution of
Philippine bamboo, there is hereby created a Philippine Bamboo Development Fund (PBDF)
with an initial amount of 15 Million Pesos (P50,000,000.00) to be provided by the
Department of Budget and Management to the Department of Trade and Industry-Regional
Operations and Development Group (DTI-RODG) while the budgetary requirements of
cooperating agencies shall be incorporated in their respective locally-funded projects. Other
sources of funds including, but not limited to borrowings from local and international funding
institutions, shall also be authorized to further support the Fund.


Section 12. Incentives and Tax Exemptions. The Department of Agriculture may give cash
reward in recognition of the best bamboo farm or Plantation in the country. Bamboo farmers,
producers, processors, and exporters shall also avail of the following incentives and tax
exemptions:

a. Exception from taxes and duties subject to the provisions of Article 62 of Republic
‘Act 6938 or the Cooperative Code of the Philippines;

b. Exemption from the value-added tax in accordance with Section 103 of the National
Internal Revenue Code, as amended;

c. Exemption from taxes, fees and charges under Title One of Book Two of the Local
Govemment Code of 1991 in accordance with Section 133(n) of the said Code;

d. Exemption from the payment of duties on the importation of agricultural equipment,
machinery and implements as provided under Republic Act 8435, otherwise known
as the Agriculture and Fisheries Modemization Act as amended by Republic Act
9281;

e. Zero-rated value-added tax (VAT) on transactions involving the sale/purchase of
organic farm inputs;

f. Provision of preferential rates and special window to bamboo farmers producers,
processors, and exporters by the Land Bank of the Philippines;

9. Credit, insurance, and financing services under Republic Act 8435 otherwise known
as the Agriculture and Fisheries Modemization Act and Republic Act 10000
otherwise known as the Agri-Agra Reform Credit Act of 2009

h. Incentives and benefits under Republic Act 9178 otherwise known as the Barangay
Micro Business Enterprises (BMBE) Act of 2002 for bamboo business entity or
enterprise whose total assets including those arising from loans but exclusive of the
land on which that particular business entity's office, plant and equipment are
situated, are not more than Three Million Pesos (P3,000,000.00); and

i, Bamboo business entityor enterprise to be registered under the Board of
Investments (BO) shall be entitled to the existing pertinent fiscal incentives as
provided by the Board of Investments or those provided under Executive Order No.
226, as amended, otherwise known as the Omnibus Investment Code of 1987,

Section 13. Implementing Rules and Regulations. The Philippine Bamboo Industry
Development Coordinating Council shall formulate and prescribe the necessary
implementing rules and regulations to carry out the provisions of this Act.

Section 14. Repealing Clause. All laws or parts thereof, decrees, orders, rules and
regulations inconsistent with the provisions of this Act are here by repealed or modified
accordingly.

Section 15. Separability Clause. If any of the provisions of this Act is declared invalid, the
other provisions not affected thereby shall remain in full force and effect.

Section 16. Effectivity Clause. This Act shall take effect immediately following its
publication in 2 newspapers of general circulation or in the Official Gazette whichever comes
first.

Approved,