Republic of the Philippines 144A
HOUSE OF REPRESENTATIVES i tone
Quezon City ‘ Hy

FIFTEENTH CONGRESS
‘Third Regular Session

HOUSE BILL No._ 6470

Introduced by Hon, ANGELO B. PALMONES

EXPLANATORY NOTE

Rattan had always been a material of commerce in the Philippines and elsewhere where tropical
forests exist particularly in the Asian region. The Philippines was the first among the Asian
countries to manufacture and export rattan furniture. The exquisite design and expert artisanship
of Philippine furniture made it one of the most sought-after furniture in the United States and
Europe and later in the Middle East.

In addition to furniture, rattan handicrafts made in the Philippines also became well-known
world-wide. These two industries did not only bring in needed foreign currency but also
provided employment to a large number of Filipinos. In 2008 the reported value of exported
rattan furniture amounted to USD42.41 million.

‘The success of the country in developing the rattan-based industries led to rapid extraction of the
resource from the natural forest. Furthermore, around the 1950s the country started to export
unprocessed rattan to neighboring countries as well as to the United States and Europe. Also,
starting in this period the forest of the country, which is the habitat of rattan started to be
harvested in earnest thus for every hectare of forest lost was also a hectare of natural rattan lost
This led to the depletion of naturally grown rattan. Ban on the export of un-processed rattan
became the policy of the government. This also led to the imposition of the requirement that
rattan concessionaires plant rattan in their concession areas. A rattan-deposit was later imposed
on concessionaires to cover the cost of rattan plantation development. It is not clear how much
plantations were developed out of this rattan-deposit. Although there were private initiatives at
rattan plantation development these were minimal

It is said that bamboo is the “tree of life” simply because the uses of bamboo covers from cradle
to grave. It is not a tree but belongs to the family of grasses. Its uses include crib, kitchen
utensils, furniture (in whole or in part), and construction materials. Bamboo is widely distributed
in tropical and sub-tropical countries. In the Philippines it can be found along the breadth and
length of the country. However, its distribution is amorphous, scattered, It is found mostly in the
forest areas where the forest vegetation has been removed or reduced. Much less is found in the
lowlands. They are located along creeks and river banks



‘The near depletion of timber resources world-wide has opened the eyes of entrepreneurs and
investors of the option of utilizing alternative materials such as coconut lumber and bamboo for
purposes where erstwhile wood had been used. Bamboo is the better alternative because when
bamboo is harvested only a few culms from a clump are cut while one has to cut the entire tree in
the case of coconut, besides it is unlawful to cut coconut that is still highly productive. Bamboo
has been used for construction from the dawn of history. However, new technologies have
produced products tor construction known as the “engineered bamboo”. This has opened the
door for new architectural designs and processes of construction, And new industries have be
established. In the Philippines, however, the advent of these new industries is hampered by the
inadequacy of supply of the appropriate species in the right locations

There had been attempts to develop small plantations by private initiatives but the results of
these efforts, though commendable, have not generated sufficient resources to support bamboo-
based industries. The government does not have a concerted program to develop the resource
base. It was only lately that government allows the use of bamboo as a reforestation species by
Integrated Forest Management Agreements (IFMA), albeit in very limited percentage of the area
for development. Recently, however, bamboo has been included in the National Greening
Program of the President as one of the species for plantation development. To help develop the
bamboo industry the Philippine Bamboo Industry Development Council (PBIDC) was created
through Executive Order 879 to shepherd the industry

Because of the resurgence in the importance of bamboo not only for construction but also as food
there has been a spate of research and development conducted by the government sector
particularly the DENR through the Ecosystems Research and Development Bureau and the
Philippine Council for Agriculture and Aquatic Resources Research and Development
(PCAARRD) and the Forest Products Research and Development Institute (FPRDI) of the
Department of Science and Technology (DOST). Likewise, the private sector has become
cognizant of the tremendous potentials of bamboo in generating employment and income for
small-hold growers as well as corporate plantation developers that a number of non-government
organizations, particularly the Philippine Bamboo Foundation, Incorporated (FBF1) have taken
the advocacy for the production of bamboo planting materials as well bamboo plantation
development.

The economic importance of rattan and bamboo, in terms of income of families and of
government, cannot be overestimated. There is therefore a need for government to harness this
new-found enthusiasm and initiative in the private sector, provide the policy directions and the
incentives for development before it dissipates. It is for this reason that the creation of the
Philippine Bamboo and Rattan Development Authority (PBRDA) is hereby proposed by this
Act.

O B. PALMONES
Represgntative, AGHAM Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Third Regular Session
6470

HOUSE BILL NO.

Introduced by Hon, ANGELO B. PALMONES

AN ACT.
3 THE PHILIPPINE BAMBOO AND RATTAN DEVELOPM
HORITY (PBRDA) TOWARDS HARMONIZING ECOLOGICAL BALANC
‘T AND

AU’
WITH LIVELIHOOD GENERATION AND INDUSTRIAL DEVELOPMi
APPROPRIATING FUNDS THEREFOR

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

SECTION 1. /itle. - This Act shall be known as the “Bamboo and Rattan Development Act
of 2012.”

SECTION 2. Declaration of Principles and Policies. - The Constitution provides that the
State shall develop a self-reliant and independent national economy effectively controlled by
Filipinos. It also provides that the State shall support indigenous, appropriate and self-reliant

id technological capabilities, and their application to the country's productive
systems and national life. The State recognizes the role of bamboo and rattan in contributing
to national development, the preservation of indigenous culture and traditions, as well as in
providing opportunities for rural livelihood and addressing poverty among indigenous
peoples and local communities. Towards this end, the State shall conserve, propagate and
promote bamboo and rattan and provide adequate measures, including incentives to insure the
sustainability of production, equitable access and sharing of benefits, and the viability of
bamboo and rattan industries

‘The welfare and interest of the people will receive the highest consideration and will be
served best when equilibrium is achieved between sustainable environment and industrial
development as the Act promotes ecological awareness and moves the nation towards
industrialization and progress.

SECTION 3. Definition of Terms. - As used in this Act, the following terms shall mean.
a) Bamboo refers to all members of the tall or shrubby grasses with woody

culms under the Subfamily Bambusoideae of the Family Graminae or
Poaceae;


b) Rattan refers to all members of the climbing palin belonging to Subfamily
Calamoideae of the Family Palmae or Arecaceae;

©) Indigenous Cultural Communtties Indigenous Peoples (ICC IP) ~ refer toa
group of people or homogenous societies identified by self-ascription and
ascription by others, who have continuously lived as organized community
on communally bounded and defined territory, and who have, under
claims of ownership since time immemorial, occupied, possessed customs,
tradition and other distinctive cultural traits, or who have, through
resistance to political, social and cultural inroads of colonization, non-
indigenous religions and culture, became historically differentiated from
the majority of Filipinos. ICC¥/LPs shall likewise include peoples who are

‘egarded as indigenous on account of their descent from the populations
which inhabited the country, at the time of conquest or colonization, oF at
the time of inroads of non-indigenous religions and cultures, or the
establishment of present state boundaries, who retain some or all of their
‘own social, economic, cultural and political institutions, but who may
have been displaced from their traditional domains or who may have
resettled outside their ancestral domains;

d) Nursery refers to an area where high quality bamboo and rattan planting
stocks are raised or produced;

€) Semi-Commercial Production refers to a farmer owning or cultivating a
farmland of more than five (S) hectares;

£) Smaitholder Harmer refers to a farmer owning or cultivating a farmland of
less than or equal to five (5) hectares;

8) Cultivar refers to species or varieties of bamboo and rattan that are
potential sources of propagules or propagating materials.

SECTION 4. Creation of the Philippine Bamboo and Rattan Development Authority, - There
is hereby created a Philippine Bamboo and Rattan Development Authority, hereinafter
referred to as the PBRDA, which shall be under the supervision and control of the
Department of Environment and Natural Resources.

SECTION 5. Objectives. ~ The PBRDA shall have the following objectives

a) To oversee the development of all aspects of the production, industrial
processing, promotion and marketing of bamboo and rattan;

b) To formulate and harmonize policies on bamboo and rattan to encourage the
development of bamboo and rattan plantations and the establishment of
bamboo and rattan industries;

¢) To improve the quality of life of Filipino farmers, indigenous peoples, and
rural communities through bamboo and rattan-farming in areas suitable for
these product:

d) To safeguard the profitability of bamboo and rattan farmers and
manufacturing enterprises through their adoption of state-of-the-art
technology; and

€) To promote biosafety and the conservation and protection of bamboo and
rattan genetic resources, fo ensure their sustainability, their contribution to the
preservation of biodiversity, and the perpetuation of the beneficial services of
forest and related ecosystems.



b)

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d)

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a)

d)

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d)

ION 6. Powers and Functions of PBRDA

‘To promulgate rules and regulations to govern bamboo and rattan production,
the propagation and distribution of planting materials, the areas for bamboo
and rattan-growing, harvesting and transport of bamboo and rattan, the
establishment of bamboo and rattan industries, and the marketing, trade and
promotion of bamboo and rattan products;

‘To desizn and implement monitoring and information system including the
establishment of data bases for bamboo and rattan, (0 guide plantation
development, marketing of raw materials and products, and sourcing of raw
materials by the bamboo and rattan industries,

To enable the farmers, particularly smallholder farmers, CARP beneficiaries
and forest-dependent communities to avail themselves of high quality bamboo
and rattan planting stocks at all times and at reasonable prices through an
organized program of propagation, breeding, training and distribution;

To coordinate and grant funds for research studies of existing research
institutions on all aspects of bamboo and rattan production, processing,
utilization, machine design, enterprise development and marketing;

To spearhead capacity-building programs to enhance bamboo and rattan
production and manufacturing, and the development of human and physical
resources to improve the quality, competitiveness and productivity of bamboo
and rattan plantations and manufacturing enterprises;

To package and disseminate recommended technologies to guide bamboo and
rattan production and manufacturing activities in the country;

‘To provide other forms of assistance to small hold farmers, bamboo and rattan
gatherers, indigenous peoples, bamboo and rattan industries, and local
government units in developing bamboo and rattan plantations and
enterpris

To administer the package of incentives set forth in this Act and to design
such other incentives to promote private sector investments in bamboo and
rattan; and

Enter into memoranda of agreement and receive donations from local and
foreign sources. Upon the recommendation of the PBRDA Governing Board,
the Bamboo and Rattan Development Centers may enter into agreements
directly with funding agencies through their respective regional heads,

SECTION 7. Priorities. The PBRDA shall give priority to the following activities:

Formulation of the national bamboo and rattan industries development
framework/plan, defining the scope and stakeholders, support industries, and
prescribing targets, programs and strategies to achieve them;

Inventory and assessment of existing bamboo and rattan resources as well as the
projected requirements of existing and proposed bamboo and rattan industries;

Establishment of data bases for rattan and bamboo and the industries thereof,
Expansion of, or improvement in the quality and productivity of bamboo and

rattan plantations, including the provision of quality planting materials, the
development of pest management practices, product development, and the design,


fabrication, and procurement of machines for more efficient product
manufacturing;

¢) Prescriptions on rules for bamboo and rattan plantation development especially in
forest lands, as well as the guidelines for access, resource use, collection,
harvesting and transport of products from forestlands, imposition of appropriate
levy from bamboo and rattan from natural stands, and mechanisms to more easily
distinguish products derived from natural stands from those in plantations in both
forest and A&D lands;

f) Socio-economic researches to determine needs of bamboo and rattan farmers,
gatherers, and indigenous peoples’ groups, and to ensure economic viability and
acceptance of technology by farmers,

8) Establishment of at least five (5) hectares bambuseta and five (5) hectares rattan
‘gene bank, one each in Luzon, Visayas, and Mindanao to ensure the preservation
Of the existing bamboo and rattan genetic materials in the Philippines and to
provide options to farmers based on species-site suitability, indigenous knowledge
systems, and market requirements.

SECTION 8, PBRDA Governing Board.

1. The PBRDA Governing Board shall be composed of the following:

a) Secretary of the Department of Environment and Natural Resources or his
representative as Chair;

b) Secretary of the Department of Trade and Industry or his representative;

©) Secretary ofthe Department of Agriculture or his representative;

d) Secretary of the Department of Science and Technology or his
representative,

€) Secretary of the Department of Education or his representative;

£) The President of the League of Governors of the Philippines

8) The President of the League of Municipalities of the Philippines;

h) Three (3) Heads of SUCS each representing Luzon, Visayas and Mindanao
regions;

i) Administrator of PBRDA;

J)'The President of the Chamber of Furniture Industries of the Philippines, Inc.;

k)_ The President of the Chamber of Handicraft Industries, Inc.;

1) Farmers’ representative to be appointed by the President;

m) Representative of indigenous peoples’ groups to be appointed by the
President; and

n) Representative of civil society/non-govemment organizations dealing with
bamboo and rattan to be appointed by the President

2. All appointed members of the PBRDA Governing Board shall have a term of two years,
without prejudice to renewal for another two years and provided further that they have not
been replaced or removed for cause by the sector/association they represent,

SECTION 9. Functions of tile PBRDA Governing Board.

The PBRDA Goveming Board shall perform the following functions:


a) Approve the structure and staffing pattem of the Authority upon the
recommendation of the Administrator;

b) Recommend to the President the appointment of the Administrator and
Deputy Administrator, and Center Directors:

©) Appoint the Chiefs of Divisions and other personnel of the Authority in
line with the approved staffing pattem;

4) Formulate policies, programs, and projects for the development of the
bamboo and rattan in the country;

¢) Review and recommend the annual budget of the PBRDA;

A Evaluate the implementation, efficiency, and effectiveness of the programs
and projects of the PBRDA;

2) Appoint representatives of farmers, indigenous peoples, private industry
groups, civil society organizations/NGOs, as members of the PBRDA
Governing Board; and

h) Approve appropriate sites for the establishment of Bamboo and Rattan
Development Centers, one each in Luzon, Visayas, and Mindanao and of
additional centers if deemed necessary.

‘The PBRDA Governing Board and the PBRDA shall take over the functions of the Philippine
Bamboo Industry Development Council (PBIDC) created through Executive Order 879,
which shall be deemed dissolved upon approval of the Implementing Rules and Regulations
of this Act, not more than sixty days after its promulgation.

SECTION 10. The Philippine Bamboo and Rattan Development Authority ~ The PBRDA
shall be headed by an Administrator who will have the rank of an Undersecretary in a regular
department of the Executive Branch and shall be assisted by one Deputy Administrator, who
will have the rank of an Assistant Secretary. The Authority shall have three functional
divisions, one each for technical matters on bamboo and on rattan, and one for
administration, and which shall be headed by a Chief of Division with rank of Director.

The qualifications of the Administrator, the Deputy Administrator, Center Directors and
Chiefs of Division shall be prescribed in the implementing rules and regulations (IRR) of this
Act. The IRR shall also prescribe the duties and responsibilities of the Deputy Administrator
and Chiefs of Division,

‘The Administrator, the Deputy Administrator, and Center Directors shall be appointed by the
President of the Philippines upon the recommendation of the Governing Board.

SECTION 11. Administrator of the PBRDA. - The Administrator of the PBRDA shall have
the following functions

a) Recommend to the Governing Board the appointments of the Deputy
Administrator, Center Directors, Chiefs of Division and other personnel of
the Authority;

b) Oversee the implementation of the policies, programs, and projects of the
PBRDA;

¢) Assist the PBRDA Governing Board in the review, evaluation and
monitoring of the Bamboo and Rattan Industries Development Program;
and


d) Perform such other functions as may be assigned by the PBRDA
Governing Board

SECTION 12. Establishment of Bamboo and Rattan Development Centers in Luzon, Visayas
and Mindanao, ~ Three bamboo and rattan development centers shall initially be established,
one each in Luzon, Visayas and Mindanao, not later than one year after the promulgation of
this Act

SECTION 13. The Bamboo and Rattan Development Centers shall have the following
functions
a) Establish at least a S-hectare bambusetum and a S-heetare rattan gene bank;
b) Establish a bamboo and rattan nursery for distribution and dispersal of
bamboo and rattan planting materials;
©) Coordinate with the provinces in their planning, implementation, and
conduct of activities in pursuit of bamboo and rattan development;
d) Render an annual report to the PBRDA.

SECTION 14. Appointment of Directors of Bamboo and Ratian Development Centers. - The
Centers shall be headed by Directors who shall be appointed by the President upon the
recommendation of the PBRDA Governing Board.

SECTION 15. Functions of the Directors of Bamboo and Rattan Development Centers. «
Subject to the policies of the PBRDA, the Bamboo and Rattan Development Centers shall
perform the following functions:

a) Administer the policies, programs, and projects of the PBRDA in their
respective centers and areas of responsibility;

b) Recommend the creation of divisions and sections including the staffing
pattern of the centers;

©) Prepare the annual budget of their centers;

d) Approve the expenditures of their respective budgets;

e) Recommend the appointment of personnel or consultants;

Establish data bases for bamboo and rattan within the area of jurisdiction
of the Center;

8) Recommend policies, programs, and projects to the Administrator of the
PBRDA:

h) Coordinate with the bamboo and rattan development councils of the
provinces, cities and municipalities, including barangays, on their
development plans, programs and projects on bamboo and rattan; and

i) Perform such other functions as may be assigned by the Administrator of
the PBRDA.

SECTION 16. Provincial Bamboo and Rattan Development Councils - Provincial Bamboo
and Rattan Development Councils shall be created in provinces with significant bamboo and
rallan resources, except in provinces where a Provincial Bamboo Industry Development
Council already exists by virtue of Executive Order 879, which may opt to expand to include
rattan in their activities. Such Councils shall be chaired by the Provincial Governor, with the
Environment and Natural Resources Officer (PENRO) as Vice Chair, the Provincial Planning
and Development Officer, one (1) representative each from the regional offices of the
Departments of Agriculture (DA), Science and Technology (DOST), Trade and Industry


(DT!) and the state university or college that implements research, development and
extension (RDE) activities on bamboo and rattan in the province, as members.

SECTION 17. The Provincial Bamboo and Rattan Development Councils shall coordinate
with the Bamboo and Rattan Development Center and monitor the implementation of the
Bamboo and Rattan Development Program in the province. It shall provide the necessary
information on the provisions of the Bamboo and Rattan Development Program, the
guidelines issued by the PBRDA and shall make a written report on the progress of the
Program in the Province.

SECTION 18, City/Municipal Bamboo and Rattan Development Program Councils. — There
shall be established a City/Municipal Bamboo and Rattan Development Council in every city
‘or municipality with significant bamboo and rattan resources. The Councit shall consist of the
City or Municipal Mayor as Chairman, the Community Environment and Natural Resources
Officer (CENRO) as Vice Chairman, and the following as members. City/Municipal Planning
and Development Officer, two (2) members of the local council concemed, the association of
Barangay Councils, one (1) representative each from DA, DOST, DT! and the state university
or college in the city/municipality that is doing, significant RDE activities on bamboo and
rattan

SECTION 19. The City/Municipal Bamboo and Rattan Development Council shall perform
the following functions, duties

a) determine and identify the prospective location sites for bamboo and
rattan nursery and dispersal centers;

b) determine the would-be bamboo and rattan cultivars;

©) assist the DENR-PENRO in the preparation of the reports on the
progress of the implementation of the Bamboo and Rattan Development
Program by the local government units (LGU) concemed for submission
to the PBRDA;

d) assist farmer groups, indigenous peoples, communities, or private
individuals in establishing semi-commercial or small hold plantations of
bamboo and rattan;

€) facilitate the establishment of bamboo and rattan industries; and

f) Such other functions that may be assigned by the PBRDA.

SECTION 20. Budget provisions for the Provincial and City’ Municipal Bamboo and Rawtan
Development Councils ~ Budgetary support shall be provided to the Provincial and
City/Municipal Councils which shall be incorporated into the regular appropriations of the
PBRDA

SECTION 21. Incentives for Bamboo and Rattan Industries Development, — The
government shall encourage/promote the development of bamboo and rattan plantations,
especially in private lands and open, unused public lands and processing of the same by
providing strong and attractive incentives, such as

a) All tenure-agreements in forest lands to be used as bamboo and rattan
plantations and the processing permits shall have security of tenure in
accordance with existing constitutional provisions and laws’regulations.
Government institutions shall not unilaterally terminate or suspend tenures
and permits without due process of law;


b) Bamboo and rattan plantations shall be classified as green and pioneering
projects under the Board of Investments (BO1) and can avail of current
incentives under these categories which shall be automatic and not subject
to priorities;

¢) Rent-free use of open government lands for commercial bamboo and
rattan plantations for the first rotation of five years for a bamboo
plantation, and for the first ten years. for rattan plantation;

4) No harvest and transport permits shall be required of bamboo and rattan
plantations products provided these are registered with the Community
Environment and Natural Resources Office (CENRO) of the DENR, and
provided further, that the CENRO is duly informed in writing in advance
that the plantations will be harvested in a given date together with the
owner-determined volume to be harvested. Inventory of the plantation
prior to harvest shall not be required. CENROs are obligated to approve
‘and enter into their book of registry applications for registration for private
plantations in public or private lands within 30 days from receipt of
request for registration. Failure of the CENROs to notify applicants for
registration within 30 day shall mean that the plantations are registered
automatically. Owners shall be issued certificates of registration by the
CENROs concemed;

€) Exemption from payment of forest charges for plantation grown bamboo
and rattan products and other forms of fees or taxes that local government
units may impose;

£) Exemption from inspection in check points;

2) Bamboo and rattan plantations and plantation development equipment
shall be covered by the Philippine Crop Insurance Corporation (PCIC);

h) Equipment for bamboo and rattan plantation development and for bamboo
and rattan processing that are not locally manufactured shall be free from
import taxes;

i) Bamboo and rattan plantation development expenses, including expenses
for research shall be deducted from income tax, provided that the
deductions shall only apply to the taxable period when the development
expenses were incurred:

j) All Government agencies and instrumentalities shall remove all
restrictions on the export of bamboo and rattan products coming from
plantations, in accordance with appropriate certification rules. The
Department of Trade and Industry shall promote international trade of
these products

k) No environmental compliance certificate (ECC) shall be required for
bamboo and rattan plantation development as well as harvesting of
products from these plantations.

1) The free and prior informed consent (FPIC) of indigenous peoples (IPs)
shall be issued by the IPs through the National Commission of Indigenous
Peoples (NCIP) within 30 days from filing of request for the FPIC. Failure
of the NCIP to issue the FPIC within 30 days shall mean approval of the
request;

m) Private investors can enter into joint-ventures with community-based
forest management agreement holders as well as holders of ancestral
domain titles and claims;



n) Bamboo and rattan products from plantations shall be exempt from
payment of value added tax (VAT), unless processed and sold as
processed products,

SECTION 22. Appropriation. ~ Funds collected from the rattan special deposit shall be
transferred to the PBRDA to constitute its initial funding. Thereafter, the amount necessary to
carry out the provisions of this Act shall be included in the General Appropriations Act of the
year following its enactment into law thereafter

SECTION 23, Use of Funds. - Not more than fifty percent (50%) of funds allocated under
this Act and in subsequent annual appropriations shall be used for personal services and
maintenance and operating expenses; at least ten percent (10%) shall be allocated for research
and development. ‘The PBRDA is hereby authorized to retain all incomes derived from sale of
products as well as donations and deposited in a Trust Fund in a government financial
institution and shall be used to augment the budget of the PBRDA. The Office of the
President, through PAGCOR, shall also allocate SOM yearly for bamboo and rattan plantation
development, processing and entrepreneurship assistance to farmers/growers, indigenous
peoples groups, and community-based bamboo and rattan processors and for research,
development and extension activities.

SECTION 24. Annual Report. - The PBRDA shall submit an annual report to the Oflice of
the President, the Senate, and the House of Representatives indicating among others
hectarage of established bamboo and rattan plantations, the number of bamboo and rattan
distributed, and the names of the beneficiaries.

SECTION 25. Separability Clause. - If any part, section, or provision of this Act shall be
held invalid or unconstitutional, the rest of the provisions shall not be affected thereby.

SECTION 26. Repealing Clause. - All laws, executive orders, rules and regulations, or parts
thereof which are inconsistent with this Act are hereby repealed or modified accordingly:
Provided, however, that nothing in this Act shall amend, modify or repeal the provision of
Republic Act No. 7160, otherwise known as the Local Government Code.

SECTION 27. Implementing Rules and Regulations. - The Department of Environment and
Natural Resources (DENR) shall issue the implementing rules and regulations of this Act
within 60 days from its approval.

SECTION 28. ffectivity. - This Act shall take effect fifteen (15) days from the date of its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,