Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

House Bitno.__3469

Introduced by Honorable Deogracias Victor “DV” B. Savellano

EXPLANATORY NOTE

There is a remarkable potential in the bamboo industry. Globally, the value of
exports of bamboo and bamboo products is estimated to be US$ 12 billion. Locally the
reported value of exports of bamboo and bamboo products in 2014 was US$ 10 million.
Bamboo production and processing has provided direct and indirect employment to an
estimated 190,000 people and these numbers can continue to climb, with the right support
system in place for the industry.

Nonetheless, bamboo is only classified as a minor forest product by PD No. 750
otherwise known as the Revised Forestry Code. As a consequence of this classification, the
main considerations and attention of the Department of Environment and Natural
Resources (DENR) has been focused on timber and timber products, which is
understandable because of timber’s sizable economic contributions. With the destruction of
our forests and the diminution of the supply of wood and wood products, there are
attempts to fill the void with suitable substitutes such as bamboo.

Bamboo has always been an important construction material in the rural areas. Its
versatility has found applications in many uses, from house construction, farm implements,
kitchen utensils, furniture and handicrafts. Bamboo is also relatively cheap given its ubiquity
and ready availability in the rural areas.

The research sector has been working on technologies to lengthen the service life of
bamboo and has developed new bamboo products such as engineered bamboo, which can
take the place of wood as panel products and for structural purposes. Today, furniture and
handicraft manufacturers incorporate bamboo in the design of their products with amazing
results, even attracting foreign buyers. Bamboo has also become a medium in carving and
architects have designed structures entirely made of bamboo.

In the environment front, bamboo has been found to excellently reduce erosion. It is
also capable of absorbing heavy metals in mined-out areas. Studies have also shown that it
can sequester carbon dioxide of about 45% of its dry weight.



An important advantage to tree plantations is that there is a need to replant when
trees in plantations are harvested. In contrast only mature culms are harvested from a
clump of bamboo and if managed well, a clump of bamboo can continuously provide raw
materials indefinitely.

With these developments and benefits, bamboo has been gaining popularity both
locally and in foreign countries. Unfortunately there is no national program on bamboo
industry development.

It is recognized in the industry that there is a general insufficiency of raw materials
for which reason many enterprises on bamboo processing have closed down because of lack
of raw materials, yet there is little initiative in bamboo plantation development. Support to
reach and development is surely insufficient and product marketing is left generally to the
private sector.

In order for the country to be more competitive in foreign markets, capture a
sizeable portion of the global market, provide livelihood to rural communities, and take
advantage of the environmental contributions of bamboo to rehabilitate degraded
watersheds, sequester carbon dioxide, and assist in the mitigation of climate change, it is
necessary to have an organized and well managed bamboo industry development program.

In view of the foregoing, the passage of this bill is earnestly sought.

DEOGRACIAS JR “DV” B. SAVELLANO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

HOUSE BILL NO. 3469

Introduced by Honorable Deogracias Victor “DV” B. Savellano

AN ACT
INSTITUTIONALIZING A PHILIPPINES BAMBOO INDUSTRY DEVELOPMENT PROGRAM

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

SECTION 1. Short Title. - This Act shall be known as the “Philippines Bamboo Industry
Development Program Act of 2019.”

SECTION 2. Declaration of Policy. - It is the policy of the State to promote and support
industries that create and generate employment equally especially in the rural areas, reduce
poverty, promote a sustainable environment, mitigate the impacts of climate change, and
promote inclusive growth.

SECTION 3. Objectives. — The objectives of this Act are: (1) to promote the Philippine
bamboo industry by providing a development program; (2) to discover and evolve
technologies that involve bamboo; and (3) to provide incentives to investors.

SECTION 4. Definition of Terms. - For the purpose of this Act, the following terms shall
refer to:

(a) Program - The Philippine Bamboo Industry Development Program designed to
promote competitiveness of the bamboo industry.

(b) Philippine Bamboo Industry Development Council (PBIDC) - The Council established
under EO No. 879 of 2010.

(c) Secretariat - The Secretariat under the PBIDC established to provide assistance to
the PBIDC Executive Committee created under EO No. 879 of 2010.

SECTION 5. institutionalizing the Philippines Bamboo industry Development Program
(PBIDP). - There is hereby established and institutionalized a Philippine Bamboo Industry
Development Program within the mandate of the Philippine Bamboo Industry Development
Council (PBIDC) which was created under Executive Order No. 879 of 2010.


SECTION 6. Objectives of the Philippine Bamboo Industry Development Program. - The
PBIDP aim to make the Philippine bamboo industry competitive in the local and global
markets while providing opportunities for local employment and establishing bamboo-
based community enterprises by:

{a) Ensuring that the bamboo industry has sufficient quality raw materials;

(b) Ensuring that the bamboo industry continuously receives from the research and
development sector relevant technologies and new products;

{c) Ensuring that the industry receives pertinent and accurate data from the PBIDC
upon which the industry can make business decisions;

(d) Promoting investment in bamboo industry by establishing bamboo plantations
and establishing bamboo processing operations by providing substantial
incentives to investors;

(e) Providing skilled labor and manpower through continuous relevant capacity
building;

(f) Ensuring provision of locally manufactured machines of improved capacity and
quality at competitive costs;

{g) Ensuring markets of bamboo products locally and globally; and

(h) Ensuring sustainable resources for implementing the bamboo industry
development program.

SECTION 7. The Philippine Bamboo Industry Development Program. - The PBIDC through
its strengthened Secretariat shall formulate a national bamboo industry development
program through close participation of all stakeholders of the industry that includes
producers of raw materials, processors and marketing and promotion service providers and
concerned national agencies and local government units (LGUs). The program shall ensure
that the objectives indicated in Section 6 of this Act can be achieved.

SECTION 8. Authority to generate resources for the implementation of the Program. - The
PBIDC through its strengthened Secretariat is hereby authorized to accept donations from
local and international donors and funding agencies and organizations to implement the
Program.

SECTION 9. Support to the program by the League of Provinces and League of
Municipalities - The League of Provinces and League of Municipalities are hereby directed
to participate closely in the implementation of the Program through the establishment of
corresponding Bamboo Industry Development Councils.


Provincial and Municipal Local Government Units (PLGUs and MLGUs) are hereby
directed to establish Provincial and Municipal Bamboo Industry Development Councils and
to formulate and implement their respective Bamboo Industry Development Programs
within two (2) years from the enactment of this law.

The MLGUs through their Municipal Bamboo Industry Development Councils are
hereby directed to conduct a survey of existing bamboo clumps and bamboo processing
enterprises in their municipalities. Results of the surveys shall be submitted to the national
Philippine Bamboo industry Development Council as part of a data base on bamboo.

SECTION 10. incentives to investors in plantation development and bamboo processing
factories. - The following incentives shall be provided to investors in bamboo plantation
development and bamboo processing factories:

1. Free from payment of rent for the use of government lands for commercial
bamboo plantation for the first five years or when the plantation owner starts
the harvest in his plantation;

2. Forest plantation in private land shall not be required to secure a cutting permit
for harvesting nor shall it need a transport permit, for as long as the plantation is
registered with the Community Environment and Natural Resources Office
{CENRO) of the DENR. All that is required is for the plantation owner to inform
the CENRO that the plantations will be harvested in a given date, including the
estimated volume that will 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, applicants for registration for plantation in private lands;

3. Free from payment of forest charges and other fees for taxes that local
government units may impose;

4, Bamboo from plantations from public and private lands shall not be subjected to
inspection in check points;

5. Plantation developers can access development loans from the public financial
institutions;

6. Insurance coverage of plantations and plantation development equipment by the
Philippine Crop Insurance Corporation;

7. Tax free importation of plantation development equipment; including tree
nursery facilities;

8. Expenses incurred shall be allowed as deductible expenses for income tax
purposes, subject to the provisions of the National internal Revenue Code of
1997, as amended. Provided, that the deduction shall only apply to the Taxable
Period, when the expenses were incurred;


9. Expenses incurred in the development and operation of a bamboo plantation
prior to the commercial harvest shall be regarded as ordinary and necessary
expenses or as capital expenditure;

10. The Board of Investments (BO!) shall classify bamboo plantations as pioneer and
preferred areas of investment under its annual priority plan, subject to pertinent
rules and regulations;

11. The plantation developer shall be given priority to access credit assistance being
granted by Government-owned, - controlled and/or - supported financial
institutions;

12. Plantation shall be accepted as collateral for loans in government owned or
controlled banks;

13. For tenured developer, upon the premature termination of the agreement at no
fault of the holder, all depreciable permanent and semi-permanent
improvements such as roads, buildings, and nurseries including the planted and
standing trees and other forest crops, introduced and to be retained in the area,
shall be properly evaluated and the holder shall be entitled to a fair
‘compensation thereof, the amount of which shall be mutually agreed upon by
both the Department and the tenure-holder and in case of disagreement
between them, by arbitration through a mutually acceptable and impartial third
party adjudicator;

14. Bamboo culms from plantation may be exported without restrictions in volume;
15. Processors of bamboo may import processing equipment, tax-free; and

16. The National Economic and Development Authority (NEDA) shall include in its
annual investment program, the use of the forest lands to establish industrial
bamboo plantations, and to give first priority in allocating an adequate fund,
both from external and internal sources.

SECTION 11. Funding. - The Program shall have an initial appropriation of One Hundred
Million Pesos (Php 100,000,000.00) upon enactment of this bill into law. Subsequent annual
appropriation shall be submitted by the PBIDC based on its estimate of the amount needed
to implement its program in the following year. The DT! shall include in its annual budget
the budget of the Philippine Bamboo Industry Development Council for its operations. The
members of the Council shall be entitled to an honorarium, the amount of which shall be
provided by law for each meeting attended.

SECTION 12. implementing Rules and Regulations ~ the DTI-PBICD, the Department of
Environment and Natural Resources, the Department of Science and Technology shall
promulgate the implementing rules and regulations (IRR) of this Act within sixty (60) days
after the effectivity hereof,


SECTION 13. Separability Clause — if any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise effected shall
remain valid.

SECTION 14. Repealing Clause — Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to or inconsistent with
the provision of this Act is hereby repealed, modified or amended accordingly.

SECTION 15. Effectivity. — This Act shall take effect thirty (30) days after its publication in the
Official Gazette or two (2) newspapers of general circulation.

Approved,