HOUSE OF RED;
RECEIVED

Republic of the Philippines Dare, 01 AUS 2016
HOUSE OF REPRESENTATIVES Tung
Quezon City ay

SEVENTEENTHCONGRES|

First Regular Se: RECST™MTON

UNIT
} NIK SERVIC

Introduced by HON. JOSEPHINE Y. RAMIREZ SATO.

EXPLANATORYNOTE

The Philippine news media will always have reports of species being
poached or smuggled out of the country in order to be sold - be it the
cockatoo birds and pangolins from Palawan and before that, in 2011, black
corals, some twenty containers full of them, stopped in Zamboanga port.

And we can further go back in time on various Philippine biological
resources that were taken from us - medicinal plants from Coron, Palawan,
soil samples from Panay Island, mollusk species from Balicasag Island. There
was also a reported research group that tried to get blood samples of Aetas,
perhaps to explore why most of them were resistant to tuberculosis, but these
were rejected by the NGO that helped these communities.

Actually there are a lot more, of reports of takings of biological
resources, of indigenous and local communities who entertained researchers
who went to their areas to document their traditional knowledge of
biodiversity.

Getting a sense of these reports, you will realize that along with actual
acts of poaching of our biological resources, there is also a less-noticed part of
taking of these resources, but from way back this was called biopiracy.

These are the instances where Philippine biological and genetic
resources were either taken from our shores or the knowledge by our
indigenous peoples and local communities of some unique properties of our
plants or animals were further developed, and they are patented

When these patented natural compounds get further developed into
useful products in the market that are commercialized, some become
successful, some don’t but mi things we have no idea have
happened and_ ultimately from these resources do not
immediately come back to the country.

ENTAT IVE



Take for example the plant banaba or what is scientifically called
Lagerstroemia speciosa. When one takes a simple patent search on the internet
on this species, one can see that there are numerous patents and patent
applications to the active compounds of this plant, which by way is not
entirely endemic to the Philippines but is also found in other countries of
Southeast Asia

There is even a dedicated website
http:/ /tgs.freshpatents.com/Banaba-bxl.php, that tracks the __ patent
applications of mostly foreign researchers on the beneficial properties of this
plant, a sample of which include the following :

a) Dietary supplement for use in a weight loss program

b) Dietary therapeutic composition for ameliorating disease symptoms
and conditions associated with diabetes

©) Compositions for preventing and reducing delayed onset muscle
soreness

The Philippines is a megadiverse country, a country with high
endemicity, where most of the species found in its territory cannot be found
anywhere else in the world.

From what we submitted in 2009 to the United Nations Convention on
Biological Diversity as our 4‘ National Report, species endemism is very
high covering at least 25% of plant genera and 49% of terrestrial wildlife; we
are ranked 4* in bird endemism; 5t in the number of plant species and we
hold 5% of the world’s flora.

This proposed measure is part of the Philippines’ continuing efforts in
strengthening its rules and regulations on access to Philippine genetic
resources and the indigenous knowledge systems and practices including the
associated traditional knowledge therein or the so-called access and benefit-
sharing or ABS regulations.

Being a country with unique biodiversity, we haven't even completed
our inventory of what we have, and judging at the rate of what our
researchers discover and what current biological diversity is lost through
human interventions, we are running against time.

A 2008 Technical Paper of the Convention on Biological Diversity on
Access and Benefit-Sharing : Trends in Partnerships Across Sectors show the
following US $ 8968 billion market value per sector in 2006 broken down as
follows :



a) pharmaceutical industry - USS 643 billion;

b) biotechnology industry (pharmaceutical, agricultural and industrial
process technology) - US $70 billion;

©)_seed, crop protection and plant biotechnology industry - US$ 30
billion;

4) ornamental horticulture (Live trees, plants, bulbs, roots, cut flowers
and foliage) - US$ 14,386 million;

e) botanicals (herbal dietary supplements) - USS 21.8 billion (2005
figures)

£) herbal personal care and cosmetic sector - US 12 billion (2005
figures)

g) ‘healthy foods” (functional foods, natural and organic foods and”
lesser evil” foods) - US market value alone is US$ 120 billion

With just a fraction of this estimated economic value being shared to
developing countries from which most of these genetic resources have come
from, there is now an opportunity to strengthen the implementation of
existing ABS regulations in countries where they have them, so that more
countries get benefits if the genetic resources coming from their jurisdictions
are utilized by industry

This opportunity is provided by the international instrument adopted
in Nagoya, Japan last October 2010, during the 10' Meeting of the Conference
of the Parties to the Convention on Biological Diversity.

This international instrument, called the Nagoya Protocol will go a
long way in tracking the way genetic resources are used, enabling provider
countries to claim benefits from the use of their resources and therefore
generating money not only for conservation of the remaining patches of
biological diversity that we have but also money for the well-being of the
indigenous and local communities of the developing and least developing
countiries of the world.

This will also generate funds so countries on their own can take steps
to support their attainment of the Millennium Development Goals which is
currently beset by lack of actual money being put forward by the donor
governments.

This proposed measure in the implementing legislation to enable the
Philippines to fully avail of the benefits of the provisions of the Nagoya
Protocol, after it has acceded to it, in the usual manner of taking on
obligations from an international instrument on which it had a part in
negotiating,

If the use of biodiversity is likened to mining especially through what
is called biodiversity prospecting, at least the promise of benefits that can be


secured from the use of the biological resources can be extended even many
years after the actual resources has been collected, the obligation to share
benefits also includes the various derivatives and products arising from the
original specimens initially collected, depending on how the source country
can negotiate the terms and conditions of the access to the biological
resources, the authority to do so is lodged by the Convention on Biological
Diversity as part of the sovereign rights of states to their natural resources.
Part of the benefits that can be secured include technology transfer including
through, among others, preferential and concessional terms for technology
capacity building.

Another important highlight of the ABS Protocol is to show to the
world that “another knowledge is possible”, especially when it comes to how
the biological resources are utilized, nurtured and conserved by the
indigenous peoples and local communities of the world.

The Philippines, with its 110 recognized indigenous peoples as set by
its National Commission on Indigenous Peoples, shows how this is done by
recognizing the ways and approaches of these communities as another means
of how to conserve, protect and maintain looking these resources. If we go
back to the examples of all those specimens taken out from our country,
perhaps if we were able to follow through how they were developed and
eventually commercialized, maybe just one of them may be a good basis for
one thriving industry

‘The proposed measure also ensures that the customary laws as well as
the community protocols of indigenous and local communities, where
available, will also be taken into account in discussions relating to the access
and benefit-sharing from the utilization of indigenous knowledge systems
and practices including the associated traditional knowledge of the genetic
resources.

Given the potential benefits this measure will give to the country, this
proposed measure should be considered and approved by the House of
Representatives with all deliberate dispatch.

c
HONAOSE) . SATO
fone Diftricf, Occidental Mirfdoro



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.2163

Introduced by HON. JOSEPHINE Y. RAMIREZ SATO

“AN ACT INSTITUTING REFORMS IN THE EXISTING POLICY
ON ACCESS AND BENEFIT-SHARING FROM THE
UTILIZATION OF PHILIPPINE GENETIC RESOURCES AND
FOR OTHER PURPOSES”

Section 1. TITLE - This Act shall be known and referred to as the “ACCESS
AND BENEFIT-SHARING FROM THE UTILIZATION OF PHILIPPINE
GENETIC RESOURCES ACT AND FOR OTHER PURPOSES” or the
Philippine Genetic Resources Access and Benefit-Sharing Act or PGRABS Act

Section 2, DECLARATION OF POLICY - All natural resources belong to the
State and it is hereby declared the policy of the State to secure the fair and
equitable sharing of benefits arising from the utilization of all the genetic
resources in the country in order to generate wealth for poverty alleviation
and to secure the necessary means within which to pursue the strategic
programs and initiatives on conservation and sustainable use of biological
diversity in the country. This policy will be pursued by promoting and
facilitating the conduct of scientific researches and enabling them to have
speedier regulatory approvals from the key agencies while at the same time
enhancing the tracking of the progress of these researches from the initial
effort of collection on the ground and in the fields and from the indigenous
and local communities including the provision of necessary support and
incentive for investments to be made from the utilization of Philippine
genetic resources,



Section 3. DEFINITION OF TERMS - As used in this Act, the following
words and phrases shall have the following meaning:

(a) Access - means the collection, taking and gathering of genetic
resources from the field, in order that they may be utilized for further
academic or scientific research and bioprospecting; this also includes
the conduct of field research, interviews and surveys involving the
indigenous knowledge systems and practices including the associated
traditional knowledge of indigenous and local communities in the
Philippines;

(b) Biotechnology - as defined in article 2 of the United Nations
Convention on Biological Diversity, means any technological
application that uses biological systems, living organisms, or
derivatives thereof, to make or modify products or processes for
specific use;

(©) Derivatives - means a naturally occurring biochemical compound
resulting from the genetic expression or metabolism of biological or
genetic resources, even if it does not contain functional units of
heredity

(d) Fair and equitable benefit-sharing- the principle derived from art. 3 of
the United Nations Convention on Biological Diversity which will form
the basis in asserting that the benefits that may be derived by the
Philippines as a country or its researchers is appropriate taking into
account the level of effort applied to secure the resources and would
take into account the country’s current socio-economic and cultural
standing.

(c) Genetic material - means any material of plant, animal, microbial or
other origin containing functional units of heredity

(8 Genetic resources- means genetic material of actual or potential value.

(g) Nagoya Protocol - means the Nagoya Protocol On Access To Genetic
Resources And The Fair And Equitable Sharing Of Benefits Arising
From Their Utilization To The Convention On Biological Diversity;

(h) Utilization of genetic resources ~ means to conduct research and
development on the genetic and/or biochemical composition of genetic
resources, including through the application of biotechnology as
defined in Article 2 of the United Nations Convention on Biological
Diversity.


Section 4. OVER-ARCHING POLICY FRAMEWORK ON ACCESS AND
BENEFIT-SHARING FROM THE UTILIZATION OF PHILIPPINE GENETIC
RESOURCES ~ The policy framework on access and benefit-sharing from the
utilization of genetic resources institutionalized in this Act implements the
Philippine commitments to the Nagoya Protocol with some key changes in
specific policy areas relating to access to genetic resources, compliance
mechanisms to ensure similar legislation or policy relating to access and
benefit-sharing arising from the utilization of genetic resources from another
country used in the Philippines are respected and implemented, tracking and
monitoring mechanisms, traditional knowledge associated with genetic
resources, capacity-building and technology transfer. The special mandates
of identified government agencies are also amended, to fully implement the
policy established in this Act.

Section 5. ACCESS TO GENETIC RESOURCES - The existing policies on
access to genetic resources as currently implemented by the appropriate
government agencies under Republic Act 9147 shall continue to exist and be
implemented for all purposes; however, to facilitate harmonization of these
policies with the Nagoya Protocol, the following shall also be implemented:

(a) Any existing Philippine government agency requiring prior informed
consent before access to genetic resources is granted shall provide for
the issuance at the time of access an evidence of the decision to grant
prior informed consent and the establishment of the mutually agreed
terms or the agreement relating to access and benefit-sharing involving
the genetic resource. These agencies shall also take administrative and
policy measures to notify the Access and Benefit-Sharing (ABS)
Clearing-house of the United Nations Convention on Biological
Diversity of such issuances;

(b) Any mutually agreed terms or agreement relating to access and
benefit-sharing involving the genetic resource established between the
agency or community concerned shall provide for clear provisions on
third-party use including the change of intent relating to the utilization
of this genetic resource from its non-commercial or scientific stage; any
existing implementing regulations of existing agencies for this purpose
shall be amended and updated accordingly.

Section 6. COMPLIANCE MECHANISMS ~ There shall be established
compliance mechanisms that will ensure that Philippine agencies will
implement any relevant policy or measure on access and benefit-sharing of
any Party to the United Nations Convention on Biological Diversity and/or
the Nagoya Protocol in the following manner and shall cooperate as far as
possible and as appropriate in cases of alleged violation of domestic access


and benefit-sharing legislation or regulatory requirements of another country
and shall take appropriate, effective and proportionate measures to address
situations of non-compliance with such measures of another country Party to
the United Nations Convention on Biological Diversity and/or the Nagoya
Protocol

(a) Compliance with Domestic Legislation - the appropriate agency
shall enact appropriate, effective and proportionate policy and
administrative measures to provide that genetic resources utilized
within the Philippines have been accessed in accordance with the
prior informed consent as well as the mutually agreed terms that
have been established, as required by the domestic access and
benefit-sharing legislation or regulatory requirements of a Party to
the United Nations Convention on Biological Diversity and/or the
Nagoya Protocol;

(b) Compliance with Domestic Legislation on Access and Benefit-
Sharing for Traditional Knowledge Associated with Genetic
Resources - the appropriate agency shall enact appropriate,
effective and proportionate policy and administrative measures to
provide that traditional knowledge associated with genetic
resources utilized within the Philippines have been accessed in
accordance with the prior informed consent as well as the mutually
agreed terms that have been established, as required by the
domestic access and benefit-sharing legislation or regulatory
requirements of a Party to the United Nations Convention on
Biological Diversity and/or the Nagoya Protocol.

(©) Compliance with Mutually Agreed Terms - it is hereby ensured
that there will be provided an opportunity to seek recourse is
available under the Philippine judicial system, consistent with
applicable jurisdictional requirements as provided for by existing
rules of procedure and any relevant amendments thereto as may be
provided by the Philippine Supreme Court, in cases of disputes
arising from mutually agreed terms. There shall likewise be
measures that will be taken by the Department of Justice to ensure,
as appropriate

(1) Access to justice; and

(2) The utilization of mechanisms regarding mutual recognition
and enforcement of foreign judgments and arbitral awards


Section 7. TRACKING AND MONITORING THE UTILIZATION OF
GENETIC RESOURCES - There shall be established tracking and monitoring
mechanisms to be implemented by existing agencies to monitor and to
enhance transparency about the utilization of genetic resources in the
Philippines through the following

(a) The designation of checkpoints at any stage of the research,
development, innovation, —_pre-commercialization and
commercialization of the genetic resources and its derivatives
utilized in accordance with this Act including from the point of
collection in the field and in product marketing approvals; there
shall also be the appropriate disclosure of prior informed consent,
mutually agreed terms and the utilization of genetic resources in
cach of the checkpoints;

(b) Encouraging the users and providers of genetic resources to include
provisions in mutually agreed terms or agreement relating to access
and_ benefit-sharing involving the genetic resource to. share
information on the implementation of such terms, including
through reporting requirements.

(©) Encouraging the use of cost-effective communication tools and
systems among the users and the providers of the genetic resource

Section 8. MATTERS RELATING TO THE UTILIZATION OF ASSOCIATED
TRADITIONAL KNOWLEDGE ASSOCIATED WITH GENETIC
RESOURCES - Whenever the indigenous knowledge systems and practices
including the associated traditional knowledge associated with genetic
resources of indigenous and local communities are utilized, the following
shall be implemented by the appropriate agencies, particularly the National
Commission on Indigenous Peoples, the Palawan Council for Sustainable
Development as well as the Philippine Institute for Traditional and
Alternative Health Care:

(2) The customary laws as well as the community protocols of
indigenous and local communities, where available, will apply at
the first instance, in matters relating to access and benefit-sharing
from the utilization of indigenous knowledge systems and practices
including the traditional knowledge associated with genetic
resources;

(b) Establishment of mechanisms with the effective participation of
indigenous and local communities to inform users of their
obligations as relates to the utilization of indigenous knowledge


systems and practices including traditional knowledge associated
with genetic resources;

(c) Establishment of mechanisms to indigenous and local communities
to develop their own community protocols, minimum requirements
for mutually agreed terms and model contractual clauses;

(d) The customary use of indigenous knowledge systems and practices
including traditional knowledge associated with genetic resources
by the indigenous and local communities themselves shall continue
to be respected; this principle will not be recognized if asserted by
non-indigenous and local communities.

Section 9. CAPACITY-BUILDING AND TECHNOLOGY TRANSFER - The
Department of Environment and Natural Resources, in collaboration with the
agencies implementing the Wildlife Act, shall take the lead in initiating
capacity-building activities in relation to the implementation of existing and
future policies on access and benefit-sharing in collaboration with key
implementing agencies and partners

There shall also be established a unit within the Department of Environment
and Natural Resources that will handie matters relating to technology
development and transfer relating to the conservation and sustainable use of
biological diversity including the cooperation in technical and scientific
research and development programs, including biotechnological research in
order to enable the development and and strengthening of a sound and
viable technological and scientific base of the country. Where possible and
appropriate such collaborative activities shall take place in the Philippines.

Section 10. SPECIAL MANDATES OF IDENTIFIED AGENCIES - The
following mandates of existing agencies are hereby reinforced to enable them
to assist in the implementation of this Act:

(a) The Philippine National Museum - sec. 7.2 of Republic Act 8492 is
hereby amended as follows :

“Section 7. Duties and function. - The Museum shall have the
following duties and functions:

7.2 Conduct researches, archaeological and scientific, on
Philippine flora and fauna; collect, preserve, identify and exhibit
to the public systematically all types of plants and animals
found in the Philippines, prepare for publication manuscripts
and scientific papers on them and maintain a reference

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collection on such objects INCLUDING THE ESTABLISHMENT
OF A SYSTEM OF CHECKPOINTS TO DETERMINE THE
PROGRESS IN THE UTILIZATION OF THE GENETIC
RESOURCE IN THE RELEVANT MUSEUM REFERENCE
COLLECTIONS WORLDWIDE;

(b) The Philippine National Museum - Sec. 17 of Republic Act 10066 is
hereby amended as follows :

“Section 17. Systematic Research in Natural History.- The
National Museum shall have the authority to collect, maintain
and develop the national reference collections of Philippine flora
and fauna, rocks and minerals through research and field
collection of specimens including important cultural property
within the territorial jurisdiction of the Philippines. It shall be
exempt from any and all permit systems regulating the same
PROVIDED IT ESTABLISHES A SYSTEM OF CHECKPOINTS
TO DETERMINE THE PROGRESS IN THE UTILIZATION OF
THE GENETIC RESOURCE IN THE RELEVANT MUSEM
REFERENCE COLLECTIONS WORLDWIDE.

The National Museum shall inform the Department of
Environment and Natural Resources and the Department of
Agriculture of such collection AS WELL ANY RELEVANT
INFORMATION GENERATED FROM THE CHECKPOINTS.
All types of specimen collected in the Philippine territory shall
be deposited in the National Museum.”

(c) The National Commission for Culture and the Arts - sec. 23 of
Republic Act 10066 is hereby amended as follows :

“Section 23. Export of Cultural Property.- Whoever desires to
export cultural property registered in the Philippine Registry of
Cultural Property shall adhere to the following requirements:

(@)Authorization from the Commission through the
appropriate cultural agencies;

(b)Application for export permit shall be submitted thirty

(30) days before the intended export from the Philippines;
and

1


(\Application for export permit must include the
following: (1) the purpose of the temporary export; (2) the
export date of the cultural property; (3) the repatriation
date of the cultural property; (4) a description of the
cultural property; and (5) the inventory of the cultural
property in the Philippine Registry of Cultural Property.

(d) COMMITMENT TO PROVIDE INFORMATION ON
THE PROGRESS OF THE UTILIZATION OF THE
GENETIC RESOURCES EXPORTED AS CULTURAL
PROPERTY TO THE SYSTEM OF CHECKPOINTS THAT.
MAY BE ESTABLISHED BY THE CULTURAL
AGENCIES IN COLLABORATION WITH THE
DEPARTMENT OF ENVIRONMENT AND NATURAL
RESOURCES FOR THE PURPOSE OF TRACKING AND.
MONITORING THE UTILIZATION OF THE GENETIC
RESOURCE!

(d) The National Plant Genetic Resources Laboratory - Sec. 1 of
Presidential Decree 729, as amended by Presidential Decree
1046-a, is hereby further amended as follows :

“(©) To systematically collect, introduce, preserve and
maintain a germplasm bank of important and potentially
useful agricultural crops AND TO ESTABLISH A
SYSTEM OF CHECKPOINTS TO GENERATE
INFORMATION CONCERNING THE UTILIZATION
OF THE GENETIC RESOURCE TAKING INTO
ACCOUNT THE STANDARD MATERIAL TRANSFER
AGREEMENT SYSTEM UNDER THE
INTERNATIONAL TREATY ON PLANT GENETIC
RESOURCES FOR FOOD AND AGRICULTURE;”

(c) The Philippine Institute for Traditional and Alternative Health Care -
there is hereby inserted the following provision, to be known as sec. 12-
A, in Republic Act 8423, to implement Art. 2 of the Act, to read as
follows

“SEC. 12-A - RECOGNITION OF BASIC RIGHTS OF
INDIGENOUS SOCIETIES, ALSO KNOWN AS INDIGENOUS
CULTURAL COMMUNITIES UNDER REPUBLIC ACT 8371,
OR LOCAL COMMUNITIES, IF THEY DO NOT COME
UNDER THE DEFINITION OF SUCH INDIGENOUS
CULTURAL COMMUNITIES UNDER REPUBLIC ACT 8371,

2


(1) THE RIGHT OF OWNERSHIP BY INDIGENOUS
SOCIETIES OVER THEIR KNOWLEDGE OF
TRADITIONAL MEDICINE;

(2) THE RIGHT OF THESE INDIGENOUS SOCIETIES
TO REQUIRE THE USERS TO ACKNOWLEDGE
WHERE THE USERS GOT THE MATERIALS THE
USERS ARE UTILIZING AND TO GET SOME
SHARE OF BENEFITS, PARTICULARLY OF A
FINANCIAL NATURE, FROM ANY OF THE
COMMERCIAL USES OF THIS KNOWLEDGE OF
TRADITIONAL MEDICINE, AND

(3) THE RIGHT TO REQUIRE AUTHORIZATION FOR
ANY COMMERCIAL USE OF THE TRADITIONAL
MEDICINE — FROM THE = CONCERNED
INDIGENOUS SOCIETIES”

Section 11. VOLUNTARY BENEFIT-SHARING MECHANISMS - There shall
be established a voluntary benefit-sharing mechanism in cases where it is not
possible to secure prior informed consent and the researcher and his/her
partner or collaborating institution will commit to provide a minimum level
of benefits that may be derived from the utilization of the genetic resources
and/or the indigenous knowledge systems or practices including the
associated traditional knowledge therein and as the utilization progresses
from research, development, innovation, pre-commercialization and
commercialization. The implementing agencies of this Act will conduct the
necessary consultations to determine the levels of these benefits, which will be
adjusted from time to time depending on the level of advancement of
researches in these types of activities.

Section 12. IMPLEMENTING RULES AND REGULATIONS - The
implementing agencies of Republic Act 9147, including the agencies which
issued the 2005 Guidelines or the Joint DENR-DA-PCSD-NCIP Administrative
Order No. 1, series of 2005, are hereby tasked to issue the implementing
regulations of this Act. The Department of Environment and Natural
Resources shall take the lead in the implementation of this Act.

Section 13. PENALTIES - he user of genetic resources who does not
comply with the provisions of this Act, including any relevant administrative
issuance that may be issued by the appropriate agencies as indicated by this
Act shall be penalized with the crime of biopiracy and shall be subject to a
penalty of six years and one day up to eight years, with the appropriate fine
not less than FIVE HUNDRED THOUSAND PESOS, as may be determined
by the appropriate court.

3B


Section 14. SEPARABILITY CLAUSE - In case any provision of this Act is
found to be unconstitutional upon final declaration by the appropriate Court,
the other provisions not so declared unconstitutional or unaffected by the
declaration shall remain valid and effective and shall continue to be
implemented by the Department of Environment and Natural Resources and
other relevant agencies.

Section 15. EFFECTIVITY CLAUSE - this Act shall take effect fifteen (15)
days after its publication in a newspaper of general circulation in the
Philippines.

Approved,

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