, 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY NOTE 
The Philippine Textile Industry is one of the most vibrant and dynamic sectors 
and for years, was one of the flagship business contributing significantly to the country's 
economy. The industry is a major employer contributing close to 15% of total 
manufacturing employment and ranks fifth in terms of share in total manufacturing value 
added. 
In the ASEAW region, the Philippines was the pioneer textile producer. The 
textile industry began in the 1950s as one of the industries established under the 
rationale of import substitution and covers fiber production and yam, fabric and made-
up textile manufacture. It registered a rapid growth in its inception, having employed at 
one time over a hundred thousand workers involving over 300 companies. However, the 
decline of the textile industry startecj in the early 1980s and has continued up to the 
present. Such remarkable performance was not sustained with the following factors 
accounting for its dismal decline: the Industry has been constricted to serving the 
domestic market with no regard for the export market, the implementation of the 
decontrol program wherein the limits on the importation of textile were removed, 
smuggling which put the industry at a price disadvantage because of the cheaper price 
of smuggled fabrics and the changing domestic and international environments resulting 
to a complex system of policy regulations as import restrictions, foreign exchange 
controls, tariffs, subsidies and investment incentives. 
The deplorable state of the textile sector should be studied and be given 
immediate remedial policies by the government to revive the industry. The shift in buyer 
preferences favoring natural fabrics and dyes, a more diversified export market, and a 
renewed local interest in natural textile inputs may provide the needed push for the 
renaissance of the dying textile industry. What is required though is adequate 
government and private sector support to further develop not only the technological 
capacity and technical and organizational know-how of textile firms but also the 
agricultural production of major inputs to the textile industry. 
This bill, therefore, seeks to strengthen the mandate of the Philippine Textile 
Research Institute (FTRI) as the lead agency that will further promote, develop and 
modernize the textile industry and its allied industries by amending Section 24 of 
Executive Order No. 128, otherwise known as "Reorganizing the National Science and 
Technology Authority", thus, provide assistance to and address its production, 
technology and skills-formation needs. The FTRI was formally established by the 
National Science Development Board (NSDB) on January 3, 1967 as an agency to 
undertake Textile Research Program. In 1974, by virtue of Presidential Decree No.1, it 
became a regular agency of the NSDB. On June 26, 1981, FTRI was transferred to the 
Ministry of Industry for purposes of policy and program coordination as prescribed 
dnder Executive Order No. 700. Then, on January 30, 1987, Executive Order No. 128 
reorganized the National Science and Technology Authority (NSTA) and provided, 
among others, the return of FTRI to the NSTA, now the Department of Science and 
Technology (DOST). The program of the PTRI is a socially meaningful one which can 
truly contribute to Philippine economic progress in terms of more local production of 


higher quality textile or export grade with the use of local raw materials of increased 
local labor. Thus, it is imperative for t~e PTRI to continue the pioneering research and 
development work it has started. 
The Constitution itself is explicit in declaring the importance of science and 
technology as an essential and contributing factor in national development and 
progress. Section 10 of Article XIV provides: "Science and technology are essential for 
national development and progress. The State shall give priority to research and 
development, invention, innovation, and their utilization; and to science and technology 
education, training, and services. It shall support indigenous, appropriate, and self-
reliant scientific and technological capabilities, and their application to the country's 
productive systems and national life." 
In view of the foregoing, early passage of this bill is earnestly sought. 
MANNY VI LAR 
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FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATr13 
S.B. No. 
3 
INTRODUCED BY SEN. MANNY VILLAR 
AN ACT 
STRENGTHENING THE MANDATE OF THE PHILIPPINE TEXTILE RESEARCH 
INSTITUTE (PTRI) FOR THE PROMOTION AND DEVELOPMENT OF THE TEXTILE 
INDUSTRY, AMENDING FOR THE PURPOSE SECTION 24 OF EXECUTIVE ORDER 
NO. 128 DATED JANUARY 30,1987, APPROPRIATING FUNDS THEREFOR, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 24 of Executive Order No. 128, otherwise known as the 
"Reorganization Act of the National Science and Technology Authority" is hereby 
amended to read as follows: 
"Sec. 24'. 
POWERS, FUNCTIONS AND DUTIES OF THE 
Philippine Textile Research Institute. - [The Philippine Textile 
Research Institute, presently existing, is hereby reorganized and 
shall have the following functions:] TO CARRY OUT THE 
OBJECTIVES OF THIS 
ACT, 
THE 
PHILIPPINE TEXTILE 
RESEARCH 
INSTITUTE SHALL HAVE THE 
FOLLOWING 
POWERS, FUNCTIONS AND DUTIES: 
a) 
[Conduct applied research and development for the textile 
industry sector] UNDERTAKE A COMPREHENSIVE PROGRAM 
OF RESEARCH, 
EXPERIMENTATION AND PROJECTS THAT 
WILL CONTRIBUTE TO THE DEVELOPMENT, PRODUCTION 
OR MANUFACTURE AND PROPER UTILIZATION OF LOCAL 
RAW MATERIALS NEEDED BY THE TEXTILE INDUSTRY; 
b) 
Undertake the transfer of completed SCIENTIFIC AND 
TECHNOLOGICAL researches to end-users or via linkage units of 
other government agencies; 
c) 
Undertake technical services and provide training programs. 
d) 
UNDERTAKE 
TECHNOLOGICAL 
PROJECTS 
THAT 
CONTRIBUTE TO THE IMPROVEMENT OR INVENTION OF 
MACHINERY, EQUIPMENT, PROCESSES OR PRODUCTION 
METHODS OF THE TEXTILE INDUSTRY; 
e) 
UNDERTAKE THE DEVELOPMENT AND PROMOTION 
OF NATIONAL STANDARDS FOR LOCAL TEXTILE MATERIALS 
AND PRODUCTS AS GUIDELINES FOR MANUFACTURE, 
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EVALUATION OF QUALITY AND PERFORMANCE, AND TRADE 
TRANSACTIONS HERE AND ABROAD, AND ISSUE PERMITS 
TO USE THE PTRI SEAL OF APPROVAL; 
f) 
CONDUCT PHYSICAL AND CHEMICAL EXAMINATIONS, 
TESTS, 
INVESTIGATIONS, INSPECTIONS, 
VERIFICATIONS 
AND 
IDENTIFICATIONS 
OF 
TEXTILE 
MATERIALS 
AND 
PRODUCTS AND SUCH OTHER TESTS AIMED AT ASSURING 
THE PUBLIC PROPER QUALITY CONTROL OF THE LOCAL 
PRODUCTS IN ACCORDANCE WITH CONSUMER NEEDS AND 
PREFERENCES AND ISSUE CERTIFICATIONS OF FINDINGS 
THEREIN; 
g) 
PROVIDE 
CONSULTATION 
AND 
INFORMATION 
SERVICES TO TEXTILE MANUFACTURERS, EXPORTERS, 
CONSUMERS, RESEARCHERS, TECHNOLOGISTS AND TO 
THE GENERAL PUBLIC; 
h) 
UNDERTAKE PERIODIC MARKETING AND ECONOMIC 
STUDIES THAT WILL ASSIST THE FULL GROWTH OF THE 
TEXTILE INDUSTRY; 
i) 
SECURE PATENT RIGHTS FOR AND IN BEHALF OF 
INVENTORS AND DISCOVERERS TO ALL THEIR INVENTIONS 
AND DISCOVERIES; 
j) 
SOLICIT AND' RECEIVE GRANTS, BEQUESTS AND 
DONATIONS OF ANY KIND FROM THE GOVERNMENT AND 
PRIVATE INSTITUTIONS AND AWARD GRANTS TO ANY 
QUALIFIED 
TEXTILE 
MANUFACTURERS, 
EXPORTERS, 
CONSUMERS, RESEARCHERS, TECHNOLOGISTS AND THE 
PUBLIC IN GENERAL, AND PROVIDE FINANCIAL, TECHNICAL 
SUPPORT 
FOR 
,SCIENTIFIC 
AND 
TECHNOLOGICAL 
RESEARCH AND INVESTIGATIONS ON TEXTILE AND ALLIED 
PRODUCTS; 
k) 
IMPLEMENT 
SUCH 
POLICIES 
AS 
MAY 
BE 
PROMULGATED BY THE DEPARTMENT OF SCIENCE AND 
TECHNOLOGY (DOST) FOR THE TEXTILE INDUSTRY, 
I) 
PERFORM SUCH ACTIONS AS MAY BE INCIDENTAL OR 
CONDUCIVE TO THE ATTAINMENT OF THE PURPOSES OF 
THIS ACT. 
THE 
INSTITUTE 
SHALL 
LIKEWISE 
UNDERTAKE 
A 
MODERNIZATION PROGRAM GEARED TOWARDS THE , 
UPGRADING 
OF 
THE 
EXISTING 
FACILITIES, 
PLANT 
MACHINERIES AND TOOLS, LABORATORY EQUIPMENT AND 
SUCH OTHER IMPLEMENTS USED IN THE RESEARCH AND 
OPERATION OF THE VARIOUS TEXTILE MANUFACTURING 
INDUSTRIES IN THE COUNTRY. 
The Institute shall be headed by a Director, who shall be appOinted 
by the President upon recommendation of the Director- General 
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and shall be assisted by one or more Deputy Directors, as may be 
necessary, and shall have the following divisions: 
1. 
Research and Development Division; 
2. 
Technical Services Division." 
SECTION 2. Funding. - For the initial implementation of this Act, there is hereby 
authorized to be created a fund to be derived from the budget of the Department of 
Science and Technology (DOST) not otherwise appropriated. Thereafter, said funds 
shall be included in the annual budget of this department. 
SECTION 3. Implementing Rules. -
The Department of Science and 
Technology (DOST), in coordination with the Department of Agriculture (DA), the 
Department of Trade and Industry ,(DTI), the Board of Investments (BOI) and the 
Bureau of Customs, shall issue the necessary rules and regulations to implement the 
provisions of this Act. 
SECTION 4. Separability Clause. - If any part or provision of this Act is held 
unconstitutional or invalid, the other parts or provisions hereof which are not affected 
thereby shall continue to be in full force and effect. 
SECTION 5. Repealing Clause. - All laws, orders, rules or regulations which 
are inconsistent with or contrary to the proviSions of this Act are hereby amended or 
repealed accordingly. 
SECTION 6. EFFECTIVITY -This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national newspapers of general circulation. 
Approved, 
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