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Republic of the Philippines 
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HOUSE OF REPRESENTATIVES 
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Quezon City 
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EIGHTEENTH CONGRESS 
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First Regular Session 
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HOUSE BILL No.  ___ 
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___________________________________________________________________________ 
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Introduced by 
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BAYAN MUNA Representatives CARLOS ISAGANI T. ZARATE, 
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FERDINAND R. GAITE and EUFEMIA C. CULLAMAT, 
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ACT TEACHERS Party-List Rep. FRANCE L. CASTRO,  
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GABRIELA Women’s Party Rep. ARLENE D. BROSAS 
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 and KABATAAN Party-List Rep. SARAH JANE I. ELAGO 
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AN ACT 
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ABOLISHING THE PHILIPPINE INTERNATIONAL TRADING CORPORATION, 
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AND FOR OTHER PURPOSES 
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EXPLANATORY NOTE 
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The Philippine International Trading Corporation (PITC) was created through Presidential 
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Decree No. 252 to trade with Socialist and Other Centrally Planned Economy Countries. It 
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engages with exports, trade services and special trading arrangements, and provide 
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procurement services. 
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According to 2020 annual audit report, the Commission on Audit (COA) revealed that there 
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P11.022 billion fund transfers from various national government agencies from CY 2014 to 
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2020 that remained unutilized as of December 31, 2020. Furthermore, it is noted that P10.877 
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billion or 99% of the total unutilized fund transfers were scheduled for bidding/procurement 
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for CY 2021. The COA recommended to direct the concerned official of the PITC to 
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immediately return the remaining unutilized funds and residual fund transfers to the Bureau of 
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Treasury. This huge amount, especially amid the economic and health crisis could have been 
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used for other programs, projects and activities instead of being parked in the PITC. 
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Moreover, there are more audit observations reported by the COA such as procuring various 
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personal protective equipment without considering the lowest price proposal, and procurement 
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of information technology software and equipment that is not supported by an Information 
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Systems Strategic Plan duly endorsed by the Department of Information and Communication 
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Technology. 
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The 1987 Constitution and the Republic Act No. 9184, otherwise known as the “Government 
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Procurement Reform Act,” which mandates all procurement entity to establish a single Bids 
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and Awards Committee, have made the mandate of the PITC archaic and irrelevant. Worse, it 
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became a breeding ground for graft, corruption, inefficiency and negligence to the duties of 
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other government agencies. Thus, this Bill seeks to abolish the Philippine International Trading 
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Corporation. 
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Thus, approval of this Bill is earnestly sought. 
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September 21, 2021
4:14 pm
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Approved, 
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REP. CARLOS ISAGANI T. ZARATE 
Bayan Muna Partylist  
REP. EUFEMIA C. CULLAMAT 
Bayan Muna Partylist 
REP. FERDINAND R. GAITE 
Bayan Muna Partylist 
REP. ARLENE D. BROSAS 
GABRIELA Women’s Party  
REP. FRANCE L. CASTRO 
ACT Teachers Partylist  
REP. SARAH JANE I. ELAGO 
Kabataan Partylist 
2 


3 
Republic of the Philippines 
1 
HOUSE OF REPRESENTATIVES 
2 
Quezon City 
3 
4 
EIGHTEENTH CONGRESS 
5 
First Regular Session 
6 
7 
HOUSE BILL No.  ___ 
8 
___________________________________________________________________________ 
9 
Introduced by 
10 
BAYAN MUNA Representatives CARLOS ISAGANI T. ZARATE, 
11 
FERDINAND R. GAITE and EUFEMIA C. CULLAMAT, 
12 
ACT TEACHERS Party-List Rep. FRANCE L. CASTRO,  
13 
GABRIELA Women’s Party Rep. ARLENE D. BROSAS 
14 
 and KABATAAN Party-List Rep. SARAH JANE I. ELAGO 
15 
16 
AN ACT 
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ABOLISHING THE PHILIPPINE INTERNATIONAL TRADING CORPORATION, 
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AND FOR OTHER PURPOSES 
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Be it enacted by the Senate and House of Representatives of the Republic of the Philippines in 
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Congress assembled: 
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SECTION 1. Declaration of Policy – It is the policy of the State to maintain honesty and 
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integrity in the public service and take positive and effective measures against graft and 
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corruption. 
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SECTION 2. Abolition of the Philippine International Trading Corporation. – The 
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Philippine International Trading Corporation (PITC) created under Presidential Decree No. 
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252 shall be abolished. 
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In lieu of the abolition of the PITC, the respective Departments, Agencies, Government-Owned 
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and/or -Controlled Corporations (GOCCs), State Universities and Colleges (SUCs), and Local 
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Government Units (LGUs) shall, thereafter, undertake the procurement of materials, 
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equipment, and infrastructure projects. 
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The Department of Trade and Industry (DTI) shall undertake the functions of the PITC in 
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relation to facilitative trade-related services, responsive business solutions, and trade-related 
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government-to-government transactions, among others. 
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SECTION 3. Separation and Retirement from Service. – Employees affected by the abolition 
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of the PITC shall receive separation benefits under the Government Reorganization Law and 
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other existing laws, rules, and regulations: Provided, that those who are qualified to retire and 
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receive retirement benefits shall be allowed to retire under existing laws, rules, and regulations. 
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SECTION 4. Reversion of Funds. – In coordination with the concerned Departments, 
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Agencies, GOCCs, SUCs, and LGUs, the PITC shall revert all prior years’ unutilized advances 
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to the National Treasury. Current year’s advances for the procurement of supplies, equipment 
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and all other funds held in trust by the PITC shall be returned to the concerned Departments 
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and Agencies. 
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SECTION 5. Repealing Clause. – All laws, decrees, executive orders, rules or regulations and 
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other issuances, or parts thereof, which are inconsistent with the provisions of this Act, are 
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hereby repealed or amended accordingly. 
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SECTION 6. Separability Clause. – If any portion or provision of this Act is declared 
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unconstitutional, the remainder of this Act or any provision not affected thereby shall remain 
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in force and effect. 
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SECTION 7. Effectivity. – This law shall take effect fifteen (15) days after its publication in 
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the Official Gazette or in two (2) national newspapers of general circulation.  
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Approved, 
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