FOURTEENTH CONGRESS OF THE REPUBLIC ) 
- 
i !  
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
S.B. N O . I S a  
Introduced by Senate President 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 
yarn, 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 
started in the early 1980s and has continued up to the present. 
Such 
remarkable perfo~.mance 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 the 
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 earcestly sought. 
Senaie Pres dent i 


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I
 
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FOURT.E@NTH CONGRESS OF THE REPUBLIC ) 
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OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
Introduced by Senate President Manny Villar 
AN ACT 
STRENGTHENING 
THE 
MANDATE 
OF THE 
PHILIPPINE TEXTILE 
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 
RESEARCH INSTITUTE (PTRI) FOR THE PROMOTION AND DEVELOPMENT 
Be 
it enacted by the Senate and 
House of Representatives of the 
Rhilippines 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, 
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) 
SgCURE 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, 
(L) 
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 and shall be assisted by one or more Deputy Directors, as 
may be necessary, and shall have the following divisions: 
[l] Research and Development Division; 
[2] Technical Services Division.” 
SEC. 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. 
SEC. 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. 
SEC. 4. Separability Clause. - Should any provision of this Act or any 
part thereof be declared invalid, the other provisions, so far as they are 
separable from the invalid ones, shall remain in force and effect. 
SEC. 5. Repealing Clause. - All laws, presidential decrees, executive 
orders, or regulations and other issuances inconsistent with the provisions 
and/or purposes of this Act are hereby repealed, amended or modified 
accordingly. 
SEC. 6. Effectivity. - This Act shall take effect after fifteen (15) days 
following its publication in the Official Gazette or in at least two (2) newspapers 
of general circulation. 
Approved,