Republic of the Philippines
HOUSE OF REPRESENTAT!
Quezon City, Metro f

SIXTEENTH CONGRES:
First Regular Session

169

HOUSE BILL NO.

Introduced by Honorable ERIC D, SINGSON

EXPLANATORY NOTE

This bill seeks to require tobacco manufacturers to use at least seventy five
percent (75%) locally grown tobacco in the manufacture of cigarettes in the Philippines
In other words, locally grown tobacco should comprise 75% of the end product
(cigarette).

For more than thirty years in the past, tobacco farmers in the North have enjoyed
a certain level of economic stability and prosperity, giving them the opportunity to
improve their standard of living that enabled them to send their children to school
Education, after all, is the key to the solution of poverty in the countryside, because it
equips the children with the necessary qualifications for gainful employment and with the
skills and talents to succeed in their chosen fields of endeavor.

In the past years, however, the cigarette manufacturers have reduced considerably
the use of locally produced tobacco and shifted to the use of imported tobacco as raw
materials in the manufacture of their cigarettes. Because of this, many farmers could no
longer sell their tobacco and eventually went bankrupt. Thus began the decline of the
tobacco industry that has brought untold hardships to our people in the North.

The tobacco industry is a regulated industry and there is no reason why we should

not impose certain regulations to protect our own local farmers like they did in Malaysia
by enacting a law similar to what is being proposed by this bill

In view of the foregoing, approval of this bill is earnestly requested



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

nous Bit No, 169

Introduced by Honorable ERIC D. SINGSON

EXPLANATORY NOTE

This bill seeks to require tobacco manufacturers to use at least seventy five
percent (75%) locally grown tobacco in the manufacture of cigarettes in the Philippines
In other words, locally grown tobacco should comprise 75% of the end product
(cigarette)

For more than thirty years in the past, tobacco farmers in the North have enjoyed
a certain level of economic stability and prosperity, giving them the opportunity to
improve their standard of living that enabled them to send their children to school
Education, after all, is the key to the solution of poverty in the countryside, because it
equips the children with the necessary qualifications for gainful employment and with the
skills and talents to succeed in their chosen fields of endeavor

In the past years, however, the cigarette manufacturers have reduced considerably
the use of locally produced tobacco and shifted to the use of imported tobacco as raw
materials in the manufacture of their cigarettes. Because of this, many farmers could no
longer sell their tobacco and eventually went bankrupt. Thus began the decline of the
tobacco industry that has brought untold hardships to our people in the North

The tobacco industry is a regulated industry and there is no reason why we should

not impose certain regulations to protect our own local farmers like they did in Malaysia
by enacting a law similar to what is being proposed by this bill

In view of the foregoing, approval of this bill is earnestly requested



Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

SIXTEENTH CONGRESS
t Regular Session

HOUSE BILL NO,_169

Introduced by Honorable ERIC D. SINGSON

AN ACT
REQUIRING TOBACCO MANUFACTURERS TO USE A MINIMUM OF
SEVENTY FIVE PERCENT (75%) LOCALLY PRODUCED TOBACCO IN THE
MANUFACTURE OF CIGARETTES IN THE PHILIPPINES.

Be it enacted by the House of Representatives in congress assembled:

SECTION 1. All tobacco manufacturers are hereby required to use a minimum of
seventy five percent (75%) locally produced tobacco in the manufacture of cigarettes in
the Philippines.

SECTION 2. Penalty Clause.- Any company violating the provision of this act
shall pay a fine of not less than Ten Million Pesos (P10,000,000.00) for the first offense;
Thirty Million Pesos (P30,000,000.00) for the second offense and Fifty Million Pesos
(50,000,000.00) and closure of the establishment for the third offense.

ECTION 2. Implementing Rules and Regulations. - Within ninety (90) days
of this Act, the National Tobacco Administration (NTA) shall
formulate the implementing rules and regulations for the effective and proper
implementation of this Act. Further, the NTA shall be tasked with the administration and
implementation of this law and shall establish a performance monitoring system to ensure
compliance thereof.

SECTION 2. Effectivity. —'This Act shall take effect upon its approval.

Approved