HOUSE °F REPRESENTATIVES

pare: 25 AUG 2016

Republic of the Philippines Ess 4.000

HOUSE OF REPRESENTATIVES |

Quezon City, Metro Manila ey: ten
Seventeenth Congress REGISTRATION UNIT
First Regular Session BILLS AND INDEX SERVICE

HOUSE BILL n0.835 7

Introduced by Representative Sharon S. Garin

EXPLANATORY NOTE

Bamboo’s prominence in the country is evidenced in its prevalence in our
geographical landscape and significance to our culture. Whether in urban or in countryside,
bamboo trees dot the landscape, taking root not only in our environment but also in our
heritage through the “Alamat ng Kawayan” and the most popular and well-known Philippine
traditional tinikling dance. Truly, bamboo is germane to our national character as a country.

But apart from its cultural significance, bamboo presents essential economic
opportunities and environmental protection for the country. The grass of life, as it is often
tagged, can breathe life into the economic engines of the countryside if developed into a
booming industry. Its versatility enables it to be transformed as wood substitute for
furniture or construction materials, industrial and paper products, or as food, paving the
way for a wide variety of markets. Thus, bamboo products, both raw and processed, have an
untapped market that could propel the bamboo industry into one of the biggest agro-forest
industries in the country.

Taking an even more literal meaning, the grass of life helps people live in a cleaner
and safer environment by mitigating deforestation, preventing soil degradation, and acting
as carbon sink. And in a changing climactic condition and its adverse impacts on life and
property, bamboo’s propagation could spell the difference between life and death.

However, bamboo remains to be one of the underdeveloped industries in the
country despite its versatility, economic potentials, and environmental contributions. At
present, we have yet to fully support bamboo farmers, producers, processors, and
exporters with concrete policy actions and fiscal incentives to sustain the bamboo
enterprises that they have started or to entice investors to go into the bamboo industry.

Itis, thus, the aim of the bill to promote the rapid, steady and continuous integrated
development and growth of the Philippine bamboo industry, recognizing the bamboo's
salient role as a strategic, indigenous, replenishable, and renewable source of livelihood and
tool for agricultural productivity and environmental protection and management.


Through this measure, the scientific propagation, processing, utilization, and
business development of Philippine bamboo will be made a priority program through the
Philippine Bamboo Framework for Development. The components of the development plan
include:

site identification

scientific propagation and development

production support and extension

‘market promotion and business development

infrastructure development

quality assurance for health and proper trading

The bill also mandates the Department of Environment and Natural Resources
(DENR) to use bamboo as planting material for at least twenty percent (20%) of its annual
reforestation and rehabilitation programs.

Furthermore, the bill mandates the Department of Education (DepEd) to procure at
least twenty five percent (25%) of its annual school desk and/or armchair requirements for
public elementary and secondary schools nationwide with the use of Philippine Bamboo.

The Department of Labor and Employment (DOLE) is likewise mandated to
implement Bamboo Livelihood Programs for preference employment of special groups and
organizations of Persons with Disabilities (PWDs), marginalized sectors, the unemployed,
and retrenched Overseas Filipino Workers (OFWs).

Should this measure be enacted, it would provide the policy underpinning for the
development and growth of the bamboo industry; hence the passage of this measure is
earnestly sought.



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

Seventeenth Congress
First Regular Session

HOUSE BILL NO. 335 7

Introduced by Representative Sharon S. Garin

ANACT
TO PROMOTE AND STRENGTHEN THE PHILIPPINE BAMBOO INDUSTRY,
PRESCRIBING ITS SCIENTIFIC PROPAGATION, PROCESSING, UTILIZATION, AND BUSINESS
DEVELOPMENT AS A PRIORITY PROGRAM, AND ALLOCATING FUNDS THEREFOR
AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

Section 1. Title. This Act shall be known as the "Philippine Bamboo Industry Development
Act of 2016."

Section 2. Declaration of Policy. It is hereby declared the policy of the State to promote
industrialization and full employment based on sound agricultural development and
agrarian reform, through industries that make full and efficient use of human and natural
resources, and which are competitive in both domestic and foreign markets. To this end,
the State shall promote the rapid, steady and continuous integrated development and
growth of the Philippine bamboo industry, recognizing the bamboo's salient role as a
strategic, indigenous, replenishable and renewable source of livelihood and tool for
agricultural productivity. It is also hereby declared a policy of the State to acknowledge the
great contribution of bamboo in environmental protection and management, more
importantly in light of the perils of climate change.

Section 3. Priority Program. It is hereby authorized and prescribed, as a priority program,
the scientific propagation, processing, utilization and business development of Philippine
bamboo under the Philippine Bamboo Framework for Development.

Section 4. Implementing Agency. There is hereby created a Philippine Bamboo Industry
Development Coordinating Council (PBIDCC), hereinafter referred to as the Council,
administratively attached to the Department of Trade and Industry, charged with the main
function of coordinating the activities of various agencies and instrumentalities to ensure
the accomplishment of the Philippine Bamboo Framework for Development.


If ever practicable and required, the Chairman of the Council shall submit an annual report
to both Houses of Congress on the status of the implementation of this Act.

Section 5. Composition. The Philippine Bamboo Industry Development Coordinating Council
shall be composed of the following:

a. Secretary of the Department of Trade and Industry as Chairman (DTI);

b. Undersecretary of the Department of Trade and Industry-Regional Operations

and Development Group (DTI-RODG) as Head of the Council Secretariat;

c. Executive Director of the Cottage Industry Development Center (CICT) as Head of
the Bamboo Technical Working Group;
Secretary of the Department of Environment and Natural Resources (DENR);
Secretary of the Department of Agriculture (DA);
Secretary of the Department of Education (DepEd);
Secretary of the Department of Agrarian Reform (DAR)
Secretary of the Department of Science and Technology (DOST);
Secretary of the Department of Labor and Employment (DOLE);
Representative from the League of Municipalities of the Philippines;
Representative from the League of Cities of the Philippines;
Representative from a reputable Private Industry Association;
Two (2) Representatives from Bamboo  Farmers’/Producers'/Processors’
Associations;
n. One (1) Representative from Non-Governmental Organizations (NGOs);

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The Council shall regularly meet every two (2) months and may hold special meetings,
whenever the need arises, to consider urgent matters upon the call of the Chairman or any
eight (8) Council members.

Section 6. Council Secretariat. The Council Secretariat shall be headed by the
Undersecretary of the Department of Trade and Industry-Regional Operations and
Development Group (DTI-RODG). Technical support shall be provided by the Bamboo
Technical Working Group as headed by the Executive Director of the Cottage Industry
Development Center (CICT)..

The Secretariat and technical staff shall be detailed from the existing personnel of the
Department of Trade and Industry without prejudice to the designation by the Council of
such additional staff members as it may deem necessary for the proper discharge of its
function and responsibilities.

Section 7. Philippine Bamboo Framework for Development. The Philippine Bamboo
Industry Development Coordinating Council shall formulate a ten-year Framework for
Development, to be validated and updated annually. Such Framework shall serve as guide to
the formulation and implementation of plans, projects, programs, and policies for the
scientific propagation, processing, utilization, and business development of Phil
Bamboo. The Framework shall likewise provide for the following:

a. Site Identification - The Department of Environment and Natural
Resources in coordination with the Department of Agriculture,
Department of Agrarian Reform and the local government units, shall


identify the broad areas suitable for the planting and propagation of
Philippine Bamboo, within six (6) months after the effectivity of this Act.
The Department of Environment and Natural Resources shall also
establish nurseries focusing on species suitable for shoot production.

Scientific Propagation and Development - The Department of
Environment and Natural Resources and the Department of Science and
Technology shall establish sites and/or pilot farms for the cultivation and
propagation of Philippine bamboo. The same also covers the transfer and
improvement of appropriate technology and techniques, which will be
utilized in every phase of bamboo production, processing, marketing and
distribution, Particular emphasis shall be made on adoption and
upgrading of post-harvest technology;

Production Support and Extension - The Department of Environment and
Natural Resources, Department of Agriculture, Department of Trade and
Industry, and the Department of Science and Technology in coordination
the Local Government Units, Non-Governmental Organizations,
Technical Education and skills Development Authority (TESDA),
Cooperative Development Authority (CDA), state universities and colleges
(SUCS), and other relevant government agencies, shall establish programs
which promote and provide adequate training on adapting technologies
to individuals engaged in propagation, production, processing, marketing
and distribution of Philippine. bamboo, _ strengthen
farmers’/producers’/processors’ cooperatives and organizations involved
in the sustainable and viable development of Philippine bamboo, and
afford opportunities for participation in international conventions,
workshops and fora.

Market Promotion and Business Development — The Department of Trade
and Industry, in coordination with Private Industry Associations, shall
link-up agribusiness cooperatives and organizations directly with
consumers’ cooperatives and organizations, agro-processing companies,
or exporters to provide marketing outlets and assure relatively higher
and stable prices of bamboo. This also includes exploring national and
international markets and facilitating the participation of local farmers,
growers, and exporters in local and international conferences, trade fairs,
expositions, and exhibits;

Infrastructure Development - Access to post harvest facilities, storage
and distribution/transport facilities of existing government agencies shall
be facilitated by the Department of Environment and Natural Resources,
Local Government Units, and Department of Agriculture. Assistance shall
be given to qualified and viable farmers'/producers’/processors’
cooperatives and organizations in the availment of soft loans or grants
for the construction of post-harvest, processing and storage facilities;


f Quality Assurance - To ensure health and proper trading, the
Department of Trade and Industry and Department of Science and
Technology, respectively, shall establish and enforce standards in
grading, sampling and inspection, tests and analysis, specifications,
nomenclature, units of measurement, packaging, preservation,
conservation or transportation of Philippine bamboo products and by-
products; and

g. Philippine Bamboo Information Center - The Department of Trade and
Industry in coordination with Local Government Units shall estal a
Philippine Bamboo Information Center in areas identified pursuant to
Section 7a of this Act.

Section 8. Bamboo as Planting Material for Annual Reforestation and Rehabilitation. The
Department of Environment and Natural Resources shall use Philippine Bamboo as planting
material for at least twenty percent (20%) of its annual reforestation and rehabilitation
program.

Section 9, Bamboo Furniture Procurement Project. The Department of Education shall
procure at least twenty five percent (25%) of the annual school desk and/or armchair
requirements of public elementary and secondary schools nationwide with the use of
Philippine Bamboo pursuant to schedules and arrangements to be agreed upon with the
Department of Trade and Industry.

Section 10. Bamboo Livelihood Programs. The Department of Labor and Employment, in
cooperation with the Council and local government units, shall formulate and implement
Bamboo Livelihood Programs for preference employment of special groups and
organizations of Persons with Disabilities (PWDs), marginalized sectors, the unemployed,
and retrenched Overseas Filipino Workers (OFWs). The program shall have an appropriate
training and/or skills-retooling component to be provided by the Commission on
Information and Communications Technology (CICT) in coordination with the Technical
Education and Skills Development Authority (TESDA) or allied government institution.

Section 11. Philippine Bamboo Development Fund. To provide for the funding
requirements for the propagation, production, processing, marketing and distribution of
Philippine bamboo, there is hereby created a Philippine Bamboo Development Fund (PBDF),
with an initial amount of Fifty Million Pesos (P50,000,000.00) to be provided by the
Department of Budget and Management to the Department of Trade and Industry's
Regional Operations and Development Group (DTI-RODG) while the budgetary requirements
of cooperating agencies shall be incorporated in their respective locally-funded projects.
Other sources of funds, including but not limited to borrowings from local and international
funding institutions, shall also be authorized to further support the Fund.

Section 12. Incentives and Tax Exemptions. The Department of Agriculture may give cash
reward in recognition of the best bamboo farm or plantation in the country. Bamboo
farmers, producers, processors, and exporters shall also avail of the following incentives and
tax exemptions:


a. Exemptions from taxes and duties subject to the provisions of Article 62
of Republic Act 6938 or the Cooperative Code of the Philippines;

b. Exemption from the value-added tax in accordance with Section 103 of
the National Internal Revenue Code, as amended;

c. Exemption from taxes, fees and charges under Title One of Book Two of
the Local Government Code of 1991 in accordance with Section 133(n) of
the said Code;

d. Exemption from the payment of duties on the importation of agricultural
equipment, machinery and implements as provided under Republic Act
8435 otherwise known as the Agriculture and Fisheries Modernization Act
as amended by Republic Act 9281;

e. Zero-rated value-added tax (VAT) on transactions involving the
sale/purchase of organic farm inputs;

f. Provision of preferential rates and special window to bamboo farmers,
producers, processors, and exporters by the Land Bank of the Philippines;

8. Credit, insurance, and financing services under Republic Act 8435
otherwise known as the Agricultural and Fisheries Modernization Act and
Republic Act 10000 otherwise known as the Agri-Agra Reform Credit Act
of 2009;

h. Incentives and benefits under Republic Act 9178 otherwise known as the
Barangay Micro Business Enterprises (BMBE's) Act of 2002 for bamboo
business entity or enterprise whose total assets including those arising
from loans but exclusive of the land on which the particular business
entity's office, plant and equipment are situated, are not more than
Three Million Pesos (P3,000,000.00); and

i. Bamboo business entity or enterprise to be registered under the Board of
Investments (BO!) shall be entitled to the existing pertinent fiscal incentives
as provided by the Board of Investments or those provided under Executive
Order No. 226, as amended, otherwise known as the Omnibus Investment
Code of 1987.

Section 13. Implementing Rules and Regulations. The Philippine Bamboo Industry
Development Coordinating Council shall formulate and prescribe the necessary
implementing rules and regulations to carry out the provisions of this Act.

Section 14. Repealing Clause. All laws or parts thereof, decrees, orders, rules and
regulations inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

Section 15. Separability Clause. If any of the provisions of this Act is declare invalid, the
other provisions not affected thereby shall remain in full force and effect.

Section 16. Effectivity Clause. This Act shall take effect immediately following its publication
in two newspapers of general circulation or in the Official Gazette, whichever comes first.

Approved,