Republic of the Philippines

House of Rear scatativen@
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No, 9178

Introduced by Representative Ronald S. Ang (AKO BICOL Party-List)
EXPLANATORY NOTE

The 1987 Constitution, Article 2, Section 16 provides:

SEC. 16. The State shall protect and advance the right of the people to a
balanced and healthful ecology in accord with the rhythm and harmony of nature.

Pursuant to the policy of the State to protect its people, the
environment and the future generations, measures to address the alarming
amount of plastic waste being generated and the lack of proper disposal
and recycling mechanisms in our country must be immediately made.

In 2018, data from the United Nations Environment showed that one
million plastic drinking bottles are purchased every minute around the
world.! More than 480 billion plastic drinking bottles were sold worldwide
in 2016 and the number is estimated to increase to 583.3 billion by 2021.2

While the use of plastic drinking bottles provides convenience and
appears to be cheaper to consumers because of its small quantity, in reality,
it is more expensive when accumulated over time; worse, it generates more
waste which raise several environmental considerations.

' United Nations Environment, aoailable at https://www.unenvironment.org/ interactive/beat-plastic-
pollution/

2 Sandra Laville and Matthew Taylor, “A million bottles a minute: world’s plastic binge ‘as dangerous as
climate change,” The Guardian, 2B June 2017, aoailable at
https:/ / www. theguardian.com /environment/2017 /jun/28/a-million-a-minute-worlds-plastic-bottle-
binge-as-dangerous-as-climate-change.

1


The Philippines was ranked as the third largest contributor to plastic
pollution in the oceans in 2015.3 Reports showed that 74% of plastic leakage
comes from waste that has been collected, mainly as a result of improper
disposal and poorly located dump sites near waterways.* The haphazard
dumping of personal waste from communities living near bodies of water
also contribute to plastic pollution.

In the recently concluded Earth Hour, the World Wide Fund for
Nature (WWE) Philippines urged Filipinos to be more engaged in the effort
to create significant environmental action against climate change by raising
awareness on the dangers of single-use plastics, changing the habits of
consumers, urging businesses to operate more sustainably and mobilizing
public support for legislations on plastic waste management.>

The passage of this bill seeks to provide an immediate solution in
response to climate change and the alarming environmental threats we face
today. The Honorable Supreme Court in the landmark case Oposa v.
Factoran® held that every generation has a responsibility to the next to
preserve the rhythm and harmony of nature for the full enjoyment of a
balanced and healthful ecology. Now, more than ever, we are being called
to be stewards of the environment. The success of this bill depends on the
active participation and collaborative efforts of the government, the
business enterprises and the consumers.

In view of the foregoing reasons, immediate approval of this measure

is earnestly sought.

Hon. Ronald S. Ang
(AKO BICOL Party-List)

November 2015, available at
ights /saving-the-ocean-from-

3 “Saving the Ocean from Plastic Waste,” McKinsey & Compan
hitps:// www.mckinsey.com/business-functions/sustainability /our-
plastic-waste.

4 "The Scourge of Single-Use Plastic in the Philippines,” World Wide Fund for Nature, 22 June 2018, available
at https://wwf.panda.org/knowledge_hub/where_we_work/coraltriangle/?329831/The-scourge-of-
single-use-plastic-in-the-Philippines.

5 World Wide Fund for Nature (WWE), “Earth Hour PH 2019 shines a light on plastic pollution,”
Philippine Information Agency, 26 March 2019, available at https:/ /pia.gov.ph/ features articles /1020217.

© GR. No, 101083, 30 July 1993,



Republic of the Philippines

House of Representatives
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No. 9178

“AN ACT REGULATING THE MANUFACTURE, IMPORTATION,
SALE, AND USE OF PLASTIC DRINKING BOTTLES, PROVIDING
PENALTIES AND INCENTIVES THEREFOR AND FOR OTHER
PURPOSES”

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

SECTION 1. Short Title. - This Act shall be known as the “Plastic
Drinking Bottles Regulation Act.”

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State
to optimize the solutions in response to climate change and the alarming
environmental threats by regulating the use of plastic drinking bottles and
encouraging consumers to use alternative materials in order to reduce
plastic wastes. Furthermore, it is also the policy of the state to ensure the
sustainable use, development, management, renewal, and conservation of
our natural resources, including the protection and enhancement of the
quality of the environment, not only for the present generation but for
future generations as well.

SEC. 3. Scope. - This Act applies to the manufacture, importation, sale and
use of plastic drinking bottles which hold 750 milliliters (ml) and below. It
excludes plastic containers used for the packaging of medical syrups,
solutions, mixtures and drops.


SEC. 4. Definition of Terms. - As used in this Act:

a. Barangay Micro Business Enterprises (BMBEs), as defined under
Republic Act No. 9178, refer to any business enterprise engaged in
production, processing, or manufacturing of products, including
agro-processing, as well as trading and services, with total assets of
not more than three million pesos (Php 3,000,000.00). Such assets
shall include those arising from loans but not the land on which the
plant and equipment are located;

b. Business enterprises refers to establishment engaged in the
production, manufacture, processing, repacking, assembly or sale of
consumer products contained in plastic bottles, including service-
oriented enterprises, retailers, self-employed or own-account
workers, micro, small and medium enterprises (MSMEs), Barangay
Micro Business Enterprises (BMBEs) and community-based business
enterprises;

c. Consumer refers to a natural person who is a purchaser, lessee,
recipient or prospective purchaser, lessor or recipient of consumer
products contained in plastic bottles;

d. Importation refers to the act of bringing in of goods contained in
plastic bottles from a foreign territory into Philippine territory for
sale or consumption;

e. Manufacture refers to any and all operations involved in the
production, including preparation, propagation, _ processing,
formulating, filling, packing, repacking, altering, ornamenting,
finishing or otherwise changing the container, wrapper or labeling of
a consumer product in the furtherance of the distribution of the same
from the original place of manufacture to the person who makes the
final delivery or sale to the ultimate consumer;

f. Manufacturer refers to any person who manufactures, assembles or
processes consumer products, except that if the goods are
manufactured, assembled or processed for another person who
attaches his own brand name to the consumer products, the latter
shall be deemed the manufacturer. In case of imported products, the
manufacturer's representative or, in his absence, the importer, shall
be deemed the manufacturer.

g. Micro, small and medium enterprises (MSMEs), as defined under
Republic Act No. 9501, refer to any business activity or enterprise


engaged in industry, agribusiness and/or services, whether single
proprietorship, cooperative, partnership or corporation;

h. Plastic drinking bottle refers to disposable plastic containers that
are commonly used for packaging of liquids for consumption which
include, but are not limited to, water, juice, carbonated, sports and
energy drinks. It excludes plastic containers used for the packaging of
medical syrups, solutions, mixtures and drops.

i. Sale refers to any act made by the manufacturer or seller, or their
respective representative or agent, to make available consumer
products to the end consumers under a consumer sale transaction;

j. Recycling, as defined under Republic Act No. 9003, refers to the
treating of used or waste materials through a process of making them
suitable for beneficial use and for other purposes, and includes any
process by which solid waste materials are transformed into new
products in such a manner that the original product may lose their
identity, and which maybe used as raw materials for the production
of other goods or services; and

k. Retailer refers to a person engaged in the business of selling
consumer products directly to consumers.

SEC. 5. Prohibition of Plastic Drinking Bottles. - The prohibition on the
manufacture, importation, sale and use of plastic drinking bottles which
hold 750 ml and below shall be in full force and effect one (1) year from the
effectivity of this Act.

The Department of Environment and Natural Resources (DENR),
with the cooperation of the Department of Trade and Industry (DTI), the
Department of Interior and Local Government (DILG), the Department of
Finance (DOF), the Department of Science and Technology (DOST), and
other concerned agencies of the government shall ensure that no plastic
drinking bottle which hold 750 ml and below will be manufactured,
imported, sold and used in the country.

During the interim period (within 1 year), the following shall be
enforced:

1. The government shall undertake an extensive public
information campaign to notify and educate the public on
the provisions of this Act;

2. Business enterprises, markets, supermarkets and food
establishments shall prohibit the manufacture, importation,


sale and use of plastic drinking bottles which hold 750 ml
and below;

3. Consumers shall be encouraged to use alternative materials
in substitution for buying/using plastic drinking bottles
such as tumblers and other reusable containers;

4. Used plastic drinking bottles already in circulation prior to
the effectivity of the ban shall be collected, recycled and
properly disposed of by the manufacturers; and

5. Local government units (LGUs) shall establish a materials
recovery facility pursuant to Republic Act No. 9003;

6. In the absence of a materials recovery facility, LGUs shall
establish recycling centers and a monitoring system to
ensure compliance with this Act.

SEC. 6. Incentives to Business Enterprises. - Business enterprises, markets,
supermarkets and food establishments that ban the manufacture,
importation, sale and use of plastic drinking bottles in accordance with this
Act shall be given incentives provided for under the Philippine
Cooperative Code of 2008, the Barangay Micro-Business Enterprises Act of
2002, the Magna Carta for Micro, Small, and Medium Enterprises, the
Omnibus Investment Code of 1987 or the Green Jobs Act of 2016, where
applicable.

LGUs are encouraged and shall be allowed to provide additional
benefits and incentives to those within their jurisdiction, consistent with
the existing laws, rules and regulations, which shall be in addition to the
benefits and incentives provided for in the previous paragraph.

Nothing in this Act shall prohibit or limit the right of the said
business enterprises, markets, supermarkets and food establishments to be
entitled to additional benefits and incentives which may be given by new
laws, rules and regulations in the future.

SEC. 7. Monitoring System. - The LGUs, in coordination with the DENR,
the DTI, the DILG, the DOF, through the Bureau of Customs (BOC) and
other concerned agencies of the government, shall conduct regular
inspections and monitoring of business enterprises, markets, supermarkets
and food establishments to ensure compliance with this Act.

The local government units shall issue a certification to the business
enterprises, markets, supermarkets and food establishments who are
compliant with this Act and such shall be required for the renewal of local
business permits.


SEC. 8. Penalties. - The following penalties shall be imposed for violations
of the provisions of Section 5:

a. For business enterprises, MSMEs and BMBEs and all other
enterprises not value-added tax (VAT) registered, the following
penalties shall be imposed:

First offense  - _A fine of five thousand pesos (Php 5,000.00);

Second offense - A fine of twenty-five thousand pesos (Php
25,000.00) and suspension of its business
permit for six (6) months;

Third offense - A fine of fifty thousand pesos (Php
50,000.00) and suspension of its business
permit for one (1) year

Fourth offense - A fine of one hundred thousand pesos (Php
100,000.00) and cancellation of its business
permit. The said business permit shall not
be eligible for renewed application for a
period of five (5) years. The LGU concerned
may grant the renewal of business permit:
provided that the owner of the business
enterprise, MSME or BMBE can show that
measures will be undertaken to comply
with this Act. A further violation incurred
after the grant of renewal of business permit
shall perpetually bar the said owner from
conducting its business in the LGU
concerned.

b. For VAT registered business enterprises, the following penalties
shall be imposed:

First offense - A fine of fifty thousand pesos (Php
50,000.00);

Second offense - A fine of one hundred thousand pesos (Php
100,000.00) and suspension of its business
permit for six (6) months;

Third offense - A fine of two hundred fifty thousand pesos
(Php 250,000.00) and suspension of its
business permit for one (1) year

Fourth offense - A fine of five hundred thousand pesos (Php
500,000.00) and cancellation of its business
permit. The said business permit shall not
be eligible for renewed application for a
period of five (5) years. The LGU concerned

7


may grant the renewal of business permit:
provided that the owner of the business
enterprise, MSME or BMBE can show that
measures will be undertaken to comply
with this Act. A further violation incurred
after the grant of renewal of business permit
shall perpetually bar the said owner from
conducting its business in the LGU
concerned.

If the offender is a corporation, trust or firm, partnership, association
or any other entity, the penalty shall be imposed on the entity’s responsible
officers which include, but not limited to, the president, chief executive
officer, general manager, managing director or partner directly responsible
thereof.

SEC. 9. Administrative Sanctions. - Local government officials who fail to
comply with and enforce this Act shall be administratively charged in
accordance with Republic Act No. 7160 and other existing laws, rules and
regulations.

SEC. 10. Citizens Suit. - For the purposes of enforcing the provisions of this
Act or its implementing rules and regulations, any citizen may file an
appropriate civil, criminal or administrative action in the proper
courts/bodies against:

a) Any person who violates or fails to comply with the provisions of
this Act its implementing rules and regulations; or

b) The Department or other implementing agencies with respect to
orders, rules and regulations issued inconsistent with this Act;
and/or

c) Any public officer who willfully or grossly neglects the
performance of an act specifically enjoined as a duty by this Act or its
implementing rules and regulations; or abuses his authority in the
performance of his duty; or, in any many improperly performs his
duties under this Act or its implementing rules and
regulations; Provided, however, That no suit can be filed until after
thirty-day (30) notice has been given to the public officer and the
alleged violator concerned and no appropriate action has been taken
thereon.


The Court shall exempt such action from the payment of filing fees
and statements likewise, upon prima facie showing of the non-enforcement
or violation complained of, exempt the plaintiff from the filing of an
injunction bond for the issuance of preliminary injunction.

In the event that the citizen should prevail, the Court shall award
reasonable attorney's fees, moral damages and litigation costs as
appropriate.

SEC. 11. Suits and Strategic Legal Action Against Public Participation
(SLAPP) and the Enforcement of this Act. - Where a suit is brought against
a person who filed an action as provided in Sec. 11 of this Act, or against
any person, institution or government agency that implements this Act, it
shall be the duty of the investigating prosecutor or the Court, as the case
may be, to immediately make a determination not exceeding thirty (30)
days whether said legal action has been filed to harass, vex, exert undue
pressure or stifle such legal recourses of the person complaining of or
enforcing the provisions of this Act. Upon determination thereof, evidence
warranting the same, the Court shall dismiss the complaint and award the
attorney's fees and double damages.

This provision shall also apply and benefit public officers who are
sued for acts committed in their official capacity, there being no grave
abuse of authority, and done in the course of enforcing this Act.

SEC. 12. Implementing Rules. - The DENR, in coordination with the DTI,
the DILG, the DOF and other concerned government agencies shall have
the authority to promulgate the necessary rules and regulations for the
purpose of carrying into effect the provisions of this Act.

SEC. 13. Appropriations. - Such amount as may be necessary to implement
the provisions of this Act is hereby included in the annual appropriations
of the DENR, the LGUs and other concerned government agencies under
the General Appropriations Act.

SEC. 14. Separability Clause. - If any provision of this Act is declared
unconstitutional or invalid, the remainder thereof not affected thereby shall
continue to be in full force and effect.


SEC. 15. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations, and other issuances or part thereof which are inconsistent with
the provisions of this Act are hereby repealed or modified accordingly.

SEC. 16. Effectivity. - This act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) newspapers of general

circulation.

Approved,