Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
First Regular Session

HOUSE BILL NO.2912

Introduced by Honorable ISAGANI S. AMATONG, Representative
34 District, Zamboanga del Norte

EXPLANATORY NOTE

This bill seeks to create the Philippine Rubber Industry Development
Board (PHLRUBBER). It provides for a strong foundation for the
development and stability of the rubber industry in the country vis:
globalization and ASEAN integration.

The bill also recognizes the vital role of natural rubber in the deyelopment
of the agricultural sector in the countryside. This is an improved version
of House Bill No, 1128 which seeks to establish the Philippine Rubber
Industry Development Authority.

The demand for natural rubber in the world market is steadily
progressing. In 2013 alone, the expected volume of world demand for
natural rubber reached 11.3 Million, To date, the International Monetary
Fund (IMF) has projected the demand to reach 11.9 Million. By 2020, the
IMF predicts the market to reach at 15.4 Million metric tons.

According to market experts, the demand from tire makers will boost
global consumption of natural rubber, accounting for 12.6 million met
tons in 2020. ‘The tire and construction industries, roads, bridges,
buildings, sports race tracks, etc., gets 70% of natural rubber
consumption, while 30% of which goes to non-tire industry.

To cope with the pressing demand for natural rubber, the government
shall intensify its campaign in the production of quality rubber products
compliant with global standards and ensure proper implementation of
policies.



The Philippines is a known rubber producing country but has
insignificantly contributed to a dismal 1% of the world’s rubber supply.
The absence of industry focused ~~ government _—_ support
institution /organization compounded by the lack of testing facilities in the
government and private sectors, greatly contributed to its low quality and
less competitive Philippine rubber products. Given the rich and fertile soil
of our land, there is so much potential in rubber industry which would
contribute to the accelerated growth of the national economy.

Even with the passage of RA 10089 “An Act Creating the Philippine
Rubber Research Institute (PRRI), the plight of the industry could not be
wholly addressed considering the latter centers mainly on research. It is
expected with the passage of this Act, the whole value chain and
hallenges in the rubber industry will be sufficiently dealt with, including
s, marketing and financial aspects.

With the end view of making rubber a sustainable o-economic
enterprise towards inclusive growth, this Act shall strengthen all rubber
players and stakeholders by enabling rubber a viable resource commodity
that would generate employment in the countryside, and become
competitive in the global market.

In view thereof, the passage of this bill

earnestly sought.

iA


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

17" CONGRESS,
First Regular Session
a1?
HOUSE BILLNo,_ 2212

Introduced by: HON. ISAGANI S. AMATONG.

AN ACT
ESTABLISHING THE PHILIPPINE RUBBER INDUSTRY DEVELOPMENT
BOARD, DEFINING ITS POWERS AND FUNCTIONS AND APPROPRIATING
FUNDS THEREFOR

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

SECTION 1. Short Title. ~ This Act shall be known as the “Philippine Rubber
Industry Act of 2016

SECTION 2. Declaration of Policy. ~ Consistent with the national government's
commitment to protect and develop self-reliant industries based on agricultural
development and agrarian reform through resource-based industries and ensure a
balanced economy that fully utilizes human and natural resources, the Philippines growth
intends to accelerate production of natural rubber supply for domestic and global
markets; transforms underutilized areas into viable rubber plantations spur socio-
economic development, thus, discouraging rural population from migrating to urban
areas which eventually would cause socio-economic imbalance.

It is hereby declared policy of the state to develop the rubber industry in the country to its
fullest potential. Towards this end, the State shall provide the necessary support to the
rubber industry particularly the farmers, from the adverse effect of the free market forces
and natural manmade calamities; promote the private-public partnership to push forward
the programs and projects that will optimize natural rubber utilization. It shall
progressively set quality control standards desirable to uphold the interest of the greater
masses of its stakeholders.


SECTION 3. Philippine Rubber Industry Development Board. - The
Philippine Rubber Industry Development Board (PHILRUBBER) is hereby created. It
shall be an attached agency of the Department of Trade and Industry.

SECTION 4. Composition. — the Board shall be composed of the following,
a) Secretary of the Department of Trade and Industry;
b) Secretary of the Department of Agriculture;
c) Secretary of the Department of Agrarian Reform;
d) Secretary of the Department of Environment and Natural Resources;
e) Secretary of the Department of Science and Technology;
£) Secretary of the Department of Labor and Employment,
18) Secretary of the Department of Interior and Local Government;
h) Director General of the Technical Education and Skills Development Authority;
i) President/CEO of the LANDBANK of the Philippines;
j) Two (2) representatives from the Academe;
k) Two (2) representatives from the Philippine Rubber Industries Association, Inc.;
1) Two (2) representatives front her National Rubber Processors,
m) Two (2) representatives from the Small Holders Association, and
1n) Two (2) representatives from the Federation of Rubber Cooperative

‘The representatives from the Academe, Rubber Association, Rubber Processors, Small
Holders Association and Federation of Rubber Cooperative shall be appointed by the
President of the Philippines upon the recommendation of the Secretary of Trade and
Industry and shall serve in the Board for three (3) years reckoned from the date of
appointment. The representative may be reappointed by the President for another term,

SECTION 5. Roles and Responsibilities. - The Board shall promote the
developmemt and growth of the rubber industry by improving productivity, quality and
expanding its markets.

It shall have the following specific functions and responsibilities

a) Acts as the top advisory body in all initiatives and concems relevant to the
rubber industry;

b) Promotes investment in public and private lands, joint venture in rubber
planting, processing, and manufacturing of rubber products and by-products;

©) Promotes and coordinates within the national agencies on nationwide support
programs such as research and development, technology upgrading, human resource
development, domestic and export market development, long-term financing,
infrastructure, and land access;

d) Advocates for supportive policies including the provision of rubber industry
development funds, long-term financing and investment incentives;

e) Promotes a natural culture of quality from the farms to the factories of rubber
products;

£) Serves as the point of contact between and among policy makers of the rubber
industry: and


) Represents the country in all intemational rubber conferences.

SECTION 6. Executive Committee. — to ably assist the Board in the program
plans and projects, identification and generation of resources. The executive Committee
to be chaired by the Department of Trade and Industry (DTI) and co-chaired by the
Department of Agriculture (DA) shall be constituted with the memberships thereof to be
appropriately identified by the Board.

SECTION 7. Functions of the Executive Committee. —- The Executive
Committee shall oversee and monitor the implementation of the Philippine Rubber
Industry Master Plan and shall prioritize and recommend strategic interventions and
ensure availability of resources to support program implementation.

SECTION 8. Transitory Provision. ~ The Government shall chair the Executive
Committee until the Board is made operational and shall transfer its leadership to the
President of a strong and cohesive national rubber industry organization. The
chairmanship of the private sector shall be nominated from among the eight (8) private
sector representatives and upon recommendation of the Board. He shall be duly
appointed by the President of the Republic of the Philippines,

SECTION 9. Technical Working Group. ~ There shall be created a Philippine
Rubber Technical Working Group (PRTWG) composed of representatives to be
designated by the members of the Board. The PRTWG which shall be headed by an
Undersecretary shall serve as the Secretariat and shall assist the Executive Committee in
all related functions.

SECTION 10. Implementing Rules and Regulations. ~ The Board through the
Executive Committee shall create a team composed of one (1) representative from the
Office of the Legal Affairs of each of the member-agencies to formulate the
Implementing Rules and Regulations immediately after this Act shall have been passed

SECTION 1. Funding. - The initial funding of Two Hundred Million Pesos
(Php200,000,000,00) to support the operations of the PHILRUBBER which shall be
provided from the Office of the President to the DTI for its initial operation subject to
pertinent auditing rules and regulations. Henceforth, the budget shall be duly
appropriated in the General Appropriations Act coming from different cooperating
agencies involved therein. The PHILRUBBER may raise funds from other sources for
specific projects as may be authorized by law.


SECTION 12. Separability Clause. ~ If, for any reason, any section or provision
of this Act shall be held unenforceable or unlawful, other provisions hereof shall remain
in fall force and effect

SECTION 13. Repealing Clause. — All executive issuances, decrees, rules and
regulations, and other issuances or parts thereof, which are inconsistent with any
provision hereof are hereby repealed, amended or modified accordingly

ECTION 14. Effectivity.- This Act shall take effect fifteen days after its
publication in the Official Gazette or in a newspaper of general circulation

Approved