TWENTIETH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No.  _____ 
EXPLANATORY NOTE 
The coconut industry is a vital pillar of the Philippine economy, providing livelihood to 
millions of Filipino farmers and contributing substantially to export earnings. While the country 
is one of the world's largest producers of coconuts, much of its potential remains untapped 
due to the underutilization of by-products, particularly coconut shells — a resource with 
immense potential for value-added processing. 
Coconut shells, often treated as waste or sold at minimal value, can be transformed 
into high-value products such as activated carbon, biochar, composite materials, decorative 
items, and eco-friendly consumer goods. These products command strong domestic and 
international demand, offering significant opportunities for rural employment, small and 
medium enterprise (SME) development, and export growth. 
However, the unregulated and extractive harvesting of coconut shells for export as raw 
material — without corresponding local processing — undermines both the economic potential 
of domestic value addition and the sustainability of supply chains. The indiscriminate buying 
of coconut shells, especially for bulk export in raw form, often deprives local processors, 
artisans, and microenterprises of affordable and accessible raw materials. This has led to 
increasing costs for local industries and threatens the viability of community-based enterprises 
that rely on coconut shell resources. 
This proposed measure seeks to promote the sustainable and efficient utilization of 
coconut shell resources in a manner that prioritizes domestic processing and local value 
addition. 
In view of the foregoing, immediate approval of this measure is earnestly requested. 
RUFUS B. RODRIGUEZ 
  MAXIMO B. RODRIGUEZ, JR. 
August 18, 2025
3:16 pm
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TWENTIETH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No.  _____ 
AN ACT 
PROMOTING THE SUSTAINABLE UTILIZATION OF COCONUT SHELL RESOURCES, 
ENCOURAGING VALUE-ADDED PROCESSING INTO HIGH-VALUE PRODUCTS, AND 
PROTECTING THE LOCAL COCONUT INDUSTRY, AND FOR OTHER PURPOSES 
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 “Coconut Shell Utilization and Export 
Regulation Act”. 
SEC 2. Purpose and Objective. – This Act aims to promote the sustainable utilization of 
coconut shell resources, protect the local coconut industry, and encourage value-added 
processing of coconut shell into high-value products. 
SEC 3. Prohibition on Exportation of Raw Coconut Shell. – The exportation of raw coconut 
shell is hereby prohibited, except for processed coconut shell products such as activated 
carbon, charcoal, and other value-added products. 
SEC 4. Restriction on Use of Coconut Shell as Fuel. – The Department of Agriculture (DA) 
and Philippine Coconut Authority (PCA) shall restrict the use of coconut shell as raw material 
for fuel burners in boilers or heating systems, except if the process collects the carbon while 
utilizing the heat of gas through gasification. 
SEC 5. Promotion of Coconut Shell Gasification. – The DA, PCA, and Philippine Center for 
Postharvest Development and Mechanization (PHilMech) shall: 
1. Provide facilities and equipment for coconut shell gasification through pyrolysis,
converting coconut shell into charcoal while utilizing the gas for heating purposes.
2. Invest in research and development of gasified systems for installation in major
coconut processing facilities.
SEC 6. Research and Development. – The DA, PCA, and PHilMech shall conduct research 
and development on: 
1. Improving the efficiency of coconut shell gasification systems;
2. Developing new value-added products from coconut shell; and
3. Enhancing the quality and yield of activated carbon and charcoal production.
SEC 7. Implementation and Monitoring. – The DA, PCA, and PHilMech shall: 
1. Implement the provisions of this Act;
2. Monitor the compliance of coconut processing facilities with the requirements of this
Act; and
3. Provide technical assistance and support to coconut farmers and processors.
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SEC 8. Appropriations. – The funds necessary to implement this Act shall be included in the 
annual General Appropriations Act. 
 
SEC 9. Separability Clause. - If any provision of this Act is held unconstitutional or invalid, the 
other provisions not so affected shall remain in full force and effect. 
 
SEC 10. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in a newspaper of general circulation. 
 
 
Approved,