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

FIFTEENTH CONGRESS
First Regular Session

170
HOUSE BILL NO.

Introduced by Honorable Eric Owen G. Singson, Jr.

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 five years or so, 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.

tui An

ERIC OWEN G. SINGSON, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.__170

Introduced by Honorable Eric Owen G. Singson, Jr.

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.

SECTION 2. Implementing Rules and Regulations. - Within ninety (90) days
from the effectivity 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. 2