SENATOR SONNY ANGARA

Implementing Agency. ... 4 report to both Houses of Congress on the status of the implementation of this Act. 5 ... Bamboo Furniture Procurement Proje...

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SIXTEENTH CONGRESS OF THE PHILIPPINES ) REPUBLIC OF THE PHILIPPINES ) First Regular Session ) S. B. No.

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'14 MAY -6 All:2 8

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------------------------------------------------------------------~' Introduced by SENATOR SONNY ANGARA

AN ACT 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

EXPLANATORY NOTE

Bamboo is in high demand, given its multiple uses. For instance, because of modern engineering techniques and technologies, bamboo is widely used for housing components like floors, panels, veneers, fences, walls, beams and trusses. Engineered bamboo may even substitute hardwood, steel and concrete in various construction applications. Bamboo fibers can be woven into arts and crafts, also made into pulp for paper or clothing. It can also be used for energy, as activated charcoal, bamboo oil and even gas. Some of its extracts have food and beverage applications, even in pharmaceuticals. In many cases, bamboo is planted as a climate change mitigation strategy, particularly useful for soil erosion prevention and carbon capture. By the end of 2012, the global market for bamboo amounted to US$12 billion, expanding to around US$20 billion by 2015. Though bamboo is native to the Philippines and plays a significant role in Filipino life, both practically and culturally, the country exported only US$30 million worth of bamboo products in 2009. Clearly, the Philippines can playa bigger role in the global bamboo industrycreating much-needed jobs in the Philippine countryside. . A sustained, multi-stakeholder effort is necessary to achieve such a goa\. Line agencies, local government units, farmers and bamboo associations need to collaborate in support of a long-term initiative towards developing the Philippine bamboo industry. The proposed bill aims to establish and institutionalize such a policy for bamboo industry development. With the imperative to create more jobs and boost agricultural productivity throughout the country, swift passage of the foregoing measure is earnestly sought.

~NAA~TOORR~~~Y~ANGARA

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SIXTEENTH CONGRESS OF THE PHILIPPINES REPUBLIC OF THE PHILIPPINES First Regular Session

'14 S. B. No.

tI~Y -6

1\11 :29

2206

Introduced by SENATOR SONNY ANGARA

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AN ACT 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

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

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Congress assembled:

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

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Development Act of 2013".

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Section 2. Declaration of Policy. It is hereby declared the policy of the State to

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promote industrialization and full employment based on sound agricultural development

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and agrarian reform, through industries that make full and efficient use of human and

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natural resources, and which are competitive in both domestic and foreign markets. To

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this end, the State shall promote the rapid, steady and continuous integrated

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development and growth of the Philippine bamboo industry, recognizing the bamboo's

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salient role as a strategic, indigenous, replenishable and renewable source of livelihood

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and tool for agricultural productivity. It is also hereby declared a policy of the State to

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acknowledge the great contribution of bamboo in environmental protection and

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management, more importantly in light of the perils of climate change.

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Section 3.

Priority Program. It is hereby authorized and prescribed, as a priority

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program, the scientific propagation, processing, utilization and business development of

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Philippine bamboo under the Philippine Bamboo Framework for Development.

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Section 4. Implementing Agency. There is hereby created a Philippine Bamboo

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Industry Development Coordinating Council (PBIDCC), hereinafter referred to as the

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Council, administratively attached to the Department of Trade and Industry, charged

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with the main function of coordinating the activities of various agencies and

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instrumentalities to ensure the accomplishment of the Philippine Bamboo Framework for

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Development.

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If ever practicable and required, the Chairman of the Council shall submit an annual

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report to both Houses of Congress on the status of the implementation of this Act.

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Section 5. Composition. The Philippine Bamboo Industry Development Coordinating

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Council shall be composed of the following:

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

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

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

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c. Executive Director of the Cottage. Industry Development Center (CICT) as Head of the Bamboo Technical Working Group;

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d. Secretary of the Department of Environment and Natural Resources (DENR);

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e. Secretary of the Department of Agriculture (DA);

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f.

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g. Secretary of the Department of Agrarian Reform (DAR)

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h. Secretary of the Department of Science and Technology (DOST);

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i.

Secretary of the Department of Labor and Employment (DOLE);

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j.

Representative from the League of Municipalities of the Philippines;

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k. Representative from the League of Cities of the Philippines;

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I.

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m. Two (2) Representatives from Bamboo Farmers' / Producers' / Processors'

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Secretary of the Department of Education (DepEd);

Representative from a reputable Private Industry Association;

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,

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whenever the need arises, to consider urgent matters upon the call of the Chairman or

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any eight (8) Council members.

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Section 6. Council Secretariat. The Council Secretariat shall be headed by the

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

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Development Group (DTI-RODG). Technical support shall be provided by the Bamboo

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Technical Working Group as headed by the Executive Director of the Cottage Industry

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Development Center (CICT).

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The Secretariat and technical staff shall be detailed from the existing personnel of the

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Department of Trade and Industry without prejudice to the designation by the Council of

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such additional staff members as it may deem necessary for the proper discharge of its

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function and responsibilities.

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Section 7. Philippine Bamboo Framework for Development. The Philippine Bamboo

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Industry Development Coordinating Council shall formulate a ten-year Framework for

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Development, to be validated and updated annually. Such Framework shall serve as

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guide to the formulation and implementation of plans, projects, programs, and policies

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for the scientific propagation, processing, utilization, and business development of

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Philippine Bamboo. The Framework shall likewise provide for the following:

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a. Site Identification - The Department of Environment and Natural

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Resources in coordination with the Department of Agriculture,

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Department of Agrarian Reform and the local government units, shall

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identify the broad areas suitable for the planting and propagation of

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Philippine Bamboo, within six (6) months after the effectivity of this Act.

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The Department of Environment and Natural Resources shall also

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establish nurseries focusing on species suitable for shoot production.

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b. Scientific Propagation and Development -

The Department of

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Environment and Natural Resources and the Department of Science

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and Technology shall establish sites and/or pilot farms for the

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cultivation and propagation of Philippine bamboo. The same also

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covers the transfer and improvement of appropriate technology and

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techniques, which will be utilized in every phase of bamboo production,

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processing, marketing and distribution. Particular emphasis shall be

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made on adoption and upgrading of post-harvest technology;

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c. Production Support and Extension - The Department of Environment

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and Natural Resources, Department of Agriculture, Department of

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Trade and Industry, and the Department of Science and Technology in

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coordination with the Local Government Units,. Non-Governmental

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Organizations, Technical Education and Skills Development Authority

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(TESDA),

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universities and colleges (SUCs), and other relevant government

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agencies, shall establish programs which promote and provide

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adequate training on adapting technologies to individuals engaged in

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propagation, production, processing, marketing and distribution of

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Philippine bamboo, strengthen farmers' / producers" / processors'

Cooperative

Development

Authority

(CDA),

state

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cooperatives and organizations involved in the sustainable and viable

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development of Philippine bamboo, and afford opportunities for

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participation in international conventions, workshops and fora.

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d. Market Promotion and Business Development - The Department of

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Trade and Industry, in coordination with Private Industry Associations,

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shall link-up agribusiness cooperatives and organizations directly with

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consumers'

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companies, or exporters to provide marketing outlets and assure

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relatively higher and stable prices of bamboo. This also includes

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exploring national and international markets and faCilitating the

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participation of local farmers, growers, and exporters in local and

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international conferences, trade fairs, expositions, and exhibits;

cooperatives

and

organizations,

agro-processing

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e. Infrastructure Development - Access to post harvest facilities, storage

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and distribution/transport faCilities of existing government agencies

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shall be facilitated by the Department of Environment and Natural

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Resources, Local Government Units, and Department of Agriculture.

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Assistance

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farmers'/producers'/processors' cooperatives and organizations in the

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availment of soft loans or grants for the construction of post-harvest,

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processing and storage facilities;

shall

be

given

to

qualified

and

viable

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f.

Quality Assurance - To ensure health and proper trading, the

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Department of Trade and Industry and Department of Science and

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Technology, respectively, shall establish and enforce standards in

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grading, sampling and inspection, tests and analysis, specifications,

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nomenclature,

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conservation or transportation of Philippine bamboo products and by-

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products; and

units

of

measurement,

packaging,

preservation,

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g. Philippine Bamboo Information Center - The Department of Trade and

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Industry in coordination with Local Government Units shall establish a

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Philippine Bamboo Information Center in areas identified pursuant to

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Section 7a of this Act.

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Section

8.

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Rehabilitation. The Department of Environment and Natural Resources shall use

Bamboo

as

Planting

Material

for Annual

Reforestation

and

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Philippine Bamboo as planting material for at least twenty percent (20%) of its annual,

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reforestation and rehabilitation program.

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Section 9. Bamboo Furniture Procurement Project. The Department of Education

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shall procure at least twenty five percent (25%) of the annual school desk and/or

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armchair requirements of public elementary and secondary schools nationwide with the

7 . use of Philippine Bamboo pursuant to schedules and arrangements to be agreed upon 8

with the Department of Trade and Industry.

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Section

10. Bamboo Livelihood Programs.

The Department of Labor and

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Employment, in cooperation with the Council and local govemment units, shall

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formulate and implement Bamboo Livelihood Programs for preference employment of

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special groups and organizations of Persons with Disabilities (PWDs), marginalized

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sectors, the unemployed, and retrenched Overseas Filipino Workers (OFWs).

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program shall have an appropriate training and/or skills-retooling component to be

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provided by the Commission on Information and Communications Technology (CICT) in

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coordination with the Technical Education and Skills Development Authority (TESDA) or

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allied government institution.

The

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Section 11. Philippine Bamboo Development Fund. To provide for the funding

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requirements for the propagation, production, processing, marketing and distribution of

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Philippine bamboo, there is hereby created a Philippine Bamboo Development Fund

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(PBDF), with an initial amount of Fifty Million Pesos (P50,000,000.00) to be provided by

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the Department of Budget and Management to the Department of Trade and Industry's

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Regional Operations and Development Group (DTI-RODG) while the budgetary

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requirements of cooperating agencies shall be incorporated in their respective locally-

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funded projects. Other sources of funds, including but not limited to borrowings from

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local and international funding institutions, shall also be authorized to further support the

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Fund.

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Section 12. Incentives and Tax Exemptions. The Department of Agriculture may give

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cash reward in recognition of the best bamboo farm or plantation in the country.

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Bamboo farmers, producers, processors, and exporters shall also avail of the following

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incentives and tax exemptions:

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a. Exemptions from taxes and duties subject to the provisions of Article

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62 of Republic Act 6938 or the Cooperative Code of the Philippines;

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

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c. Exemption from taxes, fees and charges under Title One of Book Two

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of the Local Government Code of 1991 in accordance with Section

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133(n) of the said Code;

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d. Exemption from the payment of duties on the importation of

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agricultural equipment, machinery and implements as provided under

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Republic Act 8435 otherwise known as the Agriculture and Fisheries

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Modernization Act as amended by Republic Act 9281;

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

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f.

Provision of preferential rates and special window to bamboo farmers,

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producers, processors, and exporters by the Land Bank of the

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Philippines;

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g. Credit, insurance, and financing services under Republic Act 8435

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otherwise known as the Agricultural and Fisheries Modernization Act

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and Republic Act 10000 otherwise known as the Agri-Agra Reform

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Credit Act of 2009;

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h. Incentives and benefits under Republic Act 9178 otherwise known as

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the Barangay Micro Business Enterprises (BMBE's) Act of 2002 for

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bamboo business entity or enterprise whose total assets including

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those arising from loans but exciusive of the land on which the

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particular business entity's office, plant and equipment are situated,

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are not more than Three Million Pesos (P3,000,000.00); and

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i.

Bamboo business entity or enterprise to be registered under the Bo.ard

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of Investments (BOI) shall be entitled to the existing pertinent fiscal

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incentives as provided by the Board of Investments or those provided

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under Executive Order No. 226, as amended, otherwise known as the

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Omnibus Investment Code of 1987.

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Section 13. Implementing Rules and Regulations. The Philippine Bamboo Industry

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Development Coordinating Council shall formulate and prescribe the necessary

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implementing rules and regulations to carry out the provisions of this Act.

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Section 14. Repealing Clause. All laws or parts thereof, decrees, orders, rules and

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regulations inconsistent with the provisions of this Act are hereby repealed or modified

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accordingly.

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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.

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Section 16. Effectivity Clause. This Act shall take effect immediately following its

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publication in two newspapers of general circulation or in the Official Gazette, whichever

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comes first.

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Approved,

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