Development of Philippine Book Publishing Industry

Policy and declared objectives

The State recognizes that book publishing has a significant role in national development because books are instrumental in citizens’ intellectual, technical, and cultural development, and serve as a basic social foundation for economic and social growth (Section 2).
The State declares a policy to promote the continuing development of the book publishing industry with active participation of the private sector to ensure an adequate supply of affordable, quality-produced books for both the domestic and export markets (Section 2).
The Government must formulate, adopt, and implement a National Book Policy and a corresponding National Book Development Plan as the enduring basis for fostering the progressive growth and viability of the book industry (Section 2).

Core definitions and key concepts

A “Book” means a printed non-periodical publication of at least forty-eight (48) pages, exclusive of cover pages, published in the country and made available to the public (Section 3).
A “Textbook” is a book which is an exposition of generally accepted principles in one (1) subject, intended primarily as a basis for instruction in a classroom or pupil-book-teacher situation (Section 3).
A “Book Title” refers to a particular book of which a number of copies are printed (Section 3).
A “National Book Policy” is a statement of the intention and philosophy of the State as a basis for measures for the development, production and distribution of books (Section 3).
A “National Book Development Plan” is an integrated approach for fostering book development, consisting of the totality of procedures and systems for attaining balanced growth of various components of book development and production, including preparation and distribution of books (Section 3).
“Book Publishing” means a process of choosing and making books dealing with everything known to the human spirit, philosophy, religious beliefs, intellectual ideas, the physical world, all the arts and the sciences (Section 3).
“Book Development” includes changes in technical and institutional arrangements by which output is produced and distributed, as well as producing more output and different kinds of output (Section 3).
“Related Activities” means domestic manufacturing industries with direct bearing on the long term viability of the book publishing industry (Section 3).

National Book Policy requirements

The National Book Policy must conform to the State policy under Section 2 (Section 4).
The National Book Policy must pursue purposes and objectives including:
- Creating conditions conducive to development, production, and distribution of books, including acquiring and adopting state-of-the-art technology, equipment, and machineries on book publishing (Section 4).
- Obtaining priority status for the book publishing industry (Section 4).
- Ensuring an adequate, affordable, and accessible supply of books for all segments of the population (Section 4).
- Promoting book readership, especially among the young and neo-literates, through programs promoting literary and good reading habits, book fairs and exhibits, and an efficient nationwide system of libraries and reading centers especially in rural areas (Section 4).
- Promoting development of indigenous authorship and translations among various language groups in the country (Section 4).
- Promoting translation and publication of scientific and technical books and classic works in literature and the arts (Section 4).
- Promoting effective distribution of books in domestic and international markets through an efficient and reliable postal and transport delivery system (Section 4).
- Fostering development of skills of personnel engaged in book publishing through in-service training programs and formal degree and non-degree book publishing courses in schools (Section 4).
- Respecting and inculcating intellectual property ownership and protecting authors’ and publishers’ rights by strictly enforcing copyright laws and providing legal assistance to authors and publishers in suits related thereto (Section 4).
- Reaffirming and ensuring commitment to the UNESCO principle of free flow of information as embodied in the Florence Agreement and other similar international agreements (Section 4).
- Promoting, whenever appropriate, use of recycled/waste paper and other inexpensive local materials to reduce the cost of locally produced books (Section 4).

National Book Development Plan design

The National Book Development Plan must include the specific measures needed to realize the purposes and objectives of the National Book Policy (Section 5).
Formulation of the plan must involve collection and tabulation of data on book production covering paper production, supply and consumption, publishing equipment and machinery, and existing distribution networks (Section 5).
Formulation of the plan must involve a survey on availability of adequate manpower and supporting skills needed by the publishing industry such as authors, editors, designers and illustrators, marketing personnel, and printers (Section 5).
Formulation of the plan must involve a survey of existing legislation affecting the book industry at the national and international levels (Section 5).
Formulation of the plan must involve a survey of professional training capability and reading habits and attitudes (Section 5).
Formulation must involve consultations with all segments of the book industry concerned in planning and preparing the National Book Development Plan based on the survey results (Section 5).
The plan must include components and/or requisites including:
- A human resource development program for book personnel (Section 5).
- Guidelines for ethical practices in the book trade (Section 5).
- Measures for balanced attention and bridging the communication gap among people living in different parts of the country (Section 5).
- Provisions for strong and effective mechanisms for book development (Section 5).
- Provisions for producing books or other periodicals such as appropriate or selected comics as instructional or teaching material for categories of readers including pre-school children and schoolchildren, school drop-outs, neo-literates, the handicapped, professionals, general readers, and ethnic groups (Section 5).
- Measures addressing needs and problems of the book development industry indicated in the surveys (Section 5).

Registration and governing board

Persons and enterprises engaged in book publishing and its related activities must register with the National Book Development Board (Section 6).
The Act creates a National Book Development Board under the administrative supervision of the Office of the President (Section 7).
The Governing Board consists of eleven (11) members appointed by the President of the Philippines (Section 7).
The membership includes:
- Five (5) government representatives chosen from the Department of Education, Culture and Sports (DECS), Department of Trade and Industry (DTI), Department of Science and Technology (DOST), National Commission for Culture and Arts (NCCA), and nominees by CHED and TESDA from academe and training institutions respectively (Section 7).
- Six (6) representatives from nominees of organizations of private book publishers, printers, writers, book industry related activities, students and the private education sector, preferably representatives of the three (3) main islands of the country (Section 7).
Appointees must be one of the three (3) nominees of concerned nationwide organizations duly incorporated with the Securities and Exchange Commission (SEC), with membership in all cities and provinces when feasible (Section 7).
The Board elects a chairperson from among themselves, and the DECS representative is the ex officio vice-chairman (Section 7).
Board members serve three (3) years, but no member may serve more than two (2) consecutive terms (Section 7).
Private sector staggered terms apply for first appointees: first two (2) for three (3) years, second two (2) for two (2) years, and third two (2) for one (1) year (Section 7).
The academe appointee serves three (3) years and the training institutions appointee serves two (2) years for the initial staggered period (Section 7).
Members continue holding office until successors are appointed and qualified; if a member fails to complete the term, the President appoints a successor for the unexpired portion (Section 7).
No one may be appointed unless a citizen of the Philippines, at least thirty (30) years of age, and of established competence and integrity (Section 7).
Board members receive per diem and allowances authorized for every meeting actually attended, subject to pertinent laws, rules, and regulations (Section 7).

Board and Secretariat functions

The Governing Board must carry out and implement the Act’s policies, purposes, and objectives (Section 8).
The Governing Board must formulate plans and programs, operational policies and guidelines, and an incentive scheme for individual authors and writers (Section 8).
The Governing Board must formulate policies, guidelines, and mechanisms to ensure editors, compilers, and especially authors are paid justly and promptly royalties due for reproduction of works in any form and number and for whatever purpose (Section 8).
The Governing Board must conduct or contract research on book publishing, including monitoring, compiling, and providing data and information on book production (Section 8).
The Governing Board must provide a forum for interaction among private publishers and maintain liaison with all segments of the book publishing industry (Section 8).
The Governing Board must ask appropriate government authority to ensure effective implementation of the National Book Development Plan (Section 8).
The Governing Board must promulgate rules and regulations for implementation, in consultation with other agencies—except incentives for book development under Section 9 (which concerns appropriate agencies involved) (Section 8).
The Governing Board must approve annual and supplemental budgets with DBM concurrence, based on budgets submitted by the Executive Director (Section 8).
The Board may own, lease, mortgage, encumber, or otherwise deal with real and personal property for attainment of its purposes and objectives (Section 8).
The Board may enter obligations or contracts essential for proper administration, operations, or accomplishment of purposes (Section 8).
The Board may receive donations, grants, legacies, devises, and similar acquisitions forming a trust fund to accomplish development plans (Section 8).
The Board may import books or raw materials used in book publishing exempt from all taxes, customs duties, and other charges for duly registered persons and enterprises (Section 8).
The Board must promulgate and amend rules governing its general affairs, and modify them whenever necessary (Section 8).
The Board must recommend to the President nominees for Executive Officer and Deputy Executive Officer positions (Section 8).
The Board must adopt rules and procedures and fix the time and place for meetings, and must hold at least one (1) regular meeting monthly (Section 8).
The Board must conduct studies, seminars, workshops, lectures, conferences, exhibits, and other activities on book development including indigenous authorship, intellectual property rights, use of alternative materials for printing, distribution, and others (Section 8).
The Board must perform such other powers and duties as may be required by law (Section 8).
The Board has a permanent Secretariat under an Executive Officer appointed by the Board (Section 9).
Day-to-day management and direction vest in the Executive Officer, assisted by a Deputy Executive Officer (Section 9).
The Executive Officer and Deputy Executive Officer are appointed by the President of the Philippines and hold office unless terminated under applicable laws (Section 9).
The Executive Officer and Deputy Executive Officer must be citizens of the Philippines, at least thirty (30) years of age, and of established competence and integrity (Section 9).
The Executive Officer must execute and administer policies approved by the Board; direct and manage Board operations; submit an annual report to the Board within thirty (30) days after the close of every calendar year; submit an annual budget and supplemental budgets as necessary for Board approval; represent the Board in government and public or private transactions domestic or foreign; appoint and discipline officers and personnel below Deputy Executive Officer level subject to Board confirmation and civil service rules; delegate authority in writing; and perform other assigned duties (Section 9).
The Deputy Executive Officer must assist the Executive Officer, act as Executive Officer during absence, sickness, or temporary disability, and perform other functions required by the Executive Officer or Board (Section 9).
The Board approves the Secretariat’s structural and functional organization, compensation plan, and staffing pattern upon Executive Officer recommendation (Section 9).
The Board may create, abolish, merge, or reorganize Secretariat positions as needed for economical, effective, and efficient discharge of functions, subject to existing laws (Section 9).

Public school textbooks and private participation

The DECS must consult with the Board in prescribing guidelines, rules, and regulations for preparing minimum learning competencies and/or prototypes and other specifications for books required by public elementary and secondary schools (Section 10).
DECS must be limited to preparing minimum learning competencies and/or prototypes and other specifications for required books and manuscripts; testing, evaluating, selecting, and approving manuscripts or books submitted for multiple adoption; providing assistance in textbook distribution to public school systems; and promulgating rules and regulations with participation and assistance of the Board for private publishers’ call, testing, evaluation, selection and approval, as well as production specification and acquisition of public school textbooks (Section 10).
Printing of public elementary and secondary school textbooks must be done on a regional or provincial level, whenever economically feasible (Section 10).
DECS must phase out its elementary and secondary textbook publication and distribution functions within not more than three (3) years from the Act’s effectivity and support phasing in private sector publishers; the Board must monitor and conduct annual evaluation of the shift progress (Section 10).
Private publishers must develop and submit to DECS syllabi and/or prototypes and manuscripts or books intended for use in public schools for testing, evaluation, selection, and approval, guided by DECS minimum learning competencies for elementary, desired learning competencies for secondary, and other DECS specifications (Section 11).
After DECS approval, publishers must produce and supply textbooks as ordered by DECS (Section 11).

Incentives and tax and duty benefits

Persons and enterprises engaged in book publishing and related activities that are duly registered with the Board are entitled to fiscal and non-fiscal incentives under Executive Order No. 226, the Omnibus Investment Code, as amended, subject to qualifications and requirements set by the Board of Investments (BOI) (Section 12).
Book development activities must always be included in the Investment Priorities Plan (IPP) (Section 12).
For tax and duty-free importation of books or raw materials for book publishing, the Board and its duly authorized representatives must strictly monitor quality and volume of imported books and materials, their distribution, and utilization of imported materials (Section 12).
The Board must recommend violations of duty-free importation conditions to the proper prosecuting agencies (Section 12).
Books, magazines, periodicals, newspapers—including book publishing and printing and their distribution and circulation—are exempt from coverage of the expanded value added tax law (Section 12).

Rules, regulations, and implementation timeline

The Board, in consultation with the BOI, Bureau of Customs (BOC), and other appropriate agencies from private and government sectors, must issue guidelines and prescribe rules and regulations for Sections 6, 10, and 12 within one hundred twenty (120) days after the Act’s effectivity (Section 13).
The rules and regulations for Sections 6, 10, and 12 must be published in two (2) newspapers of general circulation (Section 13).
A copy of such guidelines and rules must be furnished the Congress of the Philippines (Section 13).

Penalties, administrative sanctions, forfeiture

Any person who violates any provision of the Act, or violates terms and conditions of rules and regulations issued pursuant to the Act, or aids or abets any violation, is subject to a fine not exceeding PHP 100,000, or imprisonment not more than five (5) years, or both, at the discretion of the court (Section 14).
If the violation is committed by a juridical entity, it is subject to a fine not exceeding PHP 500,000 (Section 14).
The president and/or officials responsible are subject to a fine not exceeding PHP 700,000 (Section 14).
In addition, forfeiture of all benefits granted under the Act applies to any person, firm, or juridical entity involved (Section 14).
The SEC has power to impose administrative sanctions as provided in the Act for any violation of the Act or its implementing rules and regulations (Section 14).

Transfer of instructional materials assets

Assets, properties, funds, and liabilities of the Instructional Material Corporation (IMC) and the Instructional Material Development Center (IMDC) under DECS must be transferred to the National Book Development Board (Section 15).

Appropriations for Board operations

PHP 5,000,000 is appropriated for the initial operating expenses of the Board and the Secretariat to be charged to the Office of the President (Section 16).
After the initial appropriation, the Board must submit its proposed budget to the Department of Budget and Management (DBM) for inclusion in the General Appropriations Act (Section 16).

Transitory provisions and staffing effects

Within one hundred eighty (180) days after approval of the Act, the Board must be constituted to start operation (Section 17).
Other government offices with functions similar to the Board must cease performing those functions, and those functions are deemed transferred to the Board (Section 17).
DECS must maintain an office and staff to perform functions specified in the Act relative to its participation in the government textbook program (Section 17).
Employees of the IMDC and IMC who are not hired by the Board and/or who do not opt to remain with DECS or are laid off within the transition period are entitled to gratuity at the rate of one and one fourth (1 1/4) month's salary for every year of service in the government or a fraction thereof based on the highest salary received, in addition to retirement and/or gratuity benefits or pensions under R.A. No. 6656 and other existing retirement laws (Section 17).
Unexpended funds of the IMDC and IMC must revert to the Board after reserving the amount necessary to pay benefits of those separated or retired from the service (Section 17).

Separability, repeals, and consolidation

If any part or section is declared unconstitutional, the declaration does not affect other parts or sections of the Act (Section 18).
Executive Order No. 492 (series of 1991), as amended, is repealed except as indicated; all other laws, decrees, rules, regulations, and other administrative issuances or provisions contrary to or inconsistent are repealed or modified accordingly (Section 19).
The Act consolidates Senate Bill No. 252 and House Bill No. 12614, and was finally passed by the Senate on June 2, 1995 and by the House of Representatives on June 5, 1995.