Implementing Rules of RA 8047 on Book Industry

State policy and development objectives

The State declares that the book publishing industry has a significant role in national development because books are instrumental in citizens’ intellectual, technical, and cultural development that forms the basic social foundation for economic and social growth.
The State declares books as the most effective and economical tools for educational growth, imparting information, and recording, preserving, and disseminating the nation’s cultural heritage.
The State shall promote continuing development of the book publishing industry with active private sector participation to ensure an adequate supply of varied, high quality books that are affordable and suited for domestic and export markets.
The Government shall formulate, adopt, and implement a National Book Policy and a corresponding National Book Development Plan as the enduring basis for fostering progressive growth and viability of the book industry.
The National Book Policy shall aim to create conditions conducive to development, production, and distribution of books, including acquisition and adoption of state-of-the-art technology, equipment, and machinery for book publishing.
The National Book Policy shall seek priority status for the book publishing industry and ensure an adequate, affordable, and accessible supply of books for all segments of the population.
The National Book Policy shall promote book readership, indigenous authorship and translations, translation and publication of scientific and technical books and classic works, and effective distribution through efficient and reliable postal and transport delivery.
The National Book Policy shall foster personnel skills through training programs and degree and non-degree courses; enforce intellectual property ownership concepts by strictly enforcing copyright laws and providing legal assistance in relevant suits.
The National Book Policy shall reaffirm the country’s commitment to UNESCO’s principle of free flow of information and related provisions embodied in the Florence Agreement and similar international agreements.
The National Book Policy shall promote, whenever appropriate, the use of recycled/waste paper and other inexpensive local materials to reduce costs of locally produced books.

Defined terms for the IRR

A Book is a printed non-periodical publication of at least 48 pages, exclusive of cover pages, published in the country and made available to the public.
For purposes of the Book Act’s intent and to enjoy tax and duty-free status of imported books, the definition of Book includes: (1) children’s books that may be less than 48 pages; (2) children’s educational comics; (3) “boomics” (a combination of a book and a comics); (4) scientific, cultural, medical, architectural, and professional magazines; and (5) book catalog.
A Textbook is a book that expounds generally accepted principles in one (1) subject, intended primarily as a basis for instruction in a classroom or pupil-book-teacher setting.
A Book Title refers to a particular book of which a number of copies are printed.
A National Book Policy is a statement of the State’s intention and philosophy as a basis for formulating and implementing measures for development, production, and distribution of books.
A National Book Development Plan is an integrated approach for fostering book development consisting of the totality of procedures and systems for balanced growth of the various components of book development and production, including preparation and distribution.
National Development refers to the country’s progress and the processes or measures contributing to such progress.
Book Publishing is the process of choosing, producing, and making available books dealing with everything known to the human spirit, philosophy, religious beliefs, intellectual ideas, the physical world, the arts and sciences, and the like.
Book Development includes having more output, different kinds of outputs, and changes in the technical and institutional arrangements for producing and distributing such outputs.
Related Activities include domestic industries directly bearing on the long-term viability of book publishing, such as printing, distribution, book trading, importation of paper, procurement and manufacture/production of raw materials, and development of new technologies.
Information means any material, medium, or process with actual or potential knowledge value (KEV).
Board means the National Book Development Board.

National Book Policy and Development Plan

The National Book Policy is formulated and adopted by the Board to ensure development and viability of the book publishing industry.
The Board’s National Book Policy objectives include: acquisition of state-of-the-art publishing technology; priority status for the industry; adequate affordable supply; promotion of readership and rural libraries/reading centers; support for indigenous authorship and translations; support for scientific/technical books and classic works; promotion of international and domestic distribution through postal and transport delivery; personnel skills development; protection of authors’ and publishers’ rights and enforcing copyright laws; and commitment to free flow of information under UNESCO principles.
For the National Book Development Plan, the Board undertakes a planning process that gathers and/or generates data through surveys/studies on the book industry.
Planning data include: book production data (paper supply/demand, publishing equipment and machinery, distribution networks); manpower and skills needs (authors, editors, designers/illustrators, marketing personnel, printers, training capability); legislative measures affecting the industry at national and international levels; type and quantity of book importation; Filipino preferences and reading habits; and consultations with all segments of the book industry.
The National Book Development Plan must include components/requisites such as mechanisms for book development; provisions for producing books or other periodicals including appropriate/selected comics as instructional or teaching materials for multiple reader categories (pre-school, school children, school drop-outs, neo-literates, the handicapped, professionals, general readers, and ethnic groups); measures to address industry needs identified in surveys; measures to redress regional imbalance between demand for good books and supply; measures ensuring authors’ adequate compensation for copyrights and other intellectual property rights; guidelines for ethical practices; and human resource development programs for book personnel.

National Book Development Board structure

A National Book Development Board (NBDB) is created to implement the Book Act and is referred to as the Board.
The Board operates under the administrative supervision of the Office of the President.
The Board may convert itself into a corporate entity when it meets criteria for creation of government corporations, subject to approval of appropriate authorities.
The Board consists of a Governing Board and a Secretariat.

Governing Board composition, powers, and governance

The Governing Board has 11 members appointed by the President.
Five (5) members represent government and come 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 the academe and training institutions, respectively.
Six (6) members are nominees from organizations of private book publishers, printers, writers, book industry related activities, students, and the private education sector, preferably including representatives of the three (3) main islands.
The private sector nominees must be from concerned nationwide organizations duly incorporated with the SEC and, whenever feasible, with membership in all cities and provinces.
The Governing Board elects a chairman from among themselves, and the DECS representative serves as ex-officio vice-chairman.
Governing Board members must be citizens of the Philippines, at least 30 years of age, and of established competence and integrity.
Members serve a 3-year term with a limit of two (2) consecutive terms.
First staggered private sector terms are: first two (2) private sector representatives serve 3 years, second two (2) serve 2 years, and third two (2) serve 1 year; the academe appointee serves 3 years; the training institutions appointee serves 2 years.
Members continue to hold office until successors are appointed and qualified.
If a member fails to complete the term, the successor is appointed by the President only for the unexpired portion of the term.
The Governing Board meets at least once a month or as frequently as needed.
In the absence of the Chairman, the Vice-Chairman presides.
Members receive per diems and allowances authorized for every Board and/or committee meeting actually attended, subject to pertinent laws, rules, and regulations; meeting absences and records are kept by the Board Secretary.
The Governing Board implements Book Act policies and objectives and formulates plans, programs, operational policies, guidelines, and incentive schemes for authors and writers.
The Governing Board formulates policies and mechanisms to ensure editors, compilers, and especially authors are paid justly and promptly the royalties due for reproduction of their works in any form and number for whatever purpose.
The Governing Board conducts research on components of the National Book Development Plan and may contract it out.
The Governing Board provides a forum for interaction among private publishers and maintains liaison with Philippine Book Publishing Development Federation (BDAP), APB, PEPA, and other duly established associations outside the federation.
The Governing Board enjoins appropriate government authority to ensure effective implementation of the National Book Development Plan.
The Governing Board promulgates rules and regulations for implementation of the Book Act after consultation with other agencies, except incentives for book development under Section 12 of the Book Act, which is handled by appropriate agencies involved.
The Governing Board approves annual and supplemental budgets submitted by the Executive Director, with concurrence of the Department of Budget and Management (DBM).
The Board may own, lease, mortgage, encumber, or otherwise acquire real and personal property for its purposes.
The Board may enter into obligations or contracts essential to its administration, operations, or accomplishment of objectives.
The Board may receive donations, grants, legacies, devices, and similar acquisitions that form a trust fund for development plans; disbursement from the trust fund must be covered by an approved Board resolution.
The Board may import books or raw materials used in book publishing that are exempt from all taxes, custom duties, and other charges, for its own use or for and on behalf of persons and enterprises engaged in book publishing and related activities duly registered with the Board.
The Governing Board promulgates rules and regulations governing the manner in which general affairs are exercised and may amend, repeal, or modify them; these are integral to the IRR.
The Governing Board recommends to the President nominees for Executive Officer and Deputy Executive Officer.
The Governing Board adopts rules and procedures and fixes time and place for meetings, including at least one regular meeting monthly.
The Governing Board conducts studies, seminars, workshops, lectures, conferences, exhibits, and related activities supporting book development, including indigenous authorship, intellectual property rights, alternative materials for printing and distribution, and other related topics.
The Governing Board establishes a national center and/or local industrial complex for the book industry sector and special projects such as local and international book fairs, exhibits of publishing equipment/technology, and book information technology exchange networks.
The Governing Board adopts rules and regulations to ensure book prices are affordable and within reasonable levels commensurate to quality.
The Governing Board represents or gains leverage for the book industry sector by being a member of the negotiating panel relating to negotiations between other government entities like DECS and domestic or international financial entities on matters affecting books.
The Governing Board exercises other powers and performs other duties required by law.

Secretariat roles and Executive Officer powers

The Secretariat under Section 9 of the Book Act is composed of functional offices the Board may create.
The Secretariat prepares an annual report submitted through its Executive Director to the Governing Board at the close of every calendar year and other reports required by the Governing Board within given periods.
The Secretariat prepares an annual budget and supplemental budgets as necessary for submission through its Executive Director to the Board for consideration and approval.
The Secretariat facilitates the formulation, adoption, and implementation of the National Book Policy and National Book Development Plan.
The Secretariat coordinates with DECS, CHED, TESDA, and other concerned units regarding curricular concerns such as guidelines, rules, regulations, learning competencies, prototypes, and specifications for books and related instructional materials.
The Secretariat provides information, education-training, communication, and advocacy of progressive growth of the book industry.
The Secretariat gathers and organizes data on book publishing, “book people,” and establishments, and plans and conducts studies and researches to improve book publishing.
The Secretariat registers and classifies persons and enterprises engaged in book publishing and encourages them to meet set publishing standards.
The Secretariat coordinates with registered establishments and publishing people to track and ensure an adequate, affordable, and accessible supply of raw materials and books for all segments of the population.
The Secretariat implements and evaluates programs on incentives for book development and processes and regulates applications for tax exemption in importation of raw materials.
The Secretariat provides support services on financial, budgetary, administrative, personnel, and other general services and maintains an information system on policies, procedures, and processes for Board personnel and the public.
The Secretariat assists the Governing Board in assessing and addressing needs and problems of the publishing industry and performs other functions authorized by the Board.
Day-to-day management and direction of operations and affairs are vested in the Executive Officer, assisted by a Deputy Executive Officer.
The Executive Officer and Deputy Executive Officer are appointed by the President and hold office unless terminated under applicable laws.
The Executive Officer and Deputy Executive Officer must be citizens of the Philippines, at least 30 years of age, and of established competence and integrity.
The Executive Officer’s title is Executive Director and the Deputy Executive Officer’s title is Deputy Executive Director; both enjoy benefits, privileges, and emoluments equivalent to their respective executive director ranks.
The Executive Director executes, administers, and implements policies and measures approved by the Governing Board, directs and manages Secretariat affairs and operations, represents the Board in transactions with government offices and agencies and with persons and entities public or private, domestic or foreign.
The Executive Director submits an annual report within 30 days after the close of every calendar year to the Governing Board and submits annual budgets and supplemental budgets for Board approval.
The Executive Director appoints, subject to confirmation of the Governing Board, and disciplines officers and personnel below the Deputy Executive Officer level in accordance with Civil Service laws, rules, and regulations.
The Executive Director may delegate authority to subordinate officers and personnel in writing and performs other duties assigned by the Governing Board for efficient and effective implementation.
The Deputy Executive Director assists the Executive Director, acts as Executive Officer during the Executive Director’s absence, sickness, or temporary disability, and performs powers/functions required by the Executive Director or the Governing Board.
The Governing Board approves the structural and functional organization, compensation plan, and staffing pattern of the Secretariat upon the Executive Officer’s recommendation.
The Governing Board may create, abolish, merge, or reorganize offices and positions for economical, effective, and efficient discharge of functions subject to existing laws.

Registration, accreditation, and DECS procurement participation

All persons and enterprises engaged in book publishing and its related activities must register with and be accredited by the Board to avail of incentives, assistance, and support.
Persons and enterprises engaged in book publishing and related activities duly registered with the Board qualify to participate in the DECS textbook and other instructional materials procurement program, subject to DECS rules and guidelines for that program.
Registration and Accreditation guidelines are contained in Annex A and form an integral part of the IRR.

Public school textbook publishing responsibilities

For public school textbook publishing, the Board coordinates with DECS in formulating guidelines, rules, and regulations on learning competencies, prototypes, and other specifications for textbooks required by public elementary and secondary schools.
The Board assists DECS in promulgating rules and regulations for private publishers in the call, testing, evaluation, selection, approval, and production verification and acquisition of public school textbooks.
The Board monitors and conducts an annual evaluation of the progress of shifting functions related to privatization of DECS textbook provision.
The Board assists DECS in securing approval for a budget that covers instructional materials requirements in all public schools.
The Board monitors and ensures equitable distribution and efficient delivery of books to public schools by private publishers/booksellers.
DECS ensures quality of instructional materials adopted in public schools and, in consultation with the Board, prescribes guidelines, rules, and regulations in preparing minimum learning competencies, prototypes, and other specifications for books, including materials to be used.
DECS confines itself to preparing learning competencies and/or prototypes and specifications; testing, evaluating, selecting, and approving manuscripts/books submitted by publishers for multiple adoption; assisting distribution of textbooks to public school systems; and promulgating, with Board participation and assistance, rules and regulations for private publishers for the call, testing, evaluation, selection, approval, production specifications, and acquisition of public school textbooks.
Printing of public elementary and secondary textbooks is done on a regional or provincial level whenever economically feasible.
DECS decentralizes textbook evaluation, selection, and approval to the public school level in a carefully planned and orderly manner.
Acceptance of manuscripts from the private sector for evaluation is conducted on a regular and continuing basis even after a DECS call.
The Board ensures implementation of multiple adoption of textbooks and other instructional materials to encourage free flow of information and deregulation of book publishing.
Within not more than 3 years from the effectivity of the Book Act, DECS phases out elementary and secondary textbook publication and distribution functions and supports phasing in of private sector publishers to assume these functions.
Publishers duly registered with and accredited by the Board develop and submit to DECS syllabi and/or prototypes and manuscripts/books for testing, evaluation, selection, and approval, subject to DECS guidelines.
After DECS approval of prototypes or books, publishers produce and supply textbooks as ordered by DECS.

Incentives for book development

Persons and enterprises engaged in book publishing and related activities duly registered with the Board are entitled to applicable fiscal and non-fiscal incentives under Executive Order No. 226 (Omnibus Investment Code), as amended, subject to qualifications and requirements set by the Board of Investments (BOI).
Book development activities must always be included in the Investment Priorities Plan (IPP).
For tax-and-duty-free importation of books or raw materials for book publishing, the Board and its duly authorized representatives strictly monitor the quality and volume of imported materials and the distribution and utilization of the imported materials.
The Board recommends to proper prosecuting agencies any violations of duty-free importation conditions.
Importation of Books guidelines are in Annex B and form an integral part of the IRR.
Books, magazines, periodicals, newspapers, including book publishing and printing, as well as distribution and circulation are exempt from the coverage of the expanded value added tax law.
The Board encourages, supports, and cooperates in giving appropriate awards to books, writers, designers, and publishers and establishes other awards valuable for book development.
The Governing Board may approve and promulgate other incentives whenever appropriate through circulars to all concerned entities in the book publishing industry.

Penalties, verification, and administrative sanctions

Any person who violates any provision of the Book Act or the terms and conditions of implementing rules/regulations, or who aids or abets any violation, is subject to a fine not exceeding PHP 100,000.00 or imprisonment of not more than 5 years, or both, at the discretion of the court.
When the violation is committed by a juridical entity, the fine is not exceeding PHP 500,000.00.
When the violation is attributable to the president and/or officials responsible, they are subject to a fine not exceeding PHP 700,000.00.
Any person, firm, or juridical entity involved is subject to forfeiture of all benefits granted in the Book Act in addition to the penalties above.
The Board has authority to check the validity of applicants’ claims for incentives.
The Board has authority to gather facts and assess incentives claims and may take appropriate action, including bringing pertinent problems to the attention of the SEC.
The SEC has power to impose administrative sanctions provided in these rules for any violation of the Book Act or its implementing rules/regulations.

Assets, trust fund, and income use

Assets, properties, funds, and liabilities of the Instructional Materials Corporation (IMC) and the Instructional Materials Development Center (IMDC) under DECS are transferred to the National Book Development Board.
The Board generates a Book Industry Development Trust Fund from donations, grants, legacies, devices, and similar acquisitions to accomplish book publishing development plans.
Additional income sources include: registration and classification/accreditation fees; special events like regional/provincial bookfairs and related exhibits (except those arranged by DECS consistent with the government’s textbook program); certification allowing importation of raw materials and machineries used for book production; training fees for capacity-building courses/programs/workshops/seminars facilitated by the Board; fines and penalties due to violations related to the Book Act; sale of developed technologies and publications; and special studies and other technical services.
DBM approval is required for the Board’s use of 50% of income from these sources to augment maintenance and other operating expenses, capital outlays and/or monitoring activities, and conduct of Secretariat and standing committee affairs.

Transitional, separations, and final rules

An initial amount of PHP 5,000,000.00 is appropriated for the Board’s initial operating expenses, charged to the Office of the President.
After initial funding, the Board submits proposed budgets to the DBM for inclusion in the General Appropriations Act.
Within 180 days after approval of the Book Act, the Board is constituted to start operations, and all other government offices performing similar functions cease those functions, with those functions deemed transferred to the Board.
DECS maintains an office and staff to perform its roles and functions relative to participation in the government textbook program.
IMDC is deemed abolished pursuant to Sections 15 and 17 of the Book Act, and its assets, properties, funds, and liabilities are transferred to NBDB.
Unexpended balances of funds appropriated and/or acquired through legal and proper means for the current year are reverted to and placed under NBDB administrative control.
Pending approval and implementation of the Secretariat organization structure and staffing pattern, the Chairman, in consultation with Governing Board members and in coordination with appropriate DECS authority, designates IMDC personnel to assist the Secretariat.
Such designation does not prejudice provisions of Section 17 and other pertinent Civil Service rules on reorganization and retirement.
The Executive Director and Deputy Executive Director of the Board Secretariat are nominated by the Board and appointed by the President.
Other Secretariat staff are hired upon DBM approval of the organizational structure and staffing pattern, and hiring procedures conform with Civil Service Commission rules.
Employees of IMDC and IMC who are not hired by the Board, do not opt to remain with DECS, or are laid off due to implementation of the Book Act during the transition period receive gratuity at the rate of 1A14 month’s salary for every year of service (or a fraction thereof) based on the highest salary received.
The gratuity is in addition to retirement and/or gratuity benefits or pensions under R.A. No. 6656 and other existing retirement laws.
Funds needed to pay separated or retired employees’ benefits are charged against available funds of IMDC.
After effectivity of the IRR, the Governing Board promulgates additional guidelines from time to time for effective implementation of the Book Act and IRR.
Specific guidelines pertinent to Sections 6, 10, and 12 of R.A. 8047 form an integral part of the IRR.