House ratifies bill on self-reliant defense posture

MANILA – A priority measure aimed at developing the country's defense industry and its capability to locally produce advanced weaponry and equipment for the armed forces has moved a step closer toward approval following its ratification by the House of Representatives.

During the plenary session on Monday, the chamber ratified the final version that reconciles the disagreeing provisions of House Bill 9713 and Senate Bill 2455, otherwise known as the proposed Self-Reliant Defense Posture Revitalization Act, which has been identified as a priority bill by the Legislative-Executive Development Advisory Council (LEDAC).

The measure seeks to give preference to Filipino-owned enterprises engaged in the development, production, manufacturing, assembly, servicing, or operation of materiel in the Philippines.

Materiel refers to military technology, weapon systems, arms, ammunition, combat clothing, armor, vehicles, and other similar military equipment and materials.

Developing the defense capability of the country should rely on materiel readily available, produced, manufactured or otherwise created locally.

To support the economic and employment generation thrusts of the country, all manpower needs of the industry requiring the engagement or hiring of civilian labor shall be sourced locally, and as far as practicable, be Filipino.

The bill seeks to create the Office of the Undersecretary for Defense Technology Research and Industry Development (DTRID), which will manage a databank for analysis, research, and development for defense industry promotion.

The proposed office shall be created within the Department of National Defense (DND).

The DND, through the DTRID, shall be tasked to formulate and implement the Self-Reliant Defense Posture Program to revitalize the defense industry, vigorously develop and strengthen allied industries, and address the short, medium, and long-term needs for defense materiel.

Under the proposed law, in-country defense enterprises will enjoy exemption from national internal revenue taxes, value-added tax, and customs duties on imports of capital equipment, raw materials, and other such supplies necessary in local production – granted that these supplies are not locally available.

In-country defense enterprises selling products to the DND or other government agencies are also going to be exempt from the Single Largest Completed Contract requirement, and the requirement that a product be used by at least two foreign militaries. (PNA)