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Bulacan Chamber of Commerce and Industry Moves for the Protection of the Pyrotechnics Industry in the Province of Bulacan

August 31, 2021 Malolos, Bulacan The BULACAN CHAMBER OF COMMERCE AND INDUSTRY, INC., the “Voice of Bulacan Business” expresses its support to the Philippine Fireworks Association, the Pyrotechnics Manufacturers and Dealers Association, Inc., and the Pyrotechnics Regulatory Board of the Province of Bulacan. The BCCI strongly supports the plea of local stakeholders, for the government to reconsider its position of adopting a TOTAL BAN POLICY ON FIRECRACKERS AND PYROTECHNICS DEVICES.

The BCCI, instead recommends the adoption of consistent and implementable regulatory policies that will address the perceived problems hounding the industry concerning public safety, order, and health and the unfavorable consequences of the use of illegal and substandard firecrackers and pyrotechnic devices based on the following reasons:

(1) ECONOMIC CONTRIBUTION OF THE PYROTECHNICS INDUSTRY

In Bulacan alone, an estimated 500 enterprises are engaged in the manufacture or sale of firecrackers and pyrotechnics devices. Out of this, 110 are registered with the Pyrotechnics Regulatory Board (PRB) employing 20,000 workers, excluding those employed by its downstream industries constituting suppliers of chemical, paper and printing services, coal, and other raw materials. The pyrotechnics industry provides direct economic benefits to at least 100,000 individuals in the Province of Bulacan. In the town of Bocaue, about 48,000 individuals depend on this industry as their primary source of livelihood.

At the national level, the industry is estimated to generate revenues of P1.5B per year and supports the livelihood of about 150,000 families or 750,000 individuals.

With the current Covid 19 crisis, which escalated the unemployment rate in the country to 8.7% in March 2021, it is unlikely that these displaced workers will be able to find immediate employment, as labor scrambles for the scarce job opportunities in the current pandemic situation.

A total ban on the use of pyrotechnics, particularly during New Year celebrations, will eradicate a 154-year-old industry, extinguish the skills and crafts acquired by its workers through generations of small businesses that have engaged in this traditional product.

(2) STRONG POTENTIAL OF THE INDUSTRY IN THE WORLD MARKET

There is a great demand for this product in the world market primarily dominated by China. The local industry has come a long way in obtaining global recognition in the international pyrotechnics front, through the collective efforts of local industry players and other stakeholders. It is a sector where our artisans and workers excel. If properly managed and regulated, the sector can meet the strong potential for both domestic and export markets.

In 2019, Platinum Fireworks, Inc. won the Moosomin “Skies are Alive” Firework Festival in Canada, showcasing Filipino music. In 2018, Dragon Fireworks won the Gold Jupiter and Best Sound Track Award in the International Montreal Fireworks Competition. Prior to that, the same company won the 2013 Pyonale World Fireworks Competition in Berlin, Germany. Both companies have been known to excel in international pyro and fireworks competitions.

Aside from this, the Philippines has been hosting the Philippine International Pyromusical Competition (World Pyro Olympics) since 2007, which has been participated in by participants from China, US and Europe. These international milestones of the industry highlighted the very strong potentials of our pyrotechnics products in the international market.

(Photo courtesy of Dragon Fireworks, Inc.)

(3) SOCIO-CULTURAL HERITAGE, CREATIVITY AND ARTISTRY OF INTERNATIONAL CALIBER

The use of firecrackers and pyrotechnic devices during fiestas, weddings, birthdays are centuries-old traditions that are part of a socio-cultural heritage we share with the Chinese. Chinoys use firecrackers to ward off bad luck or evil spirits. It is known that despite the total ban implemented during the Martial Law Years, fireworks continued to proliferate and were secretly sold and used especially during the New Year. Firecrackers became hot items that were sold underground.

A total ban on the use of pyrotechnics, particularly during New Year celebrations, will eradicate a 154-year-old industry, extinguish the skills and crafts acquired by its workers through generations of small businesses that have engaged in this traditional product. The creativity and artistry of Filipino pyrotech show developers have become a staple favorite in international pyrotechnics shows. This is an industry where Filipinos can achieve global excellence.

(4) GOVERNMENT INTERVENTIONS TO REGULATE AND DEVELOP THE INDUSTRY

Acknowledging the vast potentials of the industry, the government has provided support and assistance to its development. The national and local governments have jointly passed laws and ordinances not just to regulate the industry for the protection of its consumers, but to assist in the development of the industry through technology assistance and skills training for industry workers.

RA 7183 or the Fireworks Law was passed in 1992 to regulate the sale, manufacture and distribution of firecrackers and pyrotechnics devices for public safety, order, national security and to enhance cultural traditions. It was in itself a comprehensive law, detailing allowable and disallowable products, regulatory responsibilities and corresponding penalties for violations. Despite the existence of this law, the proliferation of unregistered (underground) distributors and manufacturers persisted in gradually decreasing numbers since 1992.

After the passage of the law, the Provincial Government of Bulacan, acknowledging the vital economic role of the industry in the province, supported the organization of industry stakeholders and implemented a program of interventions towards the full development of the industry to world-class standards. Some of the programs were in collaboration with other agencies of the national government. This included

  • commissioning experts from the US and Canada who introduced safety technologies in fireworks manufacture;
  • conducting of seminars on Handling and Storage of materials, in collaboration with ITDI-DOST and OSH-DOLE;
  • product standardization of fireworks and pyrotechnics by the DTI;
  • Operation Plan Paputok by the PNP; Iwas Paputok and Ingat Paputok by the DOH;
  • Ordinances on Production Policies and Standards passed by the Provincial Government of Bulacan;
  • Establishment of the Bulacan Pyrotechnics Regulatory Board to promote and regulate the industry for the sake of all its stakeholders.
  • Holding the annual Pasiklaban Pyrotechnics Show as part of the Singkaban Festival to promote tourism and the pyrotechnics industry. The municipality of Bustos likewise held its Pyro-Musical Competition during the Minasa Festival.

The local government of Bocaue has engaged in continuing training activities for its local producers in safe manufacturing and regulation of the industry. As a result of the closure of several small establishments, the local government has likewise worked with the DOLE in creating livelihood packages for displaced workers.

The municipality of Sta. Maria, together with the Provincial Government has worked closely with DOLE on the eradication of child labor in the industry. (Photo courtesy of CNN Philippines)

SENATE HEARINGS ON FIRECRACKER BILLS

The Committee on Public Order of the Philippine Senate is in the process of tacking four firecracker-related bills, two of which seek to regulate the distribution while two others seek to prohibit the sale and use of firecrackers. In the said hearings, PFA President Jovenson Ong emphasized that the solution to the problem is to have a law at par with international standards that would allow safeguards on quality before these are sold in the market, instead of killing the industry. Governor Daniel Fernando expressed his firm support to the industry because of the economic downsides of a total ban.

We thank Senator Ronald “Bato” dela Rosa for his assurances that the committee on public order does not have any intention to totally ban firecrackers and pyrotechnics devices and that the bill to be passed will only allow the importation of raw materials for the manufacture of fireworks and not its finished products. We express our appreciation for these assurances.

THE PROBLEMS HOUNDING THE INDUSTRY

1. Proliferation of Smuggled Products that are eventually sold with fake PS marks in the local market. These fake products flood the market during peak seasons and are sold through unregulated outlets, i.e. public markets.

2. Lack of technical assistance to support micro, small and medium players in the industry to upgrade product quality and the establishment of a shared testing facility. There is a need to improve production systems, storage facilities, and product packaging.

3. Lapses in the enforcement of regulatory laws. There is a need to further educate law enforcers on provisions of RA 7183 and its implementing rules and regulations. The lack of police personnel to regularly monitor and inspect compliances of manufacturers and dealers is also an existing problem.

4. The industry is hounded by underground manufacturers of illegal, oversized or substandard pyrotechnic products.

BCCI suggests the following major paths to sustain the industry’s growth without compromising public safety:

1. Regulating the industry from within through the creation of a strong National Pyrotechnics Regulatory Board, with corresponding local boards in the provinces where there is a significant number of pyrotechnics manufacturers. The board will adopt an audit mechanism to check on its registered members and share information on issues and concerns affecting the industry and recommend appropriate courses of action.

2. Identify responsibilities for enforcement i.e. the Bureau of Fire Protection for inspection and monitoring and the PNP for apprehension and prosecution of violators. The DOST for technical audit, DOLE for labor standards, DTI for registration.

3. Training support to the Bureau of Fire Protection on standards to be enforced for compliance by manufacturers and dealers.

4. TESDA to come up with a training module for pyrotechnic industry workers and a corresponding accreditation program.

5. The National Government to reconsider its position on the total ban of firecrackers, fireworks and pyrotechnic devices on the basis of its economic and socio-cultural impact to industry players and stakeholders, as well as the potential of the industry to excel in the international market.

6. Most importantly, for the Senate to approve and pass the pending Senate Bill being heard by the Committee on Public Safety that will finally put all necessary regulatory measures in place in the importation, manufacture, distribution and sale of firecrackers and pyrotechnics devices in the entire country.

Finally, the BCCI sends its appeal to President Rodrigo Duterte, requesting to put your final imprimatur on the issue of the continued existence of the pyrotechnics industry in the country. From the ranks of this industry’s stakeholders, BCCI gives its assurances that safeguards and control over the quality and safety standards of our products and shall abide by the regulatory guidelines to be passed by the government in promoting public safety, order and health relative to the use of fireworks and pyrotechnic devices.

Regulate and Not to Prohibit the Manufacture, Distribution and Sale of Firecrackers and Pyro-technic Devices in the Philippines.