REPUBLIC ACT NO.

8423
AN ACT CREATI
EATIN
TING THE
THE PH
PHILIPPIN
PINE INSTITU
STITUTE
TUTE OF
OF TRA
TRADITIO
TIONAL AND
ALT
AL TERNAT
RNATI
ATIVE HEALT
ALTH CARE
CARE (PITAHC)
AHC) TO ACCEL
ACCELERAT
RATE THE
DEVE
DE VEL
VELOPMENT OF TRADIT
RADITIONAL AND
AND ALT
ALTERNAT
RNATI
ATIVE HEALT
ALTH CARE
IN THE PHIL
HILIPPINES
NES, PR
PROVIDING FOR A TRADITIONA
ONAL AND
ALT
AL TERNAT
RNATI
ATIVE HEALT
ALTH CARE
CARE DEVE
DEVEL
VELOPMENT FUND AND
AND FO
FOR OTHER
PUR
PURPOSES

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

in Congress assembled:

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Short Title
This Act shall be known as the "Traditional and Alternative Medicine Act
(TAMA) of 1997."

ARTICLE I
GUIDING PRINCIPLES

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Declaration of Policy

It is hereby declared the policy of the State to improve the quality and delivery of
health care services to the Filipino people through the development of traditional
and alternative health care and its integration into the national health care
delivery system.

It shall also be the policy of the State to seek a legally workable basis by which
indigenous societies would own their knowledge of traditional medicine. When
such knowledge is used by outsiders, the indigenous societies can require the
permitted users to acknowledge its source and can demand a share of any
financial return that may come from its authorized commercial use.

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Objectives

The objectives of this Act are as follows:

(a) To encourage scientific research on and develop traditional and alternative
health care systems that have direct impact on public health care;
(b) To promote and advocate the use of traditional, alternative, preventive and
curative health care modalities that have been proven safe, effective, cost
effective and consistent with government standards on medical practice;
(c) To develop and coordinate skills training courses for various forms of
traditional and alternative health care modalities;
(d) To formulate standards, guidelines and codes of ethical practice appropriate
for the practice of traditional and alternative health care as well as in the
manufacture, quality control and marketing of different traditional and alternative
health care materials, natural and organic products, for approval and adoption by
the appropriate government agencies;
(e) To formulate policies for the protection of indigenous and natural health
resources and technology from unwarranted exploitation, for approval and
adoption by the appropriate government agencies;
(f) To formulate policies to strengthen the role of traditional and alternative health
care delivery system; and
(g) To promote traditional and alternative health care in international and national
conventions, seminars and meetings in coordination with the Department of
Tourism, Duty Free Philippines, Incorporated, Philippine Convention and Visitors
Corporation and other tourism-related agencies as well as non-government
organizations and local government units.

ARTICLE II
DEFINITION OF TERMS

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Definition of Terms

As used in this Act, the following terms shall mean:

(a) "Traditional and alternative health care" - the sum total of knowledge, skills
and practices on health care, other than those embodied in biomedicine, used in
the prevention, diagnosis and elimination of physical or mental disorder.

(b) "Traditional medicine" - the sum total of knowledge, skills, and practice on
health care, not necessarily explicable in the context of modern, scientific
philosophical framework, but recognized by the people to help maintain and
improve their health towards the wholeness of their being, the community and
society, and their interrelations based on culture, history, heritage, and
consciousness.
(c) "Biomedicine" - that discipline of medical care advocating therapy with
remedies that produce effects differing from those of the diseases treated. It is
also called "allopathy","western medicine", "orthodox medicine", or "
cosmopolitan medicine."

(d) "Alternative health care modalities" - other forms of non-allopathic,

occasionally non-indigenous or imported healing methods, though not
necessarily practiced for centuries nor handed down from one generation to
another. Some alternative health care modalities include reflexology,
acupressure, chiropractic, nutritional therapy, and other similar methods.

(e) "Herbal medicines" - finished, labeled, medicinal products that contain as

active ingredient/s serial or underground part/s of plant or other materials or
combination thereof, whether in the crude state or as plant preparations.
Plant material includes juices, gums, fatty oils, essential oils, and other
substances of this nature. Herbal medicines, however, may contain excipients in
addition to the active ingredient(s). Medicines containing plant material(s)
combined with chemically-defined active substances, including
chemically-defined, isolated constituents of plants, are not considered to be
herbal medicines.

(f) "Natural product" - those foods that grow spontaneously in nature whether or
not they are tended by man. It also refers to foods that have been prepared from
grains, vegetables, fruits, nuts, meats, fish, eggs, honey, raw milk, and the like,
without the use or addition of additives, preservatives, artificial colors and
flavors, or manufactured chemicals of any sort after harvest or slaughter.

(g) "Manufacture" - any and all operations involved in the production, including
preparation, propagation, processing, formulating, filling, packing,
repacking,altering, ornamenting, finishing, or otherwise changing the container,
wrapper, or labeling of a consumer product in the furtherance of the distribution
of the same from the original place of manufacture to the person who makes the
final delivery or sale to the ultimate consumer.

(h) "Traditional healers" - the relatively old, highly respected people with a
profound knowledge of traditional remedies.

(i) "Intellectual property rights" - is the legal basis by which the indigenous
communities exercise their rights to have access to, protect, control over their
cultural knowledge and product, including, but not limited to, traditional
medicines, and includes the right to receive compensation for it.

ARTICLE III
THE PHILIPPINE INSTITUTE OF TRADITIONAL AND ALTERNATIVE
HEALTH CARE

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Philippine Institute of Traditional and Alternative Health Care

There is hereby established a body corporate to be known as the Philippine

Institute of Traditional and Alternative Health Care, hereinafter referred to as the
Institute. The Institute shall be attached to the Department of Health. Its principal
flag office shall be in Metro Manila, but it may establish other branches or offices
elsewhere in the Philippines as may be necessary or proper for the
accomplishment of its purposes and objectives.

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Powers and Functions

In furtherance of its purposes and objectives, the Institute shall have the
following powers and functions:

(a) To plan and carry out research and development activities in the areas of
traditional and alternative health care and its ultimate integration into the national
health care delivery system;

(b) To verify, package and transfer economically viable technologies in the field
of traditional and alternative health care, giving emphasis on the social
engineering aspects necessary for group endeavor;

(c) To provide the data base or policy formulation that will stimulate and sustain
production, marketing and consumption of traditional and alternative health care
products;

(d) To organize and develop continuing training programs for physicians, nurses,
pharmacists, physical therapists, and other professional health workers and
students, as well as scientists, research managers and extension workers in the
field of traditional and alternative health care;

(e) To formulate policies that would create public awareness through educationaI
activities, conventions, seminars, conferences, and the like by focusing on the
promotion of healthy living for preventing diseases, thereby uplifting the health
care industry;

(f) To acquire or obtain from any governmental authority whether national or

local, foreign or domestic, or from any person, corporation, partnership,
association or other entity, such charters, franchises, licenses,rights, privileges,
assistance, financial or otherwise, and concessions as are conducive to and
necessary or proper for the attainment of its purposes and objectives;
(g) To receive and acquire from any person and/or government and private
entities, whether foreign or domestic, grants, donations and contributions
consisting of such properties, real or personal, including funds and valuable
effects or things, as may be useful, necessary or proper to carry out its purposes
and objectives and administer the same in accordance with the terms of such
grants, donations and contributions, consistent with its purposes and objectives;

(h) To serve as the coordinating center of a national network of traditional and

alternative health care stations located in the different regions of the country;

(i) To formulate a code of ethics and standards for the practice of traditional and
alternative health care modalities for approval and adoption by the appropriate
professional and government agencies;

(j) To formulate standards and guidelines for the manufacture, marketing and
quality control of different traditional and alternative health care materials and
products for approval and adoption by the Bureau of Food and Drugs;

(k) To coordinate with other institutions and agencies involved in the research on
herbal medicines;

(1) To adopt and use a corporate seal;

(m) To sue and be sued in its corporate name;

(n) To succeed by its corporate name;

(o) To adopt its bylaws and promulgate such rules and regulations as may be
necessary or proper to implement this Act, and to amend or repeal the same from
time to time;

(p) To enter into, make and execute contracts and agreements of any kind or
nature;

(q) To borrow, raise or obtain funds, or to enter into any financial or credit
arrangement in order to support or carry out its research programs, finance its
capital and operating expenses, subject to pertinent laws governing public debts
and expenditure;

(r) To invest in, purchase or otherwise acquire, own, hold, use, mortgage, pledge,
encumber, sell, assign, convey, exchange, or otherwise deal in real and/or
personal properties of whatever kind and nature, or any interest therein, including
shares of stock, bonds, notes, securities and other evidences of indebtedness of
natural or juridical persons, whether domestic or foreign and whether
government or private;
(s) To exercise all the powers of a corporation under the General Corporation
Law, insofar as such powers are not in violation of the provisions of this Act; and

(t) To exercise such other powers and functions, and perform other acts as may
be necessary, proper or incidental to the attainment of its purposes and
objectives.

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Board of Trustees

The corporate powers of the Institute shall be exercised, and all its business,
activities and properties shall be controlled by a Board of Trustees, hereinafter
referred to as the Board.

(a) Composition: The Board shall be composed of the following:

Secretary of Health - ex-officio chairman
Permanent representatives of the following government offices:
Department of Science and Technology;
Department of Environment and Natural Resources;
Department of Agriculture;
Department of Education, Culture and Sports; and
Commission on Higher Education.
Representatives of the following industries/sectors:
One (1) physician who is engaged in the practice of traditional and
alternative health care;
One (1) member from a duly recognized academe/research institution
engaged in traditional and alternative health care research;
One (1) traditional and alternative health care practitioner who is not a
physician;
One (1) biomedical/allopathic western medical practitioner preferably from
the Philippine Medical Association;
One (1) member from the natural food industry and/or organic food
industry; and
One (1) member from an environmental sector organization,
The six (6) members representing the above mentioned sectors/industries shall
be appointed by the President of the Philippines upon recommendation of the
Secretary of Health.

Of the appointive members, two (2) members shall have a term of three (3) years;
the second two (2) members shall have a term of three (3) years; and, the third
two (2) members shall each have a term of one (1) year.

Any member appointed to a vacancy shall serve only for the unexpired term of
the member whom he/she succeeded.
(b) Meetings and quorum. The Board shall meet regularly at least once a month or
as often as the exigencies of the service demand. The presence of at least six (6)
members shall constitute a quorum, and the majority vote of the members
present, there being a quorum, shall be necessary for the adoption of any
resolution, decision, or any other act of the Board.

(c) Allowances and per diems. The members of the Board shall receive a per them
for every meeting actually attended subject to the pertinent budgetary laws, rules
and regulations on compensation, honoraria and allowances

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Powers and Functions of the Board

The Board shall exercise the following powers and functions:

(a) To define and approve the programs, plans, policies, procedures and
guidelines for the Institute in accordance with its purposes and objectives, and to
control the management, operation and administration of the Institute;

(b) To approve the Institute's organizational structure, staffing pattern, operating

and capital expenditure, and financial budgets prepared in accordance with the
corporate plan of the Institute;

(c) To approve salary ranges, benefits and privileges, bonuses and other terms
and conditions of service for all officers and employees of the Institute, upon
recommendation of the Director General and consistent with the salary
standardization and other laws;

(d) To appoint, transfer, promote, suspend, remove or otherwise discipline any

subordinate officer or employee of the Institute, upon recommendation of the
Director General;

(e) To create such committee or committees and appoint the members thereof, as
may be necessary or proper for the management of the Institute or the attainment
of its purposes and objectives;

(f) To determine the research priorities of the Institute consistent with the
framework of its purposes and objectives and in coordination with other
government
agencies; and

(g) To exercise such other powers and functions and perform such other acts as
may be necessary or proper for the attainment of the purposes and objectives of
the Institute, or as may be delegated by the Secretary of Health.
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Director General and Other Officers

The Institute shall be headed by a Director General who shall be appointed by the
President of the Philippines upon recommendation of the Secretary of Health. The
Director General shall have a term of six (6) years.

The Director General shall be assisted by such Deputy Director General(s) and
program managers/coordinators as the Board may determine to carry out the
purposes and objectives of this Act.

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Powers, Functions and Duties of the Director General

The Director General shall have the following powers, functions and duties:

(a) To exercise overall supervision and direction over the implementation of all
research and development programs of the Institute, and to supervise and direct
the
management, operation and administration of the Institute;

(b) To execute contracts, including the deeds that may incur obligations, acquire
and dispose of assets and deliver documents on behalf of the Institute, within the
limits of authority delegated to him by the Board;

(c) To implement and enforce policies, decisions, orders, rules and regulations
adopted by the Board;

(d) To submit to the Board an annual report of the Institute;

(e) To submit to the Board an annual budget and such supplemental budget as
may be necessary for its
consideration and approval; and

(f) To exercise such other powers and functions and perform such other duties as
may be authorized by the Board.

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Government Agency Support and Coordination

The Institute may, for the purpose of its research and development activities,
obtain and secure the services of scholars, scientists and technical personnel of
any unit of the Department of Health and other agencies of the Philippine
Government. Such personnel may be paid honoraria as may be fixed and
authorized by the Board following the usual government rules and regulations
governing honoraria and allowances. The Institute shall also assist, cooperate
and coordinate with other government agencies, such as the Bureau of Food and
Drugs of the Department of Health and the Philippine Council for Health Research
and Development of the Department of Science and Technology for the
implementation of the purposes and objectives of this Act.

ARTICLE IV
PROMOTION OF TRADITIONAL AND ALTERNATIVE HEALTH CARE

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Traditional and Alternative Health Care Advocacy and Research Program

The Institute shall promulgate a nationwide campaign to boost support for the
realization of the objectives of this Act. It shall encourage the participation of non
government organizations in traditional and alternative health care and
health-related projects. The Institute shall also formulate and implement a
research program on the indigenous Philippine traditional health care practices
performed by "traditional healers" using scientific research methodologies.

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Standards for the Manufacture, Marketing and Quality Control of Traditional
Medicine

The Institute, in collaboration with the Bureau of Food and Drugs, shall formulate
standards and guidelines for the manufacture, quality control and marketing of
different traditional and alternative health care materials and products.

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Incentives for the Manufacturers of Traditional and Alternative Health Care
Products

Manufacturers of traditional and alternative health care products like herbal

medicinal plants shall enjoy such exemptions, deductions and other tax
incentives as may be provided for under the Omnibus Investment Code, as
amended.

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Traditional and Alternative Health Care Development Fund

To implement the provisions of this Act, there is hereby created a Traditional and
Alternative Health Care Development Fund which shall be used exclusively for the
programs and projects of the Institute, in the amount of Fifty million pesos
(P50,000,000,00) for the first year, Seventy-five million pesos (P75,000,000.00) for
the second year, and One hundred million pesos (P100,000,000.00) for the third
year from the earnings of Duty Free Philippines: Provided, That not more than
fifteen percent (15%) of said fund shall be used for administrative costs of the
Institute.

Thereafter, such amount as may be necessary to fund the continued

implementation of this Act shall be included in the annual General Appropriations
Act.

ARTICLE V
TRANSITORY PROVISIONS

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Appointment of Board Members.

Within thirty (30) days from the date of effectivity of this Act, the President of the
Philippines shall appoint the members of the Board as well as the Director
General and Deputy Director General(s).

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Transfer of Functions of the Traditional Medicine Unit

Upon the establishment of the Institute, the functions, personnel and assets of
the Traditional Medicine Unit and all the pharmaceutical and herbal processing
plants of the Department of Health shall be transferred to the Institute without
need of conveyance, transfer of assignment.

For the year, during which this Act was approved, the unexpended portion of the
budget of the offices, agencies and units merged shall be utilized for establishing
the Institute and initiating its operations, including the formulation of the rules
and regulations necessary for the implementation of this Act.

Incumbent officials and employees of the affected offices shall continue to

exercise their respective functions, duties and responsibilities with the
corresponding benefits and privileges. To the greatest extent possible and in
accordance with existing laws, all employees of the affected offices, agencies and
units shall be absorbed by the Institute.

ARTICLE VI
MISCELLANEOUS PROVISIONS
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Oversight Function

The Institute shall submit to Congress an annual accomplishment report which

shall include the status of its priority researches and operation. In the exercise of
its oversight functions, Congress may inquire into the programs of the Institute.

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Implementing Rules and Regulations

Within thirty (30) days from the completion of their appointments, the Board shall
convene and, in collaboration with the Department of Health - Traditional
Medicine Unit, formulate the rules and regulations necessary for the
implementation of this Act. Said rules and regulations shall be issued within one
hundred eighty (180) days from the date of the Board's initial meeting and shall
take effect upon publication in a newspaper of general circulation.

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Repealing Clause.

All laws, decrees, executive orders, and other laws including their implementing
rules and regulations inconsistent with the provisions of this Act are hereby
amended, repealed or modified accordingly.

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Separability Clause

If any provision of this Act is declared unconstitutional or invalid, other

provisions thereof which are not affected thereby shall continue in full force and
effect.

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Effectivity

This Act shall take effect fifteen (15) days following its publication in the Official
Gazette or in at least two (2) newspapers of general circulation.

Approved
JOSE DE VENECIA, JR., Speaker of the House of Representatives
ERNESTO M. MACEDA, President of the Senate

This Act which is a consolidation of Senate Bill No. 1471 and House Bill No. 10070
was finally passed by the Senate and the House of Representatives on December
8, 1997.
ROBERTO P. NAZARENO, Secretary General of the House of Representatives
LORENZO E. LEYNES, JR., Secretary of the Senate

Approved: December 9, 1997

FIDEL V. RAMOS, President of the Philippines

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