EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Third Regular Session
E-FILED
r;. October 18, 2021 ITI
CO,
09:37 am
SENATE
BILLS NOE X
COMMITTEE REPORT No.
Submitted by the Committees on Trade, Commerce and Entrepreneurship; Local 
Government; and Finance on October is, 2021______ _
Re: Senate Bill No. 2438 Prepared by the Committees
Recommending its approval in substitution of Senate Bill Nos. 1896 and 2366, taking into 
consideration House Bill No. 9350
Sponsor: Senator Aquilino "Koko" Pimentel III
MR. PRESIDENT:
The Committees on Trade, Commerce and Entrepreneurship; Local Government 
and Finance to which were referred Senate Bill No, 1896, introduced by Senator 
Ramon Bong Revilla, Jr., entitled.
"AN ACT
INSTITUTIONALIZING THE ONE TOWN, ONE PRODUCT (OTOP) 
PHILIPPINES PROGRAM, APPROPRIATING FUNDS THEREFOR, 
AND FOR OTHER PURPOSES"
and Senate Bill No. 2366, introduced by Senator Win Gatchalian, entitled.


"AN ACT
PROMOTING INCLUSIVE AND SUSTAINABLE ECONOMIC 
DEVELOPMENT THROUGH THE INSTITUTIONALIZATION OF 'ONE 
TOWN, ONE PRODUCT PHILIPPINES PROGRAM AND 
APPROPRIATING FUNDS THEREFOR"
and taking into consideration House Bill No. 9350, introduced by Reps. Cabatbat, 
et al, entitled:
"AN ACT
AND SUSTAINABLE
PROMOTING INCLUSIVE AND SUSTAINABLE ECONOMIC 
DEVELOPMENT THROUGH THE INSTITUTIONALIZATION OF 'ONE 
TOWN, ONE PRODUCT PHILIPPINES PROGRAM AND 
APPROPRIATING FUNDS THEREFOR"
have considered the same and have the honor to report these back to the Senate with 
the recommendation that the attached Senate Bill No. 2438 prepared by the 
Committees, entitled:
"AN ACT
PROMOTING THE "ONE TOWN, ONE PRODUCT" CONCEPT TO 
ENHANCE INCLUSIVE AND SUSTAINABLE ECONOMIC 
DEVELOPMENT, APPROPRIATING FUNDS THEREFOR, AND FOR 
OTHER PURPOSES"
be approved in substitution of Senate Bill Nos. 1896 and 2366, taking into consideration 
House Bill No. 9350, with Senators Revilla, Jr., Gatchalian and Pimentel III, as authors 
thereof.


Respectfully submitted:
Chairpersons:
SEN. FRANCIS "TOL" N. 
TOLENTINO
Committee on Locai Government 
Member/ Committee on Finance
w—Ar->A v'
SEN. AQUILINO "KOKO" PIMENTEL III
Committee on Trade, Commerce and 
Entrepreneurship
Member, Committee on Locai Government 
Member, Committee on Finance
SEN. SONNY ANGARA
Committee on Finance
Member, Committee on Trade, Commerce
and Entrepreneurship
Vice-Chairpersons:
SEN. PIA S. CmYETANO
Committee on Finance
SEf. GRACE POE
Committee on Trade, Commerce and 
Entrepreneurship 
Committee on Finance
SEN. IMEE R. MARCOS
Committee on Locai Government 
Committee on Finance
SEN. JOEL VILLANUEVA
Committee on Finance 
Member, Committee on Locai 
Government
SEN. WJN GATCHALIAf
Committee on Trade, Commerce and
Entrepreneurship
Committee on Finance
Member, Committee on Locai Government
SEN. CYNTHIA A. VILLAR
Committee on Finance
Member, Committee on Trade, Commerce
and Entrepreneurship
Member, Committee on Locai Government


SEN. CHRISTOPHER LAWRENCE T. SEN. RICHARD J. GORDON
GO 
Committee on Finance
Committee on Finance 
Member, Committee on Trade, Commerce
Member, Committee on Local 
and Entrepreneurship
Government
SEN. RONALD "BATO" M. DELA 
ROSA
Committee on Finance 
Member, Committee on Local 
Government
SEN. RISA HONTIVEROS
Committee on Finance 
Member, Committee on Local 
Government
Members:
SEN^^MON BONG REVILLA, 3R.
Conimittee on Local Government 
Committee on Finance
SEN. PANFILO M. LACSON
Committee on Local Government 
Committee on Finance
SEN. MARIA LOURISTES NANCY S. 
BINAY
Committee on Trade, Commerce and 
Entrepreneurship 
Committee on Local Government 
Committee on Finance
SEW. LEILA M. DELLIMA
Committee on Trade, Commerce and
Entrepreneurship
Committee on Finance


SEN^^MAWUEL "LITO" M. LAPID
Committee on Finance
SEHt 
PACQUIAO
Committee on Finance
NY" D.
SEN. FRANlQx"KIKO" N. 
PANGILINAN
Committee on Ffade, Commerce and 
Entrepreneurship 
Committee on Locai Government 
Committee on Finance
Ex-Officio Members:
S^fctJUAN MIGUEL F. ZUBIRI
Majority Fioor Leader
. RECTO
President/Pro- Tempore
SEN. FI^NKLIN M. DRILON
Minoritywioor Leader
HON. VICENTE C. SOTTO III 
Senate President
Senate of the Phiiippines 
Pasay City


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Third Regular Session
SENATE
2438
S. No
(In Substitution of SB Nos. 1896 and 236 
taking into consideration HB No. 9350)
RECEIVED
FILED
October
Prepared by the Committees on Trade, Commerce and Entrepreneurship; Local Government; 
and Finance with Senators Revllla, Gatchalian and Pimentel III, as authors thereof.
AN ACT
PROMOTING THE "ONE TOWN, ONE PRODUCT" CONCEPT TO ENHANCE 
INCLUSIVE AND SUSTAINABLE ECONOMIC DEVELOPMENT, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
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SECTION 1. Short Title. - This Act shall be known as the "OTOP Philippines Act of
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2021".
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Sec. 2. Declaration of Policy. -The State recognizes the profound and undeniable
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contributions of micro, small, and medium-scale enterprises (MSMEs) in nation building,
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continuing national economic growth, and the realization of our economic objectives.
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The State also recognizes that economic progress can only be achieved swiftly with the
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support of both the State and local government units (LGUs) by enabling communities to
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determine, develop, support, and promote products or services that are rooted in culture,
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community resources, creativity, and competitive advantage.
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The State further recognizes the existence as well as the importance of competition to
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foster innovation among MSMEs that would unquestionably result in the over-all enhancement
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and improvement of products, processes, capabilities of each enterprise and the significance
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of focusing on technological advancement to diversify the country's export potential.
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Towards this end, the State can focus and align its MSME's products and services
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following the "One Town, One Product" Philippines Program to maximize the potentials of
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specific products and services and thus uplift the lives of people and their communities.
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Sec. 3. Objectives. - The objectives of this Act are as follows:
(a) 
To assist and capacitate MSMEs in developing new, innovative, and more 
complex products and services through significant improvement in the areas of 
quality, product development, design, packaging, standards compliance, 
marketability, production capability, brand development, sustainability, and 
securing licenses, product registration and other market authorization, among 
others.
(b) 
To assist rural communities in growing their local economies and be more 
market- oriented and innovation-driven.
(c) 
To promote convergence of initiatives from local government units, national 
government agencies, and the private sector in the development and promotion 
of Philippine products, whether for export or for domestic market.
(d) 
To enable the recovery of local economies, especially the countryside, from the 
adverse effects of the Covid-19 pandemic, and further promote rural 
development, through the encouragement of growth of MSMEs, generation of 
employment and livelihood opportunities, and the sustainable use of community 
resources.
Sec. 4. OTOP Philippines. - "One Town, One Product" (OTOP) Philippines Program 
presently being implemented by the Department of Trade and Industry (DTI) Is hereby 
adopted as a government stimulus program to encourage the growth of MSMEs in the country 
through the utilization of indigenous raw materials, local traditions and cultures across the 
country.
Sec. 5. OTOP Philippines Trustmark. - The DTI is hereby mandated to establish 
the OTOP Philippines Trustmark, which is an assurance that the products under the program 
represent the country's best. The OTOP Philippines Trustmark shall signify that the businesses 
and products have been marked excellent in terms of quality, design, value, and marketability.
Sec. 6. Coverage. - The OTOP Philippines Program shall cover products and skills- 
based services known to an area or locality. This shall include, but not limited to, the following 
products and services:
(a) Processed food such as fruits and nuts, local delicacies, juices, wines, tea and 
other beverages, pastries and baked goods, preserved food sauces, cakes and 
desserts products, food supplements, and culinary-based specialty products;


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(b) 
Agricultural-based products such as coffee, cacao, other agricultural produce, 
agri-processed products like processed meats, coconut oil, preserved and 
processed seafood products;
(c) 
Home and Fashion and Creative Artisanal Products such as gifts, souvenir items, 
furniture, ornaments, houseware, garments, fabrics and textiles;
(d) 
Arts and Crafts such as coco coir, weaves, bamboo products, paper artistry, and 
wood; and
(e) 
Skills-based services and other products such as hUot or traditional Filipino 
massage, sculpting, essential oils and other wellness products, industrial goods, 
soaps and other personal care goods, and cosmetics.
Sec. 7. Qualifications. - OTOP products included in the program must meet a set of 
criteria to be established by the DTI, provided that they are consistent with the following 
elements:
(a) 
Culture - This shall pertain to cultural values that are rooted in the following: 
heritage, living traditions, local customs and rituals, local recipes passed on from 
generations, narratives, history, and beliefs.
(b) 
Community resource - The locality's selected product shall be based on the 
availability of local resources, raw materials, skills, and network of resources 
within a community.
(c) 
Connection - The selected products shall be able to evoke a sense of pride or 
emotional connection within the locals.
(d) 
Creativity - The products selected for a locality shall be able to exemplify the 
Filipino people's creativity and innovation.
(e) 
Competitive Advantage - The selection of the product or service shall be based 
on a locality's innate or endemic strength anchored on several variables such as 
topography, climate, geographical location, proximity to resources, among 
others.
Sec. 8. Who May Qualify. - Beneficiaries of the OTOP Program shall be determined 
by the regional and provincial offices of the DTI, in cooperation with local government units 
(LGUs).
Sec. 9. OTOP Program Components. - The DTI and LGUs shall make available a 
comprehensive package of assistance to OTOP Program beneficiaries, such as but not limited 
to the following:


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(a) 
Product Development - This component shall be considered as the primary 
instrument of assistance for the OTOP Program beneficiaries. It shall be focused 
on the following areas:
(i) 
Product Design - involves assistance in the designing of new products, 
product adaptation, product diversification, or expansion of existing 
product lines;
(ii) 
Packaging and Labelling - involve new packaging, improved package 
design, or labeliing assistance;
(iii) 
Technoiogy Updating - involves workshops on various technology 
procedures, materials, and processing technologies, involves assistance 
on production techniques related to product development; and
(iv) 
Product Enhancement - involves seminars to increase design awareness 
and appreciation of product/merchandise development, and the industrial 
design profession.
(b) 
Capacity Building - This component shall address gaps In the entrepreneurial 
skills of the beneficiaries. It shall involve training opportunities that are focused 
on improving the human aspect of OTOP Philippines, including business skills 
training, entrepreneurial management and expansion, securing licenses, product 
registration and other market authorization, and business counselling.
(c) 
Standards and Market Compliance - For the preservation of the OTOP brand as 
a mark of excellence, the beneficiaries shall be capacitated to observe standards 
through compliance to the requirements of other government agencies such as 
the DTI-Bureau of Phiiippine Standards (DTI-BPS), Food and Drug 
Administration (FDA), and the Intellectual Property Office of the Philippines 
(IPOPHL). A monitoring and evaluation scheme shall be developed and 
maintained to ensure that products under the OTOP Philippines conform to 
standards.
(d) 
Market Access and Product Promotion - support in accessing the both local and 
foreign markets as well as promoting products across different platforms. These 
platforms may Include, but are not limited to, multimedia advocacy campaigns, 
trade fairs, and OTOP Philippines hubs. The DTI shall also capacitate suppliers 
with the goal of promoting their products through online platforms.
(e) 
Access to Finance - This component shall facilitate access to financial 
institutions, credit provisions, loans, grants and incentives, and other sources of 
funding for purposes of business growth, development, innovation, among 
others.


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Sec. 10. Lead Implementing Agency. - The DTI shall serve as the lead agency of 
this Act. An OTOP Management Committee shall be created to be designated by the DTI 
Secretary which shall have the main responsibility of directing the implementation of the 
provisions of this Act. The OTOP Management Committee shall be composed of offices and 
attached agencies under the DTI, such as but not limited to the Bureau of Philippine Standards 
and the Intellectual Property Office of the Philippines. The DTI Secretary shall create the OTOP 
Management Committee within fifteen (15) working days from the effectivity of this Act.
The following agencies shall also assist the DTI in the implementation of the provisions 
of this Act:
(a) 
Cooperative Development Authority (CDA);
(b) 
National Economic and Development Authority (NEDA);
(c) 
Department of the Interior and Local Government (DILG);
(d) 
Technical Education and Skills Development Authority (TESDA);
(e) 
Department of Science and Technology (DOST);
(f) 
Department of Agriculture (DA); and
(g) 
Philippine International Trading Corporation (PITC).
Sec. 11. Creation of OTOP Program Office. — There is hereby created the OTOP 
Program Office (OTOP PO) in each LGU which shall direct, supervise, and implement the OTOP 
Program on the local level, in accordance with existing laws, rules and regulations; Provided, 
that the LGU has the option to create a separate OTOP PO for this specific purpose, or to 
merge the functions provided herein with those performed by any of its existing offices.
Sec. 12. Establishment of OTOP Philippines Hubs. - The Department of Tourism 
(DOT), Civil Aviation Authority of the Philippines (CAAP), Philippine Ports Authority (PPA), Land 
Transportation and Franchising Board (LTFRB), and other similar agencies shall support the 
construction and allocation of spaces for the establishment of OTOP Philippines hubs.
To promote access to market, the DTI shail ensure that the OTOP Phiiippines hubs are 
established in strategic ports of entry, such as but not limited to airports, seaports, bus 
terminais, high-traffic retaii outlets like malls, tourist destinations, and other consumer- 
frequented locations.
The DTI, in coordination with the agencies, shall formulate a comprehensive marketing 
and operations plan for the establishment of the OTOP Philippines hubs.
Sec. 13. Appropriations. — The amount necessary to carry out the provisions of this 
Act shali be charged against the appropriations released for the purpose under the General


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Appropriations Act (GAA) for the DTI. Thereafter, such sums as may be necessary for its 
continued implementation shall be included in the annual GAA.
Sec. 14. Separability Clause. - Should any provision or part of this Act be declared 
unconstitutional or invalid, the other provisions and parts hereof, insofar as they are separable 
from the invalid ones, shall remain in full force and effect.
Sec. 15. Repealing Clause. - All laws, decrees, orders, issuances, rules and 
regulations or parts thereof which are inconsistent with this Act are hereby repealed or 
modified accordingly.
Sec. 16. Effectivity. -This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in at least two (2) newspapers of general circulation.
Approved,