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Republic of the Philippines

ZX DATE September 2, 2021 Sy
HOUSE OF REPRESENTATIVES 3 TIME 1:39pm *
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Third Regular Session Ss

EIGHTEENTH CONGRESS ¥)
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HOUSE BILL No. 10131

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
PRIORITIZING DOMESTICALLY MANUFACTURED VEHICLES IN PUBLIC
PROCUREMENT

This proposed measure seeks the prioritization of domestically manufactured
vehicles in public procurement to help spur economic recovery from the harsh effects
of the COVID-19 pandemic.

In 2015, the government promulgated Executive Order No. 182, or the
Comprehensive Automotive Resurgence Strategy Program (CARS), was
promulgated to encourage the domestic manufacturing of motor vehicles, spur new
economic activities, create employment, and build competitiveness of domestic
industry. However, the gains from this program slowed down because of the
COVID-19 situation.

The government registered 16,443 new vehicles with the Land Transportation Office
in 2019 worth an estimated 8 billion pesos. Based on this, the government demand
for automobiles can serve as stimulus to our domestic car manufacturing should the
domestically manufactured vehicles be prioritized.

Based on the foregoing, the immediate passage of this measure is earnestly sought.

LUIS RAYI ID “LI  F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 10131

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
PRIORITIZING DOMESTICALLY MANUFACTURED VEHICLES IN PUBLIC
PROCUREMENT

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1. Short Title. - This Act be known as the "Domestic Vehicle Procurement
Act."

Sec. 2. Declaration of Policy. - The Constitution provides that the State shall promote
the preferential use of Filipino labor, domestic materials and locally produced goods,
and adopt measures that help make them competitive. Thus, it shall be the policy of
the State to prioritize domestically manufacture or produced vehicle in public
procurement

Sec. 3. Coverage. - This Act shall apply to the procurement of vehicles by all
branches and instrumentalities of government, its departments, offices and agencies,
including government-owned and/or-controlled corporations and local government
units.

Sec. 4. Prioritization of Domestically Manufactured Vehicles in Public Procurement. —
In all public procurement involving the purchase of motor vehicles, the government
shall be required to procure only those manufactured domestically and, also, in public
procurement involving lease or rental of vehicles the government shall be required to
procure from service providers at least 50 percent of whose fleets are composed of
domestically-manufactured vehicles acquired in the five (5) years preceding the date
of procurement - unless no such vehicles meeting the required specifications or
possessing the required capabilities are manufactured or produced within the
Philippines.

Sec. 5. Implementing Rules and Regulations. — Within sixty (60) days from the
promulgation of this Act, the necessary rules and regulations for the proper
implementation of its provisions shall be formulated by the Department of Trade &
Industry, Department of Budget & Management, and the Government Procurement


Policy Board.

Sec. 6. Separability Clause. — If any provision of this Act is declared unconstitutional
or invalid by a court of competent jurisdiction, the remaining provisions not affected
thereby shall continue to be in full force and effect.

Sec. 7. Repealing Clause. — All laws, decrees, executive orders, department or
memorandum orders and other administrative issuances or parts thereof which are
inconsistent with the provisions of this Act, are hereby modified, superseded or
repealed accordingly.

Sec. 8. Effectivity. — This Act shall take effect fifteen (15) days after publication in the
Official Gazette or in at least two (2) newspapers of general circulation.

Approved,