NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
Third Regular Session 
)
APR
P4 37
SENATE 
Senate Bill No. 2994
Introduced by Senator Aquilino “Koko” Pimentel III
AN ACT
STRENGTHENING THE PHILIPPINE SHOE INDUSTRY 
PROVIDING INCENTIVES TO LOCAL MANUFACTURERS 
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippine shoe industry, once a vibrant and globally 
recognized sector, has suffered a significant decline over the past 
decades. Increased competition from imports, lack of modernization, 
and inadequate government support have collectively contributed to a 
sharp reduction in local production and employment within the sector.
Nevertheless, given the Filipinos’ resilience, hard work and 
creativity, there remains strong potential to reclaim the country’s 
foothold in the shoe industry.
This bill seeks to revitalize the Philippine shoe industry by 
instituting a comprehensive framework to enhance its competitiveness 
in both domestic and international markets.
To this end, the bill proposes the establishment of the Shoe 
Industry Development Program aimed at enhancing financial and 
technical support for strengthening industry capabilities. It also 
mandates the creation of Shoe Manufacturing Hubs envisioned as 
centers for innovation, skills development, and streamlined production 
processes.


Additionally, a nationwide Consumer Awareness Program will 
be implemented to promote locally-manufactured shoes and encourage 
greater public patronage. Lastly, the Shoe Industry Development Fund 
sourced from all tariffs collected on imported shoes shall be established 
to sustain the implementation of programs outlined in this measure.
In view of the foregoing considerations, the immediate passage 
of this bill is earnestly sought.
.QUILINO “]
ENTE
t VVv
KOKO” PI


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Third Regular Session
)
)
)
in ?A o7
SENATE 
Senate Bill No. 2994
Introduced by Senator Aquilino “Koko” Pimentel HI
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AN ACT
STRENGTHENING THE PHILIPPINE SHOE INDUSTRY 
PROVIDING INCENTIVES TO LOCAL MANUFACTURERS,
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the "Shoe 
Industry Development Act."
SEC. 2. Declaration of Policy. - It is the policy of the State to 
revitalize, strengthen and promote the Philippine shoe industry by 
providing necessary incentives, facilitating technological 
advancements, and ensuring market access for local shoe 
manufacturers. This Act aims to foster competitiveness, sustainability, 
and long-term growth of the shoe industry in the country while 
generating employment and contributing to national economic 
development.
SEC. 3. Shoe Industry Development Program. - The Department 
of Trade and Industry (DTI), in coordination with the Department of 
Science and Technology (DOST) and the Technical Education and 
Skills Development Authority (TESDA), shall establish a Shoe 
Industry Development Program, which shall include:


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a. Research and Development (R&D) Programs;
b. Skills Training and Certification;
c. Market Promotion and Access; and,
d. Standardization and Quality Assurance
SEC. 4. Development Incentives for Local Manufacturers. - To 
boost productivity and promote the sustainability of the local shoe 
industry, qualified local shoe manufacturers registered under the Shoe 
Industry Development Program shall be entitled to the following 
incentives:
a. Subsidies and grants for capital investments, procurement of 
machinery, and industry-related R&D activities;
b. Preferential access to low-interest loans through government 
financial institutions (GFIs);
c. Marketing support including providing access to fairs, 
exhibitions, and conferences, and inclusion in duty-free shops 
or government-run outlets;
d. Government procurement preference mandating national and 
local governments, as well as government-owned and 
controlled corporations (GOCCs), to prioritize the procurement 
of locally-manufactured shoes for official use, subject to 
compliance with quality and pricing standards;
e. Additional deduction from gross income equivalent to fifty 
percent (50%) of expenses incurred for skills training, 
apprenticeship programs, and product research and 
development, deductible during the fiscal year when the 
expenses were incurred;


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f. Import duty exemptions on capital equipment, machinery, tools 
and raw materials actually and directly used in their businesses, 
subject to pertinent rules and regulations; and,
g. Tax credit equivalent to the value-added tax (VAT) paid on 
domestically-purchased raw materials, supplies, and goods that 
are actually and directly used in the local manufacture of shoes.
These incentives shall be administered in coordination with the 
Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), Board 
of Investments (BOI) and other relevant government agencies.
SEC. 5. Shoe Manufacturing Hubs. - The DTI, in coordination with 
relevant Local Government Units (LGUs), shall establish and develop 
Shoe Manufacturing Hubs in strategic locations to be determined by 
the DTI. These hubs shall be equipped with modem infrastmcture and 
shared service facilities accessible to micro, small, and medium 
enterprises (MSMEs).
There shall be established at least one (1) Shoe Manufacturing Hub 
in the City of Marikina, recognized as the Shoe Capital of the 
Philippines.
SEC. 6. Consumer Awareness Campaign. - The DTI, in partnership 
with LGUs, public educational institutions, private sector, and/ or other 
relevant agencies, shall spearhead nationwide “Buy Local, Wear 
Local” campaigns to promote awareness, pride, and increased demand 
for locally-manufactured shoes.
SEC. 7. Shoe Industry Development Fund - There is hereby 
established a Shoe Industry Development Fund (SIDF) to be 
administered by the DTI, sourced from one hundred percent (100%) of 
all tariffs, duties and other importation fees collected on all imported 
shoes.
The SIDF shall be used exclusively to support the programs, 
incentives and initiatives provided under Sections 3,4 and 5 of this Act.


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The SIDF shall remain in effect for a period of ten (10) years from the 
effectivity of this Act. The DTI shall submit an annual report to 
Congress detailing the use, allocation, disbursement, and impact of the 
SIDF.
SEC. 8. Appropriations. - The initial funding for the 
implementation of this Act shall be taken from the appropriations of 
the DTI. Thereafter, such amount as may be needed for the continued 
implementation of this Act shall be included in the annual GAA.
SEC. 9. Implementing Rules and Regulations. - Within sixty (60) 
days after the effectivity of this Act, the DTI, in coordination with the 
DOST, Department of Interior and Local Government (DILG), 
Department of Finance (DOF), TESDA and other relevant agencies, 
shall issue the necessary rules and regulations for the effective 
implementation of this Act.
SEC. 10. 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. 11. Repealing Clause. - All laws, decrees, orders, 
proclamations, rules and regulations, or parts thereof, which are 
inconsistent with this Act are hereby repealed, amended, or modified 
accordingly.
SEC. 12. 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,