NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 984
im ^tmie
of llip ^rrrefai7>
72 AUG-2 AS 44
RHCEIVEO BY:
#
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
STRENGTHENING DOMESTIC HEALTHCARE MANUFACTURING 
INDUSTRIES, PROVIDING FOR A FILIPINO PRODUCTS FIRST POLICY 
DURING PANDEMIC AND OTHER PUBLIC HEALTH EMERGENCIES, AND FOR 
OTHER PURPOSES
EXPLANATORY NOTE
The pandemic is an eye opener to the persistent problems and weaknesses of 
our overall healthcare system. As it highlighted the inadequacies of our health 
infrastructure, i.e. public hospitals and primary care centers, it also brought to light 
our reliance to foreign producers of health care essentials. Such dependence to 
overseas manufacturers caused delays and disruption in our emergency response, 
which came at too high a cost.
The acute scarcity of personal protective equipment (PPE) exposed many of 
our frontliners to the raging virus. Without the necessary safety gear and ample 
protection, many health workers resorted to unsafe use of available PPE and 
eventually contracted the virus at the onset of the pandemic.
Moreover, reagents came at a shortage, with many countries suddenly in need 
of this substance for their detection of the novel Coronavirus. At the local front, the 
lack of reagents had been one of the many challenges which prevented our health 
authorities from ramping up the nation's testing capacity. Lastly, the country is highly 
dependent to foreign suppliers to secure its portfolio of Covid-19 vaccines, thereby 
preventing the speedy implementation of the vaccination program and the attainment 
of economic recovery.


This bill aims to strengthen the country's defense against public health 
emergencies and pandemics, through the development of domestic manufacturing 
and healthcare industries, including the production of PPE, essential drugs and 
vaccines. This measure also provides a Filipino Products First Policy which provides 
preferential use of local products and services In government procurement, 
especially during this time of the health crisis.
In this light, the Immediate passage of this bill Is highly recommended.
RAMON/^^G REVILLA, JR.


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
Ornate
of tijf ^f-iTe!ar|>
H AUG-2 A 8 ’44
SENATE 
s. No. S84
RECEIVED BY;
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
STRENGTHENING DOMESTIC HEALTHCARE MANUFACTURING 
INDUSTRIES, PROVIDING FOR A FILIPINO PRODUCTS FIRST POLICY 
DURING PANDEMIC AND OTHER PUBLIC HEALTH EMERGENCIES, 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 'Pandemic and Health
2 
Emergencies Preparedness Act".
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Sec. 2. Declaration of Policy. - It Is the policy of the State to protect and
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promote the right to health of the people and instill health consciousness among them.
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The State recognizes pandemics and other public health emergencies as threats
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to public health and national security which can undermine the social, economic, and
7 
political functions of the State. It shall protect the general public from pandemics and
8 
other public health emergencies. To this end, the State shall:
9 
a) Adopt efficient and effective measures that will prevent the overburdening
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of the healthcare system, and develop the domestic healthcare capacities
11 
and other health related industries;
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b) Implement the preferential use of Filipino labor, domestic materials and
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locally produced goods, adopt measures to help them make competitive;
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c) Preserve and generate employment during the health crisis;
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d) Promote self-sufficiency and self-reliance in the production and manufacture
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of healthcare products and services;
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e) Ensure adequate and readily available supply of critical products and
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services for the health workers and the public; and
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0 Protect the interest of the consumers and establish standards of conduct for
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business and industry.
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Sec. 3. Coverage. - The provisions of this Act shall apply to domestic
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manufacturers or producers of critical products and providers of critical services during
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the existence of a pandemic or public health emergencies and only upon compliance
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with the accreditation requirements and standards issued by relevant government
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agencies.
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The benefits under this Act shall be in addition to the Incentives provided under
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existing laws.
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Sec. 4. Definition of Terms. - For purposes of this Act, the following terms shall
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be understood as follows:
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a) Accreditation - refers to the written authority issued by the Department of
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Trade and Industry (DTI), through the Board of Investments (BOI), and
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other relevant government agencies to manufacturers and producers of
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critical products and providers of critical services.
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b) Critical products - refer to medicines, vaccines, ventilators and other
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medical supplies or equipment, such as personal protective equipment
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(PPE), and surgical masks, hazardous materials (hazmat) suit, breathing
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apparatus, oxygen cylinders, substance reagents, including raw materials,
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required to address a pandemic or national health emergency, as may be
23 
determined by the Department of Health (DOH) or other relevant
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government agencies.
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c) Critical services- refer to services required for the manufacture, production
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and distribution of critical products. This shall also include testing
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laboratories, biosafety risk assessment and mitigation, waste management,
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including but not limited to waste segregation, storage, collection, sorting,
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treatment and disposal services; and other services as may be determined
30 
by the DOH or other relevant government agencies.
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d) Manufacturer- refers to an enterprise duly accredited or registered under
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the provisions of this Act, engaged in the production of critical products


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including the preparation, processing, compounding, formulating, filling, 
packing, repacking, altering, ornamenting, finishing, and labelling.
e) Packaging- refers to material used to wrap or protect critical products.
f) Producer - refers to an enterprise that manufactures, makes, grows or 
produces critical products.
g) Raw material- refers to materials and inputs from which a critical product 
and its packaging are made.
h) Standards- refer to the guidelines and requirements issued by the relevant 
government agencies such as but not limited to the DOH, Food and Drug 
Administration (FDA), and Bureau of Philippine Standards.
Sec. 5. Tax Benefits.-
a) Exemption from Customs Duties, Value Added Tax (VAT), Other Taxes and 
Fees. - Regardless of the country of origin, Importation under this Act of 
the capital equipment, spare parts and accessories, raw materials, 
packaging and its raw materials, or any articles needed in the supply chain 
of the critical products or services shall be exempt from customs duties, 
VAT, other taxes and fees such as import processing fees and fees imposed 
by the Bureau of Customs (BOC), the Food and Drug Administration, and 
other relevant agencies.
b) Exemption from VAT on Local Sales. - The sale of critical products and 
rendition of critical services shall be exempted from VAT which shall be 
based on the gross sales or gross receipts, respectively.
c) Treatment of Export Enterprises. - The local sales of critical products and 
rendition of critical services by export enterprises shall be deemed and 
treated as "export sales" for purposes of Its export requirement pursuant to 
existing laws. As such, the corresponding treatment, exemption on duties, 
taxes and fees, and other incentives warranted under existing laws 
governing these export enterprises shall continue to apply. Further, if such 
export enterprises are located in special economic zones with status of 
separate customs territory under relevant laws, such as local sales shall 
likewise be treated as "export sales" for purposes of Its export requirement.


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Sec. 6. Accreditation. - Prior to the availment of benefits herein, the
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manufacturers and producers shall apply for accreditation with the Department of
3 
Trade and Industry (DTI), through the Board of Investments (BOI): Provided, That \n
4 
lieu of DTE-BOI accreditation, manufacturers that are registered with other Investment
5 
Promotion Agencies (IPAs) shall directly apply for authority to import with the
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concerned IPA.
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Entities who intend to re-purpose their operations to manufacture and produce
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critical products may also apply for accreditation for purposes of this Act.
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Sec. 7. Export Limitation. - Export enterprises that manufacture or produce
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critical products or render critical services shall supply up to eighty percent (80%) of
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their daily production or service to government institutions, hospitals, and private
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establishments in the country for local or domestic use in addressing the prevailing
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pandemic or other public health emergency: Provided, That in case the domestic
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demand for critical products and critical services does not reach such percentage, as
15 
certified by the DTE, the manufacturer or producer may opt to export the critical
16 
product or critical service.
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Sec. 8. Fiiipino Products First Policy. - To ensure adequate and responsive
18 
supply of critical products and supplies, the government, as the procuring entity, shall
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give preference to critical products manufactured, produced or made in the Philippines
20 
that meet the specified or desired quality. In the interest of availability, efficiency and
21 
timely delivery of critical products and services under this Act, the Department of
22 
Budget and Management (DBM)-Procurement Service or the procurement entity
23 
concerned shall award to the lowest domestic manufacturer-bidder: Provided, That
24 
the bid is not more than twenty percent (20%) in excess of the lowest foreign bid:
25 
Provided further. That It has secured from the DTE a certification that the products,
26 
articles, materials, or supplies are produced, grown, made or manufactured in the
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Philippines.
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Private enterprises are also encouraged to source their requirements for critical
29 
products from the local manufacturers and producers.
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Sec. 9. Comprehensive Pandemic and Public Health Emergency Needs
31 
Assessment - The Department of Health (DOH) and the National Disaster Risk
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Reduction and Management Council (NDRRMC) shall conduct a Comprehensive


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Pandemic and Public Health Emergency Needs Assessment which shall determine the
2 
vulnerabilities of the country and the requirements for an effective pandemic and
3 
public health emergency preparedness and response.
4 
From this assessment, there shall be recommendations on the needed health
5 
care related industries and manufacturing capacities and priorities which need to be
6 
set up locally, with the end view of ensuring adequate supply of critical products and
7 
services, optimizing available manpower and natural resources in the local economy,
8 
and building self-reliance and self-sufficiency in detection, diagnosis, and treatment of
9 
novel diseases.
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Sec. 10. Development and Promotion of Healthcare and Manufacturing
11 
Industries. - The Board of Investments (BOI) Is hereby mandated to develop and
12 
promote the healthcare and manufacturing industries to strengthen the country's
13 
public health emergency preparedness and response mechanisms during a pandemic.
14 
Sec. 11. Funding. - The amount necessary to carry out the provisions of this
15 
Act shall be sourced from the current year's appropriations of the concerned
16 
department/agency. Thereafter, such sums as may be needed for its continued
17 
Implementation shall be included in the General Appropriations Act (GAA).
18 
Sec. 12. Implementing Rules and Regulations. - The DTI, DOH and BOI shall
19 
promulgate the rules to implement this Act.
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Sec. 13. Separability Clause. - If any provision or part hereof Is held invalid or
21 
unconstitutional, the remainder of the law or the provision or part not otherwise
22 
affected shall remain valid and subsisting.
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Sec. 14. Repealing Clause. -- Any law, presidential decree or issuance, executive
24 
order, letter of instruction, administrative order, rule, or regulation contrary to or
25 
inconsistent with the provisions of this Act are hereby repealed, modified, or amended
26 
accordingly.
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Sec. 15. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,


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Including the preparation, processing, compounding, formulating, filling, 
packing, repacking, altering, ornamenting, finishing, and labelling.
e) Packaging - refers to material used to wrap or protect critical products.
f) Producer- refers to an enterprise that manufactures, makes, grows or 
produces critical products.
g) Raw material- refers to materials and inputs from which a critical product 
and Its packaging are made.
h) Standards- refer to the guidelines and requirements issued by the relevant 
government agencies such as but not limited to the DOH, Food and Drug 
Administration (FDA), and Bureau of Philippine Standards.
Sec. 5. Tax Benefits.-
a) Exemption from Customs Duties, Value Added Tax (VAT), Other Taxes and 
Fees. - Regardless of the country of origin, importation under this Act of 
the capital equipment, spare parts and accessories, raw materials, 
packaging and its raw materials, or any articles needed in the supply chain 
of the critical products or services shall be exempt from customs duties, 
VAT, other taxes and fees such as import processing fees and fees imposed 
by the Bureau of Customs (BOC), the Food and Drug Administration, and 
other relevant agencies.
b) Exemption from VAT on Local Sales. - The sale of critical products and 
rendition of critical services shall be exempted from VAT which shall be 
based on the gross sales or gross receipts, respectively.
c) Treatment of Export Enterprises. - The local sales of critical products and 
rendition of critical services by export enterprises shall be deemed and 
treated as "export sales" for purposes of Its export requirement pursuant to 
existing laws. As such, the corresponding treatment, exemption on duties, 
taxes and fees, and other incentives warranted under existing laws 
governing these export enterprises shall continue to apply. Further, if such 
export enterprises are located in special economic zones with status of 
separate customs territory under relevant laws, such as local sales shall 
likewise be treated as "export sales" for purposes of Its export requirement.


1 
Sec. 6. Accreditation. - Prior to the availment of benefits herein, the
2 
manufacturers and producers shall apply for accreditation with the Department of
3 
Trade and Industry (DTI), through the Board of Investments (BOI): Provided, That\n
4 
lieu of DTE-BOI accreditation, manufacturers that are registered with other Investment
5 
Promotion Agencies (IPAs) shall directly apply for authority to import with the
6 
concerned IPA.
7 
Entitles who intend to re-purpose their operations to manufacture and produce
8 
critical products may also apply for accreditation for purposes of this Act.
9 
Sec. 7. Export Limitation. - Export enterprises that manufacture or produce
10 
critical products or render critical services shall supply up to eighty percent (80%) of
11 
their daily production or service to government Institutions, hospitals, and private
12 
establishments in the country for local or domestic use in addressing the prevailing
13 
pandemic or other public health emergency: Provided, That in case the domestic
14 
demand for critical products and critical services does not reach such percentage, as
15 
certified by the DTI, the manufacturer or producer may opt to export the critical
16 
product or critical service.
17 
Sec. 8. Fiiipino Products First Policy. - To ensure adequate and responsive
18 
supply of critical products and supplies, the government, as the procuring entity, shall
19 
give preference to critical products manufactured, produced or made in the Philippines
20 
that meet the specified or desired quality. In the interest of availability, efficiency and
21 
timely delivery of critical products and services under this Act, the Department of
22 
Budget and Management (DBM)-Procurement Service or the procurement entity
23 
concerned shall award to the lowest domestic manufacturer-bidder: Provided, That
24 
the bid is not more than twenty percent (20%) in excess of the lowest foreign bid:
25 
Provided further. That it has secured from the DTE a certification that the products,
26 
articles, materials, or supplies are produced, grown, made or manufactured in the
27 
Philippines.
28 
Private enterprises are also encouraged to source their requirements for critical
29 
products from the local manufacturers and producers.
30 
Sec. 9. Comprehensive Pandemic and Public Health Emergency Needs
31 
Assessment. - The Department of Health (DOH) and the National Disaster Risk
32 
Reduction and Management Council (NDRRMC) shall conduct a Comprehensive


1 
Pandemic and Public Health Emergency Needs Assessment which shall determine the
2 
vulnerabilities of the country and the requirements for an effective pandemic and
3 
public health emergency preparedness and response.
4 
From this assessment, there shall be recommendations on the needed health
5 
care related industries and manufacturing capacities and priorities which need to be
6 
set up locally, with the end view of ensuring adequate supply of critical products and
7 
services, optimizing available manpower and natural resources in the local economy,
8 
and building self-reliance and self-sufficiency in detection, diagnosis, and treatment of
9 
novel diseases.
10 
Sec. 10. Development and Promotion of Healthcare and Manufacturing
11 
Industries. - The Board of Investments (BOI) is hereby mandated to develop and
12 
promote the healthcare and manufacturing industries to strengthen the country's
13 
public health emergency preparedness and response mechanisms during a pandemic.
14 
Sec. 11. Funding. - The amount necessary to carry out the provisions of this
15 
Act shall be sourced from the current year's appropriations of the concerned
16 
department/agency. Thereafter, such sums as may be needed for its continued
17 
implementation shall be included in the General Appropriations Act (GAA).
18 
Sec. 12. Implementing Rules and Regulations. - The DTI, DOH and BOI shall
19 
promulgate the rules to implement this Act.
20 
Sec. 13. Separability Clause. - If any provision or part hereof is held Invalid or
21 
unconstitutional, the remainder of the law or the provision or part not otherwise
22 
affected shall remain valid and subsisting.
23 
Sec. 14. Repealing Clause. - Any law, presidential decree or issuance, executive
24 
order, letter of Instruction, administrative order, rule, or regulation contrary to or
25 
inconsistent with the provisions of this Act are hereby repealed, modified, or amended
26 
accordingly.
27 
Sec. 15. Effectivity. - This Act shall take effect fifteen (15) days after its
28 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,