NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  9739 
EXPLANATORY NOTE 
When the COVID-19 outbreak was declared as a public health emergency, the 
absence of local manufacturers of the required personal protective equipment (PPEs), 
medicines, and testing kits for the healthcare industry became apparent. As this went into a 
pandemic, the supply of these critical products and their raw materials became scarce, difficult 
to access, and if accessible, they are very expensive. Hospitals were forced to buy these PPEs 
at an exorbitant price.  
At the onset of the pandemic, the Philippines totally lacked its own manufacturing 
facilities for PPEs, their raw materials, and testing facilities. The lack of these PPEs contributed 
to the deaths of our healthcare workers and other frontliners. In terms of the minimum required 
protection, i.e. wearing of face masks, the public is left with the choice to either buy face masks 
at a high price, stay unprotected because they cannot afford, or use whatever material is 
available that actually provides false sense of protection. 
The necessity of developing our own manufacturing capacity to respond to health 
emergencies such as COVID-19, prompted the DTI-BOI to encourage our existing 
manufacturing firms to repurpose their operations. These firms, however, after going through 
the rigid process of complying the registration for their manufacturing facility and products to 
conform to international standards, find themselves competing with (1) substandard imported 
products, (2) fake and counterfeit imported PPEs, and (3) preference to imported over local 
PPEs.  
The Philippines needs to develop its healthcare industry to protect the health and 
safety of its people and safeguard the lives of our healthcare workers. Hence, this bill which 
seeks to avoid a similar dilemma in the future and to make our local manufacturing for 
healthcare industry responsive and competitive, preserve and generate employment, and 
sustain its development.  
This bill aims to  adopt efficient and effective measures that will prevent the 
overburdening of the healthcare system; Develop the healthcare and manufacturing industries 
and preserve and generate employment during the crisis; Ensure adequate and readily 
available supply of critical products and services to the health workers and the public; Protect 
the interest of the consumers and establish standards of conduct for business and industry; 
and Build strong partnership with the private sector and other stakeholders to deliver these 
measures quickly and efficiently. 
In view of the foregoing, immediate approval of this measure is earnestly requested. 
RUFUS B. RODRIGUEZ 
December 12, 2023
2:37 pm


NINETEENTH CONGRESS   
) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  9739
AN ACT 
PROVIDING FOR THE PROTECTION AGAINST PANDEMIC AND THE DEVELOPMENT 
OF THE HEALTHCARE AND MANUFACTURING INDUSTRIES, AND PROVIDING FUNDS 
THEREFOR 
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 “Pandemic Protection Act”. 
SECTION 2. Declaration of Policy. –  It is hereby the declared policy of the State to protect 
and promote the right to health of the people and instill health consciousness among them. 
The State recognizes pandemics and other public health emergencies as threats to public 
health and national security, which can undermine the social, economic, and political functions 
of the State. It shall protect the people from pandemics and other public health emergencies. 
To this end, the State shall: 
(a) adopt efficient and effective measures that will prevent the overburdening of
the healthcare system;
(b) develop the healthcare and manufacturing industries and preserve and
generate employment during the crisis;
(c) ensure adequate and readily available supply of critical products and services
for the health workers and the public;
(d) protect the interest of the consumers and establish standards of conduct for
business and industry; and
(e) build strong partnership with the private sector and other stakeholders to deliver
these measures quickly and efficiently.
SECTION 3. Coverage. This Act shall cover the manufacture or production of critical products, 
including repurposing of existing manufacturers, and supply of critical services. This also 
covers their entire supply chain including their raw materials, packaging and its raw materials. 
The benefits under this Act shall be in addition to the incentives provided under existing laws. 
SECTION 4. Definition of Terms. For the purposes of this Act, the following definitions shall 
apply: 
(a) Accreditation refers to the process of officially recognizing a person or entity
under this Act;
(b) Critical Products refer to medicines, vaccines, personal protective equipment,
ventilators and such other supplies or equipment, including its raw materials,
required to address the pandemic as may be determined by the Department of
Health (DOH) and other relevant government agencies;
(c) Critical Services refer to services required for the manufacture, production and
distribution of critical products. This shall also include testing laboratories;
waste management, including but not limited to waste segregation, storage,
collection, sorting, treatment and disposal services; and other services as may
be determined by the DOH and other relevant government agencies.


(d) Manufacturer refers to an enterprise duly accredited or registered under 
Section 6 hereof, engaged in the production of critical products including 
preparation, processing, compounding, formulating, filling, packing, repacking, 
altering, ornamenting, finishing and labeling; 
(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; and 
(g) Raw Material refers to materials and inputs from which a critical product and its 
packaging is made. 
 
SECTION 5. Conformity to Standards. The materials, products, processes, and services shall 
conform and comply with the guidelines on the standards 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. In the case of other critical 
services, the equipment and technologies and services should be approved by the Department 
of Environment and Natural Resources, DOH or other concerned regulatory agencies 
For this purpose, the relevant government agencies shall prioritize the facilitation of 
the issuance of licenses and other requirements to manufacturers covered by this Act. 
 
SECTION 6. Accreditation. Prior to the availment of benefits herein, the manufacturers and 
producers shall apply for accreditation with the Department of Trade and Industry (DTI), 
through the Board of Investments (BOI). Provided That, in lieu of DTI-BOI accreditation, 
manufacturers that are registered with other Investment Promotion Agencies (IPAs) shall 
directly apply for authority to import with the concerned IPA. 
 
SECTION 7. Exemption from Custom 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  custom duties, 
VAT, other taxes and fees such as import processing fees and fees imposed by the Bureau of 
Customs, FDA and other relevant agencies. 
 
SECTION 8. Exemption from VAT on Local Sales.  The exemption from VAT shall apply to 
the sale of critical products and services. The DTI-BOI shall provide the Bureau of Internal 
Revenue (BIR) the list of VAT-exempt critical products or services, including the new and/or 
additional critical products covered under this Act. The list of VAT-exempt critical products or 
services shall be posted in the BIR website through a Revenue Memorandum Circular.  
Further, in accordance with the invoicing requirements, the word “VAT-EXEMPT” shall 
prominently be indicated in the invoice issued for the sale of critical products. 
 
SECTION 9. Suspension of Export Requirement. The export requirement imposed under the 
laws administered by relevant IPAs may be suspended by the DTI-BOI to satisfy national 
interest or in an emergency situation. The export enterprises that manufacture the critical 
products or render critical services shall supply up to eighty percent (80%) of their daily 
production or service to government institutions, hospitals, and private establishments in the 
country for local or domestic use.  
The local sales of critical products and services of such export enterprises shall be 
deemed and treated as “export sales” in compliance of their export requirement. As such, the 
corresponding treatment, exemption on duties, taxes and fees, and other incentives warranted 
under the 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 local sales shall likewise be exempt under Sections 7 and 
8 hereof. For this purpose, the DTI-BOI or concerned IPA shall monitor the compliance of said 
export enterprises. 


The exemption on duties, taxes and fees under this Section shall subsist for a period 
of three (3) years after the declaration by the World Health Organization that the pandemic 
has ended. 
 
SECTION 10. Procurement of Critical Products by the Government. To ensure adequate and 
responsive supply of critical products and supplies, the government, as the procuring entity 
shall give preference and procure critical products manufactured, produced or made in the 
Philippines; Provided, that the award shall be made to the lowest domestic manufacturer-
bidder provided the bid is not more than twenty percent (20%) in excess of the lowest foreign 
bid; Provided further, that it has secured from the DTI a certification that the products, articles, 
materials, or supplies are produced, made or manufactured in the Philippines.  
Private enterprises are also encouraged to source their requirements for critical 
products from the local manufacturers. 
 
SECTION 11. Relocation or Expansion of Manufacturing Enterprises in the Philippines. 
Manufacturers or producers of critical products that will relocate or expand operations in the 
Philippines are qualified to avail of the exemptions under this Act provided that they meet the 
requirements prescribed herein. 
 
SECTION 12. Synchronized and Integrated Government Approach. All departments, bureaus, 
agencies or instrumentalities of the government shall ensure the implementation of this Act by 
the agencies concerned in a synchronized and integrated manner. No government body shall 
adopt any policy or take any course of action contrary to or inconsistent with this Act. 
 
SECTION 13. Funding. An amount not exceeding One Billion Pesos (PhP1,000,000,000.00) 
is hereby allocated to the DTI-BOI to operationalize the mechanisms contained in this Act. 
 
SECTION 14. Implementing Rules and Regulations (IRR). The DTI and BOI shall promulgate 
the rules to implement this Act. 
 
SECTION 15. Repealing Clause. All laws, issuances, orders, rules and regulations, or parts 
thereof, which are contrary or inconsistent with this Act are hereby repealed, amended or 
modified accordingly. 
 
SECTION 16. Separability Clause. If any provision of this Act is declared invalid or 
unconstitutional, the other provisions not affected thereby shall remain valid and subsisting. 
 
SECTION 17. Effectivity Clause. This Act shall take effect immediately upon its publication in 
a newspaper of general circulation or in the Official Gazette: Provided that, Sections 7 and 8 
shall apply to all transactions during the effectivity of Republic Act No. 11469. Except for 
Section 9 under this Act, Sections 7 and 8 shall terminate upon declaration by the President 
that this public health emergency has ceased to exist.  
 
SECTION 18. Applicability. This Act shall apply and shall remain in force and effect during the 
existence of a pandemic of national and/or international concerns as declared by the Secretary 
of Health, or during a state of public health emergency as declared by the President. 
 
 
Approved,