NINETEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
House Bill No._______ 
Introduced by Hon. Antonio B. Legarda Jr. 
AN ACT  
INSTITUTIONALIZING THE ONE TOWN, ONE PRODUCT (OTOP) PHILIPPINES 
PROGRAM, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
Micro Small and Medium Enterprises (MSMEs) are a significant part of the Philippine 
Economy. According to the Department of Trade and Industry, micro enterprises constitute 
88.77% (850,127) of total MSME establishments, followed by small enterprises at 10.25% 
(98,126) and medium enterprises at 0.49% (4,716).1 As a whole, these MSMEs generated a total
of 5,380,815 jobs or 62.66% of the country’s total employment.2
Based on 2020 data, Wholesale and Retail Trade is the top industry sector for MSME. 
However, the pandemic greatly decreased the sales of MSMEs with some reporting no profit 
during the height of the lockdown. Thus, there is a great need to revitalize our trade sector and 
help our MSMEs recover and flourish. 
Thus, this bill seeks to institutionalize the One Town, One Product (OTOP) Philippines 
Program which serves a three-fold purpose: (1) Grant financial and technical assistance to Micro 
Small and Medium Enterprises (MSMEs) to enable them to produce more quality world class 
local products; (2) Develop and promote the use of local raw materials; and (3) Increase job 
opportunities by hiring local talents.  
In line with the policy adopted by its original proponent Senator Loren Legarda, this bill 
therefore likewise serves as a counter-part House Bill. It is for the reasons stated above that the 
passage of this measure is earnestly sought. 
HON. ANTONIO B. LEGARDA JR. 
1 https://www.dti.gov.ph/resources/msme-statistics/ 
2 Ibid. 
August 9, 2022
5:00 pm
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1
NINETEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
House Bill No._______ 
Introduced by Hon. Antonio B. Legarda Jr. 
AN ACT  
INSTITUTIONALIZING THE ONE TOWN, ONE PRODUCT (OTOP) PHILIPPINES 
PROGRAM, APPROPRIATING FUNDS THEREFOR, 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 "OTOP Philippines Act 
of 2022". 
Sec. 2.  Declaration of Policy. – It is the State's policy to ensure the nation's prosperity 
through policies and programs that drive inclusive local economic activity and boost 
national economic growth. The State further recognizes the role of Micro, Small 
and Medium Enterprises (MSMEs) and the support that the State and Local 
Government Units (LGUs) shall provide in enabling communities to determine, 
develop, support, and promote products or services. 
Sec. 3. Objectives. – The objectives of this Act are as follows: 
a. To provide a package of assistance for MSMEs with viable products
in order to develop new, 
innovative, and more complex products, with 
significant improvement in the areas of quality, product development, 
design, 
packaging, standards compliance, marketability, production 
capability, a n d  brand development, among others; 
b. To assist rural communities in growing the local economy and be more
market-oriented and innovation-driven; and
c. To promote convergence of initiatives from local government
units, national government agencies, and the private sector in
developing and promoting Philippine products, whether for export or
domestic market.
Sec. 4. Definition of Terms. – As used in this Act, the following terms shall mean: 
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a) Large Enterprises – refer to enterprises with an asset size of more than One 
Hundred Million Pesos (Php 100,000,000.00) and more than ninety-nine (99) 
employees. This Act shall not cover large enterprises. 
b) Non-MSME products – refer to products t h a t  fall under the category 
of services offered by MSMEs. These include transport services, 
a n d  agri-tours, among others. 
 
Sec. 5. OTOP Philippines. – To meet the declared policy of the State, it is hereby 
institutionalized the OTOP Program, which shall be the government's 
stimulus program that will encourage the growth of MSMEs in the 
countryside through developing indigenous raw materials and utilizing local skills 
and talents. 
 
Sec. 6. OTOP Philippines Trustmark. – The Department of Trade and Industry (DTI) 
is hereby authorized to establish the OTOP Philippines Trustmark, 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 a s  
excellent in terms of quality, design, value, and marketability. 
Sec. 7. Qualifications. – OTOP products included in the program must meet a set 
criterion to be established by the DTI, provided that they are consistent 
with the following elements: 
a. Culture - This shall pertain to cultural values rooted in the following: 
heritage, living traditions, customs and rituals, 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 among 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 product or service selection shall be based on a 
locality's innate or endemic strength anchored on several variables such as 
topography, climate, geographical location, and proximity to resources, among 
others. 
Sec. 9. 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). 


 
 
3
Sec. 10. 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: 
a. Product Development - This component shall be considered the primary 
instrument of assistance for the OTOP Program beneficiaries. It 
shall be focused on the following areas: 
1. Product Design - involves assistance in the designing of new 
products, product adaptation, product diversification, or 
expansion of existing product lines 
2. Packaging and Labeling - involves new packaging, improved 
package design, or labeling assistance 
3. Technology Updating - involves workshops on various 
technology procedures, materials, and processing technologies, 
involves assistance on production techniques related to 
product development 
4. 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 focused on improving the human aspect of OTOP 
Philippines, 
including 
business 
skills 
training 
and 
business 
counseling. 
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 with the requirements of other 
government agencies such as the DTI-Bureau of Philippine 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 accessing the market and 
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 to promote their products through online platforms. 
 
Sec. 11. The Lead Implementing Agency. – The DTI shall serve as the lead agency 
of this Act. There shall be an OTOP Management Committee designated by the DTI 


 
 
4
Secretary, 
who 
shall 
have 
the 
primary 
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 fifteen (15) working 
days from the effectivity of this Act. 
 
Sec. 12. Creation of the OTOP Program Office. – It 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. 
Sec. 13. Appropriations.  – The amount necessary to carry out the provisions of this 
Act shall be charged against the appropriations released for the purpose under the 
General 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. Implementing Rules and Regulations. – Within sixty (60) working days from 
the effectivity of the Act, the DTI, in coordination with the other implementing agencies 
identified in Section 11, shall formulate and promulgate the necessary rules and 
regulations to effectively implement the provisions of this Act. 
Sec. 15. Separability Clause. – If 
any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provisions not affected thereby shall 
remain in force and effect. 
 
Sec. 16. Repealing Clause. – All laws, decrees, proclamations, issuances, or 
ordinances that are contrary to or inconsistent with the provisions of this Act are 
hereby amended, repealed, or modified accordingly. 
Sec. 17. Effectivity. – This Act shall take effect fifteen (15) days following its 
complete publication in the Official Gazette or a newspaper of general circulation. 
 
Approved,