Republic of the Philippines I 26 SEP?
HOUSE OF REPRESENTATIVES Slo Py
Quezon City

‘SIXTEENTH CONGRESS
First Regular Session

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Introduced by Representative Estrellita “Ging” B. Suansing

EXPLANATORY NOTE

The role of the footwear industry in the country is important because from an
ideal perspective, the industry should be capable of supplying our countrymen with
decent slippers, sandals and shoes at affordable prices. Moreover, the industry can
even aspire to compete on a consistent basis in the intemational market, obtaining
much-needed dollar influx for the country in the process. But all these things would
remain a remote possibility, if the government will not support our footwear industry.

A case in point is the Municipality of Talavera, Province of Nueva Ecija. It
once was a pioneer and leader in the footwear industry in the Philippines. But it did
not sustain its market position and trajectory for several reasons, one of them is the
lack of support from the government.

Recently in 2012, the local footwear industry was reported to have registered
a growth in its performance. It was even referred to as one of the country's ‘sunrise’
industries. This was precipitated by the growing demand in the domestic and
international markets.

But still there is much to be desired and the only way to catapult this industry
to the desired level of fame and consistency is if our government will formulate
policies for its betterment.

This bill seeks to establish a National Footwear Training Academy, under the
direct supervision and control of the Secretary of Department of Trade and Industry
(DTI). Among other goals, the Academy is also envisioned to provide the highest
quality of training and research in the field of footwear production and its related
downstream industries.



Further, the bill provides for a list of objectives with the ultimate goal of
producing top-notch individuals with high standards in the art of footwear making, All
these would materialize in the confines of the Academy which would be preaching
excellence in every endeavor of the student.

The bill also bestows legal powers to the Academy appertaining to a juridical
person, such as but not limited to suing and be sued, entering into contracts, holding
real and personal property as may be necessary for a mandated purpose, and the
like.

The bill also provides that the Academy shall establish a program to award
grants and/or technical assistance to eligible entities that have submitted
applications for the purpose of supporting the local footwear industry

Further still, the bill mandates the Land Bank of the Philippines to put up a
Local Footwear Industry Modernization Credit Facility and Loan Package Window
which shall provide low interest loans for local footwear manufacturers and suppliers.

Since the sustenance of the local footwear industry is at stake, the passage of
this bill is earnestly sought.

Rep. ES ‘LLITA “GING” B. SUANSING
1 District, Nueva Ecija


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

3017

H. Bill No.

Introduced by Representative Estrellita “Ging” B. Suansing

AN ACT
ESTABLISHING A COMPREHENSIVE PROGRAM TO REVIVE THE LOCAL
FOOTWEAR INDUSTRY IN THE COUNTRY, ESTABLISHING THE NATIONAL
FOOTWEAR TRAINING ACADEMY (NFTA), AND APPROPRIATING FUNDS
THEREFOR

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

SECTION 1. Short Title. - This Act shall be known as the “Local Footwear
Industry Competitiveness Act of 2013”.

SEC. 2. Declaration of Policy. - The State recognizes the indispensable role of
the private sector in national economic growth. As such, it is the policy of the State to
encourage the growth of private enterprises and to provide incentives for needed
investments, especially to local entrepreneurs. Further, the State shall encourage the
growth of creativity in local businesses.

Towards these ends, the State shall exert efforts to promote sustainable growth
for the country's local industries by building a business environment conducive to the
development of creativity, ingenuity, and innovativeness.

Particularly, the State shall provide the mechanisms to maintain, update, and
improve the scientific knowledge, technical skill, and competence of production workers
in the local footwear industry. In line with this thrust, the State shall give priority to
research and development in the footwear industry and shall promote, as far as
practicable, the use of local resources to promote international competitiveness and
local employment.


SEC. 3. Establishment of a National Footwear Training Academy (NFTA).
- There is hereby established and created a National Footwear Training Academy
(NETA), hereinafter referred to as the "Academy", under the direct supervision and
control of the Secretary of the Department of Trade and Industry (DTI), which is
envisioned to provide the highest quality training and research in the field of footwear
production and its related downstream industries.

The Academy shall be a training institution committed to the pursuit of
excellence through the provision of education, training, technology transfer, and
research and development (R&D) in the field of footwear. The Academy shall
maintain a proactive environment wherein the latest methods and technologies in
footwear production and tanning are applied to provide state-of-the-art and
comprehensive training to develop the competitiveness of manufacturers in local
footwear production

SEC. 4. Objectives. - The Academy shall be established to serve the
following objectives:

a) To train and make competitive footwear manufacturing companies,
entrepreneurs, footwear distributors, suppliers, and various stakeholders in the
footwear industry and its related downstream industries;

b) To serve as the primary training institution in the country in footwear
production and manufacturing that will provide the enabling mechanisms to revive
and make the industry competitive;

c) To train key players in the footwear industry and provide them with the
latest footwear production technologies and methods;

d) To serve as a Center for Excellence in the provision of comprehensive and
state-of-the-art training and technical assistance;

e) To serve as the primary research, arm of the government in footwear
science and manufacturing and serve as an authoritative source of information;

f) To upgrade quality standards and cost efficiency in the production of
footwear

SEC. 5. Powers and Functions. - The Academy shall have all legal powers
appertaining to a juridical person, particularly the following

a) to sue and be sued;

b) to enter into contracts;

¢) to hold real and personal property as may be necessary for its mandated
purposes;

d) to mortgage, lease, sell, transfer, convey, and otherwise dispose of its real

and personal property;

to solicit and receive public and private donations and contributions related

to footwear production and manufacturing;

e)


f) to accept and’ receive real and personal property by gift, devise, or
bequest;

g) to levy and collect minimal dues and fees from its trainees for its services:

h) to adopt a seal and to alter the same:

i) to have offices and conduct its affairs in the Metro Manila area and
elsewhere;

j) to make and adopt by-laws and rules and regulations not inconsistent with

the laws of the Philippines; and

to do all such acts and things as may be necessary or proper to carry into

effect and promote the purposes for which it was organized.

k)

The seal and emblem of the Academy shall be kept in its national office.

SEC. 6. Personal Conduct of Students and Faculty - The National
Footwear Training Academy (NFTA) is a training and research institution that strives
to maintain a safe and healthy environment to promote learning in a professional and
competitive setting. Trainees are expected to exercise tolerance and to respect and
celebrate differences among individuals. At no time shall the Academy tolerate:

a) Harassment of any kind;
b) Racial, religious or sexual slurs;

c) Inappropriate language;

d) Damage to property; and

e) Any action which jeopardizes the comfort, safety or health of others

SEC. 7. NFTA Academic Board. - The Academy shall have an Academic
Board composed of the Administrator, the Dean of the Corps of Professors, the
Head Training Officer, and the Heads of the Departments.

The Administrator and Head Training Officer of the Academy shall be
appointed by the President of the Republic of the Philippines.

The Academic Board shall have the power to confer certificates and diplomas
to all trainees, upon the satisfactory completion of the approved course of studies,
under such rules and regulations as the Secretary of the Department of Trade and
Industry may prescribe.

Such other diplomas as may be needed in the future shall be conferred,
provided that the Academic Board shall determine the corresponding academic
degrees in consonance with the needs of the footwear industry in the country. The
Academy shall develop courses and the necessary expertise as the need arises.

SEC. 8. Sources of Funds. - The funds of the National Footwear Training
Academy shall be derived from dues and assessments, donations, bequests,
contributions of its students and trainees, and income from conventions, seminars,
corporate trainings, and other fund raising activities.


SEC. 9. Technical Assistance and Grants. - The Academy, subject to the
approval of the Secretary of the Department of Trade and Industry (DTI), shall
establish a program to award grants and/or technical assistance to eligible entities,
enterprises, entrepreneurs, and corporations that have submitted their application for
the purpose of assisting key players in the footwear industry, upgrade or modernize
their facilities, production methods, and technologies.

The Academy shall require from the proponents the following information:

a) A description of the product lines of the intended beneficiary of the
technical assistance grant;

b) A description on how the technical assistance grants will improve quality of
production and products manufactured by the intended beneficiary; and

©) Any additional information that the Academy may require, consistent with
the provisions of this Act.

SEC. 10. Local Footwear Industry Modernization Credit Facility and Loan
Package. - The Land Bank of the Philippines (LBP) is hereby mandated to formulate
a Local Footwear Industry Modernization Credit Facility and Loan Package Window
which shall provide low interest loans for local footwear manufacturers and suppliers
seeking to improve and modemize their production facilities, equipment, and
services in order to revive and make competitive the local footwear industry in the
country.

Within six (6) months from the date of effectivity of this Act, the Land Bank of
the Philippines is mandated to formulate the necessary guidelines, procedures, and
requirements for the various stakeholders to avail of the Local Footwear Industry
Modernization Credit Facility and Loan Package Window, as mandated under this
Act.

SEC. 11. Appropriations. - There is hereby appropriated the amount of
Thirty Million Pesos (Php30,000,000) for the construction and establishment of the
National Footwear Training Academy (NFSA) which shall be incorporated in the
General Appropriations of the Department of Trade and Industry (DT!)

Thereafter, the improvements, personnel expense, and other necessary
expenses for the operation and maintenance of the Academy shall be included in the
annual General Appropriations of the DTI.

SEC. 12. Implementing Rules and Regulations (IRR). - Within six (6)
months from the date of effectivity of this Act, the Department of Trade and Industry
(DTI) shall promulgate the implementing rules and regulations necessary to
implement the provisions of this Act.

SEC. 13. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations, or parts thereof not consistent with the provisions of this Act are hereby
repealed or modified accordingly.


SEC. 14. Separability Clause. - If any provision or part of this Act, or the
application thereof to any person or circumstance, is held unconstitutional or invalid,
the remainder of this Act shall not be affected thereby.

SEC. 15. Effectivity Clause. - This Act shall take effect fifteen (15) days from
the date of its publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,