NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s.No. 247
of tl)f id' O f tcH P
*22 JULll P3S1
RECEIVhD BY;
Introduced by Senator Loren B. Legarda
AN ACT
INSTITUTIONALIZING THE ONE TOWN, ONE PRODUCT (OTOP) 
PHILIPPINES PROGRAM, APPROPRIATING FUNDS THEREFOR, AND FOR
OTHER PURPOSES
EXPLANATORY NOTE
As the lifeblood of our economy, MSMEs, now more than ever amid the 
COVlD-19 crisis, should be supported financially and in terms of capacity-building. 
Based on the 2020 List of Establishments of the Philippine Statistics Authority (PSA), 
there are 957,620 business enterprises operating in the country. Of these, 952,969 
(99.51%) are MSMEs and 4,651 (0.49%) are large enterprises. 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).
In this regard, this bill seeks to institutionalize the One Town, One Product 
(OTOP) Philippines Program, which promotes local products from a sector and a 
locality. The program shall capacitate the MSMEs on product development, 
initiatives, and training, among others, to upgrade our MSMEs. It also seeks to 
create the OTOP Management Committee within the DTI and the OTOP Program 
Office in each local government xinit to help achieve the objectives of the law.


In view of the foregoing, the approval of this bill is earnestly sought.
"tOREN LEGARDA


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
o( the €-u crctnrj?
*22 JUL11 P3 51
SENATE 
S. No.
RtCElVi D irv: „
Introduced by Senator Loren B. Legarda
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:
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Section 1. Short Title. - This Act shall be known as the "OTOP Philippines Act
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of 2022".
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Sec. 2. Declaration of Policy. - It is the State's policy to ensure the nation's
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prosperity through policies and programs that drive inclusive local economic
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activity and boost national economic growth. The State further recognizes
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the role of Micro, Small and Medium Enterprises (MSMEs) and the
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support that the State and Local Government Units (LGUs) shall provide
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in enabling communities to determine, develop, support, and promote
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products or services.
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Sec. 3. Objectives. - The objectives of this Act are as follows:
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a. To provide a package of assistance for MSMEs with viable
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products in order to develop new, innovative, and more
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complex products, with significant improvement in the areas of
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quality, product development, design, packaging, standards
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compliance, marketability, production capability, and brand
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development, among others;


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b. To assist rural communities in growing the local economy and
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be more market-oriented and innovation-driven; and
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c. To promote convergence of initiatives from local
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government units, national government agencies, and the
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private sector in developing and promoting Philippine
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products, whether for export or domestic market.
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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
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One Hundred Million Pesos (Php 100,000,000.00) and more than
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ninety-nine (99) employees. This Act shall not cover large
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enterprises.
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b) Non-MSME products - refer to products that fall under the
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category of services offered by MSMEs. These include
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transport services, and agri-tours, among others.
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Sec. 5. OTOP Philippines. - To meet the declared policy of the State, it
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is hereby institutionalized the OTOP Program, which shall be the
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government's stimulus program that will encourage the growth of MSMEs
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in the countryside through developing indigenous raw materials and utilizing
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local skills and talents.
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Sec. 6. OTOP Philippines Trustmark. - The Department of Trade and
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Industry (DTI) is hereby authorized to establish the OTOP Philippines
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Trustmark, an assurance that the products tmder the program represent
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the country's best. The OTOP Philippines Trustmark shall signify that the
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businesses and products have been marked as excellent in terms of
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quality, design, value, and marketability.
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Sec. 7. Qualifications. - OTOP products included in the program must
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meet a set criterion to be established by the DTI, provided that they are
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consistent with the following elements:
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a. Culture - This shall pertain to cultural values rooted in the
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following: heritage, living traditions, customs and rituals.


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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).
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


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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 (DTl-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 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 DTT Secretary shall


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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 imder 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,