Republic of the Philippines
HOUSE OF THE REPRESENTATIVES
Constitution Hills, Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _____
___________________________________________________________
Introduced by REPRESENTATIVE BERNADETTE HERRERA
AN ACT
PROVIDING
PREFERENCE
TO
DOMESTIC
BIDDERS
PARTICIPATING
IN
GOVERNMENT PROCUREMENT PROJECTS, AND FOR OTHER PURPOSES.
EXPLANATORY NOTE
This Bill, counterpart of that filed by Senator Sonny Angara in the Senate, seeks to
institutionalize the Certification Program of Domestic Bidders. In achieving this, it would be a
significant measure by which the government can help local entities during government
procurement activities. The current Government Procurement Reform Act and its Revised
Implementing Rules and Regulations provide that the procuring entity shall give preference
to materials and supplies produced, made and manufactured in the Philippines. The same
law mandates the Department of Trade and Industry to certify domestic bidders who claim
preference in government procurement.
The institutionalization of said certificate of preference program not only aims to
encourage all local suppliers and manufacturers, but also serves to provide assurances that
the government is one with all industries and sectors in supporting local labor and products
while ensuring the well-being of the Filipinos. This policy will surely contribute to the
realization of the goals of the Tatak Pinoy campaign. And a successful Tatak Pinoy campaign
will improve the country's economic productivity and competitiveness, generate more decent
jobs for Filipinos, particularly those in the countryside, and eradicate chronic poverty and
inequality in the country.
In view of the foregoing, the passage of this bill is earnestly sought.
BERNADETTE HERRERA
September 8, 2022
9:46 am
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Republic of the Philippines
HOUSE OF THE REPRESENTATIVES
Constitution Hills, Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _____
___________________________________________________________
Introduced by REPRESENTATIVE BERNADETTE HERRERA
AN ACT
PROVIDING
PREFERENCE
TO
DOMESTIC
BIDDERS
PARTICIPATING
IN
GOVERNMENT PROCUREMENT PROJECTS, AND FOR OTHER PURPOSES
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 “Domestic Bidders
Preference Act”.
SEC. 2. Declaration of Policy. – Section 12, Article XII, of the Constitution
declares that the “State shall promote the preferential use of Filipino labor, domestic
materials
and
locally
produced
goods, and adopt measures that help make them
competitive.” To this end, the State shall provide an enabling environment for the domestic
private sector to mobilize its resources to promote Filipino labor, domestic materials, and
locally produced goods. As enunciated in the Constitution and other economic policies, the
government shall foster local participation in the procurement process by providing
preference to products made in and/or sourced from the Philippines.
It is further declared that the State shall pursue a policy of maintaining a reasonable
balance
between
its
obligations
under
international
treaties
or
agreements
and
enhancement of competitiveness of Philippine trade and local industries. These may include
implementation of programs/projects/activities intended to improve the quality of industry
outputs and services, as well as the domestic entities productivity, through improvement in
business systems and process and the flow of inputs and outputs.
SEC. 3. Definition of Terms. – The following terms used in this Act shall have the
meanings stated below:
(a) Bidder – refers to a manufacturer, supplier, or distributor who submits a bid
in response to the requirements of the Bidding Documents;
(b) Director –refers to the Competitiveness Bureau Director;
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(c)
Domestic Bidder – refers to any person or entity offering unmanufactured
articles, materials or supplies of the growth or production of the Philippines,
or manufactured articles, materials, or supplies manufactured or to be
manufactured in the Philippines substantially from articles, materials, or
supplies of the growth, production, or manufacture, as the case may be, of
the Philippines;
(d)
Foreign Bid - refers to any offer of articles, materials or supplies not
manufactured or not to be manufactured in the Philippines, substantially
from
articles,
materials,
or
supplies
of
the
growth,
production,
or
manufacture, as the case may be, of the Philippines;
(e) Goods - refers to all items, supplies, and materials which may be needed in
the transaction of public businesses or in the pursuit of any government
undertaking, project or activity, whether in the nature of equipment,
furniture, stationery, materials for construction, or personal property of any
kind;
(f)
Grown – refers to products produced by cultivation such as crops, or
products that are grown, raised, and harvested;
(g)
Manufactured – means conversion of raw materials into marketable form
through physical, mechanical, chemical, electrical, biochemical, biological or
other means or by a special treatment or a series of actions. It shall include
transformation which can be geometric or compositional, or both. Merely
packing or packaging shall not qualify as manufactured;
(h) Produced – creation of or formation of goods through a natural process;
(i) Procuring Entity – refers to any branch, constitutional commission or office,
agency, department, bureau, office, or instrumentality of Government of the
Philippines,
including
Government-Owned
or
-Controlled
Corporation,
Government Financial Institutions, State University and College, and local
government units procuring goods, infrastructure projects and consulting
services;
(j)
Secretary – refers to the Secretary of the Department of Trade and Industry;
(k) Secretariat – refers to the Supply Chain and Logistics Management Division
of
the
Competitiveness
Bureau
tasked
to
provide
the
assessment,
verification,
and
recommendation
to
the
Committee
for
approval
or
disapproval.
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SEC. 4. Application. – Only a domestic bidder may file an application for
certification for domestic preference. The application shall be filed at the Supply Chain and
Logistics Management Division of the Competitiveness Bureau.
SEC. 5. Evaluation. – Verification of the origin of the goods sought to be certified
shall be done through ocular inspection of the site where the goods were grown, produced
or manufactured. The Secretariat shall submit an Inspection Report to the Committee
containing a statement as to whether the goods offered for bidding satisfy or do not satisfy
the requirements for a Domestic Bidder’s Certificate and the basis for such finding.
SEC. 6. Approval or Denial of Application. – After evaluation, if the Secretariat
finds that an applicant conforms to and meets the requirement for a Domestic Bidder’s
Certificate, the Director shall approve the application and issue the corresponding Certificate.
If the application is denied, the Director shall issue a written notification specifying
the grounds for the denial of the application.
Where no request for reconsideration is filed, the denial of the application shall
become final. The denial shall be without prejudice to re-filing of application.
SEC. 7. Determination of Substantial Compliance. – Prospective bidders shall
only be granted a Domestic Bidder’s Certificate and apply for domestic preference when the
goods, supplies, or materials offered for bidding are substantially grown, produced, or
manufactured in the Philippines.
7.1. In determining whether the goods are substantially grown and produced in the
Philippines, the following general principles shall be considered:
7.1.1. The origin of the product shall be disputably presumed as that which is
indicated in the label;
7.1.2. Livestock born and raised within the Philippines are deemed originated in
the Philippines; and
7.1.3. Plants grown and produced within the Philippines are deemed originated
in the Philippines.
7.2. In determining whether the goods are substantially manufactured in the
Philippines, the following general principles shall be considered:
7.2.1. Manufacture of industrial goods or processing of agricultural products
into (a) semi-finished/intermediate goods for use as inputs in the
production
of
other
goods,
or
(b)
finished
products
for
final
consumption, shall be deemed manufactured or processed in the
Philippines.
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7.2.2. Casting or molding, forming, machining, or joining/assembly of raw
materials, and the production of discrete parts to transform materials
from one form to another valuable form encompasses manufacturing.
Mere packing or packaging shall not constitute manufacturing. Simple
processing covering any or a combination of activities such as cleaning,
sorting,
shredding,
pulverizing,
grinding,
crushing,
compacting,
dissolving and filtration shall also not be considered manufacturing.
SEC. 8. Composition of Committee. – A Committee of Three shall be established
to review the recommendation of the Secretariat, and to grant or deny each application.
The Committee shall be composed of the head of agency of the Competitiveness
Bureau as Chair, with third level officials from any of the following Department of Trade and
Industry agencies: Regional/Provincial Offices, Bureau of International Trade Relations,
Board of Investments, Competitiveness and Ease of Doing Business Group, Consumer
Protection Group and Management Services Group.
Except for the officials and staff of the Competitiveness Bureau, the Committee
members and technical staff shall be entitled to receive an honorarium subject to the
existing rules and regulations issued by the Department of Budget and Management and the
Commission on Audit, charged to the Competitiveness Bureau.
SEC. 9. Domestic Bidders Certificate. – (a) The Certification shall remain valid
for a period of two (2) years. It shall include the scope, validity, remarks or conditionalities.
It is non-transferable and limited only to the products specified in the scope.
(b) Subject to notice and hearing, the Certificate shall be revoked for any of the
following grounds:
i. Making material false statement in the application required of the Bidder when a
true statement would have warranted the Secretariat’s denial or to recommend
Certification;
ii. Making false representations as a matter of fact, whether or not the same results
in damage or legal injury to a third party, after the Certification has been issued;
and
iii. Any other circumstance analogous to the foregoing.
SEC. 10. Implementing Rules and Regulations. – The Department of Trade and
Industry shall formulate and issue the necessary rules and regulations to implement the
provisions of this Act within sixty (60) days from its effectivity.
SEC. 11. Repealing Clause. – All general and special laws, acts, city charters,
executive orders, presidential proclamations, issuances, rules and regulations, or parts
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thereof which are contrary to or inconsistent with any of the provisions of this Act are
hereby repealed, amended, or modified accordingly.
SEC. 12. Separability Clause. – If any portion or provision of this Act is
subsequently declared invalid or unconstitutional, other provisions hereof which are not
affected thereby shall remain in full force and effect.
SEC. 13. Effectivity Clause. – This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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