Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _________
Introduced by: Hon. Keith Micah “Atty. Mike” D.L. Tan
AN ACT
STRENGTHENING
DOMESTIC
HEALTHCARE
MANUFACTURING
INDUSTRIES,
PROVIDING
FOR
THE
PROTECTION
AGAINST
PANDEMIC,
AND
FOR
OTHER
PURPOSES
EXPLANATORY NOTE
Article II, Section 15 of the1987 Constitution provides that “the State shall protect and promote
the right to health of the people and instill health consciousness among them.”
During the initial stage of the battle against COVID-19, frontline healthcare workers had
repeatedly expressed their dismay on the dangerously low supply of personal protective equipment (PPE)
which are crucial in the performance of their duties. As a result, many of them died while more than two
thousand have been infected, a tragedy that could had been prevented if proactive measures were taken
early on.
The Department of Health (DOH) had been under fire for having acquired allegedly overpriced
set of PPEs when there are local manufacturers who can readily produce the same medical equipment
for a much cheaper price.
According to former Secretary Ramon Lopez of the Department of Trade and Industry (DTI), the
country is able to domestically produce three hundred thousand (300,000) PPEs per month. This
growing domestic capacity decreases the country’s import requirements for protective equipment for
frontline healthcare workers while at the same time boosts local economy and increases labor and
employment in the country.
Thus, this bill, which is being seeks to promote healthcare manufacturing industries by granting
them tax benefits and mandating that, in times of pandemic or public health emergencies, they be given
preference by the government in the procurement of critical products and services.
In view of the foregoing, the passage of this measure is earnestly sought.
Keith Micah “Atty. Mike” D.L. Tan
4th District, Quezon
July 4, 2022
3:42 pm
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _________
Introduced by: Hon. Keith Micah “Atty. Mike” D.L. Tan
AN ACT
STRENGTHENING
DOMESTIC
HEALTHCARE
MANUFACTURING
INDUSTRIES,
PROVIDING
FOR
THE
PROTECTION
AGAINST
PANDEMIC,
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 “Healthcare Manufacturing and
Pandemic Protection Act.”
SEC. 2. Declaration of Policy. – It is the 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 other health-related 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.
SEC. 3. Coverage. – The provisions of this Act shall apply to domestic manufacturers or
producers of critical products and providers of critical services during the existence of a pandemic or
public health emergencies and only upon compliance with the accreditation requirements and standards
issued by relevant government agencies.
SEC. 4. Definition of Terms. – For purposes of this Act, the following terms shall be understood
as follows:
(a) Accreditation refers to the written authority issued by the Department of Trade and Industry
(DTI), through the Board of Investments (BOI), and other relevant government agencies to
manufacturers and producers of critical products and providers of critical services;
(b) Critical Products refer to medicines, vaccines, ventilators and other medical supplies or
equipment, such as personal protective equipment (PPE) and surgical masks, including its raw materials,
1100


required to address a pandemic or national health emergency, as may be determined by the Department
of Health (DOH) or 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 or other relevant government agencies;
(d) Manufacturer refers to an enterprise duly accredited or registered under the provisions of this
Act, engaged in the production of critical products including the 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;
(g) Raw Material refers to materials and inputs from which a critical product and its packaging is
made; and
(h) Standards refer to the guidelines 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.
SEC. 5. Tax Benefits. –
(a) 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 (BoC), the Food and Drug Administration
(FDA) and other relevant agencies.
(b) Exemption from VAT on Local Sales. – The sale of critical products and rendition of critical
services shall be exempted from VAT which shall be based on the gross sales or gross receipts,
respectively.
(c) Treatment of Export Enterprises. - The local sales of critical products and rendition of critical
services by export enterprises shall be deemed and treated as “export sales” for purposes of its export
requirement pursuant to existing laws. As such, the corresponding treatment, exemption on duties, taxes
and fees, and other incentives warranted under 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 treated as “export sales”
for purposes of its export requirement.
SEC. 6. Export Limitation. - Export enterprises that manufacture or produce 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.
Provided, That in case the demand for critical products and critical services does not reach such
percentage, as certified by the DTI, the manufacturer or producer may opt to export the critical product
or critical service.
SEC. 7. 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 to critical products manufactured, produced or made in the Philippines; Provided, That the
award shall be made to the lowest domestic manufacturer-bidder whose bid is not more than twenty five
percent (25%) 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 and producers.
SEC. 8. Funding. – The amount necessary to carry out the provisions of this Act shall be sourced
from the current year’s appropriations of the concerned department/agency. Thereafter, such sums as
may be needed for its continued implementation shall be included in the General Appropriations Act
(GAA).
SEC. 9. Implementing Rules and Regulations. – The DTI, DOH and BOI shall promulgate the
rulesand regulations to implement this Act.
SEC. 10. Repealing Clause. – All provisions of existing laws, orders and regulations contrary to
or inconsistent with this Act are hereby repealed or modified accordingly.
SEC. 11. Separability Clause. – If for any reason any part or provision of this Act shall be
deemed unconstitutional or invalid, the other sections or provisions hereof shall not be affected and shall
remain in force and effect.
SEC. 12. Effectivity. – This Act shall take effect fifteen (15) days following its publication in the
Official Gazette or in two (2) newspapers of general circulation.
Approved,