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NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
72 JUL12 P5:10
SENATE424
RITEIVCO LV:
S. No.
Introduced by Senator Christopher Lawrence "Bong" T. Go
AN ACT
PROMOTING THE "ONE TOWN, ONE PRODUCT" CONCEPT TO ENHANCE 
INCLUSIVE AND SUSTAINABLE ECONOMIC DEVELOPMENT, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
According to the Philippine Statistics Authority (PSA), there Is a total of 957,620 
business enterprises operating in the country. Of these, 952,969 or 99.51% are 
MSMEs and 4,651 or 0.49% are large enterprises. Microenterprises constitute 850,127 
or 88.77% of total MSME establishments, followed by small enterprises at 98,126 or 
10.25% and medium enterprises at 4,716 or 0.49%.1
Hence, it is the duty of the State to provide protection and recognize the 
profound and undeniable contributions of micro, small, and medium-scale enterprises 
(MSMEs) in nation building, continuing national economic growth, and the realization 
of our economic objectives.
This bill, which was adopted from the Committee Report of the Committee on 
Trade, Commerce and Entrepreneurship of the 18th Congress chaired by Senator Koko 
Pimentel III, seeks to assist and capacitate MSMEs in developing new, innovative, and 
more complex products and services through significant improvement in the areas
1 Department of Trade and Insdustry, 2020.


of quality, product development, design, packaging, standards compliance, 
marketability, production capability, brand development, sustainability, and securing 
licenses, product registration and other market authorization, among others.
Furthermore, the bill seeks to support MSMEs In coping with the adverse effects 
brought by the recent pandemic.
In view of the foregoing, approval of this bill Is earnestly sought.
WRENCE "BONG" T. GO


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 424
oc tit.*
*22 JUL 12 P5 ;10
RlXEIVti) Bv...
Introduced by Senator Christopher Lawrence "Bong" T. Go
AN ACT
PROMOTING THE "ONE TOWN, ONE PRODUCT" CONCEPT TO ENHANCE 
INCLUSIVE AND SUSTAINABLE ECONOMIC DEVELOPMENT, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the 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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of2022"
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Sec. 2. Declaration of Policy. - The State recognizes the profound and
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undeniable contributions of micro, small, and medium-scale enterprises (MSMEs) In
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nation building, continuing national economic growth, and the realization of our
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economic objectives.
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The State also recognizes that economic progress can only be achieved swiftly
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with the support of both the State and local government units (LGUs) by enabling
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communities to determine, develop, support, and promote products or services that
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are rooted In culture, community resources, creativity, and competitive advantage.
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The State further recognizes the existence as well as the importance of
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competition to foster innovation among MSMEs that would unquestionably result in
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the over-all enhancement and improvement of products, processes, capabilities of
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each enterprise and the significance of focusing on technological advancement to
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diversify the country's export potential.


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Towards this end, the State can focus and align its MSME's products and 
services following the "One Town, One Product" Philippines Program to maximize the 
potentials of specific products and services and thus uplift the lives of people and their 
communities.
Sec. 3. Objectives. - The objectives of this Act are as follows:
(a) To assist and capacitate MSMEs in developing new, Innovative, and more 
complex products and services through significant improvement in the areas 
of quality, product development, design, packaging, standards compliance, 
marketability, production capability, brand development, sustainability, and 
securing licenses, product registration and other market authorization, 
among others.
(b) To assist rural communities in growing their local economies and be more 
market- oriented and innovation-driven.
(c) To promote convergence of initiatives from local government units, national 
government agencies, and the private sector in the development and 
promotion of Philippine products, whether for export or for domestic 
market.
(d) To enable the recovery of local economies, especially the countryside, from 
the adverse effects of the Covid-19 pandemic, and further promote rural 
development, through the encouragement of growth of MSMEs, generation 
of employment and livelihood opportunities, and the sustainable use of 
community resources.
Sec. 4. OTOP Philippines. - "One Town, One Product" (OTOP) Philippines 
Program presently being implemented by the Department of Trade and Industry (DTI) 
Is hereby adopted as a government stimulus program to encourage the growth of 
MSMEs in the country through the utilization of indigenous raw materials, local 
traditions and cultures across the country.
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Sec. 5. OTOP Philippines Trustmark. - The DTI is hereby mandated to establish
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the OTOP Philippines Trustmark, which is an assurance that the products under the


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program represent the country's best. The OTOP Philippines Trustmark shall signify
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that the businesses and products have been marked excellent in terms of quality,
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design, value, and marketability.
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Sec. 6. Coverage. - The OTOP Philippines Program shall cover products and
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skills- based services known to an area or locality. This shall Include, but not limited
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to, the following products and services:
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(a) Processed food such as fruits and nuts, local delicacies, juices, wines, tea
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and other beverages, pastries and baked goods, preserved food sauces,
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cakes and desserts products, food supplements, and culinary-based
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specialty products;
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(b) Agricultural-based products such as coffee, cacao, other agricultural
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produce, agri-processed products 
like processed meats, coconut oil,
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preserved and processed seafood products;
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(c) Home and Fashion and Creative Artisanal Products such as gifts, souvenir
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items, furniture, ornaments, houseware, garments, fabrics and textiles;
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(d) Arts and Crafts such as coco coir, weaves, bamboo products, paper artistry,
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and wood; and
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(e) Skills-based services and other products such as hUot or traditional Filipino
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massage, sculpting, essential oils and other wellness products, industrial
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goods, soaps and other personal care goods, and cosmetics.
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Sec. 7. Qualifications. - OTOP products included in the program must meet a
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set of criteria to be established by the DTI, provided that they are consistent with the
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following elements:
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(a) Culture - This shall pertain to cultural values that are rooted in the following:
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heritage, living traditions, local customs and rituals, local recipes passed on
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from generations, narratives, history, and beliefs.
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(b) Community resource - The locality's selected product shall be based on the
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availability of local resources, raw materials, skills, and network of resources
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within a community.
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(c) Connection - The selected products shall be able to evoke a sense of pride


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or emotional connection within the locals.
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(d) Creativity - The products selected for a locality shall be able to exemplify
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the Filipino people's creativity and innovation.
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(e) Competitive Advantage - The selection of the product or service shall be
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based on a locality's innate or endemic strength anchored on several
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variables such as topography, climate, geographical location, proximity to
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resources, among others.
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Sec. 8. Who May Qualify. - Beneficiaries of the OTOP Program shall be
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determined by the regional and provincial offices of the DTI, in cooperation with local
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government units (LGUs).
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Sec. 9. OTOP Program Components. - The DTI and LGUs shall make available
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a comprehensive package of assistance to OTOP Program beneficiaries, such as but
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not limited to the following:
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(a) Product Development - This component shall be considered as the primary
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instrument of assistance for the OTOP Program beneficiaries. It shall be
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focused on the following areas:
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(i) 
Product Design - involves assistance in the designing of new
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products, product adaptation, product diversification, or
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expansion of existing product lines;
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(ii) 
Packaging and Labelling - involve new packaging, improved
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package design, or labelling assistance;
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(iii) Technology Updating - involves workshops on various
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technology procedures, materials, and processing
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technologies, involves assistance on production techniques
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related to product development; and
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(iv) Product Enhancement - involves seminars to increase design
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awareness and appreciation of product/merchandise
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development, and the industrial design profession.
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(b) Capacity Building - This component shall address gaps In the
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entrepreneurial skills of the beneficiaries. It shall involve training


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opportunities that are focused on improving the human aspect of OTOP 
Philippines, including business skills training, entrepreneurial management 
and expansion, securing licenses, product registration and other market 
authorization, 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 to 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 in accessing the both local 
and foreign markets as well as 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 with the goal of promoting their products through 
online platforms.
(e) Access to Finance - This component shall facilitate access to financial 
institutions, credit provisions, loans, grants and incentives, and other 
sources of funding for purposes of business growth,, development, 
innovation, among others.
•Sec. 10. Lead Implementing Agency. - The DTI shall serve as the lead agency 
of this Act. An OTOP Management Committee shall be created to be designated by 
the DTI Secretary which shall have the main responsibility of directing the 
Implementation of the provision 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 within 
fifteen (15) working days from the effectivity of this Act.
The following agencies shall also assist the DTI in the implementation of the


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provisions of this Act:
(a) Cooperative Development Authority (CDA);
(b) National Economic and Development Authority (NEDA);
(c) Department of the Interior and Local Government (DILG);
(d) Technical Education and Skills Development Authority (TESDA);
(e) Department of Science and Technology (DOST);
(f) Department of Agriculture (DA); and
(g) Philippine International Trading Corporation (PITC).
Sec. 11. Creation of OTOP Program Office. - There 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; Provided, that the LGU has the option to create a separate OTOP PO for 
this specific purpose, or to merge the functions provided herein with those performed 
by any of its existing offices.
Sec. 12. Estabiishment of OTOP Phiiippines Hubs.-Ihe Department of Tourism 
(DOT), Civil Aviation Authority of the Philippines (CAAP), Philippine Ports Authority 
(PPA), Land Transportation and Franchising Board (LTFRB), and other similar agencies 
shall support the construction and allocation of spaces for the establishment of OTOP 
Philippines hubs.
To promote access to market, the DTI shall ensure that the OTOP Philippines 
hubs are established in strategic ports of entry, such as but not limited to airports, 
seaports, bus terminals, high-traffic retail outlets like malls, tourist destinations, and 
other consumer-frequented locations.
The DTI, in coordination with the agencies, shall formulate a comprehensive 
marketing and operations plan for the establishment of the OTOP Philippines hubs.
Sec. 13. Appropriations. - The amount necessary to carry out the provisions of 
this Act shall be charged against the appropriations released for the purposed 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.


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Sec. 14. Separability Clause. - Should any provision or part of this Act be 
declared unconstitutional or invalid, the other provisions and parts hereof, insofar as 
they are separable from the invalid ones, shall remain in full force and effect.
Sec. 15. Repealing Clause. - All laws, decrees, orders, issuances, rules and 
regulations or parts thereof which are inconsistent with this Act are hereby repealed 
or modified accordingly.
Sec. 16. Effectivity. - his Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation.
Approved,