EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
)
SENATE 
S. No. 1896
Ilu date:
ICO
time:
RECEIVED
E-FILED
«i£Z* 1
Nov 04 2020 m
”—............ </>\
1:55 p.m.
INDEX.
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
INSTITUTIONALIZING THE ONE TOWN, ONE PRODUCT (OTOP) 
PHILIPPINES PROGRAM, APPROPRIATING FUNDS THEREFOR, AND FOR 
OTHER PURPOSES
EXPLANATORY NOTE
The Philippine archipelago is blessed with a multitude of natural resources and 
indigenous skill sets. Each municipality has its own unique character and cultural mark 
shaped by its geography, history, and traditions that distinguish it from any other 
locality. Such unique and authentic identity can very well be reflected to its product 
and service offerings - one of a kind.
This proposed measure seeks to institutionalize and further develop the One 
Town, One Product Program, which has seen success over the past decade. OTOP, 
whose concept comes from Japan and had been adopted by many countries around 
the world, has been implemented in the country since 2002. It was strengthened by 
Executive Order No. 176, s. 2003, through the "Isang Bayan, Isang Produkto, Isang 
MHyong Piso Program" which aimed at "stimulating local economic activity and small 
and medium enterprise (SME) growth, generating jobs, developing the countryside 
and sustaining the anti-poverty thrust of government through countrywide lending to 
SMEs."
For 2019, the Department of Trade and Industry reported that OTOP Philippines 
generated P1.41 billion worth of sales. Moreover, in the same period a total of 10,819


Micro, Small and Medium enterprises were assisted by the OTOP program and 
provided 6,771 product development services.1
This bill intends to build on the gains achieved by the program and provide the 
legal mandate for its continued and effective implementation. Under this bill, a range 
of support services will be provided to qualified MSMEs in developing, innovating and 
promoting their products both in the domestic and foreign markets. OTOP will also 
empower the local economies, especially the countryside, in light of the recent policy 
thrusts of decongesting the National Capital Region and providing more livelihood 
opportunities at the rural areas. Lastly, it aims to assist the recovery of entrepreneurs 
following the widespread ill impact of the Covid pandemic, through sustainable use of 
local resources and talents.
In this light, the immediate passage of this bill is highly recommended.
RAMOI^ONG REVILLA, JR.
1 "OTOP generates P1.4-B sales in 2019." https://www.pna.eov.ph/artlcles/1093539
2


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
)
SENATE 
S. No. 1896
^ o
111 DATE 
CO
tjme:
Nov 04 2020 m
1:55 p.m.
NDEX
Introduced by SENATOR RAMON BONG REVILLA, JR.
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 Representative of the Philippines in Congress 
assembled:
1 
Section 1. Short Title. - This Act shall be known as the ''OTOP Philippines Act
2 
of2020."
3 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
4 
ensure the prosperity of the nation through policies and programs that drive inclusive
5 
locai economic activity and boost national economic growth.
6 
The State further recognizes the role of Micro, Smali and Medium Enterprises
7 
(MSMEs) and the support that the State and local government units (LGUs) shail
8 
provide in enabling communities to determine, develop, support and promote products
9 
or services.
10 
Sec. 3. Objectives. - The Objectives of this Act are as follows:
11 
(a) To provide a package of assistance for MSMEs with viable products in order
12 
to develop new, innovative, and more complex products, with significant
13 
improvement in the areas of quality, product development, volume, design,
14 
packaging, standards compliance, marketabiiity, production capabiiity,
15 
brand development, sustainability, among others;


1 
(b) To assist rural communities in growing the local economy and be more
2 
market-oriented and innovation-driven;
3 
(c) To promote convergence of initiatives from local government units, national
4 
government agencies, and the private sector in the development and
5 
promotion of Philippine products, whether for export or for domestic
6 
rriarket; and
7 
(d) To enable the recovery of local economies, especially the countryside, from
8 
the adverse effects of the Covid-19 pandemic, and further promote rural
9 
development, through the encouragement of growth of MSMEs, generation
10 
of employment and livelihood opportunities, and the sustainable use of
11 
community resources.
12 
Sec. 4. Definition of Terms.- The following terms shall be defined as follows:
13 
(a) Large enterprises - refer to enterprises with asset size of more than One
14 
Hundred Million Pesos (P100,000,000.00) and with more than 199
15 
employees. Large enterprises shall not be covered by this Act.
16 
(b) Non-MSME products - refer to products which fall under the category of
17 
services offered by MSMEs. These include transport services, agri-tours,
18 
among others.
19 
Sec. 5. OTOP Philippines. - To meet the declared policy of the State, the One
20 
Town, One Product (OTOP) Philippines Program is hereby institutionalized and shall
21 
be one of the government's stimulus programs that will encourage the growth of
22 
MSMEs in the countryside through the development of indigenous raw materials,
23 
utilizing local skills and talents and featuring local traditions and cultures across the
24 
country.
25 
Sec. 6. OTOP Philippines Trustmark. - The Department of Trade and Industry
26 
(DTI) is hereby authorized to establish the OTOP Philippines Trustmark, which is an
27 
assurance that the products under the program represent the country's best. The
28 
OTOP Philippines Trustmark shall signify that the business and products have been
29 
marked excellent in terms of quality, design, value and marketability.
30 
Sec. 7. Coverage. - The OTOP Philippines Program shall cover material
31 
products and skills-based services known to an area or locality. This shall include, not
32 
limited to, the following products and services:


1 
(a) Processed food such as fruits and nuts, local delicacies, juices, wines, tea
2 
and other beverages, pastries and baked goods, preserved food sauces,
3 
cakes and desserts products, food supplements, and culinary-based
4 
specialty products;
5 
(b) Agricultural-based products ‘ such as coffee, cacao, other agricultural
6 
produce, agri-processed products like processed meats, coconut oil,
7 
preserved and processed seafood products;
8 
(c) Home and Fashion/Creative Artisanal Products such as gifts, souvenir items,
9 
furniture, ornaments, houseware, garments, fabrics and textiles;
10 
(d) Arts and Crafts such as coco coir, weaves, bamboo products, paper artistry,
11 
and wood;
12 
(e) Skills-based services and other products such as hibtor traditional Filipino
13 
massage, sculpting, essential oils and other wellness products, industrial
14 
goods, soaps and other personal care goods, and cosmetics.
15 
Sec. 8. Qualifications. - OTOP products included in the program must meet the
16 
set criteria to be established by the DTI, provided that they are consistent with the
17 
following elements:
18 
(a) Culture - This shall pertain to cultural values that are rooted in the
19 
following: heritage, living traditions, customs and rituals, recipes passed on
20 
from generations, narratives, history, and beliefs.
21 
(b) Community resource - The locality's selected product shall be based on the
22 
availability of local resources, raw materials, indigenous skills and network
23 
of resources within a community.
24 
(c) Connection - The selected products shall be able to evoke a sense of pride
25 
or emotional connection among the locals.
26 
(d) Creativity - The products selected for a locality shall be able to exemplify
27 
the Filipino people's creativity, craftsmanship and innovation.
28 
(e) Competitive advantage - The selection of the product or service shall be
29 
based on a locality's innate or endemic strength anchored on several
30 
variables such as topography, climate, geographical location, proximity to
31 
resources, among others.


1 
Sec. 9. Who May Qualify. - Beneficiaries of the OTOP Program shall be
2 
determined by the regional and provincial offices of the DTI, in cooperation with local
3 
government units.
4 
Sec. 10. OTOP Program Components. - The DTI and LGUs shall make available
5 
a comprehensive package of assistance to OTOP Program beneficiaries, such as, but
6 
not limited to, the following:
7 
(a) Product Development - This component shall be considered as the primary
8 
instrument of assistance for the OTOP Program beneficiaries. It shall be
9 
focused on the following areas:
10 
(i) Product Design-involves assistance in the designing of new products,
11 
product adaptation, product diversification, or expansion of existing
12 
product lines.
13 
(ii) Packaging and Labeling - involve new packaging, improved package
14 
design, or labelling assistance.
15 
(iii) Technology updating - involves workshops on various technology
16 
procedures, materials, and processing technologies, involves
17 
assistance on production techniques related to product development,
18 
systems efficiency and supply management.
19 
(iv) Product Enhancement - involves seminars to increase design
20 
awareness and appreciation of product/merchandise development
21 
and the industrial design profession, as well as enhanced artisanal
22 
skills and craftsmanship anchored on the preservation and protection
23 
of indigenous culture, arts and practices.
24 
(b) Capacity Building - This component shall address gaps in the
25 
entrepreneurial skills of the beneficiaries. It shall involve training
26 
opportunities that are focused on improving the human aspect of OTOP
27 
Philippines, including business skills training, entrepreneurial management
28 
and expansion, and business counselling.
29 
(c) Standards and Market Compliance - For the preservation of the OTOP
30 
brand as a mark of excellence, the beneficiaries shall be capacitated to
31 
observe standards through compliance to the requirements of other
32 
government agencies such as the DTI-Bureau of Philippine Standards (DTI-


1 
BPS), Food and Drug Administration (FDA), and the Inteliectual Property
2 
Office of the Philippines (IPOPHL). A monitoring and evaluation scheme
3 
shali be developed and maintained to ensure that products under the OTOP
4 
Phiiippines conform to standards.
5 
(d) Market Access and Product Promotion - This component shall provide
6 
support in accessing the market, promoting products across different
7 
piatforms and establishing linkages with industry associations,
8 
cooperatives, advocates, promoters and relevant stakeholders. These
9 
platforms may include, but not limited to, multimedia advocacy campaigns,
10 
trade fairs, and OTOP Phiiippines Hubs. The DTI shall also capacitate
11 
suppliers with the goal of promoting their products through oniine
12 
platforms.
13 
(e) Access to Finance - This component shall facilitate access to financial
14 
Institutions, credit provisions, loans, grants and incentives, and other
15 
sources of funding for purposes of business growth, development,
16 
innovation, among others.
17 
Sec. 11. Lead Implementing Agency. - The DTI shall serve as the lead agency
18 
of this Act. There shall be created an OTOP Management Committee to be designated
19 
by the DTI Secretary which shall have the main responsibility of directing the
20 
implementation of the provisions of this Act. The OTOP Management Committee shail
21 
be composed of offices and attached agencies under the DTI, such as but not limited
22 
to the Bureau of Phiiippine Standards and the Inteilectual Property Office of the
23 
Philippines. The DTT Secretary shail create the OTOP Management Committee fifteen
24 
(15) working days from the effectivity of this Act.
25 
The foiiowing agencies shall also assist the DTI in the impiementation of the
26 
provisions of this Act:
27 
(a) Cooperative Development Authority (CDA);
28 
(b) National Economic and Development Authority (NEDA);
29 
(c) Department of the Interior and Local Government (DILG);
30 
(d) Technical Education and Skills Development Authority (TESDA);
31 
(e) Department of Science and Technology (DOST);
32 
(f) Department of Agriculture (DA); and


1 
(g) Department of Tourism (DOT).
2 
Sec. 12. Creation of the OTOP Program Office. - There is hereby created the
3 
OTOP Program Office (OTOP PO) in each LGU which shaii direct, supervise, and
4 
implement the OTOP Program on the locai ievei, in accordance with existing iaws,
5 
rules and regulations; Provided, That the LGU has the option to create a separate
6 
OTOP PO for this specific purpose, or to merge the functions provided herein with
7 
those performed by any of its existing offices.
8 
Sec. 13. Estabiishment of OTOP Phiiippines Hubs. -The Department of Tourism
9 
(DOT), Civil Aviation Authority of the Philippines (CAAP), Philippine Ports Authority
10 
(PPA), Land Transportation Franchising and Regulatory Board (LTFRB), and other
11 
relevant agencies are mandated to construct and allocate spaces for the establishment
12 
of OTOP Philippines Hubs.
13 
Sec. 14. Appropriations. - The amount necessary to carry out the provisions of
14 
this Act shall be charged against the appropriations released for the purpose under
15 
the General Appropriations Act (GAA) for the DTI. Thereafter, such sums as may be
16 
necessary for its continued implementation shall be included in the annual GAA.
17 
Sec. 15. Separabiiity Ciause. — If any provision or part hereof is held invalid or
18 
unconstitutional, the remainder of the law or the provision or part not otherwise
19 
affected shall remain valid and subsisting.
20 
Sec. 16. Repeaiing Ciause. - Any law, presidential decree or issuance, executive
21 
order, letter of instruction, administrative order, rule, or regulation contrary to or
22 
inconsistent with the provisions of this Act are hereby repealed, modified, or amended
23 
accordingly.
24 
Sec. 17. Effectivity. - This Act shall take effect fifteen (15) days after its
25 
publication in the Officiai Gazette or in a newspaper of general circulation.
26
Approved