Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila
Twentieth Congress 
First Regular Session 
HOUSE BILL NO. 1420 
Introduced by HON. ROMERO FEDERICO “MIRO” QUIMBO 
EXPLANATORY NOTE 
Government procurement plays a vital role in shaping economic outcomes. 
By setting the terms for what products and services the government purchases, it 
can influence market incentives, boost domestic industry, and foster competition. 
This bill seeks to amend Section 12 of Republic Act No. 11981 or the “Tatak 
Pinoy Act” by prescribing a clear ceiling for the margin of preference in favor of 
Philippine products and services in government procurement. Under the 
amendment, the Department of Trade and Industry (DTI), in consultation with the 
Tatak Pinoy Council, may set a margin of preference of no less than 15% and no 
more than 50%, to be periodically reviewed. 
This amendment aims to strike a balance between promoting the 
competitiveness of Filipino products and allowing room for adequate competition 
in the procurement process. By clarifying the allowable range for preference, the 
amendment ensures predictability and transparency for suppliers while aligning 
procurement incentives with the country’s strategic development goals under the 
Tatak Pinoy Strategy. 
July 7, 2025
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Ultimately, this measure will help support Filipino producers, foster 
innovation and quality improvement, and strengthen our domestic industries—
without compromising value or quality in public spending. 
       HON. ROMERO FEDERICO “MIRO” QUIMBO 
         Representative 
      Second District, Marikina City  


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Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Twentieth Congress 
First Regular Session 
HOUSE BILL NO. 1420 
Introduced by HON. ROMERO FEDERICO “MIRO” QUIMBO 
AN ACT 
AMENDING SECTION 12 OF REPUBLIC ACT NO. 11981, OTHERWISE 
KNOWN AS THE "TATAK PINOY (PROUDLY FILIPINO) ACT," BY 
PRESCRIBING A MAXIMUM MARGIN OF PREFERENCE FOR 
PHILIPPINE PRODUCTS AND SERVICES IN GOVERNMENT 
PROCUREMENT, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in the 
Congress assembled: 
SECTION 1. Amendment. – Section 12 of Republic Act No. 11981, otherwise 
known as the “Tatak Pinoy (Proudly Filipino) Act,” is hereby amended to read as 
follows: 
“SEC. 12. Domestic Preference in Government Procurement. — For a 
period of ten (10) years, preference and priority shall be given to Philippine 
products and services in sectors and economic activities covered by the 
prevailing Tatak Pinoy Strategy (TPS): Provided, That the preference and 
priority for Philippine products shall be guaranteed at all levels of the 
procurement process, including raw materials, ingredients, supplies, or 
fixtures: Provided, further, That within fifteen (15) days from the effectivity 


 
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of this Act, the Tatak Pinoy Council shall issue a list of Philippine products 
and services that shall be immediately given preference and priority 
pending the formulation of the TPS: 
Provided, furthermore, That the preference herein established may 
be waived should any of the following conditions be present: 
(a) Where domestic production is insufficient or unavailable in the required 
commercial 
quantities; 
(b) 
Where 
the 
specific 
or 
desired 
quality 
is 
not 
met; 
(c) Where domestic preference will result in inconsistencies with the 
Philippines’ 
obligations 
under 
international 
agreements; 
or 
(d) Other analogous circumstances. 
After the ten (10)-year period, the domestic preference provided 
herein shall be subject to the margin of preference to be determined by the 
TP Council which should not be lower than fifteen percent (15%); AFTER 
THE TEN (10)-YEAR PERIOD, THE DOMESTIC PREFERENCE 
PROVIDED HEREIN SHALL BE SUBJECT TO A MARGIN OF 
PREFERENCE OF NOT LESS THAN FIFTEEN PERCENT (15%) AND 
NOT MORE THAN FIFTY PERCENT (50%), AS DETERMINED AND 
PERIODICALLY REVIEWED BY THE DEPARTMENT OF TRADE AND 
INDUSTRY (DTI) IN CONSULTATION WITH THE TATAK PINOY 
COUNCIL AND RELEVANT STAKEHOLDERS; Provided, That this 
period for domestic preference may be extended by Act of Congress. 
IN 
DETERMINING 
THE 
APPROPRIATE 
MARGIN 
OF 
PREFERENCE, THE DTI SHALL CONSIDER THE COMPETITIVENESS 
OF PHILIPPINE PRODUCTS AND SERVICES, PREVAILING MARKET 
CONDITIONS, AND THE STRATEGIC PRIORITIES IDENTIFIED IN 
THE TATAK PINOY STRATEGY (TPS). 
For products and services not covered by the prevailing TPS, all 
government agencies and instrumentalities shall strictly adhere to the 


 
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domestic preference rules provided under Republic Act No. 9184, otherwise 
known as the “Government Procurement Reform Act,” and its 
implementing rules and regulations.” 
SEC. 2. Implementing Rules and Regulations. — Within sixty (60) days 
from the effectivity of this Act, the Department of Trade and Industry, in 
coordination with the Tatak Pinoy Council and relevant government agencies, 
shall promulgate the necessary rules and regulations to implement the provisions 
of this Act.  
 
SEC. 3. Separability Clause. — If any provision of this Act is declared 
unconstitutional or invalid, the other provisions not affected thereby shall remain 
in full force and effect. 
 
SEC. 4.  Repealing Clause. — All laws, decrees, executive orders, rules and 
regulations, and other issuances or parts thereof inconsistent with this Act are 
hereby repealed or modified accordingly. 
 
SEC. 28. Effectivity. — This 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,