Util IT
NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S.B. No.
SENATE
181
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*22 JUL-7 P4 33
RECEIVED BY;
Introduced by SENATOR IMEE R. MARCOS
AN ACT STRENGTHENING DOMESTIC HEALTHCARE MANUFACTURING 
INDUSTRIES, PROVIDING FOR THE PROTECTION AGAINST PANDEMIC,
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article II, Section 15 of thel987 Constitution provides that "the State shall 
protect and promote the right to health of the people and instill health consciousness 
among them."
To date, the Philippines now has a total of 3,741,859 corona virus 2019 (COVID- 
19) cases which makes it the 36th country (out of 230 countries) with the highest 
number of COVID-19 cases. While, its total deaths have already reached 60,555.
Even in the initial stage of the battle against COVID-19, frontline healthcare 
workers have repeatedly expressed their dismay on the dangerously low supply of 
Personal Protective Equipment (PPE) which are crucial in the performance of their 
duties. According to the World Health Organization (WHO), between 80,000 and 
180,000 healthcare workers may have died from COVID-19 between January 2020 and 
May 2021.


In the Philippines, as a result of such shortage, 3,114 healthcare workers have 
been infected with COVID-19 (as of January 2022), a tragedy that could have been 
prevented If proactive measures were taken early on.
The Department of Health (DOH) has been under fire for having acquired 
allegedly overpriced set of PPEs amounting to PhP 1.8 billion when there are local 
manufacturers who can readily produce the same medical equipment for a much 
cheaper price. According to the Department of Trade and Industry (DTI), we are now 
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 be able to boost 
local economy and increase labor and employment in the country.
Thus, this bill 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.
For the foregoing reasons, the passage of this bill is earnestly sought.
IMEE R. MARCOS


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
~.40ffic^ of M p - pfnn
'22 JUL “7 P4 33
S.B. No.
SENATE
181
RliCElVCO BV,
A
Introduced by SENATOR IMEE R. MARCOS
AN ACT STRENGTHENING DOMESTIC HEALTHCARE MANUFACTURING 
INDUSTRIES, PROVIDING FOR THE PROTECTION AGAINST PANDEMIC,
AND FOR OTHER PURPOSES
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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.


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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. 
be understood as follows:
For purposes of this Act, the following terms shall
(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, 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.


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(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 Authority (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


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or made in the Philippines; Providedf 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. 
promulgate the rules to implement this Act.
The DTI, DOH and BOI shall
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 after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,