NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S.B. No. 590
#>enalf
*22 JUL 14 All m
RECEIVED BY; 
^
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
PRIORITIZING DOMESTICALLY MANUFACTURED VEHICLES IN PUBLIC 
PROCUREMENT
EXPLANATORY NOTE
The automotive manufacturing sector is seen as one of the key sectors of the 
economy because of its strong backward linkages. Based on the 2012 input output table, 
a one peso increase in final demand for transport equipment yields, on top of direct 
expenditure, an additional 2.8 pesos increase in output of other sectors. Thus, an increase 
in demand for domestic manufacturing of automotive vehicles will spur new economic 
activities that will generate employment and income, apart from sustaining domestic car 
manufacturers and their workers.
The government has acknowledged the importance of the automotive 
manufacturing sector as a key sector of the economy. This is why in 2015, Executive 
Order No. 182, or the Comprehensive Automotive Resurgence Strategy Program (CARS), 
was promulgated to encourage the domestic manufacturing of motor vehicles, spur new 
economic activities, create employment, and build competitiveness of domestic industry.
Four years into the program, the domestic automotive manufacturing sector has 
shown some resurgence, but only for a short period. Unfortunately, the COVID pandemic 
has not spared the domestic automotive manufacturing sector with the lockdown 
deterring consumers from purchasing new vehicles. Changes in consumer behavior are 
expected to reduce the demand for, and hence, production of motor vehicles at least in 
the short run, as well as employment in the sector.
Government demand for automobiles can serve as stimulus to car manufacturing. 
In 2019, the government registered 16,443 new vehicles with the Land Transportation


Office, spending an estimated 8 billion pesos. Based on this figure, government purchases 
of new vehicles will produce an additional economic output of about 14 billion pesos 
because of multiplier effects, and a total of 14 thousand new jobs. However, this will only 
be possible if the government purchased vehicles manufactured domestically.
Hence, the immediate passage of this measure is earnestly sought.
RISA HONHVEROS V 
Senator


I
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
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■22 JUL 14 All «8
SENATE
S.B. No. 590
RHCEiVi;D B'j'
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
PRIORITIZING DOMESTICALLY MANUFACTURED VEHICLES IN PUBLIC 
PROCUREMENT
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act be known as the "Domestic Vehicle
2 
Procurement Act of 2021."
3 
Sec. 2. Declaration of Policy. - The Constitution provides that the State shall
4 
promote the preferential use of Filipino labor, domestic materials and locally produced
5 
goods, and adopt measures that help make them competitive. Thus, it shall be the
6 
policy of the State to prioritize domestically manufacture or produced vehicle In public
7 
procurement.
8 
Sec. 3. Coverage. - This Act shall apply to the procurement of vehicles by all
9 
branches and instrumentalities of government, its departments, offices and agencies,
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including government-owned and/or-controlled corporations and local government
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units.
12 
Sec. 4. Prioritization of Domestically Manufactured Vehicles in Public
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Procurement. - In all public procurement Involving the purchase of motor vehicles, the
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government shall be required to procure only those manufactured domestically and,
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also, in public procurement involving lease or rental of vehicles the government shall
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be required to procure from service providers at least 50 percent of whose fleets are
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composed of domestically-manufactured vehicles acquired in the five (5) years
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preceding the date of procurement - unless no such vehicles meeting the required
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specifications or possessing the required capabilities are manufactured or produced
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within the Philippines.
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Sec. 5. Implementing Rules and Regulations. - Within sixty (60) days from the
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promulgation of this Act, the necessary rules and regulations for the proper
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implementation of its provisions shall be formulated by the Department of Trade &
1


1 
industry, Department of Budget & Management, and the Government Procurement
2 
Policy Board.
3 
Sec. 6. Separability Clause. - If any provision of this Act is declared
4 
unconstitutional or Invalid by a court of competent jurisdiction, the remaining provisions
5 
not affected thereby shall continue to be in full force and effect.
6 
Sec. 7. Repealing Clause. - All laws, decrees, executive orders, department or
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memorandum orders and other administrative issuances or parts thereof which are
8 
inconsistent with the provisions of this Act, are hereby modified, superseded or
9 
repealed accordingly.
10 
Sec. 8. Effectivity. - This Act shall take effect fifteen (15) days after publication
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in the Official Gazette or in at least two (2) newspapers of general circulation.
Approved,