Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

1171

HOUSE BILL NO.

Introduced by Honorable Bryan B. Revilla

| AN ACT

PROMOTING INCLUSIVE AND SUSTAINABLE ECONOMIC DEVELOPMENT

THROUGH THE INSTITUTIONALIZATION OF "ONE TOWN, ONE PRODUCT"
PHILIPPINES PROGRAM AND APPROPRIATING FUNDS THEREFOR

EXPLANATORY NOTE

‘The COVID-19 Pandemic has totally reshaped the world as we know it. It affected
people from different walks of life. One of the major industries that took the heavy brunt
from the pandemic are Micro, Small and Medium Enterprises (MSMEs). A lot MSMEs were
forced to reduce its operation if not close its doors totally. As we regain from the impact of
the pandemic, there is a need for total support to these MSMEs as they employ 63.19% of the

country’s workforce.

‘The government have existing trail blazing programs that supports MSMEs. In 2014
the Department of Trade and Industry launched the “One Town, One Product” (OTOP)
program. According to DTI in their 2021 report, the program has assisted nineteen thousand
six hundred sixty three (19,663) MSMEs all over the country and has developed seven
thousand six hundred twelve (7,612) new products which generated 2.1 billion sales in its
OTOP hubs.


This bill aims to institutionalize the OTOP Philippines Program to provide the necessary
support and to foster advancement among MSMEs through increased quality, technological
innovation, and diversification. Further, this bill will enable communities to determine,
develop, and promote products and services that are rooted in their culture, community

resources, creativity, connection, and competitive advantage.
This bill was originally filed by Magsasaka Partylist Representative Hon. Argel Joseph
T. Cabatbat in the 18* Congress and was passed in the Third Reading in the House of

Representatives.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

NB. REVILLA
Representative
AGIMAT Partylist



Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

Nineteenth Congress

I:
First Regular Session \ Pedi
1171 Se; fi y

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HOUSE BILLNO. 7" 4 O InvEsyY

Introduced by Honorable Bryan B. Revilla

AN ACT
PROMOTING INCLUSIVE AND SUSTAINABLE ECONOMIC DEVELOPMENT
THROUGH THE INSTITUTIONALIZATION OF "ONE TOWN, ONE
PRODUCT" PHILIPPINES PROGRAM AND APPROPRIATING FUNDS,
THEREFOR

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 "OTOP Philippines Act ".

SEC. 2. Declaration of Policy. ~ It is hereby declared the policy of the State to develop a self
reliant and independent national economy effectively controlled by Filipinos through policies and
programs that drive inclusive local economic activity and boost national economic growth, The State
also recognizes the indispensable role of the private sector and private enterprises and the necessity
to provide incentives to foster advancement among businesses especially local MSMEs.

‘Towards this end, the State shall equip MSMEs to progressively improve product and service
quality, and to utilize new technologies to pursuc innovation and diversification. The State shall
likewise promote the preferential use of Filipino labor, domestic materials, and locally produced
goods, and adopt measures to make them competitive. The State shall further provide adequate and
effective support services for MSMEs to enable communities to determine, develop, and promote
products and services that are rooted in their culture, community resources, creativity, connection
and competitive advantage.

SEC. 3. Objectives. — This Act aims to:

(a) Provide a package of assistance for MSMEs with minimum viable products to develop new,
innovative, and more complex products with significant improvement in the areas of quality,
product development, design, packaging, standards compliance, marketability, production
capability, and brand development, among others;


(b) Assist rural communities in achieving competitive and innovation-driven local economies;

(c) Promote convergence of initiatives from local government units (LGUs), national
government agencies (NGAs), and the private sector in the development and promotion of
Philippine products, whether for export or domestic market; and

(d) Establish the "One Town, One Product” (OTOP) Philippines Trustmark as a guarantee of
excellence in OTOP Philippines products and services.

SEC. 4, Institutionalization of One Town, One Product Philippines Program. ~ The One
Town, One Product Philippines Program, herein referred to as OTOP Philippines, is hereby
institutionalized to serve as the government's stimulus program for the promotion and development
of MSMESs in the countryside through the use of indigenous raw materials and the utilization of
local skills and talents.

SEC. 5. Program Components. — The Department of Trade and Industry (DTI), in
partnership with the LGUs, shall provide a comprehensive package of assistance to OTOP
Philippines Program beneficiaries, such as the following:

(a) Product Development, including:

(i) Product Design — design assistance to new products, product adaptation, product
diversification, and expansion of existing product lines;

Gi) Packaging and Labeling assistance to new packaging, improvement of package
design, or labeling;

(iii) Technology Updating — conduct workshops on new technology procedures,
materials, and processing to increase production quality and quantity; and

(iv) Product Enhancement — provide seminars to increase design awareness and
appreciation of product or merchandise development and the industrial design
profession,

(b) Capacity Building shall be provided through training opportunities focusing on improving
the human aspect of OTOP Philippines, including business skills training and business
counseling:

(c) Standards and Market Compliance where beneficiaries shall be trained and capacitated to
observe standards and comply with the requirements of DTI-Bureau of Philippine Standards,
Food and Drug Administration, and the Intellectual Property Office of the Philippines, and
other concerned government agencies. Monitoring and cvaluation schemes shall be


developed and maintained to ensure that products under the OTOP Philippines conform to
these standards; and

(d) Market Access and Product Promotion where beneficiaries shall receive support in market
access and promotion of products across different platforms, These platforms may include
multimedia advocacy campaigns, trade fairs, and OTOP Philippines Hubs.

SEC. 6. Coverage. — The OTOP Philippines Program shall cover material products and
skills-based services known to an area or locality. This shall include the following products and
services:

(a) Agricultural-based Products such as coffee, cacao, other agricultural produce, agri-processed
products like processed meats, coconut oil, preserved and processed seafood products;

(b) Arts and Crafts such as coco coir, weaves, bamboo, paper artistry, and wood;

(c) Home & Fashion/Creative Artisanal Products such as gifts, souvenir items, furniture,
ornaments, houseware, garments, and textiles;

(d) Processed Food such as fruits and nuts, local delicacies and kakanin (sticky rice cakes),
juices, wines, tea, and other beverages, pastries and baked goods, preserved food sauces,
cakes, other desserts products, food supplements, and culinary-based specialty products; and

(e) Skills-based Services and Other Products such as hilo or traditional Filipino massage,
sculpting, essential oils and other wellness products, industrial goods, soaps and other
personal care goods, and cosmetics.

SEC. 7. OTOP Philippines Trustmark. — The DTI shall establish the OTOP Philippines
Trustmark that shall signify that the services and products have been marked excellent in terms of
quality, design, value, and marketability. It shall be a symbol representing the country's best
products.

SEC. 8. Establishment of OTOP Philippines Hubs. - The Department of Tourism (DOT),
Civil Aviation Authority of the Philippines (CAAP), Philippine Ports Authority (PPA), Land
Transportation and Franchising Regulatory Board (LTFRB), and other relevant agencies shall
construct and allocate spaces for the establishment of OTOP Philippines Hubs.

SEC. 9. Beneficiaries, — The regional and provincial offices of the DTI shall, in cooperation
with the concerned LGUs, determine the beneficiaries of the OTOP Program. The guidelines and


mechanism for the selection of beneficiaries shall be formulated by the implementing agencies
identified by this Act.

SEC. 10. Creation of the OTOP Program Office. - Every LGU shall create an OTOP
Program Office (OTOP PO) managed by an officer who shall administer, supervise, and implement
the OTOP Program.

SEC. 11, Implementing Agencies. — The DTI shall implement the provisions of this Act, in
coordination with the following agencies:

(a) Cooperative Development Authority (CDA);

(b) Department of Interior and Local Government (DILG);

(c) Technical Education and Skills Development Authority (TESDA):

(d) Department of Science and Technology (DOST);

(c) Department of Agriculture (DA); and

(f) DOT

SEC. 12. Appropriations. — The amount necessary to carry out the initial implementation of
this Act shall be charged against the current year's appropriations of the DTI. Thereafter, such
amount as may be necessary for the continued implementation of this Act shall be included in the
annual General Appropriations Act. The LGUs concemed shall set aside the amount needed for the
operation of the OTOP PO under Section 10 hereof.

SEC. 13. Implementing Rules and Regulations. — Within sixty (60) days from the
effectivity of the Act, the DTI shall, in coordination with the other implementing agencies,
formulate and promulgate the necessary rules and regulations to effectively implement the
provisions of this Act.

SEC. 14, Separability Clause. ~ If any provision of this Act is declared unconstitutional or
invalid, the provisions hereof which are not affected shall continue to be in force and effect.

SEC. 15. Repealing Clause. — All laws, decrees, proclamations, issuances, or ordinances that
are contrary to or inconsistent with the provisions of this Act are hereby amended, repealed, or
modified accordingly.


SEC. 16. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,