SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 1270 
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Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
In the past year, there has been a marked increase in the demand for Philippine-
made footwear. The drastic growth has led to the industry being referred to as one of 
the country's "sunrise" industries. The demand for local footwear has been observed in 
both the domestic and international markets. 
Despite the increased demand for local footwear, there has been a trend towards 
a dwindling local footwear industry. In 1994 there were 513 local manufacturers in the 
Marikina area alone. This number decreased to 188 manufacturers in 2003 and to a 
meager 31 manufacturers in 2011. 
It seems that the techniques and creativity 
appreciated by the market, both local and abroad, are limited to a few innovative 
manufacturers. This monopoly of skill has caused many footwear manufacturers to 
close despite increased demand for local footwear. Hence, there is a need to provide 
training to footwear manufacturers and workers in order to promote expansion and 
growth in the industry. 
This proposed measure creates a National.Footwear Training Academy (NFTA) 
under the direct supervision and control of the Department of Trade and Industry (DTI) 
that shall provide high quality training and research for footwear production and its 
related downstream industries. The NFTA shall be a training institution committed to the 
pursuit of excellence through the provision of education, training, technology transfer, 
and research and development (R&D). The NFTA shall maintain a proactive 
environment where the latest methods and technologies in footwear production and 
tanning are applied to provide state-of-the-art and comprehensive training to develop 
the competitiveness of local manufacturers in the field of local footwear production. 
This measure also mandates Land Bank of the Philippines (LBP) to formulate a 
Local Footwear Industry Modernization Credit Facility and Loan Package Window which 
will provide low interest loans for local footwear manufacturers and suppliers seeking to 
improve and modernize their production facilities, equipment, and services in order to 
revive and make competitive the local footwear industry in the country. 
The passage of this measure is earnestly sought. 
EL "LITO" M, LAP~9 
Senator 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
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First Regular Session 
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AUG 13 P 3 :05 
SENATE 
1270 
s. No. --=:::":":"_. 
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Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
ESTABLISHING A COMPREHENSIVE PROGRAM TO REVIVE THE LOCAL 
FOOTWEAR INDUSTRY IN THE COUNTRY, ESTABLISHING THE 
NATIONAL FOOTWEAR TRAINING ACADEMY (NFTA), 
AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 
1. 
Short Title. - This Act shall be known as the "Local 
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Footwear Industry Competitiveness Act of 2013". 
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SEC. 2. 
Declaration of Policy. -
The State recognizes the indispensable 
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role of the private sector in national economic growth. As such, it is the policy of the 
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'State to encourage the growth of private enterPrises and to provide incentives for 
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needed investments, especially to local entrepreneurs. Further, the State shall 
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encourage the growth of creativity in local businesses. 
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Towards these ends, the State shall exert efforts to promote sustainable growth 
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for the country's local industries by building a business environment conducive to the 
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development of creativity, ingenuity, and innovativeness. 
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Particularly, the State shall provide the mechanisms to maintain, update, and 
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improve the scientific knowledge, technical skill, and competence of production workers 
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in the local footwear industry. 
In line with this thrust, the State shall give priority to 
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research and development in the footwear industry and shall promote, as far as 
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practicable, the use of local resources to promote international competitiveness and 
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local employment. 
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SEC. 3. 
Establishment of a National Footwear Training Academy 
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(NFTA). - There is hereby established and created a National Footwear Training 
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Academy (NFTA), hereinafter referred to as the "Academy", under the direct supervision 
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and control of the Secretary of the Department of Trade and Industry (DTI), which is 
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envisioned to provide the highest quality training and research in the field of footwear 
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production and its related downstream industries. 
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The Academy shall be a training institution committed to the pursuit of excellence 
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through the provision of education, training, technology transfer, and research and 
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development (R&D) in the field of footwear. The Academy shall maintain a proactive 
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environment wherein the latest methods and technologies in footwear production and 
8 
tanning are applied to provide state-of-the-art and comprehensive training to develop 
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the competitiveness of manufacturers in local footwear production. 
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SEC. 4. 
Objectives. - The Academy shall be established to serve the 
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following objectives: . 
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a) 
To train and make competitive footwear manufacturing companies, 
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entrepreneurs, footwear distributors, suppliers, and various stakeholders in the footwear 
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industry and its related downstream industries; 
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b) 
To serve as the primary training institution in the country in footwear 
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production and manufacturing that will provide the enabling mechanisms to revive and 
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make the industry competitive; 
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c) 
To train key players in the footwear industry and provide them with the 
latest footwear production technologies and methods; 
d) 
To serve as a Center for Excellence in the provision of comprehensive 
and state-of-the-art training and technical assistance; 
e) 
To serve as the primary researoh, arm of the government in footwear 
science and manufacturing and serve as an authoritative source of information; 
f) 
To upgrade quality standards and cost efficiency in the production of 
footwear. 
SEC. 5. 
Powers and Functions. - The Academy shall have all legal powers 
appertaining to a juridical person, particularly the following: 
a) 
b) 
c) 
d) 
e) 
to sue and be sued; 
to enter into contracts; 
to hold real and personal property as may be necessary for its mandated 
purposes; 
to mortgage, lease, sell, transfer, convey, and otherwise dispose of its real 
and personal property; 
to solicit and receive public and private donations and contributions 
related to footwear production and manufacturing; 
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,If) . to . accept and' receive real and personal property by gift, devise, or 
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bequest; 
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g) 
to levy and collect minimal dues and fees from its trainees for its services; 
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h) 
to adopt a seal and to alter the same; 
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i) 
to have offices and conduct its affairs in the Metro Manila area and 
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elsewhere; 
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j) 
to make and adopt by-laws and rules and regulations not inconsistent with 
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the laws of the Philippines; and 
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k) 
to do all such acts and things as may be necessary or proper to carry into 
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effect and promote the purposes for which it was organized. 
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The seal and emblem of the Academy shall be kept in its national office. 
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SEC. 6. 
Personal Conduct of Students and Faculty - The National 
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Footwear Training Academy (NFTA) is a training and research institution that strives to 
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maintain a safe and healthy environment to promote learning in a professional and 
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competitive setting. Trainees are expected to exercise tolerance and to respect and 
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celebrate differences among individuals. At no time shall the Academy tolerate: 
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a) 
Harassment of any kind; 
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b) 
Racial, religious or sexual slurs; 
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c) 
Inappropriate language; 
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d) 
Damage to property; and 
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e) 
Any action which jeopardizes the comfort, safety or health of others 
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' I .. " 
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SEC. 7. 
NFTA Academic Board. - The Academy shall have an Academic 
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Board composed of the Administrator, the Dean of the Corps of Professors, the Head 
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Training Officer, and the Heads of the Departments. 
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The Administrator and Head Training Officer of the Academy shall be appointed 
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by the President of the Republic of the Philippines. 
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The Academic Board shall have the power to confer certificates and diplomas to 
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all trainees, upon the satisfactory completion of the approved course of studies, under 
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such rules and regulations as the Secretary of the Department of Trade and Industry 
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(DTI) may prescribe. 
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Such other diplomas as may be needed in the future shall be conferred, provided 
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that the Academic Board shall determine the corresponding academic degrees in 
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consonance with the needs of the footwear industry in the country. The Academy shall 
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develop courses and the necessary expertise as the need arises. 
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SEC. 8. 
Sources of Funds. - The funds of the National Footwear Training 
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Academy shall be derived from dues and assessments, donations, bequests, 
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contributions of its students and trainees, and income from conventions, seminars, 
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corporate trainings, and other fund raising activities. 
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SEC. 9. 
Technical Assistance and G.rants. - The Academy, subject to the 
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approval of the Secretary of the Department of Trade and Industry (DTI), shall establish 
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a program to award grants and/or technical assistance to eligible entities, enterprises, 
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entrepreneurs, and corporations that have submitted their application for the purpose of 
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assisting key players in the footwear industry, upgrade or modernize their facilities, 
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production methods, and technologies. 
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The Academy shall require from the proponents the following information: 
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a) 
A description of the product lines of the intended beneficiary of the 
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technical assistance grant; 
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b) 
A description on how the technical assistance grants will improve quality 
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of production and products manufactured by the intended beneficiary; and 
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c) 
Any additional information that the Academy may require, consistent with 
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the provisions of this Act. 
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SEC. 10. 
Local Footwear Industry Modernization Credit Facility and 
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Loan Package. - The Land Bank of the Philippines (LBP) is hereby mandated to 
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formulate a Local Footwear Industry Modernization Credit Facility and Loan Package 
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Window which shall provide low interest loans for local footwear manufacturers and 
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suppliers seeking to improve and modernize their .. production facilities, equipment, and 
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services in order to revive and make competitive the local footwear industry in the 
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country. 
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Within six (6) months from the date of effectivity of this Act, the Land Bank of the 
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Philippines is mandated to formulate the necessary guidelines, procedures, and 
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requirements for the various stakeholders to avail of the Local Footwear Industry 
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Modernization Credit Facility and Loan Package Window, as mandated under this Act. 
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SEC. 11. 
Appropriations. - There is hereby appropriated the amount of 
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Thirty Million Pesos (Php30,OOO,OOO) for the construction and establishment of the 
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National Footwear Training Academy (NFSA) which shall be incorporated in the 
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General Appropriations of the Department of Trade and Industry (DTI). 
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Thereafter, the improvements, personnel expense, and other necessary 
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expenses for the operation and maintenance of the Academy shall be included in the 
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annual General Appropriations of the DTI. 
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1 
SEC. 12. 
Implementing Rules and Regulations (lRR). - Within six (6) 
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months from the date of effectivity of this Act, the Department of Trade and Industry 
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(DTI) shall promulgate the implementing rules and regulations necessary to implement 
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the provisions of this Act. 
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SEC. 13. 
Repealing Clause. - All laws, decrees, executive orders, rules and 
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regulations, or parts thereof not consistent with the provisions of this Act are hereby 
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repealed or modified accordingly. 
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SEC. 14. 
Separability Clause. - If any provision or part of this Act, or the 
application thereof to any person or circumstance, is held unconstitutional or invalid, the 
remainder of this Act shall not be affected thereby. 
SEC. 15. 
Effectivity Clause. - This Act shall take effect fifteen (15) days 
from the date of its publication in the Official Gazette or in at least two (2) newspapers 
of general circulation. 
Approved, 
r f., 
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