Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _________
Introduced by 4Ps Partylist Representative
JONATHAN CLEMENT M. ABALOS II
EXPLANATORY NOTE
The creation of this law aims to institutionalize the One Town One
Product Philippines Program of the Department of Trade and Industry to
promote inclusive, sustainable, and proud economic development. This law
aims to serve as the pioneer for Micro, Small and Medium-scale enterprises
(MSMEs) as the government’s customized intervention to drive inclusive local
economic growth. The law enables localities and communities to determine,
develop, support, and promote products or services that are rooted in their
local culture and creativity. This law empowers them to be proud of their
products of origin; it endeavors to capacitate entrepreneurs to innovate and
produce market-ready products and services.
OTOP is an international program that originated from Japan’s One
Village, One Product. Its various versions and iterations in numerous
countries are proof that it is a viable branding and stimulus program for
MSMEs. Here in the Philippines, it has been in existence since 2002. This was
further powered through the promulgation of Executive Order 176 by then
President Gloria Macapagal-Arroyo in February 2003. After a decade and a
half of combined gains and challenges, OTOP remains to be a strategic tool
that provides an ecosystem of assistance from local government units,
national
government
agencies,
and
the
private
sector.
Since
its
implementation in 2004, the OTOP program has proven its ability to aid and
develop the MSMEs, generate jobs, increase domestic sales and exports, and
equip the business skills of entrepreneurs while showcasing Filipino culture,
tradition, and creativity. It is high time that this program is institutionalized
for it to be able to reach every single Filipino town and product.
The bill has been filed and approved in the third and final reading
during the 18th Congress.
To this end, the approval of the bill is earnestly sought.
JONATHAN CLEMENT M. ABALOS II
Representative, 4Ps Partylist
July 28, 2022
5:17 pm
2735


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _________
Introduced by 4Ps Representative
JONATHAN CLEMENT M. ABALOS II
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 micro, small and medium-scale enterprises
(MSMEs).
Towards this end, the State shall equip MSMEs to progressively
improve product and service quality, and to utilize new technologies to
pursue 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:
1
2735


(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
MSMEs 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
(TI), in partnership with the LGUs, shall provide a comprehensive package of
assistance to TOP 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:
(ii)
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 evaluation
schemes shall be developed and maintained to ensure that products
under the OTOP Philippines conform to these standards; and
2


(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 and 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, and other desserts
products, food supplements, and culinary-based speciality products;
and
(e) Skills-based Services and other Products such as hilot 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, Philippine Ports
Authority, Land Transportation and Franchising Board, 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);
3


(c) Technical Education and Skills Development Authority (TESDA);
(d) Department of Science and Technology (DOST);
(e) Department of Agriculture (DA); and
(f) Department of Tourism (DOT).
SEC. 12. Appropriations. – The amount necessary to carry out the initial
implementation of this Act shall be sourced from the current budget of the DTI.
Thereafter, such sums as may be necessary for the continued implementation of
this Act shall be included in the succeeding General Appropriations Act.
SEC. 13. Implementing Rules and Regulations. – The DTI, within sixty
(60) working days from the effectiveness of the Act, in coordination with the
other implementing agencies, shall 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 Clause. – This Act shall take effect fifteen (15) days
from the date of publication in the Official Gazette or any newspaper of general
circulation.
Approved.
4