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Republic of the Philippines (o} ml
HOUSE OF REPRESENTATIVES | _DATE November 17,2022)
B, TIME 12:48pm *
NINETEENTH CONGRESS BY Peri
First Regular Session Ks = ry,
S

HOUSE BILL NO.6203 Wo inveX

Introduced by Representative Rex Gatchalian

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

EXPLANATORY NOTE

Executive Order (EO) No. 176, s. 2003, institutionalized the “Isang Bayan,
Isang Produkto, Isang Milyong Piso” Program to stimulate local economic activity and
sustain the anti-poverty thrust of the government since the foreign markets are
vulnerable to fluctuations in major economies of the world. Today, the “One Town,
One Product” (OTOP) Program continues to be a strategic tool that provides an
ecosystem of assistance from local government units (LGU), national government
agencies, and the private sector for micro, small, and medium enterprises (MSMEs).
Currently, there are 62 OTOP hubs nationwide. In 2020, the Department of Trade
and Industry (DTI) held an OTOP Virtual Trade Expo participated by 320 MSMEs
which has generated a total sale of P90,896,907.44.

This bill aims to institutionalize the OTOP Philippines program to provide the
necessary support to communities in determining, developing, and promoting
products and services that are rooted in their culture, community resources,
creativity, connection, and competitive advantage. The bill likewise mandates the DTI
to provide a package of assistance for MSMEs to help them develop innovative and
more complex products with significant improvement in the areas of quality, product
development, design, packaging, compliance with standards, marketability,
production capability, and brand development. It also aims to establish the OTOP
Philippines Trustmark as a guarantee of excellence in OTOP Philippines products
and services. It also directs certain agencies to construct and allocate spaces for the
establishment of OTOP Philippines Hubs as well as create an OTOP Program Office
in every LGU.

In view of the foregoing, approval of this bill is

GATCHALIAN
Representative
1* District, Valenzuela City



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Republic of the Philippines
HOUSE OF REPRESENTATIVES

NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO.6203
SUE
Introduced by Representative Rex Gatchalian
SUES

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 the 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:
(a) Provide a package of assistance for MSMEs with minimum viable
products to develop new, innovative, and more complex products with


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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;

() 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

(a) 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. - 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 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, but not limited to:
() Product Design - design assistance to new products, product
adaptation, product diversification, and expansion of existing product
lines;
(i) Packaging and Labeling - assistance to new packaging,
improvement of package design, or labeling;
(ii) 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;


1 (c) Standards and Market Compliance where beneficiaries shall be trained
2 and capacitated to observe standards and comply with the requirements of
3 DTI-Bureau of Philippine Standards, Food and Drug Administration, and
4 the Intellectual Property Office of the Philippines, and other concerned
5 government agencies. Monitoring and evaluation schemes shall be
6 developed and maintained to ensure that products under the OTOP
iz Philippines conform to these standards; and

8 (d) Market Access and Product Promotion where beneficiaries shall receive

9 support in market access and promotion of products across different
10 platforms. These platforms may include but are not limited to multimedia
11 advocacy campaigns, trade fairs, and OTOP Philippines Hubs.

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13 SEC. 6. Coverage. - The OTOP Philippines Program shall cover material

14 products and skills-based services known to an area or locality. This shall include
15 _ the following products and services:

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

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

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

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

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

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31 SEC. 7. OTOP Philippines Trustmark. - The DTI shall establish the OTOP

32 Philippines Trustmark that shall signify that the services and products have been
33 marked excellent in terms of quality, design, value, and marketability. It shall be a
34 symbol representing the country’s best products.

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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;

(b) Department of Interior and Local Government;
Technical Education and Skills Development Authority;
(4) Department of Science and Technology;

(€) Department of Agriculture; and

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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 concerned 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 DT! shall, in coordination with the other implementing
agencies, formulate and promulgate the necessary rules and regulations to effectively
implement the provisions of this Act.


Semrantrwone

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,