OTOP Philippines Act (Republic Act No. 11960)

(a) To provide a package of assistance for MSMEs with (a) Processed foods such as fruits and nuts, local viable products in order to develop new, innovative, and more delicacies, juices, wines, tea, and other beverages, pastries and complex products, with significant improvement in the areas baked goods, preserved food sauces, cakes and dessert products, of quality, product development, design, packaging, standards food supplements, and culinary-based specialty products; and regulatory compliance, marketability, production capability, and brand development, among others; (b) Agricultural-based products such as coffee, cacao, and other agricultural produce, agri-processed products like

(b) To assist rural communities in growing the local processed meats, coconut oil, and preserved and processed economy and being more market-oriented and innovation-driven; seafood products;

(c) To promote the convergence of initiatives from local (c) Home and fashion, and creative artisanal products govern~ent units (LGUs), national government agencies, and such as gifts, souvenir items, furniture, ornaments, houseware, the private sector in developing and promoting Philippine garments, fabrics, and textiles; products, whether for export or the domestic market; and

(d) Arts and crafts such as coco coir, weaves, bamboo (d) To formulate a national OTOP Strategic Development products, paper artistry, and wood; Plan.

(e) Skills-based services and other products such as hilot SEC. 4. One Town, One Product (OTOP) Philippines. - or traditional Filipino massage, sculpting, essential oils and To meet the declared policy of the State the OTOP other wellness products, industrial goods, soaps, and other Philippines Program is hereby institutionalized' and shall be personal care goods, and cosmetics; and one of the government's stimulus programs that will encourage the growth of MSMEs in the countryside through the (f) Such other goods and services that are eligible under development of indigenous raw materials, utilizing local skills Section 7 of this Act and as approved by the DTI. and talents and featuring local traditions and cultures across 4 5 SEC. 7. Qualifications. - OTOP products included (a) Product Development, including: in the Program must meet a set of criteria to be established by the DTI: Provided, That they are consistent with the (1) Product Design - design assistance to new products, following elements: product adaptation, product diversification, and expansion of existing product lines; (a) Culture - This shall pertain to cultural values rooted in the following: heritage, living traditions, customs and (2) Packaging and Labeling assistance to new rituals, recipes passed on from generation, narratives, history, packaging, improvement of package design, or labeling; and beliefs; • (3) Technology Updating - conduct workshops on new (b) Community Resource - The locality's selected technology procedures, materials, and processing to increase products shall be based on the availability of local resources, production quality and quantity; and raw materials, skills, and network resources within a community; (4) Product Enhancement - provide seminars to increase design awareness and appreciation of product or merchandise (c) Connection - The selected product shall be able to development and the industrial design profession. evoke a sense of pride or emotional connection among the locals; The DTI and the Department of Science and Technology (DOST), in coordination with the concerned LGU, shall (d) Creativity - The products selected for a locality shall provide the means to facilitate knowledge sharing and be able to exemplify the Filipino people's creativity and technology transfer in all areas related to product innovation; and development. (e) Competitive Advantage - The product or service (b) Capacity Building through training opportunities selection shall be based on a locality's innate or endemic focusing on improving the human aspect of OTOP Philippines, strengths anchored on several variables such as topography, including business skills training and business counseling in climate, geographical location, and proximity to resources, coordination with the DTI, Cooperative Development Authority among others. (CDA) and the Technical Education and Skills Development Authority (TESDA); Provided, further, That preference shall be given to goods or services that form part of the supply chain of (c) Standards and Market Compliance where OTOP products. beneficiaries shall be trained and capacitated to observe standards and comply with the requirements of the SEC. 8. Beneficiaries. - The regional and provincial offices DTI-Bureau of J:lhilippine Standards (DTI-BPS), Food and Drug of the DTI shall, in cooperation ·with the concerned LGUs, Administration (FDA), Department of Agriculture (DA) and determine the beneficiaries of the OTOP Program: Provided, the Intellectual Property Office of the Philippines (IPOPHL), That the beneficiaries shall be limited to MSMEs as defined and other concerned government agencies. Monitoring and under Republic Act No. 6977, as amended by Republic Act evaluation schemes shall be developed and maintained in No. 9501. The guidelines and mechanism for the selection of consultation with these agencies to ensure that products under beneficiaries shall be formulated by the implementing agencies the OTOP Philippines conform to these standards; identified by this Act. (d) Market Access and Product Promotion where SEC. 9. OTOP Program Components. - A comprehensive beneficiaries shall receive support in market access and package of assistance to OTOP Philippines Program promotion of products across different platforms. These beneficiaries shall be provided such as, but not limited to, the platforms may include multimedia advocacy campaigns, trade following areas: ' 6 7 fairs, and OTOP Philippines Hubs. The DTI, Philippine (e) Department of Health (DOH); • Information Agency (PIA), Department of Tourism (DOT), and Philippine International Trading Corporation (PITC) shall (f) Department of Science and Technology (DOST); therefore implement a promotional campaign in local and international markets for OTOP Philippines products; and (g) Department of Tourism (DOT); (e) Eligibility for government assistance which includes (h) Department of Transportation (DOTr); a minimal set of rules and simplification o-f procedures and requirements for government agencies dealing with OTOP (i) National Economic and Development Authority (NEDA); beneficiaries and as provided under Section 4 of Republic Act No. 9501. G) National Commission for Culture and the 1 Arts (NCCA); The DTI, in coordination with other government agencies, shall also formulate a program to provide the OTOP J (k) Philippine Information Agency (PIA); beneficiaries with easier access to credit or capital infusion for the establishment, development, or growth of their business, (1) Philippine International Trading Corporation (PITC); if necessary. and SEC. 10. Lead Implementing Agency. - The DTI shall (m) Technical Education and Skills Development serve as the lead agency for this Act. An OTOP Management Authority (TESDA). Committee shall be created and designated by the DTI Secretary, which shall have the main responsibility of directing SEC. 11. Creation and Formalization of OTOP Program the implementation of the provisions of this Act. The OTOP Office. - In order to strengthen its capacity to implement this Management Committee shall be composed of offices and Act, the DTI is hereby authorized to create the OTOP attached agencies under the DTI such as, but not limited to, Program Management Office (OTOP-PMO) which shall oversee the DTI-BPS and IPOPHL. The DTI Secretary shall create and direct the OTOP Program on the national level. The the OTOP Management Committee within :fifteen (15) ·working OTOP-PMO shall be headed by a Director, and its days from the effectivity of this Act. organizational structure and staffing complement shall be determined by the DTI Secretary in consultation with the The following agencies shall also assist and coordinate Department of Budget and Management and in accordance with the DTI in the implementation of the provisions of this with civil service rules and regulations. Act to achieve convergence and ensure efficient use of resources: There is hereby created the OTOP Local Program Office (OTOP-LPO) in each LGU which shall direct, supervise, and (a) Cooperative Development Authority (CDA); implement the OTOP Program on the local level. (b) Department of Agriculture (DA); Within one (1) year, the DTI, through the OTOP-PMO, shall develop a six (6)-year National OTOP Strategic Plan, (c) Department of Information and Communications hereinafter referred to as the Plan, in consultation with Technology (DICT); concerned stakeholders, which shall be validated and updated annually. (d) Department of the Interior and Local Government (DILG); The Plan, which shall be approved by the President of the Philippines, shall define the OTOP Program's annual and . 8 9 medium-term targets, as well as develop and implement SEC. 15. Separability Clause. - If any portion or programs and strategies to support the OTOP Program's provision of this Act is declared unconstitutional, the thrusts. The Plan shall also identify priority OTOP products and remainder of this Act or any provision not affected thereby services, which shall be characterized by high value-added and shall remain in force and effect. have a high potential for attaining the objectives of this Act. SEC. 16. Repealing Clause. - Any law, decree, SEC. 12. Establishment of OTOP Philippines Hubs. - The proclamation, issuance, or ordinance that is contrary to or DOT, the Civil Aviation Authority of the Philj.ppines (CAAP), inconsistent with the provisions of this Act is hereby amended, the Philippine Ports Authority (PPA), the Land Transportation repealed, or modified accordingly. Franchising and Regulatory Board (LTFRB), and other similar agencies shall support the construction and allocation of spaces SEC. 17. Effectivity. - This Act shall take effect fifteen for the establishment of OTOP Philippines Hubs. (15) days following its complete publication in the Official Gazette or in a newspaper of general circulation. To promote access to the market, the DTI shall ensure that the OTOP Philippines Hubs are established in strategic Approved, ports of entry such as, but not limited to, airports, seaports, bus terminals, high-traffic retail outlets like malls, tourist destinations, and other consumer-frequented locations. All LGUs shall establish their own LGU OTOP Hub in any location that has high foot traffic preferably in the city or municipal hall or any LGU facility or location that has high foot traffic or is frequented by locals. This Act, which is a consolidation of Senate Bill No. 1594 The DTI, in coordination with the agencies, shall and House Bill No. 1171, was passed by the Senate of the Philippines formulate a comprehensive marketing and operations plan for and the House of Representatives on May 31, 2023. the establishment of the OTOP Philippines Hubs. SEC. 13. 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 RE~ implementation of this Act shall be included in the annual Secretary General General Appropriations Act. House of Representatives The LGUs concerned shall set aside the amount needed for the operation of the OTOP-LPO and OTOP Hubs under Sections 11 and 12 hereof. Approved: 2 ~ AUG2023 SEC. 14. Implementing Rules and Regulations. - Within sixty (60) working days from the effectivity of this Act, the PBBM002709 DTI, in coordination with the other implementing agencies identified in Section 10, shall formulate and promulgate the ~------- Cfhce necessary rules and regulations to effectively implement the L Z MAR@@'~~ provisions of this Act. FERDINAND RO President 0, Phrr~!~t'fi m.C0'4CEPCI ~- U-i·- ~ DlRECIOR JY ~ t.,; - · ,., A:-;;;z;--~