Question & AnswerQ&A (Republic Act No. 11960)
The short title of Republic Act No. 11960 is the "OTOP Philippines Act."
The policy is to develop a self-reliant and independent national economy effectively controlled by Filipinos by driving inclusive local economic activity, boosting national economic growth, promoting preferential use of Filipino labor and local products, and supporting MSMEs.
The objectives include providing assistance to MSMEs to improve product quality and marketability, assisting rural communities in growing local economies, promoting convergence among LGUs, national agencies and the private sector, and formulating a national OTOP Strategic Development Plan.
The OTOP Philippines Program is a government stimulus initiative to encourage MSME growth in the countryside by developing indigenous raw materials and showcasing local traditions, skills, and talents.
The Department of Trade and Industry (DTI) is authorized to establish the OTOP Philippines Trustmark. It signifies that the business and products are excellent in quality, design, value, and marketability, representing the country's best.
Products and services covered include processed foods, agricultural-based products, home and fashion artisanal products, arts and crafts, skills-based services like traditional massage, wellness products, personal care goods, cosmetics, and other eligible goods and services approved by the DTI.
The criteria are Culture (rooted in heritage and tradition), Community Resource (availability of local resources and skills), Connection (emotional or pride connection by locals), Creativity (Filipino innovation), and Competitive Advantage (based on locality strengths like geography and climate).
Beneficiaries are limited to micro, small, and medium enterprises (MSMEs) as defined under Republic Act No. 6977 (as amended by RA No. 9501), determined by the DTI regional and provincial offices in cooperation with LGUs.
Assistance components include product development (design, packaging, technology updating), capacity building through training, standards and market compliance guidance, market access and promotion, and eligibility for government assistance including simplified procedures and easier credit access.
The Department of Trade and Industry (DTI) serves as the lead implementing agency for the program.
The OTOP Management Committee is created by the DTI Secretary to direct implementation of the OTOP Act. It is composed of DTI offices and attached agencies such as the DTI-BPS and IPOPHL, and coordinates with other government agencies.
LGUs cooperate with the DTI to determine beneficiaries, establish OTOP Local Program Offices (OTOP-LPO), create LGU OTOP Hubs in high foot traffic locations, and set aside funds for operations.
OTOP Philippines Hubs are strategic locations, such as airports, seaports, bus terminals, malls, and tourist destinations, designated for market access and promotion of OTOP products. LGUs also establish OTOP Hubs in local high-traffic areas.
Initial funding comes from the current year's appropriation of the DTI. Subsequent funding shall be included in the annual General Appropriations Act. LGUs are also required to provide funding for local OTOP offices and hubs.
The DTI, in coordination with implementing agencies, must promulgate the rules and regulations within sixty (60) working days from the Act's effectivity.
The remainder of the Act or provisions not affected will continue to be in force and effect.
The Act takes effect fifteen (15) days after its publication in the Official Gazette or a newspaper of general circulation.