Question & AnswerQ&A (Republic Act No. 11981)
The short title of Republic Act No. 11981 is the "Tatak Pinoy (Proudly Filipino) Act."
The policy of the State is to encourage, support, and promote the production and offering of Philippine products and services with increasing diversity, sophistication, and quality by domestic enterprises that are globally competitive in accordance with the Constitution's emphasis on industrialization and full employment.
The Secretary of Trade and Industry serves as the Chairperson of the Tatak Pinoy Council. The Secretaries of the National Economic and Development Authority (NEDA) and Finance serve as Vice-Chairpersons. Other members include Secretaries of Agriculture, Budget and Management, Information and Communications Technology, Interior and Local Government, Labor and Employment, Science and Technology, and four private sector representatives appointed by the President.
Philippine products and services refer to goods, materials, supplies, services, and intangible products that are either wholly produced or manufactured in the Philippines, have a minimum local content as determined by the Tatak Pinoy Council, or pertain to value-delivering services or intangible products like software and creative industry outputs.
The five pillars of the Tatak Pinoy Strategy are: (1) Human Resources; (2) Infrastructure; (3) Technology and Innovation; (4) Investments; and (5) Sound Financial Management.
The Tatak Pinoy Council formulates metrics on how government agencies and instrumentalities can give preference and priority to Philippine products and services in procurement, ensuring domestic preference for a period of ten years and providing guidelines on exceptions.
Domestic preference may be waived when: (a) Domestic production is insufficient or unavailable in required commercial quantities; (b) The specific or desired quality is not met; (c) Preference conflicts with the Philippines' international obligations; or (d) Other analogous circumstances.
The TPS is a comprehensive, multi-year plan formulated and approved by the President and the Tatak Pinoy Council. It aims to expand and diversify the productive capabilities of domestic enterprises to compete globally by outlining national priorities, strategic goals, target sectors, and action components under the five TPS pillars.
Private sector representatives are appointed by the President for a term of three (3) years and may be reappointed only once.
Government agencies, instrumentalities, LGUs, and private sector stakeholders are required to submit periodic reports to the TP Council. The TP Council consolidates these into an annual accomplishment report submitted to the President and Congressional leaders, which is also made available to the public.
Economic complexity is a measure of the productive capabilities and know-how of a geographical area, calculated based on the diversity of goods and services produced and exported, as well as the number of other areas able to produce them.
The Secretariat, established within the DTI, manages council meetings, communications, official records, conducts research, prepares reports, assists in policy drafting, and carries out other duties assigned by the TP Council.
The government through government financial institutions (LBP, DBP, PHILGUARANTEE, SBCorp) shall provide credit through low interest or flexible term loans, credit guarantees, and other financing modes such as leasing and venture capital to enable domestic enterprises to expand and upgrade their capabilities.
The domestic preference is mandated for a period of ten (10) years and may be extended by an Act of Congress, with a guaranteed margin of preference not lower than 15% after the initial period.
The Tatak Pinoy Council must ensure that LGUs incorporate or adopt the TPS in their respective local development plans and coordinate with the Department of the Interior and Local Government (DILG) to promote local implementation aligned with national objectives.