Law Summary
Objectives of the OTOP Philippines Program
- Provide comprehensive assistance to MSMEs for developing innovative, high-quality products.
- Stimulate rural economies towards market orientation and innovation-driven growth.
- Foster collaboration among LGUs, national agencies, and the private sector in product development.
- Develop a national strategic plan for the OTOP program.
Institutionalization and Scope of the OTOP Philippines Program
- The Program is adopted as a government stimulus program to support MSMEs across the country.
- Simplified procedures ensure easy access for beneficiaries.
- Emphasizes development of indigenous materials, local skills, and cultural traditions.
Establishment of the OTOP Philippines Trustmark
- The Department of Trade and Industry (DTI) is authorized to create the OTOP Trustmark.
- The Trustmark represents a seal of excellence in quality, design, value, and marketability for OTOP products.
Coverage of Products and Services
- Includes processed foods, agricultural products, home and fashion artisanal goods, arts and crafts, skills-based services, and other eligible products.
- Categories detailed cover traditional and innovative local goods such as local delicacies, textiles, massage services, wellness products, and industrial goods.
Qualification Criteria for OTOP Products
- Must reflect cultural heritage and living traditions.
- Should utilize community resources including raw materials and skills.
- Must evoke local pride and emotional connection.
- Should exemplify Filipino creativity and innovation.
- Selection based on the locality's competitive advantage considering geographic and environmental factors.
- Preference given to products integrated within supply chains.
Beneficiaries and Selection Process
- Beneficiaries limited to Micro, Small, and Medium Enterprises (MSMEs) as legally defined.
- Regional and provincial DTI offices, together with LGUs, determine beneficiary eligibility.
- Selection guidelines established by implementing agencies.
Components of Assistance Provided
- Product Development: design, packaging, technology updates, and enhancement seminars.
- Capacity Building: business skills training and counseling in partnership with government agencies.
- Standards Compliance: training to meet regulatory requirements, quality standards, and intellectual property protection.
- Market Access and Promotion: support through campaigns, trade fairs, and OTOP Hubs.
- Ease of Government Assistance: simplified rules and procedures for accessing support and credit.
Lead Implementing Agency and Coordination
- DTI serves as lead agency with an OTOP Management Committee.
- Committee includes DTI attached agencies like Bureau of Philippine Standards and IPOPHL.
- Cooperation with multiple agencies such as CDA, DA, DICT, DILG, DOH, DOST, DOT, and others to ensure resource efficiency and program convergence.
Creation of OTOP Program Offices
- DTI authorized to create the OTOP Program Management Office (OTOP-PMO) headed by a Director.
- Each LGU tasked with establishing OTOP Local Program Offices (OTOP-LPO).
- A six-year National OTOP Strategic Plan to be developed, validated, updated, and approved by the President establishing program priorities and targets.
Establishment of OTOP Philippines Hubs
- Supported by DOT and transportation regulatory bodies.
- Hubs placed in strategic locations such as airports, seaports, bus terminals, malls, and tourist areas.
- LGUs to create Local OTOP Hubs in high-foot-traffic areas.
- A comprehensive marketing and operational plan to be formulated for hub management.
Appropriations and Funding
- Initial funding sourced from the current DTI budget.
- Continuation funding to be included in the annual General Appropriations Act.
- LGUs responsible for funding local program offices and hubs.
Implementation Rules and Regulations
- DTI, in coordination with other agencies, to promulgate implementing rules within sixty working days from effectivity.
Separability Clause
- Any unconstitutional provisions will not affect the validity of the remainder of the Act.
Repealing Clause
- Inconsistent laws, decrees, rules, or ordinances are amended or repealed to align with the Act.
Effectivity
- The Act takes effect fifteen days after publication in the Official Gazette or a newspaper of general circulation.