Title
Institutionalizing the One Town, One Product Program
Law
Republic Act No. 11960
Decision Date
Aug 24, 2023
The "OTOP Philippines Act" institutionalizes the One Town, One Product (OTOP) Philippines Program, which aims to develop a self-reliant and independent national economy by supporting micro, small, and medium enterprises (MSMEs) in promoting and improving their locally produced goods and services.

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.

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