Title
Mandate to Patronize Local Products by Govt.
Law
Letter Of Instructions No. 501
Decision Date
Jan 28, 1977
Letter of Instructions No. 501 directs all government offices and agencies in the Philippines to support and purchase locally manufactured products, aiming to promote the development of small and medium industries, stimulate economic growth, and generate employment opportunities.
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Scope and Coverage

  • Applies to all government offices, bureaus, departments, agencies, and government-owned or controlled corporations and instrumentalities.
  • Covers equipment, parts, accessories, supplies, materials, and other similar articles or products.

Directive for Government Procurement

  • All government entities are ordered to fully support and purchase locally-manufactured or produced goods.
  • Purchases are to be made under guidelines, rules, and regulations promulgated by the Department of Trade.
  • The guidelines are to be issued in consultation with the Philippine Chamber of Industries and upon the approval of the President.

Role and Responsibilities of the Department of Trade

  • Implement the instructions contained in the Letter of Instructions.
  • Establish and operate an information system with updated data on local manufacturers, specific products, production capacity, and relevant details for prospective buyers.
  • Monitor and address requests for direct marketing assistance from manufacturers and producers.
  • Facilitate linkages between manufacturers/producers and buyers or market outlets.
  • Coordinate implementation efforts across relevant government departments, bureaus, offices, agencies, and government-owned or controlled corporations.
  • Perform other necessary functions to achieve the objectives of the Letter of Instructions.

Legal Authority and Effectivity

  • Issued by the President of the Republic of the Philippines under powers vested by the Constitution.
  • Takes effect immediately upon issuance.

Summary of Important Legal Concepts

  • Government procurement as a tool for national industrial policy.
  • Prioritization of local products to foster domestic industry and economy.
  • Centralized coordination and information dissemination through the Department of Trade.
  • Collaboration between government agencies and private sector (Philippine Chamber of Industries).
  • Emphasis on protecting local industries from foreign competition through regulated procurement practices.

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