AN ACT MANDATING THE FORMULATION, FUNDING, IMPLEMENTATION, MONITORING, AND EVALUATION OF A COMPREHENSIVE AND MULTI-YEAR "TATAK PINOY" (PROUDLY FILIPINO) STRATEGY, ESTABLISHING A TATAK PINOY COUNCIL, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

Nineteenth Congress
Second Regular Session

[ REPUBLIC ACT NO. 11981, February 26, 2024 ]

AN ACT MANDATING THE FORMULATION, FUNDING, IMPLEMENTATION, MONITORING, AND EVALUATION OF A COMPREHENSIVE AND MULTI-YEAR "TATAK PINOY" (PROUDLY FILIPINO) STRATEGY, ESTABLISHING A TATAK PINOY COUNCIL, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title . - This Act shall be known as the "Tatak Pinoy (Proudly Filipino) Act".

Section 2. Declaration of Policy. - It is declared the policy of the State to encourage, support, and promote the production and offering of Philippine products and services of increasing diversity, sophistication, and quality by domestic enterprises that are globally competitive. Pursuant to Article XII, Section 1 of the Constitution emphasizing the promotion of industrialization and full employment through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets, the State hereby adopts the following policies:

Section 3. Definition of Terms. - For the purposes of this Act:

Section 4. Tatak Pinoy Council. - There is hereby created a Tatak Pinoy Council, herein referred to as the "TP Council", with the Secretary of Trade and Industry as the Chairperson, and the Secretary of the National Economic and Development Authority (NEDA), and the Secretary of Finance, both as Vice-Chairpersons. The Secretaries of Agriculture, Budget and Management, Information and Communications Technology, the Interior and Local Government, Labor and Employment, Science and Technology, and four (4) private sector representatives will serve as members: Provided, That the respective heads of agencies may designate their representatives whose rank shall not be lower than an Assistant Secretary: Provided, further, That the private sector representatives shall be appointed by the President of the Philippines for a term of three (3) years, and may be reappointed only once, from the nominees submitted by reputable business groups, academic institutions, or associations with national representation: Provided, finally, That the President shall have the power to extend the public sector members of the TP Council in order to fully achieve the objectives of this Act.

Within sixty (60) days from the effectivity of this Act, the TP Council shall meet and organize working groups under each pillar to formulate objectives and targets, conduct the necessary consultations, and ensure proper implementation of the TPS. Each working group shall be composed of, at the minimum, the agencies identified and named under the specific pillars and, as may be necessary, the TP Council shall engage resource persons from the public and private sector. The TP Council shall determine who shall head each working group.

Section 5. Powers and Functions of the Tatak Pinoy Council. - The TP Council shall serve as the policy and advisory body of the President and shall, adopting a whole-of-government approach, formulate policies and programs that will diversify the productive capabilities of domestic enterprises and increase the country's economic complexity. Towards this end, the TP Council shall have the following powers and functions:

Section 6. Technical and Secretariat Support. - A Secretariat to the TP Council, herein referred to as the "TP Council Secretariat". shall be established within the Department of Trade and Industry (DTI), to be headed by an Executive Director IV (Salary Grade 29), who shall be appointed by the President of the Philippines from a list of at least five (5) nominees from the TP Council.

The Executive Director IV shall be a person of proven integrity and good moral character, shall have relevant experience and practice in the fields of industry development, data-driven industrial policy, domestic and/or international trade, entrepreneurship, innovation, or any related field, and be a person of proven administrative proficiency and expertise in the area of management with a minimum of five (5) years experience in an executive leadership capacity.

The Executive Director shall be assisted by technical and administrative staff consisting of at least one (1) of each of the following officers and employees:

Provided, That each agency forming part of the TP Council shall appoint at least one (1) representative solely dedicated to serve as liaison and provide technical and/or administrative support to the TP Council Secretariat.

Within one hundred twenty (120) days after the effectivity of this Act, the DTI shall determine the organizational structure, staffing patterns, and compensation system of the TP Council Secretariat, including the duties, qualifications, responsibilities, and functions of its officers and staff members, and submit the same to the Department of Budget and Management (DBM) for approval, in accordance with the existing organizational staffing, position classification, and compensation laws, rules, regulations, and guidelines. Pending the creation of the appropriate plantilla positions, the DTI-Competitiveness and Innovation Group (DTI-CIG) shall constitute an interim secretariat within one (1) month from the effectivity of this Act. Each of the TP Council member agencies shall formally designate at least one (1) representative on temporary detail to the interim secretariat until such time that the plantilla positions of the TP Council Secretariat have been created. The DTI-CIG is likewise authorized to engage consultants and enter into service contracts, as may be necessary: Provided, That once the organizational structure and personnel complement have been determined, those engaged shall have the option to be absorbed permanently in the TP Council Secretariat.

The TP Council Secretariat shall have the following duties and responsibilities:

Section 7. Tatak Pinoy Strategy. - To achieve the objectives of this Act, a TPS shall be formulated, implemented, monitored, evaluated, and continuously improved upon by the TP Council and approved by the President of the Philippines. The TPS shall outline the plan and action components for the country, and for the regions, provinces, cities, municipalities, to incrementally and systematically expand and diversify the productive capabilities of domestic enterprises and empower them to produce and offer increasingly diverse and sophisticated products and services, and compete in the global market: Provided, That in approving the TPS, the President may only expand from existing pillars identified under this Act: Provided, further, That the President shall ensure coordination and collaboration among TP Council members.

The TPS shall be submitted for approval by the President within eight (8) months after the effectivity of this Act and is subject to mandatory review pursuant to Section 10 hereof.

The TPS shall cover the same period as the PDP from which it was based on.

Section 8. Pillars of the Tatak Pinoy Strategy. - The TPS shall include plans and programs, comparable with international best practices, which shall be organized according to the following TPS Pillars: (1) human resources; (2) infrastructure; (3) technology and innovation; (4) investments; and (5) sound financial management.

Under each TPS Pillar, the TP Council shall identify relevant public-private initiatives and the government support or assistance to be provided per targeted sector or economic activity.

Section 9. Integration of the Tatak Pinoy Strategy. - The TP Council shall ensure that the TPS is incorporated in the government's sectoral plans, programs, and projects by prescribing standards, guidelines, compliance, and accountability mechanisms. The TP Council, in collaboration with RDCs, LGUs, and local development agencies, shall encourage the development and implementation of local components of the TPS.

Section 10. Automatic Review and Update. - The TP Council, with support from the TP Council Secretariat, shall perform an annual review of the TPS and its implementation, as provided under this Act. To ensure responsiveness to market conditions, the TPS shall be subject to amendment or revision every three (3) years unless there are supervening event that require an earlier amendment or modification.

Section 11. Reportorial Requirement. - In order to fully monitor and measure the implementation of the TPS, the following reports shall be submitted:

Section 12. Domestic Preference in Government Procurement. - For a period of ten (10) years, preference and priority shall be given to Philippine products and services in sectors and economic activities covered by the prevailing TPS: Provided, That the preference and priority for Philippine products shall be guaranteed upon all levels of the procurement process, including raw materials, ingredients, supplies or fixtures: Provided, further, That within fifteen 915) days upon effectivity of this Act, the TP Council shall issue a list of Philippine products and services that shall be immediately given preference and priority pending the formulation of the TPS: Provided, furthermore, That the preference herein established may be waived should any of the following conditions be present:

After ten (10)-year period, the domestic preference provided herein shall be subject to the margin of preference to be determined by the TP Council which should not be lower than fifteen percent (15%): Provided, That this period for domestic preference may be extended by Act of Congress.

For products and services not covered by the prevailing TPS, all government agencies and instrumentalities shall strictly adhere to the domestic preference rules provided under Republic Act No. 9184m otherwise known as the "Government Procurement Reform Act", and its implementing rules and regulations.

Section 13. Access to Financing. - The government, through government financial institutions (GFIs), shall ensure the availability of credit to domestic enterprises through innovative financing mechanisms including, but not limited to, the provision of low interest or flexible term loan programs, credit guarantee programs, and the development of other modes of financing such as leasing and venture capital activities, which will enable these enterprises, especially micro, small and medium enterprises (MSMEs), to expand their businesses, perform necessary technology upgrades and other related capacity-building activities leading to more sophisticated products and services: Provided, That the Land Bank of the Philippines (LBP), the Development Bank of the Philippines (DBP), the Philippine Guarantee Corporation (PHILGUARANTEE), and the Small Business Corporation (SBCorp) shall expand their respective loan and guarantee programs to accommodate domestic enterprises that are producing and/or providing services that are covered by the TPS: Provided, further, hat private banks and financial institutions are likewise encouraged to provide equivalent financing mechanisms.

Section 14. Market Access Facilitation. - The TP Council shall provide the necessary support and assistance to ensure that Philippine products and services are provided access to both the domestic and international markets: Provided, That in the promotion of market access, the DTI, the DFA, the DOT and other market and promotion agencies shall integrate the Philippine products and services in existing marketing plans including, but not limited to, international exhibitions and establishment of hubs in tourist destinations, including their ports of entry and other higher-traffic retail areas.

To guarantee market quality, Philippine products and services shall conform with existing product standards and technical regulations, where appropriate. The DTI, in coordination with other relevant agencies, shall formulate guidelines on branding, packaging, and marketing of Philippine products and services.

Section 15. Green Lanes for Tatak Pinoy Investments and Exports. The concerned NGAs, including their regional and provincial offices, GOCCs, quasi-judicial bodies, other government instrumentalities, and LGUs involved in the issuance of permits, licenses, certifications or authorizations, shall establish a green lane within their offices in charge of expediting and streamlining the processes and requirements for the issuance of permits, licenses, certifications or authorizations of Tatak Pinoy investments duly identified in the TPS. For this purpose, the above agencies or offices shall designate an account officer for the green lane.

An export green lane facility shall likewise be established for qualified exporters for advanced processing and clearances of their export requirements, including the importation of critical raw materials and capital equipment, under the Bureau of Customs (BOC), Food and Drug Administration (FDA), and other regulatory authorities.

The above agencies shall act on the applications within the prescribed processing time provided in the concerned agency or LGU's Citizen's Charter, which shall not be longer than the periods prescribed under Republic Act No. 9485, otherwise known as the "Anti-Red Tape Act of 2007", as amended.

Section 16. Efficient Implementation of the Value-Added Tax (VAT) Refund. - Notwithstanding any existing rules, the Bureau of Internal Revenue (BIR) shall implement a streamlined requirement and process for faster VAT refund of entities with Tatak Pinoy-related transactions.

Section 17. Information Dissemination and Awareness Campaign. - To ensure dissemination and policy coordination, the TP Council, in coordination with the Philippine Information Agency (PIA), the DOT, the DFA, embassies, permanent missions, the Manila Economic and Cultural Office (MECO), commercial attaches of the Foreign Trade Service Corps of the DTI abroad and other relevant government agencies and public and private HEIs, shall ensure that the goals and objectives of the TPS are communicated through a nationwide and international information dissemination and awareness campaign.

Section 18. Implementing Rules and Regulations. - Within sixty (60) days from the effectivity of this Act, the DTI, together with the TP council, shall formulate and prescribe, after public consultations, the implementing rules and regulations and other issuances necessary for the effective and expeditious implementation of this Act. The non-promulgation of the rules and regulations provided under this section shall not prevent the immediate implementation of this Act upon effectivity.

Section 19. Appropriations. - The amount necessary for the initial implementation of this Act shall be charged against the current year's appropriations of the agencies concerned. Thereafter, the funding of which shall be included in the annual General Appropriations Act.

Section 20. Separability Clause. - If any part of provision of this Act is declared unconstitutional, the remainder of this Act not affected thereby shall remain in force and effect.

Section 21. Amendatory Clause. -

Section 22. Repealing Clause. All laws, orders, agreements, rules, or regulations contrary to and inconsistent with this Act are hereby repealed.

Section 23. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.

Approved,

This Act, which is a consolidation of Senate Bill No. 2426 and House Bill No. 8525, was passed by the Senate of the Philippines and the House of Representatives on December 13, 2023.

Approved: FEB 26 2024

FERDINAND ROMUALDEZ MARCOS JR.
President of the Philippines