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Trade dep’t guidelines outline preferences for domestic suppliers

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THE Department of Trade and Industry (DTI) said it issued guidelines on the granting of certificates of preference to bidders participating in government procurement projects, which will allow the government to select certified bidders with higher offers than foreign suppliers.

In an advisory Tuesday, the DTI said Department Administrative Order 19-01, signed by Trade Secretary Ramon M. Lopez on Jan. 3, is authorized by Section 43 of Republic Act (RA) 9184, the Government Procurement Reform Act which allows a procuring entity to grant preferential treatment for domestically-produced goods.

“Goods may be obtained from domestic or foreign sources and the procurement thereof shall be open to all eligible suppliers, manufacturers, and distributors,” the DTI said in a statement on the website.

“However, in the interest of availability, efficiency and timely delivery of goods, the Procuring Entity may give preference to the purchase of domestically-produced and manufactured goods, supplies, and materials that meet the specified or desired quality,” it added.

Under the law, contracts can be awarded to the lowest domestic bidder, provided that the bid does not exceed 15% of the lowest price offered by a foreign participant.

Only those who secure a domestic preference certificate from the DTI will be given this advantage.

The process of obtaining the certificate involves an inspection to ensure that the goods, supplies, or materials are “substantially grown, produced or manufactured in the Philippines.”

DAO 19-01 said the applications for certification on a per-product basis can be filed at the Supply Chain and Logistics Management Division of the Competitiveness Bureau of the DTI.

The certificate, which is non-transferable, will be valid for two years and will be automatically revoked in case of misrepresentation. — Janina C. Lim





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