Section 12Sec./Art. 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:

(a) Where domestic production is insufficient or unavailable in the required commercial quantities;

(b) Where the specific or desired quality is not met;

(c) Where domestic, preference will result in inconsistencies with the Philippines' obligations under the international agreements; or

(d) Other analogous circumstances.1aшphi1

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.