Section 2Sec./Art. 2

Policy. - Recognizing that the footwear, leather goods and tannery industries have the potential to generate employment through their integrated development, and increase the country's foreign exchange earnings through exports and import substitutes, it shall be the policy of the State to support, promote and encourage the growth and development of the small and medium scale enterprises (SMEs) belonging to these industries.

Toward this end, the State shall encourage the development of these industries by:

(a) creating a business environment to encourage local small and medium enterprises in said industries to join the formal sector;

(b) establishing an adequate support structure to assist the viability of the SMEs in said industries and make them competitive;

(c) providing appropriate and time-bound fiscal incentives and programs to accelerate the growth of these industries;

(d) encouraging the institutionalization of these industries' associations, organizations and cooperatives to promote improvement and advancement of skills and craftsmanship of Filipino workers therein; and

(e) ensuring a ready domestic market by requiring government agencies to purchase products made by these industries and encouraging the private sector to do the same.