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Section 1. The Purchase and Equipment Division (now Supply Coordination Office)
of the Government of the Philippines and other officers and employees
of the municipal and provincial governments and the Government of the
Philippines and of chartered cities, boards, commissions, bureaus,
departments, offices, agencies, branches, and bodies of any
description, including government-owned companies, authorized to
requisition, purchase, or contract or make disbursements for articles,
materials, and supplies for public use, public biddings, or public
works, shall give preference to materials and supplies produced, made,
and manufactured in the Philippines or in the United States, and to
domestic entities, subject to the conditions herein-below specified.
Section 2. For the purposes of this Act, the terms
hereunder are hereby defined as follows:
(a) The term "United States" includes the United
States of America, the District of Columbia, and any State or territory
of the North American Union;
(b) The term "domestic entity" means any citizen of
the Philippines or of the United States habitually established in
business and engaged in the manufacture or sale of the merchandise
covered by his bid, or any corporate body or commercial company duly
organized and registered under the laws of the Philippines of whose
capital 75 per centum is owned by citizens of the Philippines or of the
United States, or both;
(c) The term "domestic bidder" means any person or
entity offering un-manufactured articles, materials, or supplies of the
growth or production of the Philippines or of the United States, or
manufactured articles, materials or supplies manufactured or to be
manufactured in the Philippines or in the United States, substantially
from articles, materials or supplies of the growth, production or
manufacture, as the case may be, of the Philippines or of the United
States;
(d) The term "foreign bid" means any offer of
articles, materials or supplies not manufactured or to be manufactured
in the Philippines or in the Unites States, substantially from
articles, materials, or supplies of the growth, production, or
manufacture, as the case may be, of the Philippines or of the United
States.
Section 3. Only un-manufactured articles, materials,
or supplies of the growth or production of the Philippines or the
United States, and only such manufactured articles, materials, or
supplies as have been manufactured in the Philippines or in the Unites
States, substantially from articles, materials, or supplies of the
growth, production, or manufacture, as the case may be, of the
Philippines or of the United States, shall be purchased for public use
and, in case of bidding, subject to the following:
(a) When the lowest foreign bid, including customs
duties, does not exceed two pesos, the award shall be made to the
lowest domestic bidder, provided his bid is not more than one hundred
per centum in excess of the foreign bid;
(b) When the lowest foreign bid, including customs
duties, exceeds two pesos but does not exceed twenty pesos, the award
shall be made to the lowest domestic bidder, provided his bid is not
more than fifty per centum in excess of the lowest foreign bid;
(c) When the lowest foreign bid, including customs
duties, exceeds twenty pesos but does not exceed two hundred pesos, the
award shall be made to the lowest domestic bidder, provided his bid is
not more than twenty-five per centum in excess of the lowest foreign
bid;
(d) When the lowest foreign bid, including customs
duties, exceeds two hundred pesos but does not exceed two thousand
pesos, the award shall be made to the lowest domestic bidder, provided
his bid is not more than twenty per centum in excess of the lowest
foreign bid;
(e) When the lowest foreign bid, including customs
duties, exceeds two thousand pesos, the award shall be made to the
lowest domestic bidder, provided his bid is not more than fifteen per
centum in excess of the lowest foreign bid.
Section 4. Whenever several bidders shall participate
in the bidding for supplying articles, materials, and equipment for any
dependencies mentioned in section one of this Act for public use,
public buildings, or public works, the award shall be made to the
domestic entity making the lowest bid, provided it is not more than
fifteen per centum in excess of the lowest bid made by a bidder other
than a domestic entity, as the term "domestic entity" is defined in
section two of this Act.
Section 5. This Act shall take effect on its approval.
Approved: November 7, 1936
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