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DEPARTTiENT ORDER NO. 20
Series ot2A2A

SUBJECT Revised Guidelines for the lmplementation of Livelihood Seedirq,

Prcgram {LSP}-Negosyo Serbisyo sa Barangay {}.lSB}

1. RATIOT'IALE:

Economic development must be sustained in order to fully realize the long term vision of
the Filipino people entrenched under the AmBisyon Natin 2040 to have "Matatag,
Maginhawa, at Panatag na Buhay." Forthe past years, economic growth has reached
6.5 Yo and a vibrant MSME sector accounting for 99.5 percent of businesses in the country
plays a key role in achieving such momentum.

While the impact has yet to be assessed, the government's efforts on MSME development
gained significant milestones with almost 300,000 MSMEs assisted for 2018. Backed by
Republic Act No. 10644 or the Go Negosyo Act, DTI established more than 1000
NCs, delivering services to potential and existing entrepreneurs. Despite these numbers,
many entrepreneurs have not received nor heard of govemment programs, especially in
less developed areas. This, therefore, presents a major concern, especially as lrre aimfor
stronger value chain linkages of our industries and promote countryside development.

ln pursuing the direclive of President Duterte to help the country's base of the pyrarnid DTI
develops the Negosyo Serbisyo sa Barangay Program. Republic Act No. 7160 also known
as the Local Government Code of 1991 provides for the role of barangays in attaining
national development through serving as the primary planning and implementing unit of
policies, plans, programs, projects, and activities in the community. Based on the recent
data of the Departmenl of the lnterior and Local Govemment (DILG), there are 42,045
barangays all over the country. The efforts of DTI and services of other government
agencies could be extended to more Filipinos through the barangays, with the assistance
of the Barangay Development Councils. Prior coordination with DILG was conducted to
secure collaboration for the implementation of the Program. DTI Provincial Offices may
wish to engage their counterpart DILG Provincial Offices in all activities under the LSP-
NSB Program to ensure integration of related initiatives.

The initiative is in support of the goals and aspiralions of multilateral agreements at the
regional and intemational levels. The LSP-NSB Prognam aligns well with the United
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m Nation's 2030 Agenda for Sustainable Development which sets out the Sustainable
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I3 Development Goals (SDGs) intended to eradicate poverty and realize sustainable
3oJ(- m development in the next fifteen years. The development goals are geared towards
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achieving a better and more sustainable future. These consider inclusive economic growth

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as a necessary stride in attaining sustainable jobs and promoting equality. The LSP-NSB
further supports the ASEAN Economic Communily's (AEC) third pillar of integration, on
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T equitable economic development wherein the progress of the MSMEs is considered as the
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{ key lo nanowing development gaps (UN 2030 Agenda; AEC Blueprint).
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27 o The LSP-NSB further extends to refugees or stateless persons since the Philippines is a
'o State Party to the 1951 and 1954 Conventions Relating to the Status of Refugees, which
a
stipulate that "wherc a rationing sysfem exrbfs. which applies to the population at large and
regulates the general distibution of products in shaft supply, sfafe/ess persons shall be
accodedthesame treafutentasnafionals, "1 andthat"fhe Contracting Sfafes shallaccord
fo sfafeless persons lawfutly staying in their tenitory ffie same trcatment with respect ta
l Article 20, 1951 and 1954 conventions Relating to the status of Refugees

1
 public reltaf and assistance as is accorded to thelr nationals.^2 Such conventions further
state lhal "the Contracling Stales shar/ actord to .a rcfugee lawfully in their tefiitory
treatment as favourable as possrb,e end, in any event, not less fawunble than that
accodad to aliens geneftlly in the same circumstances, as regards lhe right to engago on
his own ac@unt in agianlfure, industty, handicnfis and mnmere and to eslablish
comnercial and induslrial companies." Hence, while not Filipino nationals, the State has
the duty of care towards vulnerable individuals under ils obligations in upholding
intem€tional humanitarian Iaw.

Finally; the Department's LSP-NSB Program lies within lhe purview of the whole of
govemment approach wherein public agehcies related to supporting inclusive business
ecosystem work ecross podfolio boundades and mandate to encourqe entrepreneurial
activitie8 and integrated govemment assislance.

2. PURPOSE

Th€se guidelines provide an overall direclion in realizing lhe goats of the Lsp-NSB, a
progr€m of the Depa(ment of rrade and lndustry as chaii of th; MSMED
council. ltairns
to .assist the DTI Regional and provincial ofiices, pertner inslitutions, relevant
stakeholders, and program consultiants in ensuring coordinited and holistic acdion
partners and address concems that may result in the irnplementation "rong
and ,"nrg.r"nt oi
the program.

3. OBJECTIVES'OUTCOMES

prLsry is aimed at supporting the goars of the MsME Deveropmenr pran 2o1r-zoz2
P:golbl"
IThis likeurise intends to maximize the polenlial ofandbaEngays
the number of r€gistered entrepreneurs create more than riri rirrion ioG.
to b€come economically
indopendent and make them more effeclive partners in tnE iuainment ;i;"ti"il ;;;i"
This shall an opportunig for these units to aaively participat"- ii-ir,L
-provide
implementation of national programs and proliec.ts.

By. the. end of. its imprementaflon, rhe program is expected to deverop
2o0,o0o new
enterprises_ and provide more then soo,ooo ,**pu=. tt also aims to assist
in the business
f€9v.ery of MSMEs affected.by natur:al and human-induced catamitir" i;;iling h;;[h
disasters arising fmm epidemics and pandemics.

ln detail, the program has the follorving objectives:

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oLlr
'oa:! 3.1. lncrease the au/arBness-of barangay officials about the services offered
by the
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Department through the Negosyo Certters;

H;.t^.. : 3.2. ldentiry MSMEs wlh business operations within the bamngeys incruding
Local communist Armed conflict (LCAC) affecteil areas, ,i,ln"oore
those in

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;c6=a s--m!
communities such as th_e rndigenous peopres (rps), and refugees o, st"i.t"""
psrsonst al60 known.as persons of concem (pocsi- priofity

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health disasters arising from epidemics and pandernics.
aisistanceshail be
given to MSMES atredsd by natural and human-induced calamities
indudino
3.3. conduct of €ntrepreneurship information disseminarion activities in barangays;
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and
:-: 3.4- Provision of individuel package of livelihood kits amounting to Five Thousand
Pesos but not more than Eight Thousand pesos (php s,000:00 _ e,ooO.OOl tiai
contains items that could aid the qualified affocted individual to restore and
improve their businesses in.case of catastrophic oyents like naural ana nrmin-
induced calamitiB including heanh disasters like epidemics and pandemics.
-"'

I
Section 23, ibid.
 The LSP-NSB Program will achieve its ohjectives by:
. Supporting a grassroots approach to enterpris development;
. Mapping of r:elevaht information for an inforrned decision or direction on industry
priorities;
. Promoting engagement of local leaders and MSME enablers:
r Activating the fomalion of indusfry associations, cooperatives, and youth
orga nizations: and
. Promoling accountability at the local tevet.

4. COVERAGE:

MSME beneficiaries of the LSP-NSB prcgram may include sole proprietoE, coopemtives,
or secioral associations that are located in idenlified barangays, induding those in Local
c_ommunist Armed conflict (LCAC) affected areas, wlnerable communiiies such as the
lPs and refugees or stateless p6rsons, also known as poGs. priority assislance shafl G
given to MSMEs affocted by natural and humarFinduced calamiiies lncluding health
disas{ers arising from epidemics and pandemics_

5. ACRONYMS

BDC Barangay Development Council

Btt.TBE Barartsay Micro Business Enlerpris€
BS]*ED Bureau of Small and Medirim Enterprise Development
CDA Cooperative Development Authority
DCP Design Center of the Philippines
DILG Depsrtm€nt of the lnterior and Local Govemment
DOST Deparlment of Science and Technology
DTI Department of Trade and Industry
ECPMS Client Profile and Monitoring Sysiem
LCAC Local Communist Armed Conflict
EDT Enterprise Development Track
IP lndigenous People
KMME Kapatid Mentor Micro Enterprise.Program
LGU Local Govemmer Unit
MSME Micro, Small, and Medium Enterprise
iTISMEDC Micro, Small, and Medium Enterprise Development Council
NC Negosyo Center
o?o
r!r\m NC PMU Negosyo Center Program Management Unit
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NSB
OTOP Next Gen
Negosyo Serbisiyo sa Barangay
One Town One Producl Next Generation

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POCg
PSA
PTTC
P3
Persons of Concern
Philippine Statistics Authority
Philippihe Trade Training Center
o. Pondo sa Pagbabago at Pag-Asenso
&[p X RIPPLES
ROG
Regional Interadive Pla6orm for philippine Exporters
Regional Operations Group
FgF d
?zo SB Corp Small Business Corporation
a- I TESDA
uP.tsst
Technical Educa.tion and Skills Development Authority
Universig of the Philippines-lnstitute for Sma Scale industries

6, PROGRATII II{PLENiENTATION

6.1 . The LSP-NSB Program shall be implemented frorn 2020 lo 2022 wlth its targets
and @verage as foll6ws:

3
 YEAR Cumulative Taryet No. of Cumulative Coverage
Targetl{o. lndividuals Taqet No.
of ptovided with of HStlEs*
Barangays* infunnaton on t5 il$lriEs
various livElihood . per
opportunities {100 barangayl
info kits per
barangay)
2020 5,493 549,300 30,000 1, All Barangays including
2021 9,240 824,000 60,000 those with Local
2022 10,985 1,098,600 100,000 CommunistArmed
Gonflict-affested arsas
Z. lndigerrcus People
3- MSi,lEs dected by
natural and human-
induced calamities,
induding health disasters
like epidemics and
pandemics
4. Refugees or
POGSMSMES

.Subjectto periodic revleurbased on DILG and PSA's updates, Preslderrtialdirectives and

other govemment issuances.

6.1.a. Arcas of Coopelatfun and PryosedAcf'vilies

DTl, Negosyo Centers, and the identified barangays shallcollaborate in the attainment of
the five strategic goals of the MSME Development Plan 2017-2022, namely: lmproved
Business Cllmate, Imprqved Access to Fmance, Enhanced Managenrent and Labor
Capacities. lmproued Aacess to Technology and lnnovation, and lmproved Access to
Markets.
'The
table below indicates the specific roles of the partner barangays and DT[:

Areas of Role of Barangay Development Role of DTI-NC

- -P-
ob n
tit
Cooperaton Gouncil Counselor
$,1
lmprwed t Assist in facilitating clearances i Capacitate barangay
::co :! BusineEs Climate of entrepreneurs or investors officials in
jSrr fl faciliteting
qefi m
() t Serve as validators forclionts business clearances

affi\ {
x
{e.9. BMBE, CPMS client

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0.6 l.::
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fn
!o
lmproved Access
to Finance
i
entries)
Refer/Endorse potential a Orient the barangay
lff=
T:'(^
.L
o
beneficia ries of fi narrcin g
programs
with various
o,fFtcials
existing financial
F5 r o
n
r
seruices
53 o
:t
Enhanced-
Managenient and
lnvile entrepreneurs and
wsrker's to .capacity building
a Help identify capacity
bullding needs of both
Labor Capacities interventions of DTt and other enlrepreneurc and
ageneies workers
o
Provide a ve-nue furcapacity
___hUilding ac[ivities
lmproved Access
to
Provide a feedback medranism r
ldentify and invite
Tedrnology
and lnnovation
to identify appropriate industries
for microenlerprise technology
' enablers on product
development
an d innovallon interventions
__ppglams (e.g. OTOP

4
 NextGen, RIPPLESI
offerings of DCP, etc.)
and technology
transfer programs
lmproved Access a Suggesl MSMEsthat may be Facilitate participation
to Market provided with the appropriae ol MSMES to trade
interventions fiairs and online matket
places

6.1.b. Proposed NeSoE/o Sertisyo sa BarangayAcl tities

The following ac{ivities have been laid out in consideration of tho resource capacity of the
partn8r-barangay. The proposed interventions as pro\rid€d in thetable betoware
ct6ssifiea
as Low cost, Medium cost, and High cost. lntervenlioris should be consistent with tre
Enlerprise Developmer Traclcsuggested scope of lnlerventions but not limited to the
following:

Proposed Acuvities Posaible Budget

Source/s
. Provision of the following services:
o Conduolentreprensurship
informalion dissemination by
providing information materials on
{t various livelihcrcd opportunities to
(,o at least 100 individuals or may . Regular fund sources/
i conduct advocacy briefing session Approved annual
J on MSME programs and services operating expenses of
du.ing the program launch or as DTI or Negosyo
may be anang€d by the barangay. Center responsible in
o Facilitation of applications for the area
putting up a business {Business
Name, BMBE registration,
Barangay Clearance, Registration
with LGU, SEC, CDA, etc.)

o DTI Funding with cost-

/.t
. Creation of NSB Desk in lhe sharing from the 20%
\> m
10
Barangafs Town Hall that shalt operate
z ! (,o at least onc6 a w€ek
of the Barangay
lntemal Revenue
IO
3F r
=
m
E
.=
o Advocacy briefing sessbns Allbtment dedicaled to
If, E
o o Facilitation of businoes permit development
fS' {
t
(- o
applications programs; and BMBE
I
iE--
6l-: 'o
frt
= Conduct of skills development
.sesslms such as busimss plan
funds through
agencies msndated by
Rv I plepaEtion
o
-{
RA No.9178: BMBE
d9 o
r)
Act
2 o
"o

5
 o Creation of NSB Office which shdl
serve as an e*ension of Negosyo
Centers for
{r Regularadvocacy brieling
sessions
o Conduct of highly specialized skills
developrnont sessions
o Facilitation of trade fair
participation
c Facililation of specialized business
lcen ses/ certificstions
()
I

-G, Development of area-specific

(,o programs/ projec{ proposals fior
I May tap/ request
MSMEs
funding fmm the
qD municipall provincial
. Provision of MSME Livelihood Kil
government, public-
private partnership, or
amourrting to Five Thousand Pesos but
not more than Eight Thousand pesm DTI.
(Php 5,000,00 - 8,000,00) to eligible
benefi ciaries afler parlicipation i n
entrepreneu rship sessions and
submission of the following documents:
a.) Accomplished CPMS profite Sheet
(Annex 1)
Accomplished LSP-NSB Simptifiect
Action Plan (Annex 2)
b.) Signed Pledge of Commilment
(Annex 3)

6.2 The operation of the LSP-NSB Program shall take place at the microlevel where
smaller unils and actors will rrork closely with their regional and national
counterparts.
The DTI Provincial
9I.t shall supervise-the implemeniation of the NSB irogr.m at the
local level. The DTI-PO shallcoordinatethe eonduct of infurmstion
Oi*r*rninaiin activities
or orientatfon on the NSB Program with the lUlunicipat Govemment and Barangay
Development Councils of target barangays.

6'3 lnformation dissemination of various livelihood opportunities may be provided

to 100
o{n
ol.ln
individuals in the tarangay in case of pandemiis and other healtfi
disasters that
'o:! prevents DTI and Elarangay Heads to conduct llve sessions
ru/r--l due to rsstrictions.
iilE I 6'4 lf mass gethering is authorized or permitted, an orfentation rnay be conducted to
participants including the designated BDG personnel on
ap^il; programs and services for MsMEs, potential and existing
varior, lovernment
MsMEs] academe,
r:"tsH
O 6 i_,i.! !
representative of Non-Government Organizations operating otnin
the barangay,and
others shall be scheduled.
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F- >
gzo r')
6'4 The DTI NC counselor with the BDC and other partners may launch
Program in the target barangays witfr a general orierrtationof
the LSp-NSB
.iI DTI prolrams and
seruices in the barangay hall or LGU-oarned facilities accessible io ine public.
Mateflals such as brochures and flyers of DTI program" and seruices
shall be
distributed to the locality.

6.5 DTI will encourage Barangays to submit a list of 100 recipients of the information
materials that will be disseminated in the barangdys and other potentiat beneficiaries
9f the appropriate programs and services- As a foilLnr-througn, DTl *"v rlo=i r"iiri6""
(e.9., info sessions, workshops, elc.) alongside tocalevents with the
assistance.of the
municipal govemnent and BDC.

6
 6:6 ln case of catastlophic events inctuding health disasters, an indiv.idual package of
livelihood kils amounling to Five Thousand Pesos but not more than Eight Thousand
Pesos (Php 5,000.00 - 8,000.00) and expeded to contain items that could aid the
qualifired affected individualslfamilies shall be provided to restore and improve their
businesses. The indusions in these kits may vary depending on the needs required by
the afrected localities or the type of disastroua events that transpired or occurred.
Beneftciaries of the klts may fall under the eategories: prisrity sector o{ the
region/proyince, marginalized sectors {i.e. indigenous peopbs, persons with
disabilities, youth, eto.i, bankrupted errterprises, stricken by man-made or extreme
weather events, rebel ngturnees, drug rehabilitated individuals, refugeeq or stdeless
persons, or POCs, and those cases which the DTI Regionaland Provineial Offices may
deem appropriate. Allotted funds m.ay be used forother LSP-NSB Program adivities if
there is zero or low casualty afier the occuren@ of natural or human-induced
catastrophes.

7. PROGRAM MAI{AGEIIEHT

7. 1 . O rganizational Su pport. lnftastructu rc

Cpnsistent wlth its role, as stiputated under the Manual tur the Operations of Negosyo
Centet the Negosyo Center Program Management Unit (NC PMU) shall assist the DTI-
Office of
lhe Undersecretary for
Regional Operations in
providtng direction,
documentation; and metrics related to target-setting, monitoring and. evaluating system,
capacitaling counselors, and idenlifying and slrategizing ways to improve end/or expand
servle ofbrings.
Also, the NC PMU shall support lhe DTt Regional and Provirtcial Ofrices in implernenting
the LSF-NSB Program to operate efficiently and efiectively allowing motts resources or
required soruicss to be delivered at the barangay level. Belor are the major functions of
thE NC PMU:

7"1.1. Assjst the Negosyo Centers in sourcing additiona[funding support spectfically for
the implementation of high-cost projec{s or adivities;
7.1.2. Channel private sector and developrnenl partners- iniliatives to the barangaylevel;
7.1.3. Establish databank which shall serve as a source of all infurmation.necessary for
program monitoring, evaluation, and polhy revieuas;
7.1.4. Monitor and recommend process improvemenl for established LSP-NSB Desks
and Officesi
7.1.5. Conduct researclr forthe enhancernent of the NSB Prograrn ilesign and features;
t)Gf 6 and,
H* $
:1 :r G) -,:
:in!:l l
7.1.6. Revierffand approve information malerials that may be disseminated through the
NSB Desk, NSB ffiG, or during the conduct related activities.

rftfl;
il'fl8--'fi
The NC-PMU shall conduct monitoring of the LSP-NSB program and share relevant data
to the DTI-Bureau of Smalland Medium Enterprise Development. Moreover, the NC PMU
with the DTI€SMED shalljointly conduct an assessrnent of the LSP-NSB Prograrn for
iir: I further improvement of its implementation and managernent.

''5r
::.

,4o
='(r)
I
-l The fqllowing organizations, which could be tapped by the Department in providing
Ectrnlcal expefilse, may also s,erve as lesoulue persons in the delivery of services under
'.< .t,
the NSB Program:

r Department of Science and Technotogy;

r Depertment ff the lnterior and Local Govemment;
. The Uniyetsity of the Ptrilippines-lnsfitute for Small Scale lndustries;
r Cooperative Development Authorily: and,
. Technical'Educatbn and Skills DevelopmentAuthority

7
 7.2. Budgeting and Sourcing of Funds

The LSP-NSB program is identified as a Congress-lnkoduced Budget (ClB) under

Republic Act 11465 or lhe General Appropdations Ad. 2o2o. For Fy zoio, thL amount of
Two Hundred rhree Million Pesos (Php 203,000,000.00) was allotted for the proiec{ under
MOOE fund. Such funds may be augmented or supplemented - to assi{ affected
individuals or MSMEs, particutf dy for health disasters/pandemics/epidemics.

7.3. lnformation Mateials and Coltaterats

llc Pryoram Managemeot unit approved information mat€rials Ehall be prepared and
dissemin4ed to target participants. The use of collatorals such as togo, tdrpdulins, ancl
Negosyo center ldefiification card should comply with the Manual foithe operations of
Negosyo c6nter and of this manual. This is to ensure the standardized layout and branding
of the NC and LSP-NSB initiatives. The official NSB program logo and sampte collaterals
shall be provided once approved by the Oflice of the SCretary.

The Municipal NC counsellor Head shall assist in identl'fying and documenting updated
and new best praaices of NC counselloF deployed at the target barangays. Th;de'ployed
NC counsellors shall also assist.in identifying and endorsing MSME;'to the Nc'pMU,
through the Municipal NC counsellor Head, wlio can be featuied in any t tc conatirats.

8. RESULTS iIONITORING AND EVALUATION

To_effeaively monitor the accomplishments under the NSB program, the DTI provincial
offices shall prep.are monthly reports to be submitted to the DTllRegional ffices ras[ea
to review and endorse said reports to (he NC pMU ard BSMED
1se6 annex nr eiofoseo
Monitoring Forrn). MsMEs assisted must b€ profiled on the client profile and
Monitoring
sysiem (Annex 1: cpMS profile s}'eet) tagged under NSB program to.. monirortng of
MSMEs oeated and jobs generated.

The key performance indicators for the program include:

8.1. N_umber of_barangays corrg=d incruding LcAc-afiected areas, lp comrnunities,

and
MSMEs affected by natural and humanjnduced calamities and heatth uisasteii rilie
epidemics and pandemics;
gI
-f
r
"t 8.2. Tho number of business_d_evelopmenl activities (i.e. orientations, entrepreneurship
training, facilitation of BMB.U business name regislrations, etc.) conduaed.
irF i 9.3- lJtmb€r {r.ndividuats
provided wilh informstion on various livelihooa opportunities:
8.4. Number of Livelihood Kits.distributed;
epn\;
oF
-.r C
8.5 Number of MSMEs assisted;

a;.-rn
a6ir ! Recommendalions from host and BDcs shfirld b6 captuEd in rhe reports to
be Fepared by DT, provinciarlalgnoays
&ilp E ofiice. The assigned NC munserbrs are en*rrag"d io
1t9
F'>
d
(1
provide action photos of the NSB program launciing immediately
after the conoud"ot tt
event for informetion disseminatbn in social media plaforms of t'he Departmert
upuJ.u "
2zo
.2-: and newbest practices of deployed NC counsellors'or LSP-NSB prog,im irnpr.meiitaiion
may be documented and disseminated as reference for other partnea.

An incentive scheme to encourEge sustained op€rations and efficient delivery of MSME-

related services may be developed by the NSB TWc depending on ttre aiair"uirily'or
funding souroes.
 9. MISCELLANEOUS PROVISIONS

The Supervising Undersecretary of the DTI Regional Operations Group may issue further
guidelines covering the NSB Program as deemed necessary.

10. GOVERI{ING CLAUSE

All Actions to be taken under these guidelines shall be consistent with and be subjected
to all guidelines promulgated by the DBM and DTl, and other pertinent laws, govemment
procurement, budgeting, accounting, and auditing rules and regulations.

1I. REPEALING CLAUSE

All orders, instructions or other similar issuances inconsistent herewith are hereby
repealed and amended accordingly.

12. SEPARABILIW CLAUSE

ln case any part of this guidelines is inc,onsistent or will violate any other applicable laws
thus invalidating such part, the remaining provisions shall remain valid and effective.

13. EFFECTTVTTY

This Revised Department order shalltake effect immediately after signing.

Date lssued: Ausust 18.2020

Recommending Approval

a
BLESILA A.
Undersecretary, Regional Operations Group

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