Botika ng Bayan Program Mechanics

Eligible Applicants

• Non-government organizations (NGOs) and cooperatives
• Trade and labor unions, employees’ associations
• Corporate foundations and religious groups
• Senior citizens’ and women’s groups
• Sole proprietorships, partnerships and corporations

Pre-Qualification Requirements

• Valid and current registration, either as a cooperative with the Cooperative Development Authority (CDA), a foundation or association with the Securities and Exchange Commission (SEC), a workers’ association with the Department of Labor and Employment (DOLE), or any organization authorized and certified by a duly recognized agency

• Minimum revolving capital of PhP 500,000.00 for the project, as evidenced by a certification issued by an authorized Bank

• Valid government licenses, business permits, etc.

• Proposed location plan or vicinity map

• Capability to comply with the documentation, technical and other requirements of the Bureau of Food and Drugs (BFAD) in the filing of the application for a License to Operate (LTO) as Drugstore, including the availability of the services of a licensed Pharmacist

BFAD Requirements for Registration of Drug Retail Outlets

The following documents are attached:

Annex 1 Checklist of BFAD Requirements for Drugstore/Hospital Pharmacy/Retail Outlets

Annex 2 Standard format for notarized Petition for submission to BFAD

Annex 3 Standard format for notarized Joint Affidavit of Undertaking for submission to BFAD

Roles and Responsibilities of the Parties

The Philippine International Trading Corporation (PITC) shall:

• Supply all drugs and medicines, and other consumer products, which shall be sold in Botika ng Bayan outlets at not more than the prescribed Maximum Retail Prices

• Arrange to provide training support to the supervising Pharmacist and other personnel in the Botika ng Bayan outlet

• Provide marketing, advertising and promotions support for the program

• Arrange to make the standard signages, collaterals and product lists available for use in the drug retail outlets

• Provide the outlets with copies of Certificates of Product Registration (CPR), as well as BFAD Reports of Analysis for all batches delivered

The Botika ng Bayan operator shall:

• Provide initial capitalization for the construction of the outlet and inventory of medicines to be sold

• Shoulder the overhead, manpower, legal and other expenses required to operate the drug outlet

• Purchase the standard program signage and other collaterals from PITC for use in the drug outlet

• Display, in a prominent location and within sight of consumers, the product list and Maximum Retail Prices, its License to Operate, and the Certificate of Accreditation

• When requested, and subject to further negotiation, share in the expenses for marketing and advertising support for the program

• Comply with the reporting and monitoring requirements which may be instituted by PITC and DOH/BFAD in connection with the program,

Application and Evaluation Process

1. Interested applicants shall fill up the Application Form for the Accreditation of a Botika ng Bayan Outlet. The form is attached as Annex 4.

2. Completed application forms, together with the Pre-Qualification Requirements listed above, shall be submitted in three (3) copies to the

Pharmaceuticals Department / Botika ng Bayan Accreditation Committee

Philippine International Trading Corporation
2/F, National Development Company
Building 116 Tordesillas St. , Salcedo Village , Makati City

The applicant shall also pay PITC the non-refundable processing fee of PhP 5,000.00. PITC will issue an Official Receipt.

3. After validation/verification (where necessary) and due evaluation, the applicant shall be officially informed of the decision of the Accreditation Committee through a written notice sent by mail or fax.

PITC reserves the right to reject applications which fail to comply with the standards and guidelines of the program .

4. PITC will issue an Endorsement Letter in the name of the qualified applicant. Said document shall be submitted to the Bureau of Food and Drugs (BFAD) together with other requirements for the application for a License to Operate as a Drugstore.

In the case of Metro Manila outlets, PITC will endorse the application directly to the Head Office of the Bureau of Food and Drugs (BFAD), Filinvest Corporate City , Alabang, Muntinlupa City .

Regional or provincial applicants shall submit the Endorsement Letter issued by PITC, together with all required documents, to the BFAD Regional Offices where the proposed outlet is located. A directory of these Offices is attached as Annex 5.

Applicants shall be responsible for following up, monitoring, or coordinating directly with BFAD during the evaluation period, and for complying with additional requirements which BFAD may impose.

5. Following the issuance by BFAD of the License to Operate (LTO) as a Drugstore, qualified operators will sign a Memorandum of Agreement with PITC which will define the terms and conditions for Botika ng Bayan outlets.

6. The qualified operator shall post a Surety Bond in favor of PITC in the amount of PhP 500,000.00 to guarantee faithful compliance with the terms and conditions of the Botika ng Bayan program.

7. The Certificate of Accreditation will be issued by PITC.

Basic Terms and Conditions

1. Botika ng Bayan outlets shall retail only pharmaceutical and non-pharmaceutical products authorized by PITC. These products shall be supplied by and sourced exclusively from PITC.

The sale or retail of other products not supplied by or sourced from PITC shall be prohibited, and shall entitle PITC to cancel its accreditation of the Botika ng Bayan outlet, unless prior written consent was given by PITC.

2. All products supplied by PITC shall be sold at not higher than Maximum Retail Prices (MRP). Violation of this condition shall entitle PITC to revoke its accreditation of the outlet as a participant in the program.

3. Accredited outlets shall be required to provide qualified senior citizens with the standard discount in accordance with existing laws and government guidelines for the grant of said discount.

4. Deliveries made by PITC or its designated distributor shall be paid in full by the accredited outlet through a thirty (30)-day post-dated check issued upon delivery to its warehouse or outlet. Late payments shall be subject to interest at the rate of 2% per month. Failure to remit payments for previous deliveries shall entitle PITC to withhold processing of subsequent or follow up orders of the drug outlet.

5. Any return or exchange of products delivered by PITC shall be allowed only within seven (7) working dates from the date of delivery. Thereafter, no returns or exchange shall be accepted, and products are deemed sold.

Returns shall be accepted only when one of the following conditions is present:

• Defective or tampered packaging, in which case the outlet will be unable to retail the product to consumers

• Inability of PITC to provide the required CPR or Reports of Analysis for all medicines and batches or lots delivered

• Remaining shelf or usable life of the products is less than six (6) months

6. PITC will not be required to accommodate any request for return or exchange of drugs and medicines whose shelf lives have lapsed or expired, or those with expiration dates of less than six (6) months prior to the return or exchange.

7. The accreditation of a Botika ng Bayan outlet shall be valid for a period of three (3) years, subject to further renewals, unless revoked or cancelled by PITC due to any violation of the rules or terms and conditions of the program and the Agreement entered into, and non-payment of obligations, or unless earlier surrendered by the outlet prior to the expiration of the term.

All payments due PITC from the accredited outlet must be settled in full upon surrender or expiration of accreditation. Otherwise, the outlet shall continue to be liable to PITC for all unpaid or unsettled obligations with the corresponding interest/surcharge despite the surrender or expiration of the accreditation.

8. PITC reserves the right to make changes and modifications in the rules, accreditation requirements, and terms and conditions of the program as may be necessary to carry out its objectives. PITC shall regularly notify all accredited outlet of such changes or modifications.

9. PITC reserves the right to cancel its accreditation of Botika ng Bayan outlets which fail to comply with the standards set for operating said outlets, or any violation of the rules, guidelines, and terms and conditions of the program.