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Functions of the National Cottage Industries Development Authority (Republic Act No. 3470)

Photo from Unsplash | Akhil Pawar

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.


AT A GLANCE:

The following are the functions of NACIDA:

  1. Organize, revive, encourage, and promote the establishment of cottage industries;
  2. Survey and evaluate existing skills, machinery and equipment, and raw materials available in industrial quantities;
  3. Promote the effective merchandising of cottage products in domestic and foreign market;
  4. Promote standardization of cottage industries products;
  5. Prescribe rules and regulations governing the grading, classifying, and inspecting of cottage industries products;
  6. Extend assistance to cottage industries producers;
  7. Render consultation services;
  8. Undertake research and training programs; and,
  9. Administer and maintain a tool and dye development program.

(Section 2, Republic Act No. 3470)


The law says:

“SEC. 2. The National Cottage Industries Development Authority, shall perform the following duties:

(a) To organize, revive, encourage, and promote the establishment of cottage industries; however, projects for the establishment, expansion and development of cottage industries now being undertaken by other governmental agencies or offices shall be transferred to the Board and the personnel, know-how and technology from these governmental agencies shall be absorbed by the Board;

(b) To survey and evaluate existing skills, machinery and equipment, and raw materials available in industrial quantities;

(c) To promote the effective merchandising of cottage products in domestic and foreign market so that those engaged in such industries will be placed on a basis of economic security and towards this end the Board itself may, if necessary, market the cottage products for the producers;

(d) To promote the standardization of cottage industries products, prescribe rules and regulations governing the grading, classifying, and inspecting of cottage industries products, especially those for export;

(e) To grant small loans under such terms and conditions as may be prescribed by the Board or arrange for necessary loans with public or private credit institutions and banks, including such other loans intended for the planting, cultivation, and production of needed raw materials for the cottage industries covered under this Act;

(f) To extend assistance to cottage industries producers in their problems relating to financing, production and marketing;

(g) To render consultation services, provide technical know-how and field assistance to cottage industries producers;

(h) To undertake research and training programs designed to improve cottage industries products;

(i) To administer and maintain a tool and dye development program responsive to the technological needs of the cottage industries; and

(j) To adopt such measures as may be deemed necessary and proper to carry out the purposes of this Act.”

The National Cottage Industries Development Authority (NACIDA) is an important government institution dedicated to promoting the cottage industry sector in our country. NACIDA plays a crucial role in driving economic growth, preserving cultural heritage, and empowering local artisans and entrepreneurs.

Promoting Entrepreneurship

A core function of the NCIDA is to encourage entrepreneurship within the cottage industry sector. The authority provides guidance, mentorship, and financial support to budding entrepreneurs, enabling them to transform their skills and creativity into sustainable businesses. By fostering a culture of entrepreneurship, NCIDA empowers individuals to become self-reliant and contribute to the nation’s economic prosperity.

Market Access and Promotion

One of NACIDA’s critical functions is to facilitate market access for cottage industry products. The authority collaborates with various stakeholders, including retailers, exporters, and government agencies, to create avenues for artisans to showcase and sell their products. Through exhibitions, trade fairs, and e-commerce platforms, NACIDA ensures that the creations of local artisans reach a wider audience, both domestically and internationally.

Policy Advocacy

NACIDA serves as an advocate for the cottage industry sector, representing the interests of artisans at the policy level. The authority collaborates with government agencies, industry associations, and other stakeholders to formulate policies that support the growth and development of cottage industries.

Preservation of Cultural Heritage

Many cottage industries are deeply rooted in the cultural heritage of a region. NACIDA recognizes the importance of preserving and promoting these traditional crafts and artisanal skills. The authority works to safeguard cultural practices, ensuring that they are passed down to future generations while adapting to modern market demands.

 

Read also: Gawad sa Manlilikha ng Bayan Day (Republic Act No. 7355 of 1992)

 

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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