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Ease of Doing Business

The Ease of Doing Business and Efficient Government Service Delivery Act of 2018 aims to streamline business processes in the Philippines by reducing bureaucracy and enhancing accountability through the establishment of an Anti-Red Tape Authority. The law mandates strict processing timelines for various transactions and requires government agencies to create a Citizen's Charter to ensure transparency and efficiency. It also includes provisions for a one-stop business shop and electronic systems to facilitate easier access to government services and permits.
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0% found this document useful (0 votes)
30 views11 pages

Ease of Doing Business

The Ease of Doing Business and Efficient Government Service Delivery Act of 2018 aims to streamline business processes in the Philippines by reducing bureaucracy and enhancing accountability through the establishment of an Anti-Red Tape Authority. The law mandates strict processing timelines for various transactions and requires government agencies to create a Citizen's Charter to ensure transparency and efficiency. It also includes provisions for a one-stop business shop and electronic systems to facilitate easier access to government services and permits.
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Good morning, this is the 3rd to the last module of our law 3, which is about the Ease of

Doing Business and Efficient Government Service Delivery Act of 2018 or the Republic
Act No. 11032

 This was signed into law on May 28, 2018 and it is an amendment of Republic
Act 9485, known as the “Anti-Red Tape Act of 2007,” which makes the process
of starting and operating a business easier, and more efficient.

 It helps to attract more foreign investments by simplifying requirements and


streamlining procedures. The new law aims to enhance business
competitiveness, correct the perennial problem of bureaucracy in government
institutions, and reduce opportunities for corruption.

 The Department of Trade and Industry (DTI) said this law “is one of the
interventions of the government to make doing business in the Philippines
easier.” Because it streamlined government processes for all transactions, had
efficiency measures, and had strict timelines. All of these will be further
discussed later on.

Policy, construction, and interpretation

this statement is the government's promise to be honest, responsible, and efficient in


serving the people. It says they will work to make things easier and faster by preventing
corruption and cutting out unnecessary bureaucracy.

Red tape refers to excessive bureaucracy and complicated rules and procedures
that make it difficult to get something done, especially when dealing with government or
large organizations. It often involves unnecessary paperwork, long delays, and multiple
steps that seem inefficient or obstructive.

Before, meron naman na talagang law para dito which is ung ANTI RED TAPE ACT OF
2007. HOWEVER, IT WAS A FAILURE BECAUSE THERE WAS NO GOVERNMENT
AGENCY TO LEAD THE IMPLEMENTATION OF THIS LAW.

So as a result, the application process was still too long, too much delays, and too much
loopholes. AND YET, no one was held accountable.

This is why, ONE OF THE DISTINGUISHING FEATURE OF THIS LAW IS THE


CREATION OF ANTI RED TAPE AUTHORITY

THIS IS AN AGENCY DIRECTLY UNDER THE PRESIDENT

GOVNT AGENCY MANDATED BY THE LAW TO OVERSEE THE OVERALL


IMPLEMENTATION
Definition of Terms

Action - The key here is the "written approval or disapproval." This emphasizes
accountability and transparency. It means the government office can't just verbally say
"yes" or "no"; they have to provide it in writing. This protects the applicant and provides
a record.

Business One stop shop (boss) - is a central hub designed to simplify the process of
obtaining business permits and licenses from Local Government Units (LGUs). It can be
a physical location where various LGU offices are located together, or it can be an
online platform.

The core idea is to streamline things. Instead of going to multiple offices (e.g., the
mayor's office, the treasurer's office, the fire department) a business owner can go to
one place (or website) to do everything.

Business-related transactions - these documents "confer eligibility to operate or


continue to operate as a legitimate business." In simple terms, these transactions are
what make a business legal.

Complex transactions - They involve "complicated issues" that an officer or employee


needs to evaluate. This implies that some judgment and expertise are required. That’s
why they require more in-depth review and decision-making, and longer timeframe.

Fixer – this is an invidual that may or may not be in collusion with a government
employee that is able to cut corners or yung they use their influence to get things done
faster than the official process. This is done for "pecuniary gain" (money) or "any other
advantage." This covers bribery, kickbacks, or any other form of illicit benefit.

Government service – this is very straightforward. This is just the transaction between
the public and government offices.

Highly technical application - The key aspect is that these applications demand
"technical knowledge, specialized skills and/or training." This means that the
government employees reviewing the application need to have specific expertise.

Examples might include applications for environmental permits, construction of complex


infrastructure, or licenses for specialized medical procedures.

Nonbusiness transactions – these could be Applying for a birth certificate, Renewing a


driver's license, or Applying for social welfare benefits
Officer or employee – read
Processing time – starts with the receipt of the request and ends with the issuance of
certification or any document approving or denying the request.
Red tape – already discussed earlier
Regulation – read
Simple transactions - applications that are more straightforward and require less
judgment.

Coverage and Scope

Philippine government offices abroad, such as embassies, consulates, and trade


missions, often play a crucial role in facilitating international trade, investment, and other
business activities involving the Philippines. By including these entities under the scope
of the law, the government ensures that these international interactions are also
conducted efficiently and in line with the ease of doing business principles.

Some Philippine government-owned or controlled corporations (GOCCs) may have


international branches or subsidiaries. Extending the law's coverage ensures that their
business transactions abroad also adhere to the same standards of efficiency and
transparency.

REENGINEERING OF SYSTEMS AND PROCEDURES

To combat red tape and improve government services, the law mandates that all
government agencies regularly review and revamp their processes, or even reengineer
their processes if necessary.

It also mentioned yung Anti-Red Tape Authority, na nadiscuss na rin kanina, it is the
government agency mandated by the law to oversee the implementation of RA 11032.
Also, it was established to identify and recommend the removal of outdated or
burdensome regulations.

Sinasabi rin ditto na, lahat daw ng new regulations must undergo a regulatory impact
assessment kase The Act doesn't just want to fix existing red tape; it wants to prevent
new red tape from being created. Kumbaga it is to further inefficiencies.

Finally, all LGUs and NGAs are required to begin reviewing and reengineering their
systems immediately upon the law's effectivity.

Citizen’s Charter

The law requires all government agencies (including departments, bureaus, offices,
government-owned corporations, and LGUs) to create and publicize their service
standards through a "Citizen's Charter." This charter must be displayed prominently
(e.g., main entrance, website) and in accessible languages (English, Filipino, or local
dialect).

Accessing Government Services

Acceptance of applications or requests

1. Government employees are required to accept all written applications, requests,


and documents submitted by the public. This means they cannot refuse to
receive a submission simply because they think it might be incomplete or
incorrect.

2. The receiving employee must conduct an initial review of the submitted


application and its supporting documents.

If there are any missing requirements, the receiving employee must inform the
applicant immediately.

However, the employee can only point out deficiencies that are specifically listed
in the office's Citizen's Charter. This is crucial – it prevents government
employees from arbitrarily adding requirements not made known to the public.

3. The government employee must assign a unique ID to each application or


request. This is a basic but essential practice for tracking, organizing, and
retrieving records, ensuring accountability and efficiency.

4. The employee must issue a formal receipt to acknowledge that the application or
request has been received.

This receipt must include specific details:

 The agency's seal


 The name of the employee who received the application
 The employee's unit and job title/designation
 The date and time of receipt

B. Action of Offices

All applications or requests submitted shall be acted upon by the assigned officer or
employee within the prescribed processing time stated in the Citizen’s Charter

Here, what we need to remember ay numbers 3, 7, and 20. Diba sabi ko kanina na this
law has strict timelines. So, these numbers represent the processing time for different
transactions.
Simple transactions – maximum of 3 working days

Complex – max of 7 days

Highly technical – max of 20 days

And again ang start nya is once na ma-receive ung complete application or request.
Complete meaning, lahat ng necessary documents ay nandun na rin.

There are instances na pwedeng ma-extend ung processing time. However, It can only
be extended once and the maximum extension to be granted is the same number of
days as the original processing time. For example, if the original processing time is 3
working days, the extension can only be for a maximum of 3 more working days.

To ensure transparency, This limitation on extensions must also be specified in the


agency's Citizen's Charter.

If an agency needs to extend the processing time, it must notify the applicant or
requesting party in writing.

This notification must be given before the original processing time expires.

The notification must include:

 The reason for the extension


 The final date when the service will be released

As proof that the applicant received the notice, the applicant must sign the written
notification.

If an application (for a license, clearance, permit, etc.) needs approval from a local
legislative body (Sangguniang Bayan for municipalities, Sangguniang Panlungsod
for cities, or Sangguniang Panlalawigan for provinces), the law sets a specific
timeframe for their decision.

The Sanggunian has 45 working days to act on the application.

This timeframe can be extended once, for a maximum of 20 more working days.

If the Sanggunian denies the application, they must provide a written explanation of
the reasons for the denial.

They must also inform the applicant about any possible "remedial measures" the
applicant can take to address the issues that led to the denial.
If a delay occurs because of a force majeure or yung events like natural disasters.
Basta anything beyond the control of the government agency, tapos na-damage
yung documents or nagkaron ng system failure, then prescribed processing times in
the Act are suspended.

c. denial of application or request for access to government service

Diba as mentioned kanina, the action can either be to approve or disapprove only.
Bawal i-return ung application or request without taking any action on it.

If an application is disapproved, the officer or employee who made the decision must
send a formal written notice to the applicant.

This notice must be sent within the original processing time.

The notice must clearly state the reasons for the disapproval.

The law also specifies a valid ground for disapproval: if a "competent authority" finds
that the applicant has violated any other laws, the application can be denied.

Again, when it comes to denial of application or request, it must be fully explained in


writing and must include the name of government employee who is denying the
application.

The law also establishes that any denial of an application is considered na may
implied permission from the highest-ranking authority in that government agency.
This is to prevent lower-level employees from denying applications on their own
accord.

d. limitation of signatories

To avoid unnecessary delays caused by numerous approvals, the law limits the
number of signatories on any government document to a maximum of three.

These signatories must be officers who directly supervise the office or agency
involved in the transaction.

However, if wala man ung isang authorized signatory due to official business or
leave, the law allows for the designation of alternate signatory.
Also, the law ecognizes the use of electronic signatures or pre-signed documents
(like licenses, clearances, etc.) to further expedite processes.

Yun nga lang, since these are electronic methods, they must have adequate security
and control mechanisms" para ma-prevent ung fraud and to ensure na rin ung
authenticity

E. Electronic Versions of Licenses, Clearances, Permits, Certifications or


Authorizations

The electronic version must have the same level of authority as the signed hard
copy. This ensures that they are legally valid and can be used for official purposes.

F. Adoption of Working Schedules to Serve Applicants or Requesting Parties

This means that government employees cannot refuse to serve someone simply
because it's the end of the workday.

G. read

H. read

STREAMLINED PROCEDURES FOR THE ISSUANCES OF PERMITS AND


LICENSES

a. Single or Unified Business Application Form:

This form consolidates information from various local government departments


(e.g., local taxes, clearances, building clearance, sanitary permit, zoning
clearance, fire clearance).

The unified form must be available online (e.g., through a central business portal
or the city/municipality's website) and in hard copies

(Instead of going to different offices and filling out different forms for each one, you only
need to fill out ONE form. This form has all the information that all the relevant local
government offices need to process your business permit.)

b. One-Stop Business Facilitation Service (BOSS):

To put up a business, one needs only to visit one facility. The law orders local
governments to put up a “one-stop-shop” or a facility that puts zoning offices,
business permit and licensing offices, the Bureau of Fire Protection, and treasury
offices in one location. Local governments are also required to set up the one-
stop business facilitation services and use online unified business application
forms.

Hindi mo na kailangang magpabalik balik sa ibat ibang building kase nasa iisang
location na lahat ng kailangan mo.

a queuing mechanism must also be implemented in the BOSS to manage the flow of
applications.

As of December 2024, 13 LGUs in the CALABARZON region were reported as


compliant, including Baras and Antipolo. You can check their websites nalang.

Cities/Municipalities are mandated to automate their business permitting and


licensing system or establish an electronic BOSS within three years of the Act's
effectivity.

LGUs with an electronic BOSS must develop electronic versions of licenses,


clearances, permits, etc., which can be printed by businesses.

The Department of Information and Communications Technology (DICT) is tasked with


providing the software for this computerization.

The DICT, Department of Trade and Industry (DTI), and Department of the Interior and
Local Government (DILG) will provide technical assistance.

d. Issuance of Other Local Clearances:

 To reduce requirements, other local clearances (e.g., sanitary permits,


environmental and agricultural clearances) should be issued together with the
business permit.

e. Validity and Renewal of Business Permits:

 Business permits are valid for one year.


 LGUs can choose to implement a renewal process within the first month of the
year or on the anniversary date of the permit issuance.

f. Barangay Clearances and Permits:

 Barangay clearances and permits related to doing business must be applied for,
issued, and collected at the city/municipality level.
 The processing time for these clearances and permits must adhere to the Act's
prescribed timelines.
 The city/municipality will remit the corresponding share of the collections to the
respective barangays.

Violation

Jurisdiction - if someone violates the Ease of Doing Business Act, the case will be filed
with either the CSC or the Ombudsman, and the decision of where to file will depend on
other laws.

 Administrative Jurisdiction: This refers to the authority to hear and decide on


administrative cases, which are non-criminal cases dealing with violations of rules and
regulations within government agencies.

 CSC (Civil Service Commission): The CSC is the central personnel agency of the
Philippine government, responsible for administering civil service laws and rules. It has
jurisdiction over administrative cases involving government employees.

 Office of the Ombudsman: The Ombudsman is an independent office that


investigates complaints against government officials and employees, including cases of
corruption and abuse of power. It also has jurisdiction over administrative cases.

RECITTTTT

Penalty - if the violation involves collusion with fixers, the penalties within the Ease of
Doing Business Act will be those of a second offense, this is to recognize the severity of
corruption. And kung mapatunayan na for example, bribery ung nangyari, other criminal
laws (like the Revised Penal Code or anti-graft laws) also apply, so the offender can be
prosecuted under those laws in addition to the Ease of Doing Business Act.

Immunity

This means that if someone is accused of violating the Act, but they come forward and
provide information or testify in the investigation, they can be freed from being
prosecuted for their own involvement in that specific case.

So ang goal nito is to encourage people with knowledge of wrongdoing to come forward
and help uncover corruption and inefficiency.
The decision to grant immunity is up to the investigating body (e.g., the Ombudsman) or
the court.

The whistleblower must formally apply or petition for it.

This application must be made bago matapos ung investigation.

However, immunity can only be granted once na ma-meet ung certain conditions.

 The person's testimony must be crucial to the case. It must be highly significant
to be needed as evidence.
 Their testimony is the only or the most important way to prove the offense.
 Their testimony must be supported by other evidence.
 The person must have a clean record in terms of serious crimes involving
dishonesty or immorality. Kasi pano naman sya paniniwalaan or payagan mag
testify if may record na sya
 The person should not be the main perpetrator of the offense.

Any evidence presented to support the request for immunity becomes part of the official
investigation records.

If the request for immunity is denied, any sworn statement given by that person cannot
be used against them in court. This protects the person from self-incrimination if they
are ultimately prosecuted.
What We Know Based on Recent Reports:

 ARTA's Targets and Progress:


o By the end of 2024, 112 LGUs were reported to be fully compliant with
eBOSS.
o ARTA aimed to have an additional 200 LGUs fully compliant by the end of
2025, targeting full compliance in the National Capital Region (NCR) as a
priority for this year.
 Regional Compliance:
o Northern Mindanao: ARTA commended several LGUs in this region for
their eBOSS compliance in late 2024. Specific LGUs mentioned include
those in Misamis Oriental, Misamis Occidental, Bukidnon, Camiguin, and
the cities of Iligan, Cagayan de Oro, Malaybalay, Valencia, El Salvador,
and Gingoog.
o CALABARZON: As of December 2024, 13 LGUs in the CALABARZON
region were reported as compliant, including Batangas City, Ibaan, Taal,
Sta. Teresita (Batangas province), Antipolo City, Baras (Rizal), Carmona,
Dasmariñas, Bacoor, Imus (Cavite), Biñan, Calamba, and Santa Rosa
(Laguna).
 Specific Compliant LGUs Mentioned:
o Baras, Rizal was mentioned as being a fully compliant municipality.
o Baguio City was validated as fully compliant by June 2024.
o Several cities in Metro Manila have been cited for fast processing times,
suggesting a high level of automation, including Navotas, Valenzuela,
Marikina, Mandaluyong, Quezon City, Manila, Parañaque, Malabon,
and Pasay.
 Early Compliers: In early 2024, ARTA stated that only 19 LGUs were fully
compliant at that time, indicating significant progress throughout the year.

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