Title
Ease of Doing Business and Anti-Red Tape Act 2018
Law
Republic Act No. 11032
Decision Date
May 28, 2018
Republic Act No. 11032 aims to promote integrity, accountability, and efficient delivery of government services by amending the Anti-Red Tape Act of 2007, streamlining business processes, establishing oversight bodies, and imposing penalties for violations.

Questions (Republic Act No. 11032)

RA 11032 is titled the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018.” Its main purpose is to promote ease of doing business and efficient delivery of government services by amending the Anti-Red Tape Act of 2007 (RA 9485), reducing red tape and preventing graft/corruption.

The State shall promote integrity, accountability, proper management, honest and responsible public officials/employees, and transparency in each agency’s dealings with the public. It should adopt simplified requirements and procedures to reduce red tape and expedite both business and nonbusiness transactions.

RA 11032 applies to all government offices and agencies, including LGUs, GOCCs and other government instrumentalities, whether located in the Philippines or abroad, that provide services involving business and nonbusiness related transactions.

“Business-related transactions” are regulatory requirements for a business to engage, operate, or continue to operate, including document submission, approvals, and issuance of permits/licenses/clearances and similar authorizations. “Simple transactions” require only ministerial actions or present only inconsequential issues. “Complex transactions” necessitate evaluation/resolution of complicated issues by the officer or employee, as determined by the concerned office.

Processing time is the time consumed by an LGU or NGA from receipt of an application/request with complete requirements and payment of fees until issuance of approval/disapproval certification or similar document. The Citizen’s Charter must state times not longer than 3 working days for simple transactions and 7 working days for complex transactions.

The maximum processing time may be extended only once for the same number of days. The agency must notify the applicant in writing of the reason for extension and the final date of release before lapse of the processing time, and the applicant must sign as proof of notice.

If an agency fails to approve or disapprove within the prescribed processing time, and all required documents and fees have been submitted, the application/request is deemed approved. The acknowledgement receipt and official receipt for required fees serve as proof/with the same force and effect as the issued authorization.

If the agency fails to act on a renewal within the prescribed processing time, the authorization is automatically extended (renewal deemed extended), subject to listing/classification of simple/complex/highly technical and risk/danger activities by the Authority and coordinating agencies in the IRR.

Except during preliminary assessment and evaluation of sufficiency of requirements, no government officer/employee shall have any contact in any manner with the applicant/requesting party concerning an application/request unless strictly necessary. Once a DICT web-based software-enabled business registration system acceptable to the public is completed, all transactions shall be coursed through such system. Agencies must adopt a zero-contact policy.

Each agency/LGU must post and publish its most current updated service standards via billboards and websites/materials detailing: (1) comprehensive uniform checklist of requirements per application type; (2) procedure to obtain the service; (3) person/s responsible per step; (4) maximum time to conclude the process; (5) documents to be presented (if necessary); (6) applicable fees; and (7) procedure for filing complaints.

Agencies must accept written applications/requests and documents. The receiving officer performs preliminary assessment and informs applicants only of deficiencies limited to those in the Citizen’s Charter. It assigns a unique identification number for the application/request for all subsequent transactions. It issues an acknowledgement receipt with agency seal, responsible officer/employee name, unit/designation, and date/time of receipt.

The number of signatories in any document must be limited to a maximum of three (3) signatures representing officers directly supervising the office/agency. If the authorized signatory is on leave/official business, an alternate signatory must be designated. Electronic signatures/presigned documents may be used with adequate security and control.

BOSS is a single common site/location or single online website/portal for BPLS of an LGU to receive/process applications, receive payments, and issue approved licenses/clearances/permits/authorizations. For business permitting and licensing, it must be established within the cities/municipalities’ Negosyo Center as provided under the Go Negosyo Act (RA 10644), with a queuing mechanism.

Cities/municipalities are mandated to automate their business permitting and licensing systems or set up an electronic BOSS within three (3) years from effectivity of RA 11032. LGUs with electronic BOSS must develop electronic versions of permits/licenses with the same level of authority.

Issuance of FSEC and FSIC cannot exceed seven (7) working days. For new business permit applications, FSIC issued during occupancy permit stage may be sufficient. For renewal, BFP must present FSIC within three (3) working days; otherwise business entity is deemed to have a temporary valid FSIC for automatic renewal. Fire incident certification for fire insurance must be issued within twenty (20) working days, extendable once for another twenty (20) working days.

RA 11032 creates the Anti-Red Tape Authority within six (6) months from effectivity, attached to the Office of the President. It implements/oversees anti-red tape/ease of doing business policy reforms, monitors agency compliance, investigates violations, assists complainants, and recommends policy/process improvements.

RA 11032 states any person who performs or causes: refusal to accept applications with complete requirements; imposition of additional requirements not in the Citizen’s Charter; imposition of costs not reflected in the Citizen’s Charter; failure to issue written denial; failure to render service within prescribed processing time without due cause; failure/refusal to attend applicants in premises during working hours/lunch break; failure/refusal to issue official receipts; and fixing/collusion with fixers in exchange for gain.


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