Legal basis, constitutional authority, and related laws
- Executive Order No. 18 is anchored on the President’s constitutional authority under Section 17, Article VII to control executive departments, bureaus, and offices, and to ensure faithful execution of laws.
- Executive Order No. 18 recognizes constitutional supervision over local government units under Section 4, Article X.
- Executive Order No. 18 implements the State policy under Republic Act No. 9485, as amended by Republic Act No. 11032, on ease of doing business and efficient government service delivery.
- Executive Order No. 18 is supported by the President’s authorization to restructure executive agencies and create or modify positions under RA No. 11936 (General Appropriations Act for Fiscal Year 2023).
- Executive Order No. 18 expressly integrates and cross-references provisions of RA No. 9485, including rules on processing, deemed approval, and citizen charters, including references to specific implementing rules provisions.
- Executive Order No. 18 references the priority and incentives frameworks under RA No. 11534 (CREATE), including Section 301 and Section 300.
Policy purpose and strategic-investment focus
- Executive Order No. 18 establishes Green Lanes and a single entry mechanism to expedite government transactions for Strategic Investments.
- Executive Order No. 18 promotes the Philippines as a top investment destination through a more conducive and streamlined regulatory environment.
- Executive Order No. 18 aims to reduce red tape and simplify requirements and procedures in government permitting and licensing.
- Executive Order No. 18 is aligned with the administration’s Eight-Point Socioeconomic Agenda and continuing ease-of-doing-business reforms.
Scope and coverage of affected agencies and areas
- Section 1 covers all national government agencies (NGAs) and their regional and provincial offices, and their government instrumentalities.
- Section 1 covers government-owned or -controlled corporations (GOCCs) and other government instrumentalities involved in issuing permits, licenses, certifications, or authorizations.
- Section 1 covers local government units (LGUs) involved in issuing permits, licenses, certifications, or authorizations.
- Section 1 covers the covered government entities’ issuance processes for permits and/or licenses covering Strategic Investments under Section 2.
- Section 1 includes quasi-judicial bodies that issue permits, licenses, certifications, or authorizations for Strategic Investments.
Definitions and what qualifies as Strategic Investments
- Section 2 defines Strategic investments as those aligned with the Philippine Development Plan or similar national development plan and characterized by:
- significant capital or investment to the country;
- consequential positive economic impact on the environment;
- significant contribution to the country’s balance of payments;
- complex technical processes and engineering designs; and
- improvement in the country’s infrastructure capabilities.
- Section 2 states that Strategic Investments include, among others:
- Highly Desirable Projects recommended by the Fiscal Incentives Review Board to the President for modification of incentives or crafting appropriate financial support packages under Section 301 of RA No. 11534 (CREATE).
- Foreign Direct Investments resulting from implementation of the Foreign Investment Promotion and Marketing Plan, as endorsed by the Inter-Agency Investment Promotion Coordination Committee.
- Projects or activities under the Strategic Investment Priority Plan (SIPP): local or foreign investments that are projects of national significance or highly desirable and fall under priority sectors/industries included in the SIPP formulated by the DTI-Board of Investments (DTI-BOI) and approved by the President pursuant to Section 300 of RA No. 11534.
- Section 2 recognizes that SIPP projects cover registrations under the DTI-BOI or other Investment Promotion Agencies.
Single entry and Green Lane streamlining
- Section 3 requires the DTI-BOI to establish a One-Stop-Action-Center for Strategic Investments (OSAC-SI) within six (6) months from February 23, 2023.
- Section 3 designates OSAC-SI as the single point of entry for all projects qualified as Strategic Investments.
- Section 3 tasks OSAC-SI to address investor concerns by:
- identifying and designating an investment as a Strategic Investment under Executive Order No. 18; and
- endorsing the designation to concerned NGAs, LGUs, and/or quasi-judicial bodies for processing permits and licenses and for monitoring and reporting actions taken.
- Section 3 includes aftercare or post-investment assistance as part of OSAC-SI services.
- Section 3 requires the DTI-BOI to produce within three (3) months and regularly update an investor manual/guidebook (or equivalent) containing:
- the list of government requirements for establishing Strategic Investments per sector; and
- the concerned NGAs, LGUs, or quasi-judicial bodies issuing relevant permits and licenses.
- Section 3 directs operationalization support through additional manpower and designating Account Officers for Strategic Investments, in coordination with the Department of Budget and Management.
- Section 4 requires concerned NGAs (including regional/provincial offices when applicable), LGUs, and quasi-judicial bodies to establish or designate a Green Lane within their offices to expedite and streamline permitting/licensing processes for Strategic Investments endorsed by OSAC-SI.
- Section 4 mandates Green Lanes to be integrated and non-duplicative of existing one-stop shops/action centers established under existing laws, including RA No. 11534, RA No. 11234, the Energy Virtual One-Stop Shop Act, and RA No. 11032.
- Section 4 requires each Green Lane to have a designated account officer responsible for coordinating with OSAC-SI and relevant government offices to:
- streamline and simplify business permitting/licensing processes; and
- recommend modifications/amendments to outdated, redundant procedures that add undue regulatory burden and cost, in coordination with Anti-Red Tape Authority (ARTA).
Application processing timelines and deemed approval rules
- Section 5 requires NGAs and LGUs to act on permit/license applications within the processing time in the agency or LGU Citizen’s Charter (original period), with the maximum processing periods set by Executive Order No. 18:
- three (3) working days for simple transaction;
- seven (7) working days for complex transactions; and
- twenty (20) working days for highly technical transaction,
from the date the complete application was received.
- Section 5 permits extending the maximum processing period only once for the same number of days, provided the extension is indicated in the Citizen’s Charter (extension period), pursuant to Rule VII, Section 3(b) of the Implementing Rules and Regulations of RA No. 11032.
- Section 5 requires denial of an application to be made in writing within the same period prescribed.
- Section 5 provides a deemed approval rule consistent with Section 10 of RA No. 9485, as amended: a complete application is deemed approved if the NGA or LGU fails to act, whether to approve or disapprove.
- Section 5 defines “complete” as the submission of all documentary requirements stated in the respective Citizen’s Charter plus duly paid required fees and charges.
- Section 5 recognizes that agencies may not impose additional requirements beyond those listed in Citizen’s Charters, in line with Section 21 ad 22 of RA No. 9485, as amended.
- Section 5 provides a specific exception: applications for registration and tax incentives under RA No. 11534 are not deemed approved in case of failure of the NGA or LGU to act.
How permits are issued after lapse; ARTA role
- Section 6 provides that after the lapse of the original or extension period under Section 5, the NGA or LGU must issue the requested permit/license; otherwise, the case is endorsed to DTI-BOI.
- Section 6 states that when the case is not issued by the NGA/LGU, DTI-BOI endorses the case to ARTA.
- Section 6 directs ARTA, upon receipt of the endorsement and presentation of:
- the acknowledgement receipt and/or official receipt of payment of necessary permit/license fees and other transaction costs; and
- completion of due investigation and verification that the applicant fully submitted all necessary documents and paid all required fees,
to issue a declaration of completeness and order issuance of the appurtenant approval/extension/renewal.
- Section 6 mandates that the approval/extension/renewal is issued as deemed approved pursuant to Section 10 of RA No. 9485, as amended.
- Section 6 extends the mechanism to issuance of permits/licenses by quasi-judicial bodies, consistent with Rule VIII Section 1(b) of the Implementing Rules and Regulations of RA No. 9485, as amended.
Simultaneous processing and undertaking affidavit
- Section 7 requires NGAs and LGUs receiving applications to process them with the presumption that relevant documents from other agencies have already been issued, consistent with Rule VII Section 3(c) of the Implementing Rules and Regulations of RA No. 9485, as amended.
- Section 7 requires the applicant to execute an affidavit of undertaking using the template prescribed by DTI-BOI.
- Section 7 requires the affidavit to state that the applicant has secured relevant documents from specific NGAs or LGUs and/or that it will submit the complete documentary within thirty (30) working days.
- Section 7 allows concerned NGAs and/or LGUs to coordinate with relevant offices/agencies to check or verify the status of applications for related permits/licenses to avoid delay in their own evaluation.
- Section 7 requires the NGA or LGU concerned to issue the permit/license with an annotation that it is subject to completion of requirements covered by the undertaking.
Monitoring, reporting, and technical working group
- Section 8 requires each concerned NGA, LGU, and/or quasi-judicial body to submit to DTI-BOI monthly updates on the status of applications received and acted upon involving Strategic Investments.
- Section 10 creates a Technical Working Group (TWG) to oversee implementation of Executive Order No. 18.
- Section 10 provides that the TWG is headed by DTI-BOI, with members representing:
- DTI;
- DILG;
- Department of Finance (DOF);
- National Economic and Development Authority (NEDA); and
- ARTA.
- Section 10 empowers the TWG to act on complaints and take appropriate actions, consistent with their mandates, against third-party business consultants engaged by foreign and local investors who violate RA No. 9485, as amended, or prejudice project proponents and/or the government.
- Section 10 requires direct coordination among DTI-OSAC-SI Account Officers and action officers of NGAs, LGUs, GOCCs, and other government instrumentalities to ensure successful implementation.
Electronic submission and computerization support
- Section 9 requires concerned NGAs and LGUs to enable electronic submission of applications for permits/licenses/clearances/certifications/authorizations, including payment and issuance of receipts, whenever applicable.
- Section 9 requires remaining cities and municipalities that have yet to comply with Section 11(c) of RA No. 9485, as amended, to facilitate computerization of their business permit and licensing systems.
- Section 9 directs the Department of Information and Communications Technology (DICT) to make available LGUs the software for computerization of business permit and licensing systems.
- Section 9 mandates technical assistance from DICT, DTI, and DILG in planning and implementing computerized or software-enabled business permitting and licensing systems of LGUs.
Agency support, reporting to the President, funding, sanctions
- Section 11 directs all concerned NGAs, GOCCs, instrumentalities, and LGUs to provide necessary assistance and support for successful implementation.
- Section 12 requires DTI-BOI to submit regular implementation reports on Executive Order No. 18 to the President, through the Executive Secretary.
- Section 13 provides that funding for Green Lanes comes from the existing budget of concerned agencies/offices.
- Section 13 requires inclusion of funding requirements for succeeding years in their respective budgets under the regular budget process.
- Section 14 makes failure to comply a ground for administrative or disciplinary sanctions against any erring public official or employee under existing laws and regulations, without prejudice to criminal, civil, or other related liabilities under existing laws.
Separability and repeal/consistency rules
- Section 15 provides separability: if any provision of Executive Order No. 18 is declared invalid or unconstitutional, the remaining provisions remain in full force and effect.
- Section 16 repeals, modifies, or amends orders, issuances, rules, regulations, or parts thereof that are contrary to or inconsistent with Executive Order No. 18.
- Section 16 confirms consistency with government streamlining initiatives covered by previously issued executive orders and states that Executive Order No. 18 does not supplant those initiatives.