Ease of Doing Business and Anti-Red Tape Act

Law Summary

Declaration of Policy

Promotes integrity, accountability, proper management of public affairs and property.
Aims to reduce red tape and expedite government services.
Encourages transparency and simplified procedures.

Coverage

Applies to all government offices, agencies, including local government units (LGUs), government-owned or controlled corporations.
Covers services related to business and nonbusiness transactions.

Definition of Terms

"Action": Written approval or disapproval by government agencies.
"Business One Stop Shop (BOSS)": Centralized site or portal for business permits and licensing.
"Business-related transactions": Regulatory requirements for business operation.
"Complex transactions": Applications involving complicated issues.
"Fixer": Person who facilitates transactions for improper advantage.
"Government service": Transactions involving applications for licenses, permits, clearances, etc.
"Highly technical application": Requires specialized knowledge.
"Nonbusiness transactions": Government transactions outside business scope.
"Officer or employee": Person responsible for processing applications.
"Processing time": Duration from application receipt to issuance of decision.
"Red tape": Ineffective regulations causing delays.
"Regulation": Legal instruments implementing government policy.
"Simple transactions": Require ministerial actions only.

Reengineering of Systems and Procedures

Government offices must regularly review and improve procedures to reduce red tape.
The Anti-Red Tape Authority coordinates review of laws and regulations to remove outdated or burdensome rules.
New regulations must undergo impact assessments.
LGUs and NGAs to begin reengineering procedures immediately.

Citizen's Charter

Agencies must publish service standards including:
- Checklist of requirements
- Procedures and persons responsible
- Maximum processing times
- Fees involved
- Complaint procedures
Information must be posted visibly and available online.

Zero-Contact Policy

Government employees shall limit contact with applicants to preliminary assessment only.
Transactions to be processed through DICT-developed web-based systems.
All agencies and LGUs must adopt this policy.

Accountability of Heads of Offices and Agencies

Heads are responsible for enforcing the law and ensuring efficient service.
All transactions are deemed authorized by highest office authority.

Accessing Government Services

Officers must accept complete applications and provide acknowledgements.
Unique identification numbers assigned per application.
Processing times not to exceed 3 days for simple, 7 days for complex, and 20 days for highly technical or dangerous activities.
Extensions allowed once, with notice and applicant's signature.
Disapproved applications must be formally notified with reasons.
Limits signatories to three per document, allows use of electronic signatures.
Agencies to develop electronic versions of official documents.
Working hours extended to serve customers before closing and during lunch.
Employees must wear identification cards.
Establish public assistance/complaints desks.

Automatic Approval or Extension of Documents

Applications not acted on within deadlines are deemed approved.
Renewals not acted on are automatically extended.
IRR to identify classifications of applications.

Streamlined Procedures for Local Business Licenses

Single unified application form consolidating requirements.
One-stop Business One Stop Shop (BOSS) established in LGUs.
LGUs must automate permit and licensing systems within three years.
Other permits (sanitary, environmental) issued together with business permit.
Business permits valid one year, with renewal options.
Barangay clearances processed via LGU with share remitted.

Fire Safety Clearances Streamlining

FSEC and FSIC issuance capped at 7 working days.
FSIC during occupancy permit stage valid for business permits.
BFP deadlines established for issuance and information sharing.
Businesses deemed to have temporary FSIC if BFP delays.
Fire safety officials penalized for selling equipment fraudulently.
BFP offices co-located with BOSS.
Online fee assessment and payment system to be developed.

Central Business Portal (CBP)

DICT responsible for establishing and maintaining CBP.
CBP serves as central system for business-related transactions.
Rules on operation and electronic signatures developed.
Interconnectivity program for government units.
Public awareness campaigns on use of CBP.

Philippine Business Databank (PBD)

DICT to establish PBD providing data on registered businesses.
Agencies and LGUs to link or submit data to PBD.
Documents submitted to one agency not required again elsewhere.

Interconnectivity Infrastructure Development

Authority and DICT to develop interconnectivity for faster processing.
Processing periods for telecommunications-related licenses set at 7 working days per issuing authority.
Automatic approvals upon failure to act within deadlines.
Homeowners association procedures clarified with deadlines.
Review and repeal of outdated licenses within 3 months after IRR approval.

Anti-Red Tape Unit in Civil Service Commission

CSC to maintain unit to handle complaints and improve HR systems in line with this Act.

Anti-Red Tape Authority

Created and attached to the Office of the President.
Powers include policy implementation, monitoring, investigation, assistance to complainants, regulatory reviews, training, technical assistance, and dissemination of regulatory information.
Authority may enlist aid of other government bodies.

Composition of the Authority

Headed by a Director General appointed by the President.
Assisted by three Deputy Directors General for legal, operations, and administration.
Authority organizational structure and staff determined in consultation with other agencies.
May deputize DTI regional personnel if no regional offices.

Ease of Doing Business and Anti-Red Tape Advisory Council

Composed of secretaries of relevant departments and private sector representatives.
Serves as policy and advisory body to the Authority.
Powers include policy formulation, recommending improvements, authorizing working groups, proposing legislation, reviewing competitiveness, and promoting transparency.
National Competitiveness Council renamed as this Advisory Council.

Report Card Survey

Regular surveys to evaluate agency compliance and performance.
Surveys collect data on hidden costs like bribes and fixer payments.
Results used for awards and incorporated in agency reports.

Violations and Persons Liable

Includes refusal to accept complete applications, additional undocumented requirements or costs, failure to notify disapproval, delay without cause, neglecting applicants before closing, failure to issue receipts, and fixing or collusion.

Penalties and Liabilities

First offense: Administrative suspension up to six months.
Second offense: Dismissal, perpetual disqualification, forfeiture of benefits, imprisonment (1 to 6 years), and fines (PHP 500,000 to 2 million).
Criminal charges apply for bribery, extortion, and malicious violations.

Civil and Criminal Liability Not Barred

Administrative liability does not prevent other civil or criminal charges.

Administrative Jurisdiction

Jurisdiction over violations vested in CSC or Ombudsman as per law.

Immunity for Witnesses

Voluntary informants or witnesses may be exempted from prosecution under specified conditions.

Transition from Manual to Software-Enabled Transactions

DICT to automate business transactions within 3 years.
Support and capacity-building provided to lower-class municipalities.

Transitory Provisions

Authority organizational structure and staffing to be determined.
Temporary secretariat from DTI Competitiveness Bureau.
Regulatory programs collected under the Authority.
Public information campaigns conducted.

Congressional Oversight Committee

Created to monitor implementation for 5 years.
Composed of members from Senate and House with relevant committee chairpersons.

Appropriations

Initial funding of PHP 300 million from Office of the President's Contingency Fund.
Ongoing costs included in annual budget.

Implementing Rules and Regulations

To be promulgated within 90 working days by Authority with other agencies.

Separability Clause

Invalidity of any provision does not affect the rest of the law.

Repealing Clause

Inconsistent laws and issuances are amended or repealed.

Effectivity

Law effective 15 days after publication in official gazette or two newspapers.